STYLE AND SUBSTANCE
Experience over acquisition. Emotion over intellect. Personalised over pricey. The nature of luxury has changed as the consumer becomes more demanding.
The very nature of luxury has changed as the consumer becomes more demanding
WHEN IT COMES TO LUXURY, we have come full circle. In the early 2000s, when luxury brands were just entering India and were excited at the prospect of hooking the new customer, the logo got a life and voice of its own. The more conspicuous a brand was, the more attractive it seemed and more apt to represent the notion of luxury. This was followed by a period where it was all about handmade, bespoke, superior craftsmanship, and local artisanal products. A further shift meant that this was followed by a phase when it was all about being discreet, losing the flashing logo to make a quiet statement. Over the last two years, we have seen a focus on experience over acquisition, as the entire meaning of luxury is being turned on its head. Through all of this, global luxury brands have gone all out to invent and reinvent themselves by snubbing the obvious in an attempt to stand out.
The volatile global economy has meant a fluctuating luxury consumer who is unsure about where he wants to spend. According to the Bain Luxury Study 2017 Spring Update carried out in collaboration with Fondazione Altagamma, the Italian luxury goods manufacturers’ industry foundation, in 2017, the luxury sector is expected to grow by 2-4 per cent to approximately `20,000 lakh crore. This is in part because of the Chinese who are back to spending money both domestically and overseas, and in part because of the growing confidence in Europe and its economy given that most luxury goods are manufactured here. The study also observes that millennials and the current generation will represent 45 per cent of the global personal luxury goods market by 2025. According to a sector-wise trend report by the Confederation of Indian Industry (CII) and research agency Kantar, the Indian luxury market is growing at a rate of 25 per cent year-on-year. North India accounts for 40 per cent of spending on luxury products and services, with the National Capital Region leading the consumption share, followed by Punjab and Haryana. Southern and western India, each account for around 25 per cent while eastern India lags with a 10 per cent market share. Fine dining, electronics, luxury travel, personal care and jewellery are the fastest growing segments of this market and are expected to grow at around 5-10 percentage points over and above the overall luxury market. Other major segments include luxury cars (expected to grow at around 18-20 per cent) and beauty products, which have grown at around 25-30 per cent over the last three years. Branded wine is a much sought after luxury product, especially in the metros.
Even as these very brands struggle to own their space, there’s a quiet trend revolution taking place while the tide continues to turn. Trends are complex since they mirror the world we live in; what’s hot today could well be passé next month. Having said that, there are some things that begin as trends but endure to carve out a permanent place. Brands have started focusing on honing perception and guiding a consumer’s experience. They realise that people are today seeking exclusive experiences and an emotional connect with their bag or dress or car, whatever they are splurging on.
This year, we reflect on some of the trends that are shaping how we consume luxury and we have top experts to analyse trends and distil their essence. Given that individuals experience luxury in unique, intensely personal ways, these trends are not the norm; rather they represent a current mindset. From clean, local produce making its way to gourmet eats as chef Prateek Sandhu writes, to exclusivity in accessibility being the tag in travel this year, these trends are defining the way people relate to luxury. While earlier a watch collector would clamour for the biggest brands, today he is seeking independent watch makers who are off the time grid. Similarly, as India’s biggest jewellery exporter, Nirav Modi points out, buying jewellery is no longer linked to weddings and versatile designs, in step with the modern consumer are a big hit this year. Wines are climbing the organic vine and Indian wines are coming into their own, says Fratelli’s brand consultant Craig W. Wedge, even as our auto expert Yogendra Pratap drives home the point that luxury cars are going electric.
What was old yesterday is the new high today as modernity and heritage tango to produce brands that are trend wary but represent the changing face of luxury to boost sales. Wrap your head around the trendiest in luxury today.