The Liminal Luxurian – a view from the edge of luxury

My monthly musing on a life – and business – spent peering into the world of luxury.

7: ?Luxury States – Ready Player One

Understanding the fluctuating expectations of their audiences has been a pursuit of luxury businesses for decades. Who can forget how Gucci flung wide their doors to welcome in a new generation of customer when Tom Ford took over the reins and ushered in a new era of democratised, hospitable luxury in the 90s, or how Louis Vuitton shocked the haute bourgeoisie and delighted GenXers by giving Stephen Sprouse license to scrawl all over their canvas bags? Here at The Future Laboratory, our States of Luxury framework – which we first developed for American Express Centurion over fifteen years ago, updated and re-launched this month – gives such labels a unique tool to comprehend the behaviours and respond accordingly to meet luxurians’ future needs now. It charts the unchanging, constant qualities that underpin the luxury sector, as well as tracking the emotional and psychological states of consumers and the external factors driving change.?

No longer perceived as a linear, progressive or hierarchical journey through luxury from status purchasing to obsessional collecting, but rather a series of Venn-like, interlocking pools into which luxury consumers dip their toes, brands can occupy or draw from more than one of these states at once, especially as future consumers become ever-more elastic – and luxury organisations are expected to mould their strategies with them. The States of Luxury framework provides an invaluable tool to help guide and inspire the ways in which to stretch and flex to deliver multi-faceted yet authentic luxury experiences, now and in the future.

The Luxury States define people’s emotional and psychological journeys through the luxury sector, giving rise to a new set of codes defining the future language of luxury. In the face of economic turmoil, the luxury sector has proved its resilience and socioeconomic cachet, boasting double-digit growth and record-breaking valuations. But the sector cannot rest on its laurels. New consumer groups with dynamic and expansive tastes are demanding that luxury moves faster in order to resonate deeper. They are also demanding more from brands, in terms of product offer, experiences and responsible behaviour. Young affluents crave more than a transactional relationship; they want to be actively part of the brand universe – part of communities – before they even start being clients. As generations raised in the streetwear era, Generations Z and Alpha are true connoisseurs and avid archivists, with highly sophisticated tastes and interests. They have a vision of luxury that involves trading in knowledge, access, community and craft.

This attitude is prompting the sector to elevate added value via quality, craftsmanship, longevity and provenance. As a result, there is a deeper appreciation of the time and the story behind every product, appealing to a new generation of luxury consumers, now rebranded as collectors, who care about more than just owning another luxury item; it’s about owning a collectable piece of history. ‘Watchful young audiences are obsessed with heritage and culture, shifting the codes of luxury, choosing subtle status signifiers over more obvious, overt displays of wealth’ says Marta Indeka, senior foresight analyst at The Future Laboratory.

I believe what we’re now witnessing in luxury could be perceived as a diffusion similar to that seen in the art world – a cultural currency with a wide reach, available for many to enjoy but for few to own. While art enthusiasts affirm their interest by visiting museums and purchasing prints, replicas or art books, luxury fiends use social media to be part of the conversation, access luxury through secondary markets or indulge in hospitality experiences from their favourite brands. From artisanal masterpieces to digital marvels, luxury can meet its tiers of fans and clients in many pools or playgrounds – the question is, are you ready to play?

The States of Luxury report is available to purchase at The Future Laboratory website:

https://www.thefuturelaboratory.com/reports

The States of Luxury is researched and written by Lucie Greene, Marta Indeka and Fiona Harkin

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