The document outlines 10 key trends shaping the future of luxury: 1) Developing brand ecosystems around products, services, and experiences. 2) Prioritizing "money-can't-buy" experiences over possessions. 3) Emphasizing health, wellness, and well-being. 4) Viewing time as the ultimate luxury. 5) Choosing between hyper-specialization or diversification. 6) Providing highly personalized experiences through data analytics. 7) Growth of the second-hand luxury market and new business models. 8) Transformation and multiplication of distribution formats. 9) Luxury brands leading sustainability efforts. 10) Balancing inclusive creativity with exclusivity.

1. THE FUTURE
of Luxury

2. 10 key TRENDS
shaping the FUTURE
of LUXURY

3. #1 Developing brand ecosystems
Revolving around products, services and experiences
Luxury customers are driven more and more by the desire for experiences,
engagement and connections – not only with loved ones but also with like-
minded people. This shift is leading luxury brands to transform into brand
ecosystems that provide equally experiences beyond products and services.
As a result, related communities have been formed, embracing the “raison
d'être” and the promise of the brand.
Louis Vuitton, for example, has the potential to build an ecosystem revolving around its very
essence - the art of travel, which will include in addition to its fashion and leather goods: luxury
cruises, high-end travel agencies or a future partnership with Orient Express. Few days ago
Louis Vuitton announced its first café and restaurant - called Le Café V located on the top floor
of LV’s new four-level boutique in Osaka
1 BCG (2018)
2 Dialogue (2017)
58% of Millennial
consumers say they
would be likely to spend
more money on a brand if
they are part of brand
communities2

4. #2 “Money-can’t-buy” experiences
Experiential luxury vs. personal luxury
The value of experiential luxury segment (€585B) has already overpassed
personal luxury (€327B) in 2017.1 It has become paramount in all solid
brand ecosystems. Instead of solely buying and owning luxury items,
affluent customers now have a growing desire to indulge in
‘luxury experiences’, seeking emotions rather than possessions.
Almost 50% of all
consumers say they are
buying fewer products
and purchasing more
experiences4
Marriott has launched The Moments, a reward program that offers frequent guests
once-in-a-lifetime experiences, ranging from exclusive concerts and festivals,
VIP access to sports events to meet and greets with celebrities.
Experiential luxury
will account for nearly
of the total luxury market
by 20223
⅔
1 2 3 4 BCG: Luxury Market Trends – Digital & Experiential Luxury (2018)
Experiential luxury
is valued at
€585B
in 20172

5. #3 The luxury of well-being
Health and wellness beyond materialism
Luxury consumption is moving beyond material objects as consumers
are placing more value on health and wellness in almost every facet of
life (e.g. health, fitness, travel). Facing strong desire for health and
wellness, luxury brands have to carefully rethink what and how they
deliver to customers.
$4.2T
global wellness market in
2017, +6.4% annually,
nearly twice as fast as
global economic growth 1
78% of affluent
travelers want to
incorporate wellness
into their travels2
1 Global Wellness Institute: Global Wellness Economy Monitor (2018)
2 Skift: U.S. Affluent Traveler Survey (2019)
In addition to perfumes, skincare and cosmetics, Guerlain offers customers a unique
experience of relaxation and well-being through its spas and beauty institutes.

6. #4 Time, the ultimate luxury
The absolute measure of luxury
If time is the measure of all things, it will become the measure of luxury
of the future. On the contrary of a "everything, right now” society, luxury
gives time to time. The luxury of tomorrow is being able to spend
friends.
But time is not just simple stories, it is also history that is written over
generations. Owning a piece of history, buying a property that has
once belonged to a historical figure or is part of a particular heritage is
a new trend of luxury. And when the ultrarich cannot buy
what they dream of, they create it.
Liu Chonghua, a Chinese millionaire, built six European-style castles in China,
one of which resembles Britain’s Windsor Castle.

7. #5 Diversification or
hyper-specialization
Choose your way to build uniqueness
To exist in the future of luxury, two approaches are possible:
hyper-specialization around a product or service, or diversification to build
a brand ecosystem. A brand can choose to constantly improve its expertise
in a particular domain and master specialized knowledge to differentiate
itself from the crowd. On the other hand, a brand can enrich its universe
through coherent diversifications, increasing the fields of action and the
uniqueness of the brand.
Tesla specializes in innovative driving technologies and shapes the future of driving
with electric vehicles and autonomous driving capabilities.

8. #6 Hyper-personalization
A new way to regain exclusivity
Luxury brands can no longer depend only on one-size-fits-all approach as
luxury clients increasingly demand personalized experiences. Hence,
hyper-personalization, with the help of data analytics, has become an
integral part of creating one-of-a-kind customer experiences to regain
exclusivity and generate customer loyalty in the long run.
1 Deloitte: Global Power of Luxury Goods (2017)
2 Deloitte: Bling It On – What Makes a Millennial Spend More? (2017)
Fred has launched L’Atelier Fred, a device that allows clients to
customize their bracelets with over 100,000 combinations possible.
45% of luxury
consumers are asking for
personalized products and
services1
>79% of millennials in the
US, the UK, Italy and China
would probably pay premium for
personalized luxury items2

9. #7 The rise of the 2nd-hand market
The end of ownership dictating new business models
A move away from permanent ownership, greater affordability and broader
accessibility to rare items have immensely driven the growth of the luxury
2nd-hand market. These factors also spark the emergence of new business
models such as pre-owned, refurbished, repair and rental businesses upon
subscription.
€22B
luxury 2nd-hand market in
2018, accounting for 7%
of total personal luxury
market1
60% of True-Luxury
consumers are interested
in purchasing pre-owned
luxury items2
1 2 3 BCG-Altagamma: True-Luxury Global Consumer Insight (2019)
Founded in 2009, Rent the Runway allows customers to rent high-end clothing and
accessories. The company is now valued at $1B within 10 years.
34%of True-Luxury
consumers sell luxury
items, to primarily empty
wardrobe and finance new
luxury purchases3

10. #8 Multiplication of
distribution formats
The transformation of luxury retail
The distribution of luxury goods has gone far beyond physical stores.
With the development of the digital channel in luxury markets, customers
can now can enjoy convenient access to a wide range of luxury products.
Meanwhile, physical store concepts will continue to evolve to offer more
dramatization, services and experiences.
Nearly 20%of sales of
personal luxury goods will be
online by 20252
Gucci Wooster, Gucci’s SoHo flagship, immerses customers in Gucci’s creative world.
The store features a projection room with Muzik headphones and innovative 3D video
screens, seeking to give customers an immersive brand experience.
Online luxury shopping
grew 22% to nearly
€27B in 20181
1 Bain & Company: Luxury Goods Worldwide Market Study (FW 2018)
2 McKinsey: The Age of Digital Darwinism (2018)

11. #9 Luxury leading sustainability
Becoming the standard-bearer of sustainable development
More than ever, consumers are becoming eco-conscious and seeking brands
that promote sustainable practices. Luxury brands and related groups will lead
the way towards a greener future as various initiatives can been seen in a
vast number of announcements of luxury brands.
Kering CEO François-Henri Pinault announces plan to unite fashion and
luxury leaders on sustainability during Copenhagen Fashion Summit in 2019.
30% of Millennials
always made sure a luxury
item is sustainable or from
an ethical brand before
purchasing1
59% of
True-Luxury consumers’
purchasing behaviors are
influenced by
sustainability2
1 Statista: Importance of sustainability and ethical brands to Millennials when
purchasing high-end fashion or luxury items worldwide (2017)
2 BCG-Altagamma: True-Luxury Global Consumer Insight (2019)

12. #10 Inclusive yet exclusive
The new strategy for luxury brands
The advent of streetwear and the success of brands like Off-white
have shattered the codes of luxury reserved for some Happy Few.
The future of luxury will therefore have to deal with the classic notion of
concept of inclusivity.
Exclusivity comes in the form of product rarity and limited editions
while inclusivity can be achieved through global distribution and the
digitalization of distribution and communication channels.
Louis Vuitton X Supreme collaboration represents inclusive creativity by
bringing streetwear into luxury fashion while maintaining exclusivity through
limited production.

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