Introduction
In recent years, luxury brands have worked hard to prove their point of difference, supplementing their traditional product offerings with a broadening suite of ultra-bespoke services and immersive experiences.
Yet the onset of uncertain economic conditions combined with technological advancements is driving companies to explore new forms of brand-building in order to forge more intimate – and fruitful – connections with their most valued customers.
Indeed, the power play between brands and their clients is in flux. Where luxury brands have long been the gatekeepers of style – dictating what we wear, how we eat and where we travel – they are now learning how to foster more reciprocal and attentive relationships with their consumers.
This is giving rise to what The Future Laboratory calls Guilded Luxury, in which brands will create bespoke experiences for different kinds of consumers, offering personalised services that nurture a deeper sense of involvement and belonging.
For very important clients (VICs) this will mean providing exceptional access to rare moments and niche communities – a white-glove service that spans every aspect of their lives. For younger or digitally orientated audiences, virtual collectibles and tokens will provide new paths to luxury while building online communities.
In this way, luxury brands are transforming into members’ clubs, with tiered levels of access offering different benefits and services, whether it’s private boutiques for the highest spenders or NFTs for the digitally driven that deliver early access to new or bespoke products. Indeed, Bain & Co reports that by the end of 2030, digital assets and the metaverse will comprise 5–10% of the luxury market.
Guilded Luxury is also about rewarding loyalty and boosting engagement. For brands, the benefit is garnering insights and feedback from close client liaisons.
