What defines a luxury experience?
Usually, they’re associated with vacation, travelling or glamorous parties. Over the last two years, the pandemic ordering people to stay home and avoid travel as much as possible has caused a shift in the way people like to indulge in luxury experiences.
If people can’t travel or socialise, then what is there left to do?
Of course, with restrictions lifting there has been a surge in these leisurely activities once again, but a new mindset has been introduced. The pandemic not only affected travel experiences, but also material goods such as designer bags and jewellery. The world entered a time of modesty, and the thought of spending thousands on a bag when the future wasn’t clear was daunting.
Let’s take a quick look at luxury experiences industry facts in a nutshell:
- Although heavily affected during the pandemic, the luxury goods market is bouncing back better than ever
- The largest luxury market is the high-end fashion industry
- Louis Vuitton was the most valuable luxury brand in 2021
- China is the biggest spender on luxury goods
- Travelling to Europe for a luxury shopping spree is a popular luxury experience, as the prices are still cheaper there than in the rest of the world
- Sustainability and the wellness industry have become a key definer for luxury experiences in recent years
- Gen Z is the market to watch, and luxury brands are taking to social media to attract them
Luxury Experiences Trends: Bringing Back Luxury In 2022
The majority of businesses during the pandemic felt a rift in consumer behaviour, whether bad or good. This time urged businesses to completely restructure and find new ways to attract a consumer. One major difference was the travel restrictions, and luxury brands has to find a way to attract a local audience, as globalisation became too risky.
With the knowledge we have today about the virus, that risk is no longer prevalent, and luxury experiences are able to think outside the limitations of their country, and attract new customers now more than ever. The market is set to grow by 29% in the next year, bringing the value to around €283 billion.
This shows that the common mindset of a simpler life that was enforced during 2020 was only temporary, and consumer behaviour has completely shifted to entering a new period of splendour and excess. It could be a way of making up for a lost time or a way to feel relevant in the world again, but one thing is certain; the luxury experience industry isn’t going anywhere.
Luxury Experiences Industry Facts: Designer Fashion
The epitome of a luxurious experience has to be in the clothes we wear. Although it’s common that many of the worlds richest tend to fall back on sweats and trainers, the fashion industry is doing better than ever. To many, it is their life goal to obtain an accessory or item of clothing with a big shiny designer logo on it, and some have even prioritized it.
There has also been a spike in vintage fashion, where people can find designer brands for affordable costs and still in impeccable condition. This has made the consumer aware of how worth it is to invest in a designer piece, as the quality will ensure the clothing is in a wearable condition in 30 years’ time, and the name will still be in fashion.
The luxury fashion industry is expected to reach $153 billion by 2026. This means it is growing at a steady pace of 5%, showing how relevant luxury goods still are in current years. There’s simply no denying that quality over quantity is becoming a huge trend, and luxury goods are at the forefront.
It’s worth it to save that bit extra on a piece of clothing that will last years, instead of purchasing something new every year. If you don’t like your designer piece anymore, it will still very likely have value to someone else, and you can repurpose it instead of throwing it away and contributing to the landfills.
Louis Vuitton, the biggest name in the luxury game and luxury experiences trends highlights this fact. Everyone knows Louis Vuitton, and that’s why the brand continues to be the number one name to purchase when in the market for luxury goods. That sought after LV logo is a magnet for the consumer, and everyone is trying to get their hands on it. This has made Louis Vuitton the most valuable luxury brand to date, valued and $75.7 billion.
Luxury Experiences Statistics: China And Luxury
It’s no surprise that China has become the biggest spender on luxury goods over the last decade. The country is known for its major factory economy, resulting in a portion of extremely wealthy empire owners. It’s a common cultural trend to enjoy and purchase luxury goods and experiences to show off this wealth, and enjoy something of a finer quality. In 2021, more than a fifth of the global consumer of luxury goods was from China.
Europe Is Still The Best Place To Purchase Luxury
With Europe being the first-world continent, they have been the pioneers in the luxury experience industry. From the hotel culture and etiquette of France to the high-end fashion of Italy, and the big spenders of the UK, Europe is home to all things luxurious. If you’re looking to purchase luxury goods at the best price, it’s wise to go to the country they are manufactured in, as the prices will be less affected by import costs, and you can get them duty and tax-free.
The Latest Luxury Experiences Trends In Sustainability And Wellness
The wellness and sustainability industry is linking arms with the luxury experiences industry. Wellness and sustainability often come at a higher price, which is why we are seeing this trend among luxury businesses. Hotels have taken wellness into account at their accommodation, ensuring there are options like yoga, healthy food and spa treatments available. Self-care has become huge in the luxury experience industry and is a great selling point to justify expensive purchases.
Car brands like Tesla and fashion brands like Patagonia come at a high price because of their dedication to sustainable materials. Then there’s the motive of purchasing products that will last a lifetime and beyond, to ensure a waste-conscious lifestyle, and a lack of contribution to fast fashion.
Luxury Experiences Facts: Gen Z Has Entered The Luxury Experience Lifestyle
The majority of big brands come at a high cost to the generation that’s making the most money (the boomer), but other brands have taken on the advantages of social media and have started marketing to the kids and grandkids of the boomers. The Gen Zs do not shy away from luxury, and if they say it’s cool, then it’s cool.
Gen Z celebrities like Harry Styles and Billie Elish are known to rock the eccentric styles and collections by fashion house Gucci, and their fans are dying to get their hands on anything from the brand. Gen Z is also a huge fan of vintage and sustainable fashion, so although they may not be able to purchase it first-hand, finding a designer bag in mint condition at a local vintage dealer will fly off the shelf faster than you can say “Balenciaga”.