Feeling comfortable while also being socially inclusive at the time of purchase is the upward trend in the behavior of luxury consumers. A client whose lifestyle increasingly prioritizes experiences that transforms the body and mind.
Nowadays, luxury consumption has been impacted by values other than those more traditional such as exclusivity, tradition, timelessness and experience. Dealing with traditional values the issue has been not only to delight the customer during the buying process, but to give a legitimate meaning to the moment of purchase.
A local experience leads the consumer to exchange a five-star suite for a more original and ‘native’ living experience. An immersion in local culture rather than an afternoon of shopping at the mall in a twelve cylinder sports car. Other than absolute luxury experiences the consumer will prefer hotels that maintain good sustainable practices, beach resorts that respect the environmental limits, spas that offer treatments not only aesthetic, but spiritual and self-knowledge, cruise operators that take passengers to meet and buy from local shops all in the name of experiencing something more realistic.
From this point on, these consumers have sought a sense of well-being that is in tune with more human values. Solidarity, respect for the local culture, environmentally friendly, all this is going to become more and more importante in life.
So this is a phenomenon that is growing within the health and beauty industry. Taking care of yourselves will generate more pleasure when you take care of others as well. Data from the Euromonitor institute indicate that this is a segment that moved US $ 701 billion in 2016 and is expected to grow 17% over the next five years. The expectation is a volume of $833 billion by 2021. Just for comparison, consumption of luxury personal items grew only 1% in 2016 (Bain & Co.).
Another recent report from the McKinsey & Company consultancy and in partnership with the Business of Fashion website pointed precisely to the growth of this market that of well-being is now associated with luxury. Something that will have a huge impact on the economy.
The investment arm of LVMH, L Catterton Europe, has signed a deal to acquire a majority stake in Italian bicycle maker Pinarello. This acquisition is just one example of how the luxury sector’s demand for health and wellness is growing. Spend money on experiences that add value to the body and mind without losing sight of some issues such as superior comfort and services at the height of the average ticket of these purchases. This significantly outpaces the slow growth in the personal luxury goods market. In this new behavior, ‘feeling good is the new looking good’
Is this a change of conscious?
No, this change in behavior began with the younger generations – the millennials. Children and grandchildren of traditional consumers in the industry have began to take action. A cluster that no longer dazzles with logos and the status associated with luxury, and want something more original, and environmetally responsible.
Secondly, this new attitude is no longer related to the age of the buyer. This is a new world-class luxury consumer mindset that is gaining ground and becoming more socially acceptable, leading industry players to work hard on new strategies. Providing a meaning, much more than ‘glamour’, to customers is the goal of the coming years. Those who live will see, and will feel the difference.
Maria Júlia Cabianca
The Business of Fashion