Reinventing the “luxury” of luxury brands … Louis Vuitton’s travel adventures, Balenciaga gaming, Chanel atelier tours, Hermes customisation, Prada AI and AR, Ferrari by subscription
October 17, 2024
Luxury has evolved significantly in recent times, from traditional notions of exclusivity and opulence to embrace a wider range of values, experiences, and innovations.
The concept of luxury has shifted from being solely about status symbols, material wealth, to encompassing a broader range of values and experiences. Today, luxury is defined not just by the price tag or rarity of a product, but by the deeper meanings consumers attach to it, such as personalisation, sustainability, and immersive experiences.
Luxury is less what, more how; less product, more person; less price, more impact.
Recent years have seen a significant shift in audiences for many luxury brands. The rise of new markets, particularly Asia, and the accessibility of online retail, has meant that for many brands, their largest audiences have pivoted from old, western to young, Asian consumers. At the same time, older consumers are a booming market, with money and time on their hands.
As luxury has become more accessible – online stores are less exclusive or intimidating than traditional boutiques, ranges are more diffused with lower entry prices, and young people prioritise luxury brands despite their less affluence.
The largest luxury brand groups like LVMH and Kering have also chosen to grow their businesses in different ways. LVMH has a huge portfolio of over 75 luxury brands from Dior to Louis Vuitton, Fendi to Givency, Bulgaria and TAG Heuer, and also some slightly more accessible brands like Tiffany and Sephora. Kering is more dominated by one brand, Gucci.
Most recently LVMH has soared while Kering has struggled. Louis Vuitton was a star of the recent Paris Olympics, and the medals themselves came from Chaumet, another LVMH brand. Some analysts feel that Gucci has become overly fashionable, with constantly diversifying and changing products and versions. Other luxury brands, like Hermes, seek to remain timeless.
Luxury Brand Trends 2025
In 2025, the luxury industry is expected to be shaped by a number of evolving trends that blend innovation with deep shifts in consumer behaviour, sustainability, and technology:
1. Experiential Luxury
As luxury consumers seek more than just products, luxury brands are doubling down on offering exclusive experiences that go beyond the typical shopping trip. This includes everything from private viewings to bespoke travel experiences and high-end, personalized events.
- Example: Ritz-Carlton and Bulgari
Both Ritz-Carlton and Bulgari have made luxury travel a core offering. In 2025, more luxury brands, including Louis Vuitton (through its luxury travel experiences) and Aston Martin, are expected to deepen their involvement in high-end, curated experiences that combine hospitality with luxury products—think private jets, custom-made adventure trips, or designer travel accessories designed for experiential journeys. - Example: Chanel
Chanel has been known for its private, invitation-only fashion shows, and this trend will likely expand in 2025, with a focus on creating more personalized, exclusive experiences that allow customers to deeply engage with the brand’s artistry and heritage. These experiences could include one-on-one tours of ateliers or private fittings with designers.
2. Technology Integration and Digitalization
The integration of technology into the luxury experience is not just about e-commerce. Luxury brands are incorporating cutting-edge tech to offer personalized services, virtual experiences, and even digital products (such as NFTs) to enrich the customer experience.
- Example: Balenciaga
Balenciaga has embraced the digital future by creating digital-only fashion collections and hosting virtual fashion shows. In 2025, expect more luxury houses to experiment with virtual clothing that can be worn in the digital realm, especially as the metaverse gains more traction. Balenciaga’s use of gaming partnerships and digital avatars will likely evolve into fully immersive experiences for luxury consumers. - Example: Prada
Prada has been actively investing in augmented reality (AR) and artificial intelligence (AI) to offer personalized shopping experiences. Their Prada 360 app and virtual fitting rooms have been a step toward creating seamless digital and physical experiences. In 2025, expect more brands to leverage AI for personalized recommendations and virtual try-ons that integrate seamlessly into physical retail.
3. Hyper-Personalization
Luxury brands are increasingly moving towards hyper-personalization, where consumers not only want products tailored to their specific preferences but also expect experiences that align with their lifestyles, values, and identities.
- Example: Hermès
Hermès has been at the forefront of personalized luxury, offering bespoke services for their leather goods, silk scarves, and more. In 2025, expect to see even more emphasis on offering highly personalized options through AI-driven customization platforms, where customers can design their own luxury products from start to finish, whether it’s a tailored handbag or a custom pair of shoes. - Example: Rolls-Royce
Rolls-Royce’s Bespoke program offers ultra-personalized vehicles, and in 2025, the brand is expected to deepen its customization services with digital tools that allow customers to collaborate with designers in real-time to create one-of-a-kind cars. This includes bespoke interiors, personalized paint jobs, and other high-end custom features.
4. Wellness and Self-Care in Luxury
Consumers are increasingly seeking products and services that contribute to their overall wellness, mental health, and personal well-being. Luxury brands are beginning to incorporate these values into their offerings.
- Example: La Mer
The luxury skincare brand La Mer, owned by Estée Lauder, is set to expand its focus on wellness in 2025 with new lines of products aimed at boosting not just external beauty but also mental well-being. Expect more luxury skincare brands to pivot toward holistic offerings that combine high-performance formulas with mindfulness and wellness elements. - Example: Tiffany & Co.
Tiffany has been exploring the intersection of luxury jewellery and mental well-being. Through collaborations and marketing campaigns focused on mindfulness and self-love, the brand is likely to push forward with new collections designed to evoke positivity and mental wellness, helping to position jewelry as a tool for emotional self-expression and personal growth.
5. Sustainability and Ethical Luxury
Sustainability has transitioned from a niche concern to a central focus in the luxury sector. As consumers increasingly demand transparency and environmental responsibility, luxury brands are adopting more sustainable practices and aligning themselves with environmental, social, and governance (ESG) standards.
- Example: Gucci
Gucci has made a significant push toward sustainability through its Gucci Equilibrium platform, which focuses on promoting positive change through initiatives in materials sourcing, circular design, and social sustainability. In 2025, Gucci will likely continue to innovate with regenerative farming practices, carbon neutrality, and alternative materials for products like shoes and bags. - Example: LVMH
LVMH, the parent company of brands like Louis Vuitton and Dior, has committed to reducing its carbon footprint and improving the sustainability of its supply chains. The conglomerate has been accelerating its use of innovative, low-impact materials and has pioneered circular initiatives, such as the launch of “LVMH’s LIFE 360”sustainability program. Expect to see more eco-friendly fashion and packaging innovations in 2025.
6. New Market Expansion
Emerging markets, especially in Asia and the Middle East, are set to drive growth for luxury brands in 2025. As wealth in these regions continues to rise, luxury brands will be adapting their strategies to cater to the local tastes, cultures, and preferences.
- Example: Louis Vuitton
Louis Vuitton is already deeply entrenched in China, but it is likely to expand further into secondary cities and diversify its offerings to appeal to a younger, tech-savvy generation of consumers. Expect the brand to continue collaborating with local artists and influencers to engage with these new markets. - Example: Fendi
Fendi has made strategic inroads into the Middle East and is likely to expand its presence in the region with localized offerings, including products tailored to the tastes of local consumers. The brand’s boutique in Dubai, as well as regional influencer partnerships, will continue to drive demand in 2025.
7. Luxury on Demand
On-demand luxury is a growing trend, where consumers can access high-end products and experiences without committing to long-term ownership. This trend is powered by subscription models, rental services, and even temporary ownership options.
- Example: Rent the Runway
Luxury rental platforms like Rent the Runway are making luxury fashion more accessible on a temporary basis, and we can expect this to expand with an increasing focus on high-end accessories, jewelry, and limited-edition pieces available for short-term rentals. - Example: Porsche and Ferrari
Both Porsche and Ferrari are looking into luxury car subscription services, where customers can enjoy the experience of driving a high-end vehicle without the long-term commitment. In 2025, expect to see more high-end automakers offering flexible subscription plans that allow consumers to access the latest models on demand.
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