Luxury Beyond 2024: Redefining Resilience

Reconnection to Authentic Luxury

Luxury brands must empower artistic directors to define their style and resist reliance on harmful marketing practices. True style doesn't need loud logos; it speaks for itself. Yves Saint Laurent and others embraced this, inspiring designers to prioritize creativity and originality over mass appeal.

Wearable fashion is essential. Luxury brands can no longer justify selling impractical showpieces while promoting affordability at fast-fashion outlets. Selfridges and similar stores showcase clothing that remains unworn, wasting resources and undermining the credibility of luxury.

To cultivate strategic resilience, some brands may consider de-listing from the stock market. Stock market pressures demand unsustainable growth, but family-owned businesses have demonstrated a more balanced and patient approach to business.

Overusing logos and oversaturating stores weakens brands. Instead, Hermès sets an example by maintaining exclusivity, producing exceptional quality, and letting their style define them.

Large brands should critically evaluate their portfolios, ensuring they invest adequately in brands like Dunhill and Chloé. They may also need to re-evaluate their relationships with underperforming brands like Givenchy and Kenzo.

Sustainability-Driven Innovation

Strategic resilience involves preparing for resource scarcity and environmental concerns.

Luxury brands can revitalize Haute Couture, reducing waste and aligning with their promise of exclusivity. Wealthy consumers are present, and brands like Dior and Chanel have maintained their presence in this market. Embracing Haute Couture signals a shift towards sustainability and environmental responsibility.

Shifting to production on demand rather than on stock aligns with the luxury promise of authenticity and sustainable consumption.

Diversification Strategies

Brands should consider diversification to enhance resilience.

Sub-brands and segmentation allow brands to reach a broader customer base while addressing perceived value deficits. Brands like Swarovski have segmented their products by value points to cater to different price and product preferences.

Expanding into new markets, such as India, requires careful consideration of cultural nuances and regulatory hurdles. However, India's rapidly growing economy presents potential for luxury expansion.

2025 is a pivotal year for luxury brands. Authenticity and strategic resilience will be key to success, especially for large global brands facing both challenges and opportunities.

"Luxury is the true elegance of preserving the world." - Louis-Albert de Broglie