IN most cases there will be a cheaper option available for a luxury product.
But that hasn’t stopped the luxury sector from enjoying year-on-year growth. The tradition behind luxury brands and their exclusivity and price points are factors that stoke the desire in people to want to own and possibly pass them down as heirlooms. That’s the Patek Philippe philosophy about their watches: Works of art that last the generations.
But what do future generations want? How high will luxury products be on their list of priorities?
Luxe Sells
In FY2019, the world’s top 100 luxury goods companies generated revenues of US$281 billion, a jump of $15B over the previous year, according to the Global Powers Of Luxury Goods 2020 study by Deloitte.
One would have thought that, like most non-essential businesses, the COVID pandemic would have slowed things down in this sector. Not entirely, it would seem.
Despite the pandemic’s protracted uncertainty, Rolls-Royce Motor Cars, often deemed the epitome of luxury, enjoyed its best-ever quarter at the start of 2021. Sales were up 62% over the same period last year, and the highest in its 116-year history.
What is this pandemic madness?
There seems to be a move on the part of the well-heeled to opt for more quality with better resale values when it comes to making their luxury purchases. A sustainability mindset, already evident before the pandemic, seems to have taken firmer hold as a result of the pause in normal consumption patterns caused by the pandemic.
How will the future for luxury be defined by the post-Baby Boomer generations that are already imposing their desire for a greener and more sustainable planet?
This week’s WED WEB CHAT — Is Luxe In A State Of Flux? explores the future of the luxury segment through the experiences and vision of panellists joining from different parts of the world.
Octavio Garcia is a Chicago native who loves comics and muscle cars. He studied product design in Switzerland, where he is now based, and developed a passion for horology. He started as a watch designer with Omega before joining Audemars Piguet, rising to the role of Chief Artistic Officer.
He left AP to form Gorilla Watches, a start-up that draws upon his original interests.
Raj Kaul has spent 30 years in the retail industry in Singapore, Malaysia, Indonesia, Thailand and Australia. He has watched the retail scene both on the inside and outside in that time.
Raj is based in Australia, having returned after 13 years from his 8-year stint as CEO of luxury retail in Indonesia and Thailand, and 5 years as CEO of a jointly held speciality department store in Indonesia. Raj has previously served as CEO of British India based in Malaysia and held a Board level position with FJ Benjamin Group based in Singapore.
Dr Sonja Prokopec is the ESSEC LVMH Chaired Professor — Future of Luxury and Professor of Marketing at ESSEC Business School in Singapore. She was named one of the Top 40 under 40 Business School Professors worldwide in 2015.
Her research explores consumer judgement and decision-making as well as factors that affect brand perceptions of luxury brands. She actively advises companies from the luxury, lifestyle and automotive industries regarding consumer behaviour trends, consumer research and marketing and brand management issues.
Daniel Magg spent close to 20 years marketing high-end, contemporary kitchens in Germany. In 2010 the Masters in Economics graduate moved to Southeast Asia, joining W.Atelier, to create awareness of European-style modular kitchens.
After more than a decade with W.Atelier he has established the furniture division working with luxury brands like Fritz Hansen and the design company, Cassina.
The range of luxury industries should provide a varied perspective and understanding of trends that will shape the luxury industry in the region and beyond.
Join the lunch discussion on Wednesday 7 July 2021 at 12:45pm (SGT) via this registration link: https://zurl.co/Jf8z
Watch our previous wedwebchats: https://storm-asia.com/category/wed-web-chat/
Got a topic of interest? Know a good panellist with a thought-provoking perspective on a subject? Please email editor@storm-asia.com with your details and a short summary about the person or topic.
