Conscious, collaborative, connected: making over the luxury business model
The luxury sector has always prided itself on offering consumers the chance to own timeless pieces whose value and appeal will endure. But that doesn't mean the way it produces and sells them should remain constant. The luxury sector is at a crossroads, and brands that continue to do what they have always done risk being left behind. Our report, Conscious, collaborative, connected, explains why.
Published in partnership with Arianee, we reveal how the luxury sector is shaping a new business model that allows customers to experience and engage with brands in new ways and to purchase goods knowing they can be easily and expertly repaired and resold.
Conscious, collaborative, connected includes insights from luxury sector leaders, including Breitling, Comité Colbert, Kering and Vacheron Constantin, and draws from an extensive desk review of over 150 articles, reports and other sources.
Customer cohorts
The sector is increasingly selling to different people, in different parts of the world, and while they may all buy into the appeal of luxury, they hold subtly different tastes and expectations. New cohorts include HENRYs and Gen Z. Who are these new luxury customers and what do they want from luxury brands?
Luxury technology, ecosystem partnerships and circularity
Technological innovations are helping luxury brands update their model, while partnerships have become vital in ensuring greater transparency, circularity and environmental sustainability. How are leading brands collaborating with technology partners and building ecosystems that deliver necessary innovation? What new services stem from these partnerships?
Pivoting to experiences
After adopting digitalisation more gradually than others, leading luxury brands are taking the customer experience path, finding ways to harness e-commerce opportunities and tell their story digitally. But the digital and experiential pivot is not just about getting e-commerce and digital storytelling right. How are they creating a unique luxury experience underpinned by an online and offline continuum? What are the different dimensions of customer experience luxury businesses need to know about?
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Survey: Chinese Luxury Brand Consumers
In China, Gen Z (i.e. post-95s) ranks first among the heavy luxury consumers who buy luxury goods every month, with more than 12 luxury items purchased each year. This insightful conclusion comes from the Chinese Luxury Brand Consumers — A Generational, Gender and City-tier Analysis published in 2020.
Luxury fashion business model transforms
• New customers and new demands leading luxury brands to address sustainability concerns and build cross-sector coalitions • Luxury customers increasingly expect sophisticated, longer-term relationship with brands, access to seamless post-sale services, unique experiences and transparency – all enabled by digital technologies • Wealthy Chinese customers, HENRYs (high-earners-not-rich-yet) and Gen...