Luxury is not just about high prices but ability to create desire
COVID-19 notwithstanding, the luxury sector is set to witness a surge this decade with some fundamental shifts. This shift will see brands that are committed to exciting the customers flourish. A global panel of experts talks about the trends around reset of the luxury business, new directions in digital fashion, NFT, metaverse and much more.
What we have observed is that the luxury market in Q1, 2021 has already bounced back to the same level of Q1, 2019. So basically, it has gone back to pre-Covid levels. This gives us a very good signal on customer behaviour. But there are important shifts in this market in the sense that it has evolved quite a bit in the last 24 months in terms of generations with Gen Z becoming a true target. For luxury brands globally and specifically in Asia and US, the shift to online channels has doubled. In China, the key message is that luxury brands have been able to uplift the game of customer experience which was not obvious just 24 months ago. So we see this market very alive, and we see this customer very willing to buy these products. Of course, there are some categories and some geographies that by nature are slower to recover but in general we believe that for sure by first quarter or at least by first half of 2022 the market will be back to pre-Covid levels.
In many ways 2020 has reset the world’s luxury market. The point has already been made but luxury is often one of the first industries to take a hit in times of crisis and that said it’s also one of the most resilient sectors to come out of it. I believe there is an inflection point with digital luxury meeting physical bespoke experiences and this again is going to be a very interesting phenomenon going forward where more and more customers would want lifestyle experiences.
Published on: 01/09/2021
DISCLAIMER: All views and opinions expressed in this column are solely of the interviewee, and they do not reflect in any way the opinion of Fibre2Fashion.com.
This interview was first published in the Aug 2021 edition of the print magazine