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LUXE TREND 57
THE FUTURE OF LUXURY P.2
Luxury is not about the things that you own. It is about something that reflects your personal values, something that shows the choices that you have made in your life.
– Marcel Wanders
For the long-delayed second part of this article, I chose to observe developments in the luxury space of the last few months. Thanks to Russia and to the presence of inflation, our news is dominated by volatility in the money markets and geopolitical crises. The retail and travel sectors were beginning to show signs of a bounce back.
Despite the Omicron surge, it looks like we are rebranding the Covid health crisis as endemic, rather than epidemic. Masks are beginning to look like last year’s hot fashion item and are being discarded. Luxury companies are showing off their impressive profits, however, supply issues prevail in some sectors and 2022 might tell a different story.
Some luxury companies are more exposed to upcoming supply-side problems than others. Notably, Hermes, posted a decline in sales growth related to production issues, especially since their product is so reliant on handcrafted methods.
The fact remains, consumer behavior has changed as much as the target of the ideal consumer has for luxury brands. The CBD-infused, stay-6ft-away-from-me, Generation Y is all about a laid-back attitude towards life, rather than toxic ambition. Undeniably, Luxury and privilege insulate, and for this group, insulated Luxury is a concept of the past. Owning a Luxury product no longer bestows class or even privilege. It no longer announces the taste of the owner; it merely acts as a display of financial ability.
Even advertising luxury goods has taken a decidedly pragmatic approach. I call it, Anti-Seduction. The aesthetics of safe organic minimalism in luxury advertising have created a pacification of sorts. Now luxury brands are eager to show off their eco-friendly manufacturing methods.
We have been eager to dream of the Future, not just reside in an uncomfortable Present so here are the newest luxury trends that appear to have lasting influence:
THE METAVERSE
The newest “Wild Frontier” for luxury brands - and other industries - and the buzzword that has the advertising world full of excitement. We are approaching a Blade Runner world as we imagine the potential of this new landscape.
We are now encouraged to dream of endless virtual worlds where our avatars will have access to alternate realities. We are poised to be living in multiple idealized versions of ourselves, owning non-physical objects, trading digital art, vacationing in algorithmic islands of exclusivity where we can interact with other bots and as-yet-unnamed creatures.
A non-physical, ever-changing world of possibilities is really a wet dream for advertisers and companies that their only investment is technological rather than physical. Gucci led the pack by buying digital land on The Sandbox and announcing a collaboration with gaming platform Roblox. Balenciaga dropped a collaboration with Fortnite. And any RPG (role-playing games) opportunities are set to be invaded by luxury megabrand counterparts.
How this affects the perception of Luxury for the consumer, only remains to be seen. I can envision a target consumer who prefers to stay home, perhaps exhibiting age-relevant body dysmorphia, being attracted to a virtual party (a METa-Ball perhaps?), from the safety of their (physical) home.
THE SWAP
Did you happen to catch the Fendi-Versace collaboration last year? Kim Jones and Silvia Venturini Fendi collaborated with Donatella Versace on a collection merging the logos and creating mashups of the iconic brands. Balenciaga and Gucci did the same for a sold-out capsule collection.
While this collaboration exchange was predicted in a past article, this is just the beginning of this new trend cross-marketing to fans of brands across the market. There will be a few exceptions - I don’t imagine Armani collaborating with Balmain, for example - but, for the most part, this can prove to be a boon for PR as well as sales. In this friendlier space, it is Collaboration rather than Competition that might prove to be the enduring trend.
BILLIONAIRES IN SPACE ORBIT
Calling all space-cadets: Virgin Galactic is having already having a great year! Between invading the Metaverse and visiting the upper atmosphere it is evident luxury is trying to escape the planet. We’ve seen it all and done it all so our ennui can now be coaxed into being cured by other-worldly experiences. From that vantage point, we can possibly see fields of green, red roses too…
Space tourism will definitely affect the future of travel, never mind the ecological ramifications of rocket fuel. We are in a quest to expand our vision, internal and otherwise, and the bragging rights of spending a few moments in orbit far outweigh any qualms we might have about saving the environment.
MICROSERVICES
On the other end of the universe is the concept of Microservices. Small touchpoints with a big impact. Microservices expand brand reach in the micro but also in the macro level when part of a bigger strategy. Without having to reach for the stars, luxury brands leverage their customer contacts.
While founded to exist in the domain of e-commerce architecture, microservices can be developed, scaled, and deployed in the physical world and they are ideally suited for luxury brands.
The Five Principles of Microservices
• A microservice has a single concern.
• A microservice is discrete.
• A microservice is transportable.
• A microservice carries its own data.
• A microservice is ephemeral.
These principles can become guidelines for brands to provide the next generation of Luxury. We already see signs of this strategy in Luxury Hospitality, Horology, and Automotive.
We are at the threshold of exciting albeit scary times. Are you a brand manager for a Luxury Brand? How are you positioning your brand for the Future of Luxury?