As the post-pandemic luxury market continues to grow and leaders of the sector are seeking various ways to stand out and to stay authentic with their new strategies. A fine example of this is the Dior Goes to India Fall 2023 showcase at Mumbai that celebrated the extraordinary craftsmanship of Indian artists and put them on the ramp to reflect how the global luxury house wants to embrace the Indian culture into their brand. This itself reflects the key trends that will shape the sector will include inclusivity and hyper localization as one of the key elements.
It is a wave of consciousness and consumer drives that luxury houses are also exploring with an intent to do good for the planet and its people. This involves the sector working with strategies of partnerships, collaborative efforts and redefining themselves as niche enablers of various cultures and social change. As the sector continues to evolve, here are elements and trends that are shaping the luxury sector in 2023 and beyond:
Pre-owned luxury/ Second hand luxury
The concept of in-house resale is becoming increasingly prominent amongst affluent customers as it is a way to encourage sustainable practices – from both the brand and the consumers. Responsible consumption and production 101 right here practiced in real time.
Example – Luxury brands are seemingly embracing this resale concept – including brands like Rolex where they have Rolex’s Certified Pre-Owned programs.
NFTs, pay now redeem later investments
Technology plays a crucial role to help define the new trends in this sector. Luxury brands are leveraging blockchain to experiment with virtual ownership and authentication of their products. NFTs now are put forth to store away actual goods which can be later redeemed by the owners for the physical goods at any point in the future.
Metaverse, the virtual goods side
It’s a digital world filled with phygital identities and virtual influencers to thrive on online connections, gaming, virtual events and more. With more growth in this side of the digital world, the luxury sector has the potential to build virtual products, accessories and limited editions gears and collectables for gamification, virtual avatars and more.
E-commerce for luxury brands is a crucial trend to capitalize on the digital shift. Making a conscious shift towards building an inclusive e-commerce outlet is of utmost importance to stay ahead in the game. This will include brands here offering their key products and services and expanding to the virtual side of the services and products, building new virtual experiences and personalized customer services.
Also read: Rise of AI – Advantages, use cases and risks
Another aspect to their e-commerce efforts is working with global and glocal influencers to build niche events and strategies that help the brands to stay in touch with their customers across various social media platforms.
To make a conscious shift towards a sustainable future, the luxury brands are investing in practices like eco-friendly materials, reducing waste percentage and partnering with NGO’s to work towards the global sustainability goals and promote the concept. With increasing consumer awareness globally, luxury and sustainability are becoming a strong trend to prioritize and attract more customers.
Being social- conscious is becoming a core area of sustainability with luxury sector now making it a mainstream trend for major luxury fashion houses and luxury bespoke hospitality places across the globe.
Hyper localizations and niche markets
Each country has their own culture and diversity, embracing this is becoming a priority for luxury brands across various sectors. Dior Goes to India being a fine example of how Dior seeked to gain more benefits by celebrating India’s heritage of craftsmanship. This trend not only ensures minority communities have a seat at the table or are engaged with but also that consumers see the brands in an inclusive light and are eager to shop from them.
Experience and engagement
A shift post pandemic has been on building experiences that engage and immerse the consumers and build more meaningful engagement. These leads to building emotional and nostalgic connections for the users and consumers. Celine’s virtual experience of summer 2023 collection with exclusive and personalized content can be used as an example here. The shift towards an ‘experience economy’ has been a more fruitful revenue trend for the luxury sector. This trend is indeed a key differentiator today in the hospitality industry where brands offering more unique and personalized or customizable experiences are thriving.
Other few trends rising are a deeper focus on the ultra-luxury consumers segment, a deeper investment in research for how luxury brands can invest in building these exclusive relationships with a certain sect of consumers who are their top tier clients.
An industry evolving at a fast pace, the luxury brands must seek to embrace the online industry and make that their prime-time space for customers focused interactions and post sales services. Making the best use of technology is another key element shaping various sub trends like the use of Metaverse, AR/VR adaptation, NFT’s and making space to offer sustainability concepts a seat at the table is becoming a core strategy.
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