The luxury business is one of the most permeable to crisis and yet due to the nature of the incredible talent and creativity it employs, it is also one of the most resilient. Innovation, technology and adaptability enabled main luxury players to bounce back to pre-pandemic sales level in 2021. Embracing values such as sustainability, inclusivity, and customer-centricity are morphing the concept of luxury into something different and exciting. The pandemic acted like an accelerator, fuelling change and shaping the landscape that luxury players will have to navigate in the years to come. Looking into the future, these are the key global trends for the luxury business and how they reflect across sectors. Innovation and technology Technology significantly touches all aspects of contemporary luxury across sectors, be it watches, cars, fashion, beauty or hospitality. During the pandemic, technology proved to be the lifeline for many companies, enabling them to keep their operations going. Tech also fuels a whole new level of customer engagement. Companies have successfully explored gaming and VR to cater to their digital-native audiences. Balenciaga has turned its Fall 2021 Collection, Afterworld: The Age of Tomorrow, into a volumetric, interactive journey. Gucci and The North Face have teamed up with Pokemon-Go to offer a special collection of avatars. Burberry’s S/S 2021 fashion show has been live-streamed on gaming platform Twitch. In the latest Louis Vuitton videogame, Louis: The Game, players can collect 30 NFTs. Increasingly so from now on, luxury companies will need to integrate the creative possibilities of technology with data-based customer intelligence. Social Leadership Recent unrest around environmental and social issues have called for a clear and active stance. Luxury conglomerates have devised long-term plans and institutional roles to implement sustainability and promote diversity. From Chanel’s Mission 1.5° to tackle climate change to the new electric Rolls Royce, sustainability is at the forefront of long-term efforts. Initiatives such as LVMH’s “Elles VMH” or Gucci’s Changemakers Scholarship are addressing and committing to nurturing diversity and equity in the workforce. Going forward, luxury businesses will have to maintain meaningful connections with their environmental and social communities; champion ethical business practices; and catalyse responsible behaviours. Ultimately, the expectation is for luxury companies to further build their social leadership and become activists for change. The Art of Luxury Collaborative initiatives between luxury and art have proven to be the conduit to creative and cultural depth. The high-end spirit sector is discovering the arts. From the gilded origami sculpture sponsored by French cognac brand Remy Martin for the Perriand Exhibition in London to the partnership between Dom Perignon and Lady Gaga and, most recently, to whiskey brand Glenfiddich tapping into digital fashion and art, spirit brands seem to have become creative agencies in their own right. The latest Valentino’s haute couture collection is the result of the creative dialogue of 17 painters with the human body canvas. Curator Hans Ulrich Obrist joins the discussion on the role of creativity in the digital society, while Yana Peel, former director of the Serpentine Galleries, is now at the helm of Chanel’s projects with art and culture. Through their continuous engagement with artists, artisans, and creatives, Kim Jones (Dior), Jonathan Anderson (Loewe), and Virgil Abloh question the very same conceptual boundary between art and luxury: do we really have to separate luxury from art?
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