Luxury's Future? A View From Detroit

Recently, I was asked to look in to Shinola’s crystal ball and describe our view on the future of luxury.

As many experts will tell you, the global market for personal luxury goods will grow. Recent estimates from Bain suggest such sales will reach $325 billion by year end, marking a considerable recovery from the hit brands experienced in 2020 due to the pandemic. Personal luxury goods spending will post compound annual growth rates as high 9% through 2025.

While demand for luxury may not change, the perception of luxury will.?

The balance between what is thought to be a luxury vs that which is considered to be mainstream product has, in fact, already been changing as people demand more from brands. Regardless of whether they are spending $50 or $50,000, consumers want that purchase to align with their values.

?They want a product built?to last?with?a rich, genuine story behind it.?I see this philosophy?playing out at the Shinola Hotel here in Detroit, where guests don’t have to?overspend?to experience the best hospitality and environment, we believe the city has to offer. The pursuit of?luxury?often is the pursuit of authenticity more than simply the pursuit of exclusivity; the pursuit of a meaningful experience?equates to?more than just?acquiring something that costs a lot of money.?

?In a nutshell,?luxury?is far more about?quality than it is?quantity.?

?At Shinola, we are answering this question about?luxury?by building a brand that is rooted in quality and by holding a belief that the best products are those designed to be lived in, worn out, and well loved. We want to provide products that are considered heirlooms, worthy of being passed down to the most important people in our lives. This could be a beautiful watch that literally stands the test of time, or a gorgeous leather bag that will patina and grow even more beautiful over time.

?This places a big responsibility on companies making any claim to offer?luxury?goods or services. The things we love aren’t meant to be stashed in a storage locker or sent to the curb.?Luxury?brands need to be instrumental in sustaining the life of these products -- from the way they are designed to the way a company uses its scale and merchandizing expertise to help find a second or third life for a perfectly good product that is ready for another chapter of use.

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