Beverly Hills Conference and Visitors Bureau (BHCVB) released a global trend report on The Future of Luxury. Authored by trend forecast agency, it examines the current landscape of the global luxury sector, offers an in-depth analysis of the high-net-worth market, and forecasts the newest luxury trends.
By examining the macro-economic landscape, the report identifies the top 10 cities by their population of ultra-high net worth individuals (UHNWIs), analysing their different demographics and spending patterns, and compares to Beverly Hills. The Future of Luxury report looks at who is consuming luxury goods and services, and examines the different spending habits across multiple generations, in particular the increasingly influential millennials.
The report shows that London has the highest UHNW spend and will continue to surge given its central location, time zone and hub airport, benefiting from the increasing city hopping millennial. Tokyo, second on the list of top 10 cities of UHNWIs, is seeing a decrease in its super-rich in comparison to its counterparts. However, the value of individuality and exclusivity has become more mainstream, due to the increasing Japanese custom of gifting.
The research indicates that luxury is currently at the epicentre of LUXURY 2.0 – the digitalisation of exclusivity where traditional luxury brands are increasing their digital presence, appealing to a more digitally savvy audience. However, findings suggest that luxury will come full circle. Whilst acknowledging the importance of the digital offer, luxury consumers will seek out more original and authentic experiences that can’t be seen or bought online. Modern day purveyors must fuse the digital with the physical to create more impressive brand experiences and consumer journeys.
BHCVB has identified this future trend as LUXURY 3.0 where consumers will revert back to ‘old-school’ concepts, such as private members clubs, meeting places for connoisseurs, organic farm-to-table eating and exclusive tailoring. Craftsmanship, exclusive products and services as well as more traditional practices will herald over the digital revolution that is currently taking the industry by storm. It is also consumption with a conscious positive impact on society and the psyche.
LUXURY 3.0 shows some rising and new trends:
• The rise of the ‘Localtarian’ – a sustainable lifestyle choice where the food conscious only eat local. The top-end restaurant scene in the US and UK will see an influx of those seeking a menu made of locally sourced ingredients only
• Old-school hideaways: a bespoke buzz - secret, speakeasy-style spaces are catering for the super-rich's desire for discretion and exclusivity. Bigger brands are also tailoring their offers in different cities to create buzz based on limited editions
• Prime-Grade Sourcing - designers, chefs and food entrepreneurs are rediscovering old techniques to give an extra layer of narrative to luxury goods. Rediscovery of old techniques and materials feed into the customer’s desire for exclusivity
• ‘Menswear Revenge’ – women’s fashion has traditionally been the driver in innovation, but menswear is starting to fight back with the growth in men’s spending overtaking women’s. The report reveals that bars, pool tables and barbers in men’s retail stores will be the new norm in luxury capitals around the world
• As mindfulness becomes more popular as a wellbeing trend, the report predicts an emergence of luxury consumers seeking ‘Sati-faction’. Sati, the Buddhist word for mindfulness, is about helping people to switch off in a fast-moving, 24/7 world and find inner satisfaction. This concept reinforces LUXURY 3.0 which forecasts luxury returning to a purer, more subtle era
• ‘NoGo’-a rebellion against logos on luxury goods. The Normcore trend is having an impact in the luxury arena and the new generation of luxury consumers doesn’t feel the need to ‘show off’ their wealth. Rather, they are opting for understated, more bespoke and crafted luxury goods, the report reveals
• Also discovered in the report is a new generation of art collectors entitled MARTYR - Millennial ART Yielding Revenue. This group sees a younger generation of HNWI’s investing their wealth in art, then often showcasing it in public places, bringing ‘art to the people’ in an effort to give back
Julie Wagner, Chief Executive Officer of Beverly Hills Conference & Visitors Bureau says: “Having celebrated our centenary in 2014, Beverly Hills is looking ahead to define future trends. The report brings our strategic plan to life as findings relate back directly to the city’s offerings. By setting an industry example, it ensures Beverly Hills is the first choice when people think about luxury travel and continues to hold its position as a coveted destination.’’