A European research firm interviewed me the other day about the luxury market —- trends in marketing, product, services. One of the more interesting questions they asked was where luxury is going in the next 5 to 10 years. My predictions are:
– Affluents will want more of a say in designing the products and services
– We’ll see the growth in offerings of bespoke products
– The use of crowdsourcing even at the highest levels. The challenge will be for brands to maintain quality while soliciting input from their customers.
– The big wild card is what will happen with luxury with the next generation, Gen Y. They’re growing up in the midst of serious job scarcities for college graduates. Will this shape their buying patterns with a recession mentality, much like what happened with their grandparents? That won’t necessarily result in a decline in the luxury market, but rather, reinforce some of the luxury values, which have emerged in the last five years — an emphasis on quality, value and investment.
Look for more predictions in our next Luxury Travel and Lifestyle Trends newsletter. We invite you to sign up to be on our mailing list.
– Karen Weiner Escalera, President & Chief Strategist of KWE Partners