Dior : Five luxury lessons for the year ahead

This month’s blog examines five luxury lessons that will prepare us for the upcoming year.

As the world enters a new chapter of global uncertainty, we explore how luxury brands are building long-lasting and enriching relationships with their most important clients.

‘For VIP clients, the luxury brand is transforming into a travel agent, hotelier and cultural compass, always providing a five-star concierge service,’ says Christopher Sanderson, co-founder of The Future Laboratory.

Lavinia FasanoForesight analyst, The Future Laboratory

21 October 2022

Author: The Future Laboratory

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Rarity Reset

As the world enters a global recession, luxury brands are focusing on high-net-worth clients who are less likely to sacrifice purchases. To court these very important clients (VICs), brands are raising the price of classic items, opening private boutiques and limiting the production of goods. Swiss watch brand Audemars Piguet recently opened its invitation-only AP House in New York while its rival Philippe Patek has stopped producing its best-selling model – the Nautilus Ref. 5711 – to keep demand for the popular watch high. Elsewhere, luxury house Chanel has raised the price of its small classic flap bag by 60% since 2019 (source: Bloomberg).

Continue the conversation: How is the definition of exclusivity evolving? Consider how Dior’s most opulent offering is no longer a product sold in boutiques, but an appointment-only experience at the Villa Dior.

Image: The AP House New York lounge

Image: Cartier’s Beautés du Monde event at the Palacio de Liria, Madrid

Guestlist Getaways

As the definition of exclusivity shifts from products to experiences, luxury brands are becoming curators of money-can’t-buy moments. French fine jewellery company Cartier recently organised a once-in-a-lifetime experience for VICs that included winery tours in Toledo, Spain, and a private runway show of its latest Beautés du Monde collection. The multi-day event ended with a private concert by the Black Eyed Peas. Elsewhere, jewellery company Piaget recently sponsored a series of exclusive events in the AlUla region of Saudi Arabia. There was even a chance to rub shoulders with the Piaget’s C-suite. At an open-air concert in the desert, VICs were joined by the company’s chairman Yves Piaget and former CEO Chabi Nouri.

Continue the conversation: How can brands design memorable VIC experiences? Consider the role of travel, culture and education in crafting successful brand events.

Image: Photograph by Magnum photographer Jonas Bendiksen, who leads trips for The Luminaire

Insight 3: Illuminating Escapes

After the restrictions and frustrations of the pandemic, luxurians are now searching for more fulfilling travel experiences. Catering for this demand, luxury travel agency The Luminaire targets ‘deeply curious’ travellers with bespoke experiences that immerse people in local cultures. They have partnered with Magnum Photos to allow enthusiasts and amateurs to learn from celebrated photographers on trips to Mexico, Norway or Cape Cod.

Continue the conversation: Have your clients’ travel priorities changed after the pandemic? If so, how?

Medi-luxe

By 2030, health will be considered a key metric of personal wealth and success. As a result, the luxury industry will enter the medical arena, applying its core values of exclusivity, personalisation and service to become healthcare providers. This year, luxury house Gucci partnered with health technology company Oura to produce the Oura Generation 3 ring, a wearable that analyses sleep patterns, heart rates and can even track periods.

Continue the conversation: Ask your clients if they would be interested in luxury branded health wearables and facilities.

Image: Generation 3 ring by Gucci and Oura

Image: Ledger Nano X by Fendi and Ledger

In-style Security

As security becomes the ultimate luxury, brands are releasing accessories and products to combat cyber-attacks and breaches. In Britain, some 25% of high-net-worth individuals consider cybercrime the biggest risk to their wealth (source: Saltus Wealth Index). Earlier this year, luxury house Fendi partnered with digital security company Ledger to create the Ledger Nano X, a hardware wallet that ensures that crypto holders won’t lose access to their funds even if their digital identity is compromised.

Continue the conversation: The definition of safety and security is evolving. How can Dior produce goods that help clients feel more protected?