A set of multi-faceted values is revolutionizing and evolving the luxury sector. Refining the perception of luxury to become sans its typical markers of being elusive, aspirational, and exclusive. It’s becoming more integrated with hyper-personalization, radical collaborations, and technology integration. Let’s take a quick peek into the multi-faceted values.
Values influencing the transformation of the luxury sector
1. Sustainable luxury
Rising consumer awareness has encouraged demand for more sustainable options. Giving rise to the vintage and second-hand/pre-loved luxury fashion market. Global luxury fashion houses like Givenchy and Chanel are embracing ‘Repairs’ to embrace their consumers’ needs and encourage the mending of clothes, accessories, and handbags.
2. Inclusive luxury
Advocacy and lobbying for transparency in supply chains have pushed the luxury sector to become more transparent, inclusive, and diverse. Marriott International’s ‘Room for All’ initiative is a pragmatic approach to welcoming business travellers with disabilities.
3. Tech-driven/digital luxury
Tech is a new parameter defining luxury experiences. Prioritizing hyper-personalization for their e-commerce and embracing technology collaboration with leading IT, gaming, and technology brands. Luxury aviation, tourism, wellness, and hospitality sectors are known to embrace this coupled with customizations.
4. Global markets
Yahoo Finance has shared via an article that ‘India is positioned to emerge as the fastest-growing market in the coming years, with an impressive CAGR of 10.2% from 2022 to 2027, driven by its rising affluence.’ Another key growing market in the luxury segment is China. Asia-Pacific and globally two largest populated countries (China and India) are projected to become prime luxury hotspots with booming luxury customer markets.
Luxury Market Growth Across Industries
Our contemporary luxury landscape has evolved from luxury ateliers to luxury travel, royal palace resorts, luxe spas, and wellness centres. However, the multi-faceted values have stayed intact as a common denominator. Post-pandemic trends in luxury have seen a rise in luxury tourism, wellness, hospitality, and technology integration. Along with the common values, these sectors come with opportunities for brands to offer:
> Hyper-personalization and customization
> Carefully weave in distinct cultural connotations in services and products
> Immersive and experiential luxury
> Indulgent reinvention of a range of services
Let’s understand the growth and career opportunities in:
1. Luxury wellness Industry
The wellness sector has seen a 180-degree transformation to become a prime indulgence for luxury consumers. As their desire for health and wellness-based services is on the rise, the sector has embraced the values transforming the luxury sector.
Bringing focus to organic beauty and food products to embracing curated fitness studios and mindful yoga retreats. The concept of wellness encompasses complete mind, body, and soul wellness. It’s a sector growing exponentially post-pandemic that indulges consumers in luxury yoga retreats, spas, mindfulness programs, and health-related services.
Luxury wellness tourism is a prime Wellness sector experiencing exponential growth. As per Mordor Intelligence, ‘The India Wellness Tourism Market size is expected to reach $ 18.25 billion in 2023 and grow at a CAGR of 6.45% to reach $ 24.94 billion by 2028.’ Indicating a prime opportunity for Indian luxe wellness brands to embrace and grow their market share. Giving rise to several career opportunities.
Career Opportunities for the Luxury Wellness Market
a. Wellness retreat manager
b. Guest/ customer relations manager
c. Luxury wellness event manager/ event curator
d. Communication professionals
e. Sales and Business Development professionals
f. Spa manager
g. Event planners and coordinator
2. Luxury Tourism Industry
When travel becomes extravagant, exclusive, and personalized, it falls under the luxury tourism category. Another high-growth industry booming with opportunities. Technavio reports that ‘The luxury travel market size is estimated to grow at a CAGR of 7.31% between 2023 and 2028. The market size is forecast to increase by $578.72 billion.’ It also suggests that its growth factors include an increase in family income, technology advancements, and the rise of digital connectivity.
Luxury travel includes chartered flights, in-flight luxury experiences, personalized travel programs, exotic location experiences, and more. Aviation giants like Emirates and Qatar Airways are known for their uber-luxe inflight experience offering chef cuisine, exclusive bars, spa, shower facilities, and more.
Most luxury experiential market segments are intertwined in nature. Where one becomes part of another to offer highly personalized and opulent experiences. Luxury tourism, for instance, has many facets to it like Wellness Tourism, Medical Tourism, Sports Tourism, etc. Each offers unique prospects to its luxury consumers and gives rise to multiple career opportunities.
Career Opportunities for Luxury in Tourism
a. Experiential travel program curator
b. Luxury travel manager
c. Trip/ travel coordinator
d. Luxury travel agent and travel agency entrepreneur
e. Travel-focused marketing and communication expert
f. Digital Marketing and Data Analytics manager, etc.
g. Customer relations manager
h. Luxury PR specialists
3. Luxury in Hospitality Industry
Mordor Intelligence reports that ‘The Luxury Hotel Market size is estimated at $99.88 billion in 2023, and is expected to reach $146.05 billion by 2028, growing at a CAGR of 7.90% during the forecast period (2023-2028).’
Defining characteristics of luxurious hospitality are:
– Sophisticated, classic and ostentatious décor,
– Refined, seamless, and exceptional service,
– Leading luxury consumers to a cultural and emotional connection,
– Embedding experiential luxury offerings, and
– Integrating digital connectivity with ease.
The consistent growth trajectory in the luxury hospitality sector has come from its many growing avenues. Heritage hotels, royal palaces turned into uber-luxury hotels, and luxury boutique resorts are in high demand for their curated, tailored, and private experiences. The sector has growing roots in wellness hospitality and sustainable luxury stays (like private organic farm experiences).
Career Opportunities for Luxury in Hospitality
a. Customer relations manager
b. Property/ facility managers
c. Concierge lead
d. Operations Manager
e. Services manager
f. Event planner
g. Hospitality Marketing
4. Digital Luxury and Technology Industry Shaping New Luxury Avenues
Forbes in December 2022 published an article on ‘How digital is making luxury (relatively) more democratic’. Emphasizing democracy as luxury brands embrace co-creation with customers and influencers. And how digital connectivity itself shapes the value of luxury brands toward personalization, inclusivity, and diversity. Here are some luxury brands and their adoption of technology:
> Louis Vuitton embraces AI by launching its high-tech embedded sneakers. Incorporating flexible OLED screen displaying graphics.
> Gucci showcased its vintage Gucci apparel via a first-of-its-kind Metaverse store outlet called Gucci Vault. Offering exclusive access to visitors to its long chain of history and heritage.
> Dolce & Gabbana embraced Phygital NFTs. A concept where NFTs were linked to brands’ physical items.
Their collection Collezione Genesi was auctioned off for $5.7 million giving the world a preview of the potential of technology and luxury market integration.
Career Opportunities in Luxury and Fashion Experience Powered by Technology
a. Partnerships manager, Fashion and Luxury
b. Brands like Snapchat have several departments focused on building partnerships. One of the focused departments is fashion and luxury partnerships. Indicating how technology and IT brands are actively seeking to hire fashion and luxury experts to build strategic business partnerships for lasting impact.
c. Digital and e-commerce managers
d. Luxury brand experience managers
e. Digital marketing managers
f. Business development managers
g. Social media managers
h. Digital merchandiser
i. Brand strategist, and more.
To conclude, the luxury sector owns a critical market share in a diverse range of industries. Including services, jewellery, FMCG, F&B amongst others. Offering a wide spectrum of career roles with growth opportunities. It seeks individuals with a flair for luxury management, who are technology-driven and have a penchant for success.
If you are seeking to build a successful career in the luxury sector and are keen to join a luxury management programme, MBA ESG, India offers a competitive programme in MBA Luxury and Fashion Management.
Reach us here to learn more about the global MBA programme at ESG, India.
