THE FUTURE OF LUXURY

Five trends reshaping luxury consumerism in 2017 and beyond!

Michelin star dining at a street food stall...

In July 2016, two street food stalls in Singapore became the first such stalls in the world to be awarded a Michelin star. The Hong Kong Soya Sauce Chicken Rice and Noodle and Hill Street Tai Hwa Pork Noodle are both examples of Singapore's long-standing tradition of open-air 'hawker' street food vendors. The former (pictured), which operates in the Chinatown complex, serves dishes of soya sauce chicken and rice for around USD 2, around half the local cost of a Big Mac at McDonald's.

A Pepsi-themed luxury bar and lounge in Manhattan...

In January 2016 Pepsi announced plans to launch Kola House, a luxury bar and lounge in Manhattan's Meatpacking District. The bar will offer a 'full artisanal menu' built around the kola nut, and a resident cocktail curator will be on hand to mix speciality drinks.

Affluence x Connectivity changes everything.

We all know that luxury is no longer simply about the supercar, the designer handbag and the expensive holiday (as desirable as they remain to many). After all, who needs a car at all when millions around the world now have their own on-demand driver? Rising affluence and the amazing lifestyles made possible by connectivity have shifted the frontiers of luxury. But to trace that shift, we need to understand one fundamental truth: at its heart, luxury has always been about STATUS.

Status used to be physical. Now it's intangible.

Status used to be about the possession of certain objects. Now, so many people have so much. The result? Status has become less about 'what I have' and much more about 'who I am': namely, more ethical, creative, connected, tasteful – the list goes on! – than the masses. The implications for luxury consumerism are vast, as premium consumers intensify their quest to live out and personify these ideals. But so are the OPPORTUNITIES for brands that can understand, and deliver on, the new luxury mindset.

Everyone knows about the global luxury slowdown...

The smartest brands will see it as a massive OPPORTUNITY!

There's no denying that the luxury sector is coping with some headwinds right now.

Decreased tourism across Europe, instability in the Middle East and weakening economic growth in China are keeping the sector locked in a slowdown. That meant just 1% real terms year-on-year growth in Q1 2016 according to Bain and Company (May 2016).

But while global economic and political circumstances are sure to change (that's what they do), the longer-term strategic challenge for luxury brands will remain the epic shift towards more varied, complex, individualized, and meaningful forms of luxury consumption.

Difficult? Sure ;) But smart brands will use the slowdown as a chance to readjust their thinking, and innovate around the shifting luxury landscape. For those that can stay ahead of the curve, the rewards remain HUGE.

And any brand could start with these five trends reshaping THE FUTURE OF LUXURY in 2017 and beyond...

source:trendwatching.com

EIC