Different examples of luxury in different industries

As we continue to deconstruct the evolution of luxury as a concept and a market segment, it becomes essential that we begin to look at the characteristics of luxury industries and segments. This is important to assess what the future of luxury could look be. It will help us illustrate how luxury materializes and differentiates itself globally.

According to Bain & Company’s recent studies on consumer trends and luxury market data, we can divide luxury goods and experiences in various vital segments:

• Personal luxury goods
• Luxury cars
• Luxury Hospitality
• Fine wines and spirits
• Gourmet Food and fine dining
• High end furniture and housewares
• Fine art
• Private jets and yachts
• Luxury cruises.

Categories of products and experiences can also group these segments:

• Experience-based goods (fine arts, luxury cars and yachts)
• Experiences (luxury hospitality, luxury cruises, fine dining)
• Personal goods (personal luxury goods, high end furniture and housewares)

This substantial distinction between luxury goods and experiences will become very relevant to the rest of our course and how we intend to investigate what the future of luxury will be.

We can say we have luxury things and luxury moments when we search to distinguish types of luxury spending.

Luxury things

Physical goods with high quality standards in physical attributes, the brand’s heritage and historical positioning as key success factors.

Luxury things mean they sustain time, they can be ephemeral, and consumers can often keep them for generations to come. These goods are also a reflection of consumers’ style and taste.

Luxury moments

When your consumer interacts with a brand in order to be taken through a journey: a celebration, a holiday, a moment of leisure and fun.

Luxury moments or experiences look at essential elements like privacy, safety, elegance, comfort, relaxation, indulgence, sharing, and memorable desires.

Before the pandemic, travel-related and leisure experiences were the most significant market segments. The expectation is that it will become even more significant once markets are fully open and back to pre-pandemic levels.

We will see further ahead in this course why the relevance of luxury experiences in the market and how it connects to the underlying desires for consumers to find and be taken through transformative moments in their lives.

The next step of this course will focus on the intrinsic factors common to luxury goods in general.

Do not forget to share any thoughts on this discussion in the comments section.