FINN LUXE, FINN Partners’ Global Intelligence and Mintel have released their Luxury Playbook, a report offering insights into the challenges and opportunities across the luxury sector right now. Read on for key takeaways for brands aiming to adapt and thrive in the evolving market landscape, and click here to download the full report.
The luxury segment has traditionally distinguished itself through a singular focus on excellence in quality, design and service. In recent years, consumers have come to resonate increasingly with another type of excellence: cultural creativity. Driven by growing purchasing power across diverse markets and the proliferation of touch points, the appetite for creative excellence presents new opportunities and challenges in branding, storytelling and marketing. The Luxury Playbook provides an overview of these opportunities and challenges for the year to come, with a view to help brands build resilience in the face of growing market headwinds.
Gen Z is gaining influence
Brands increasingly need to cater to Gen Z’s appetite for meaningful experiences and authentic values.
Online takes center stage
By 2030, online and monobrand channels will account for two-thirds of sales.
Chinese consumption soars
By 2030, Chinese consumers are expected to account for 38-40% of the global consumer market.
Pushing Boundaries in Product, Experiences & Values
From fashion to travel, beauty to watches, luxury brands are facing widely different challenges as they grow, enter new markets, or try to adjust to growing economic uncertainties in 2024. Yet they all face a common and growing consumer desire to be surprised, entertained, and to feel good about luxury consumption. This is why we talk of “Creative Resilience”: creativity is no longer an optional (and risky) differentiator, but rather an essential component of luxury brands’ resilience and ability to grow. In this section, we break down key trends and case studies of creative resilience across products, experiences and values.
Product: Diversify your lifestyle relevance
From pop culture IP merchandising deals to brand cross-over collections, customizable lines or brand-new product categories, product diversification increases the overall lifestyle value of luxury brands and can help widen price points—from entry level accessories to ultra luxury, one-of-a-kind products.
Experiences: Balance commerce with culture
While excellent in-store service experience remains paramount, brands increasingly must also be masters of entertainment. And when it comes to rolling out new experiences, originality is the name of the game to inspire new fans while delighting loyal customers.
Values: Do Good Internally, be Aspirational Externally
As champions of quality, design, and storytelling, luxury brands are expected to lead the charge on sustainability and social responsibility. While the most impactful work happens behind the scenes, sharing your values and initiatives with consumers is one more way in which you can build emotional resonance.
Author: Gregory Cole, Senior Partner
Lead Analyst: Joy Livera, Senior Researcher
