A fresh look at the changing face of luxury

Whether you see luxury goods as a sound investment or not, there’s a fundamental shi happening in the way we define what luxury is. Yes, the idea of what is a luxury will be different for different people, one man’s trash is another man’s treasure will always ring true. But there’s no denying that, as an industry, the luxury market has always been about extravagance, exclusivity, expense.

And certainly for the past three decades this has been borne out. Whether it was the rise of the designer brand in the 90s or the craze for ‘bling’ in the early 2000s, with every celebrity dripping in gold and diamonds, the music scene littered with references to aspirational luxury items. More recently, we’ve watched as the superrich buy up yachts, multi-million dollar mansions, super cars and private jets. This opulence was a lifestyle that people just couldn’t get enough of. Until now.

There are significant trends coming through that are starting to give the idea of luxury a brand new identity. An identity that feels much more inclusive versus its previous iterations, driven by the younger generations now beginning to wield their considerable spending power. They may have been born in the 1980s and 90s, but they are too young to have been fundamentally influenced by the ‘yuppy’ years.

Indeed, earlier this year, Fortune Magazine wrote that “The luxury market is undergoing a radical transformation as it adapts to the growing spending power of Gen Z. Along with Millennials, these consumers accounted “for the entire growth of the luxury market in 2022,” according to Bain & Company, and are predicted to represent 70% of luxury spending by 2025.”

These younger consumers are challenging the long standing view of what luxury is and demanding something completely new. They are looking

Editor SKQ

beyond the traditional ideals of status, wealth, prestige and embracing a completely different set of values that are borne out of sustainability, inclusivity, transparency and even a move towards a more circular economy. Brands and businesses in the luxury markets are having to pivot. They’re having to do an about turn and almost completely reinvent themselves to satisfy this desire for a new kind of luxury.

But this shi may not actually be as challenging as some might expect. More o en than not, luxury items provide superior quality and greater cra manship. This makes them the ideal item for the second-hand market and for passing on as heirlooms, feeding perfectly into these new ideals.

Luxe Digital magazine highlighted this approach as one of its seven top trends for the luxury market for this year, stating that “the very essence (timelessness, enduring desirability, durability, and in some cases, scarcity) of luxury goods makes it particularly well-suited for the resale market….Increasingly, affluent consumers are seeing resale as a way to shop sustainably (and brands as a way to boost their sustainability credentials).”

Why buy new, when you can buy a vintage designer piece, a luxury item that allows you to also satisfy your ethical values? Rolex, for example, recently launched a certified pre-owned program, which achieves exactly this without the brand having to turn its back on its own values of quality and heritage.

In travel too, according to Luxury Travel Magazine’s key trends for 2023, sustainability is a top priority. “Travellers are increasingly committed to purposeful travel, and not just in a strictly ecological sense. They’re also seeking out companies and experiences that focus on “benefitting local people and the economy” and “preserving natural and cultural heritage.”

And while the trend towards so called ‘quiet luxury’ in the fashion world, defined by Vogue as ‘essentially a synonym for elevated basics’ has been dismissed by some as simply a form of private members club for the rich and famous. A kind of ‘if you know, you know’ situation. The reality is that it too is the opposite of overt opulence and of old school ‘bling’. It also allows so many more to get involved. You may not want to (or be able to) spend hundreds of pounds on a plain white designer T-shirt, but you could buy a beautiful so white organic cotton T-shirt that feels luxurious to you, allowing you to be a part of the movement.

There is no denying that the world of luxury is changing, that we are turning our backs on the traditional ideals of what luxury means and embracing a new order. One that is less about an ostentatious attempt to set ourselves apart from others and more about inclusivity and deep-felt, collective sense of responsibility and of doing better. Exciting times lie ahead as we settle into this new way of experiencing true luxury.