The Comfort Of Luxury

I asked a friend what luxury means to her, and she said, luxury was being able to sit on her Eames lounge chair, wearing silk pajamas, sipping a glass of Merlot, watching Friends. We seem to be appreciating the simple pleasures of life more, albeit in style. 

Since last year, the psychological impact of wars and devastation owing to climate change have caused considerable anxiety especially, since we have just come through the pandemic. As a result, many of us have decided to live life to its fullest, after all, you only live once (YOLO). What does this mean for business? The YOLO effect is driving consumers to spend more, and for sectors such as luxury it is good news. Brands are adapting to and tweaking their offerings to cash in on the YOLO effect, which is characterised by instant gratification, personalisation and convenience. 

Convenience is a word you will hear time and again when you talk of luxury in the present day. It has become central to our experience and consumption of luxury, especially with us becoming digital natives. You have probably noticed another shift ‒ our homes have become important to us. We are conscious of the spaces we inhabit. And this is true even if we have had to give up hybrid working and go back into office. What does this mean for the luxury sector? Simply that luxury interior design, home décor and architecture are seeing consumers becoming more vocal about their wants and needs. 

“Luxury travellers expect a tailor-made trip and intuitive service, anticipating their needs. Experiences are in demand and need to be bespoke and exclusive. At Ceylon Tea Trails, we have not had menus since inception in 2005. The chef has a conversation with each guest and curates the menu to individual preferences. Technology makes it easy to understand preferences prior to arrival and tailor a stay, increasing guest satisfaction and spend", said Malik J Fernando, Managing Director, Resplendent Ceylon, Sri Lanka.

In the travel and hospitality space, customers are preferring travel for wellness. Luxury spas and wellness retreats are much in demand with their bespoke offerings helping consumers unplug from their hectic lives even if it is just for a weekend.  In the beauty segment we are noticing the rise of organic and natural products being embraced by consumers. This is not just because of the growing awareness of environmental concerns but also because of an increased focus on wellness. “The organic and natural beauty sector has flourished, taking centre stage in recent times. As a brand, we have embraced this shift in consumer preferences. Heightened awareness has made consumers increasingly discerning about the ingredients they choose for their skin. Offering these products not only aligns with our brand ethos but also captivates potential clients who are seeking solutions tailored to their specific needs," says, Paul Lee, Managing Director & Country Head, AmorePacific. 

Given our awareness about the environment, sustainability has become central to the luxury business too. There is a move towards the use of sustainable materials, techniques, and overhauling of processes to align with sustainable goals across organisations small and large. In the fashion segment, we see a focus on circular economy practices. The circular economy is a model of consumption and production that focuses on reducing waste by reusing and recycling existing materials and products for as long as possible. It is a move away from the traditional take-make-consume, and then waste model.

“Preloved fashion is now a core component of the fashion industry. At Saritoria, we have seen our number of users grow 4x since the start of the year showing the normalisation of shopping second hand. We have had some customers repeat shop with us more than 30 times in the two years since our launch as the platform allows customers to constantly trade in and cash in on their wardrobe to fund new purchases through our circular community. We are excited about our upcoming collaboration with one of India’s oldest luxury couture houses – the acknowledgement and endorsement from the first- hand industry is a huge step forward to creating a mind shift towards conscious consumption,” says, Shehlina Soomro, Founder of Saritoria. 

Actor Sonam Kapoor, known for her superb sense of aesthetics, says she grew up appreciating the value of handmade items and this is seen especially across the Indian fashion sector now. Our fashion industry is integrating craft in their work to a great extent. “For designers today, collaborating with the traditional crafts sectors is a step towards helping sustain crafts communities and keeping Indian crafts traditions alive,” says Prof. Pradyumna Vyas, former director of the National Institute of Design (NID) and board member of the World Design Organisation (WDO)

*What do the experts say? 

According to a Euromonitor insights, the end of 2022 saw global luxury sales reach pre-pandemic levels with the US majorly driving the recovery. The report estimates  sales growth of four per cent, to reach a value of $ 1.2 trillion in 2023. Luxury experiences, hospitality and lifestyle are pegged as the drivers of future growth. What is more, leather goods, timepieces and jewelry will emerge as asset classes and income generation through rental of luxury items will be a viable trend. 

A Bain & Company-Altagamma Luxury study highlights that the personal luxury goods segment saw a healthy growth last year, and is set to do well this year too. Interestingly, Gen Z and the millennials were responsible for major market growth last year, and going forward spending by Gen Alpha will increase. About the Indian luxury market, The study suggests that the Indian luxury market could be 3.5 times its present size by 2030. 

In 2023, the study expects Chinese consumers to account for approximately 40 per cent of global luxury purchases. China would take the lead over the Americas and Europe as a luxury market. Online purchases are expected to account for 32-34 per cent share of the luxury goods market.