Reinventing Luxury … Cartier and Hermès, to Pangaia and Vrai … transforming the business of luxury, letting go of legacy, embracing responsibility, finding new relevance

April 7, 2025

In a world of change and disruption, the world of luxury finds itself at a turning point. No longer is heritage and craftsmanship alone enough to ensure relevance, let alone leadership.

As global shifts reshape the cultural, economic, and environmental landscapes, the very meaning of luxury is being redefined—no longer simply an object of desire, but an expression of values, identity, and future-consciousness.

For the world’s leading luxury houses—Hermès, LVMH, Richemont—the challenge is profound: to embrace not just incremental change, but a radical rethinking of what they are, how they operate, and why they matter.

The cracks beneath the shine

Global luxury sales remain resilient—estimated at €363 billion in 2024—but the momentum is softening. Growth is slowing, from nearly 10% annually in recent years to closer to 4% projected for 2025. Much of this fragility stems from macroeconomic pressures: inflationary strain, uneven post-pandemic recovery, geopolitical uncertainty, and most notably, the cooling of Chinese consumer demand. China, once the unshakeable engine of luxury growth, is showing signs of wear under the weight of economic stagnation and shifting domestic priorities.

At the same time, the market itself is fragmenting. Traditional conceptions of luxury—defined by logos, material excess, and exclusivity—are being challenged by a new generation of consumers who value experience over possession, ethics over opulence, identity over inheritance. Luxury’s next era will not be defined by more, but by meaning.

A new consumer mindset

Younger consumers, especially Gen Z and Millennials, are reshaping the dynamics of aspiration. For them, luxury is not only about status—it’s about self-expression, alignment with values, and cultural relevance. The rise of “quiet luxury,” the understated aesthetic stripped of overt branding, is one expression of this. Yet even that is facing criticism for being too easily mimicked and lacking the audacity that once defined the industry’s creative edge.

More deeply, what consumers desire is changing. Ownership is giving way to access. Materialism is yielding to minimalism. A luxury handbag may still signal prestige, but increasingly it must also embody purpose—crafted responsibly, sourced ethically, and tell a story worth believing in.

Digital transformation has also raised expectations for intimacy and immediacy. From immersive online experiences to personalized product design, luxury must now operate across both physical and digital realms. The bar is high: seamless omnichannel journeys, emotionally resonant storytelling, and tech-enabled exclusivity are not add-ons—they are core to the modern luxury experience.

The weight of the world

Beyond market forces and shifting tastes, luxury is contending with deeper, systemic challenges—environmental degradation, social inequality, and the expectations of global citizenship. The industry, historically built on scarcity and extravagance, now faces scrutiny for the waste, opacity, and exploitation embedded in its supply chains.

This has triggered a wave of sustainability pledges, but progress has been uneven. Consumers, especially younger ones, are no longer content with glossy commitments. They want evidence. They want brands to be regenerative, not just less harmful. And they want systemic innovation—circular production, fair labor practices, biodiversity protection, and radical transparency.

Luxury brands must not only respond—they must lead. Their influence, reach, and cultural capital position them to shape new norms and standards. But this requires more than greenwashing. It demands a shift in mindset—from preservation to reinvention.

Radical transformation from within

Some of the world’s top luxury groups have begun to evolve—though each in distinct ways.

LVMH, the world’s largest luxury conglomerate, has embraced innovation at scale. Its collaboration with Google Cloud has resulted in a centralized data platform supporting advanced personalization and AI capabilities across its maisons. The company’s generative AI assistant, MaIA, now supports 40,000 employees with tasks ranging from content creation to customer insight analysis.

At the operational level, LVMH is embedding technology into the very making of luxury. At Moët & Chandon, AI is used to monitor vineyard health. At Loro Piana, storytelling meets traceability as customers can follow the journey of their garments from raw fiber to finished piece. Its LIFE 360 environmental program targets a 50% reduction in Scope 3 emissions and incorporates circular services, sustainable sourcing, and responsible retail—already visible in the group’s growing investment in product repairs, resale platforms, and renewable energy adoption.

Meanwhile, Hermès offers a striking contrast. Renowned for its restraint and precision, the house has been slower to digitize, adopting a philosophy of “governed innovation.” For Hermès, the sanctity of craftsmanship is non-negotiable. Technology is introduced carefully—only where it enhances the artistry or elevates the customer experience. Rather than chasing the digital frontier, Hermès doubles down on scarcity, emotional resonance, and the timeless joy of beautifully made objects. And yet, even here, change is quietly brewing. Discreet VIP technologies in flagship stores, digital storytelling experiments, and careful engagement with regenerative materials are opening the door to a more modern, conscious Hermès.

Richemont, home to brands like Cartier, IWC, and Van Cleef & Arpels, is placing increasing emphasis on traceability and responsible sourcing. Blockchain-based systems are being piloted to guarantee the ethical origins of precious materials, while long-standing commitments to craftsmanship are being extended to include sustainability training and innovation labs.

A broader cultural reset

The transformation of luxury is not just strategic—it is philosophical. The very idea of desire is changing. In a world of climate crisis, rising inequality, and mass displacement, traditional luxury risks appearing out of touch—an anachronism rather than an aspiration. The challenge is to reimagine luxury not as a symbol of exclusion, but as a platform for inclusion, regeneration, and culture-making.

Luxury brands are uniquely positioned to lead this reimagining. Their stories are long. Their reach is global. Their products are few but powerful. When luxury shifts, culture notices.

This reimagining also requires companies to think beyond products. The future of luxury is not an object—it’s an experience, a belief system, a relationship. What if a handbag is not just made to last, but designed to evolve with you? What if a boutique is not just a place to buy, but a portal to a brand’s world of craftsmanship, ethics, and imagination? What if sustainability is not a concession, but the ultimate expression of beauty?

From incremental to transformative

To navigate this shift, luxury businesses must evolve beyond cautious adaptation to bold transformation. That begins with mindset:

From legacy to leadership: Heritage is not a museum piece—it’s a foundation to build upon. Luxury houses must move from protectiveness to progressiveness.
From exclusivity to empathy: The language of luxury must be more human, more connected to the world and its concerns, more emotionally intelligent.
From product to platform: Luxury must transcend physical goods and become a canvas for meaning—curated experiences, cultural influence, community-building.
From control to co-creation: The next generation of consumers wants to participate. Smart brands are opening their creative processes, letting customers in on the story.
From sustainability to regeneration: It’s not enough to “do less harm.” Tomorrow’s luxury brands will actively restore, replenish, and reconnect.

Disrupting the luxury mindset

Let’s explore some of the innovative luxury brand disruptors emerging or niche players who are redefining what luxury means, how it’s made, who it’s for, and how it’s experienced. These brands often challenge traditional luxury values around exclusivity, heritage, and materialism, favouring purpose, personalisation, cultural resonance, sustainability, and digital intimacy.

Gabriela Hearst: Sustainable Craft as the New Couture

Founder: Gabriela Hearst (Uruguay/USA)
What’s different: Regenerative materials (e.g., wool from her own family’s farm), zero-waste runway shows, and deep storytelling about environmental responsibility.
Consumer engagement: Conscious luxury buyers—especially women—seeking beauty with integrity.
Disruptive angle: Climate-forward fashion that doesn’t compromise on craftsmanship.

Another Tomorrow: Traceable, Circular, Ethical Luxury

Founder: Vanessa Barboni Hallik (USA)
What’s different: Every piece has a digital ID for transparency. Customers can scan QR codes to trace supply chains and resell garments through the brand.
Consumer engagement: Tech-savvy, values-driven consumers.
Disruptive angle: Radical transparency + resale built into the luxury experience.

Pangaia: Science-Led Everyday Luxury

Founded: Collective of scientists, designers, technologists
What’s different: Biodegradable fabrics, botanical dyes, recycled cotton, and carbon-negative practices. Products are elevated basics, but positioned as “science fashion.”
Consumer engagement: Young, progressive consumers who align with environmental innovation and cultural cool.
Disruptive angle: Luxury reframed as earth-positive innovation, not elitism.

Telfar: Luxury for All

Founder: Telfar Clemens (Liberia/USA)
What’s different: Gender-neutral, democratic fashion with a cult following (especially the Telfar Shopping Bag, dubbed the “Bushwick Birkin”).
Consumer engagement: Direct-to-community. Uses “Bag Security Program” to let people pre-order instead of competing for drops.
Disruptive angle: Queer, Black-owned, radically inclusive luxury.

Bode: Storytelling and Craft Revival

Founder: Emily Bode (USA)
What’s different: One-of-a-kind garments made from antique textiles, each with its own story and cultural lineage.
Consumer engagement: Niche cultural aesthetes and collectors.
Disruptive angle: Emotional, nostalgic, and artisanal—luxury defined by history, not novelty.

Loro Piana (Reinvented): Natural Material Luxury with Quiet Sustainability

Part of: LVMH but operating with a startup ethos
What’s different: Known for baby cashmere and vicuña, but increasingly innovating with traceability tech, local partnerships, and minimalist design.
Disruptive angle: A heritage brand repositioned for bio-luxury and wellness-aligned lifestyles.

Vollebak: Luxury as Futuristic Utility

Founders: Nick and Steve Tidball (UK)
What’s different: High-end outerwear made with NASA-grade materials, algae-based T-shirts, copper jackets, graphene-infused hoodies.
Consumer engagement: Technophiles, adventurers, and early adopters of future materials.
Disruptive angle: Luxury = frontier exploration + innovation, not tradition.

The Row: Luxury as Quiet Minimalism and Timeless Craft

Founders: Mary-Kate and Ashley Olsen (USA)
What’s different: No logos. No noise. Just exceptional materials, tailoring, and timeless silhouettes.
Consumer engagement: The brand appeals to those seeking stealth wealth and refined restraint, speaking through product rather than advertising.
Disruptive angle: Luxury defined by form, function, and absence of signal, not price tag.

Vrai: Lab-Grown Diamonds, Transparent Pricing

Backed by: Leonardo DiCaprio
What’s different: Jewellery with sustainably produced diamonds (no mining) and full price transparency—no mystery markups.
Consumer engagement: Young luxury buyers rethinking ethics and value in fine jewellery.
Disruptive angle: Eco-luxury, powered by renewable energy and values-first messaging.

Sease: Outdoor Lifestyle Meets Sartorial Luxury

Founder: Franco Loro Piana (Italy)
What’s different: Technical outerwear and activewear for sailing, skiing, and city life, using high-performance natural fabrics.
Consumer engagement: Affluent adventurers seeking elegance in motion.
Disruptive angle: Luxury rooted in function, nature, and movement.

Reinventing the future of luxury

The road ahead for luxury is both daunting and full of possibility. Those who resist change risk becoming irrelevant. But those who embrace transformation—holistically, authentically, and boldly—can help shape a future in which luxury is not merely desirable, but meaningful.

Already, the contours of this new world are emerging. A Chanel jacket made from regenerative wool. A Cartier diamond traced from mine to wrist. A Dior salon blending physical couture with immersive storytelling. A Hermès bag reborn through circular craftsmanship.

This is not the end of luxury. It is its reinvention.

The future belongs to those who can hold the best of the past in one hand, and the possibilities of the future in the other. It will be led by those who see not just the shine of gold, but the glow of purpose.

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