IE Luxury Barometer 2014
Luxury is facing a paradigm shift. It is an exciting challenge. Fronted from a position of leadership, as is the case.
Luxury is facing a paradigm shift. It is an exciting challenge. Fronted from a position of leadership, as is the case. Recently presented the IE Luxury Barometer 2014‘From experts to experts’, their results do not leave indifferent to the market. Brands are called to connect to the profile of the new luxury consumer.
On several occasions I have addressed the issue of luxury this year. It’s something I keep spinning. IE has recently been presented Luxury Barometer 2014 ‘From experts to experts’ from the hand of IE Business School, MasterCard and Market Observatory Premium and luxury goods. I have had the opportunity to participate in the panel of experts, as a partner in The Luxonomist.
The last wednesday the IE published the IE Luxury Barometer 2014 IE Luxury Barometer 2014 ‘From experts to experts’. As collaborator in The xuonomist I have contributed alongside others experts from the prestige sector in 2014. IE Business School, MasterCard and the Premium and Prestige Business Observatory and Luxury have made possible a reflexion about the luxury in 2014.
The presentation was followed by a roundtable with Luca Solca, Head of luxury goods at Exane BNP Paribas, Fabrizio Carretti, Head of Permira Milan office, and María Eugenia Girón, Executive Director of IE’s Premium and Prestige Business Observatory.
According to María Eugenia Girón and David Millan authors of the barometer there is a double objective in this study: «On one hand, to get to know the point of view of professionals and experts of the luxury and prestige sector about the most important aspects and tendencies of the industry and the market in 2014.And on the other hand, to explore the implications that these aspects may have on the development of this sector in the immediate future and in the long term».
The luxury, as well as our the society in which we live, is facing a paradigm shift. According to the study, the future of luxury goes through internet and technology, new generations and the need and challenge of creating experiences.
From my point of view, of the ten relevant points according to the barometer are making changes in the future of luxury, it seems vital ‘New Values & New Clients’New social values as well as values of social responsibility that mark the way of understanding luxury. Not only from the point of view of management, as it was seen before, but also as social value. Collaborative economy and new business models based on using, not possessing. Previous topics related to the digital revolution that affects new generations and their way to relate to luxury, as well as the innovation aspects that are greatly influenced by new generations of customers».
Alongside this analysis I would like to raise another one.I recently heard to an expert in luxury that one of the defining features of this is causing stratification. From my point of view, this object belongs to the past. Although it appears that the continued growth of luxury is a result of the increasing distances in the purchasing levels are increasing. This is an aspect that I propose for future analysis. Can it be considered an achievement?
According to Luca Solca, Head of luxury goods at Exane BNP Paribas:“We are at an inflection point. Luxury goods companies still have quite a way to go in terms of reach and customer experience and integrating their online and physical offer. But in the next few years, we are probably going to see a very significant surge in digital engagement by luxury brands». «Luxury is about selling a promise of exclusivity”,Luca Solca.
According to some experts:
- “The renovation of luxury will allow us to catch up with future generations.” “Affordable luxury is in a downward spiral. Can we consider a luxury brand the one that sells 70% in outlets?” Carlos Delso, CEO at Grupo Suarez and former CEO Spain at Louis Vuitton.
- “The industry needs innovation in the processes. Is the sector ready to attract the millennials?” Yolanda Regodón, Associate Communication Director at IE Business School.
- “Managing experiences is only possible if the point of sale iscontrolled. That is why direct control of distribution is a key factor«. Remi Chadapaux, General Manager en L’Oréal Luxe España.
- “Storytelling, generating contents is a great opportunity to build experiences». Natalia Gamero, VP Corporate Development at Ediciones Condé Nast, S.A.
The keys to success with new consumers accoding to the barometer are:
- Integrating digital economy and the chances it means.
- Incorporating the new values of the new luxury clients.
- Offering memorable experiences besides products.
The results IE LUXURY BAROMETER 2014 are:
- Luxury brands create memorable experiences.
- Luxury surrenders to the internet (ecommerce & communication).
- The challenge of reaching New Audiences and Generations. NewValues of luxury.
- Protecting exclusivity, aiming at luxury positioning.
- Product Personalization.
- Innovation in the processes and product categories.
- Tourism reinforced as a key driver for growth.
- New values and beliefs associated to the concept of luxury.
- Environmental and social responsibility.
- Access to key and scarce resources, including talent.
These items offer a great opportunity for analysis. I will do it.
References: Girón, María Eugenia, Millán, David. IE Luxury Barometer 2014 “From experts to experts». 2014.Photos: Tu look habla. Luxury Collection Haute Chaussures by Sara Navarro.