THE FUTURE OF LUXURY 2015+

Tomorrows People & Emotional Consumption

Presentation by futurist Anne Lise Kjaer The Catalan Agency for Competitiveness - October 29, 2009

Luxury Trends 2015+

THE JOURNEY

Todays Society Luxury Today and Tomorrow Trend Mapping Key Society Drivers Tomorrows Consumer Case Studies Competitive P.O.A. Conclusion
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Luxury Trends 2015+

THE FUTURE

EVOLUTION OF CONSUMPTION
EMPOWERMENT BRANDS
Social Responsible Brand Equity Specialisation Mass Prodcution Public Relations More Choice Basic Products
CORPORATE

EMOTIONAL CONSUMPTION
Sustainability Self-Realisation Individualisation Mass Consumption Social Attachment Security Sustenance
INDIVIDUAL

The 21st century Today Neo-Holism / Glocalisation 1990s 2000s Post-Modernity 1970s 1980s Neo-Fordism 1950s 1960s Fordism 1920s 1930s Subconscious Automatism / Bernays 1910s Militarism pre 1900 1900 Industrialisation / Urbanisation

kjaer global 2009 evolution of needs in the West

We are entering a new era where value sets are shifting

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Luxury Trends 2015+

THE SUSTAINABILITY AGE

Sustainability is our new religion - transforming our world, society and how we do business
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Luxury Trends 2015+

EMPATHIC LEADERSHIP

Companies and organisations must facilitate, educate, inspire and convey an ethical message to meet the needs of tomorrows people
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CONTRASTS CO-EXIST

Conspicuous Consumption - Shallow Luxury

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Conscious Consumption - Deep Luxury

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THE WHOLE BRAIN

2. SOCIAL
LEFT BRAIN
Analysis & Details

3. EMOTIONAL
RIGHT BRAIN

1. SCIENTIFIC

4. SPIRITUAL

Synthesis & Big Picture

1
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Luxury Trends 2020+

PERSONAL FULFILMENT
4. SPIRITUAL
Rediscovered Wisdom Inner Peace Karma Capitalism Art / Science Convergence

TREND ATLAS
UNIVERSAL AWARENESS

HEALTH & WELLNESS

3. EMOTIONAL
Personal Pampering Foodie Culture Perma Youth Cultural Consumption Lifestyle Curators

PURCHASE DRIVERS

GLOBAL SUSTAINERS

Authenticity Rediscovered

Intelligent Reduction

Deep Luxury

One Planet Living

Philanthropy

CARING COMPANIES
2. SOCIAL
Empowerment Brands Conscious Consuming Grey Power

PATCHWORK SOCIETY

WORK/LIFE BALANCE

COMMUNICATION NATION

Redefined Families

Creative Class

Female Empowerment

Five Star Youth

Customised Convenience

Rethinking Work/Leisure

Convergence Technology

Web 2.0

GLOBAL POLITICS
1. SCIENTIFIC
Climate Change Transparency Glocalisation

ECONOMIC DRIVERS

PREMIUM ECONOMIES

EMERGENT TECHNOLOGIES

Credit Challenges

Emergent Markets

Retail Curating

Living the Brand

Creative Capital

Clean Tech

Smart Everything

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Luxury Trends 2015+

NAVIGATING COMPLEXITY

Trends can present new opportunities. However without a Trend Atlas navigating the future is like travelling to an unknown location without your GPS switched on
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Luxury Trends 2015+

* Transparency

KEY DRIVERS

* New Economies & Glocalisation * Convergence Technology & Convenience * Empowerment Brands * Intelligent Consumption * Authenticity Rediscovered * Deep Luxury & Personal Pampering * Philanthropy & Karma Capitalism

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Luxury Trends 2015+

TRANSPARENCY

Patagonia invests in clean tech, policing waste and encourage tracebility

Luxury ethical council: initiated by luxury cashmere brand Rumah

Katharine Hamnett & Lily Cole fight child labour in the fashion industry

The urgency of sustainable consumption requires all to promote a transparent and authentic understanding of quality and manufacturing including respect for each other and the planet
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Luxury Trends 2015+

GLOCALISATION & NEW ECONOMIES

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iittala Groups head office in Helsinki

Saville Row tailors

Story telling, especially about origin and people is vital

Still Made Here home-grown creative capital gains currency

Global trade / local values HSBC sponsor China Design Now

Connectivity and integration drives globalisation. Local cultural capital reflected in the brand is attractive to tomorrows people and gives an edge over global competition

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EMPOWERMENT BRANDS

Danish Luxury label Noir founded Illuminati to manufacture high quality cotton fabrics in Uganda

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www.eco-asia.info/content/en/f-noir

Frederic Malle Perfumer Creater of bespoke personal fragrances

Iconic brand culture has resulted in people increasingly being attracted by the emotional aspects of brands. Be inspiring, informative and ethical - truly empowering people

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CONVERGENCE TECHNOLOGY & CONVENIENCE

Applications software makes peoples life easier

Connecting with people via social networks to stay ahead of the competition

Convergence technology has empowered the individual in ways previously undreamt of. We can shop 24/7, find the best deal on compare sites and get support by social networks
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Luxury Trends 2015+

INTELLIGENT CONSUMPTION

Conscious and ethical One Planet Living for global change

Quiet understated luxury

Absolute limited edition

The influential and informed individual practises sustainability by doing and this is filtering through every level of society. Businesses must offer intelligent choices with authentic values
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Luxury Trends 2015+

AUTHENTICITY REDISCOVERED

Going back to your roots to recover your economy

Time before everything became branded and disposable

Simple and honest design where quality and utility are intrinsic

In a world of mass produced we crave authenticity and timeless quality. We want the real thing: experiences that enhance our lives and tell a story of origin and traceability
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DEEP LUXURY & PERSONAL PAMPERING

Foodies want local and high quality

Consumers want products with personal meaning

Luxury spas for personal pampering to improve health

Meaning and empathy are increasingly important factors in understanding consumer needs. Good karma and personal pampering has become big business
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Luxury Trends 2020+

PHILANTHROPY & KARMA CAPITALISM

AMEX Red support Good Causes

Member of the G.O.O.D. Club

Gates and Buffet are leading the way in philanthropy

Karma Capitalism - The Co-operative Bank and Amnesty International have joined forces

Growth global philanthropy indicates people need for social participation and value-related self-expression. Wealth is now measured by how much you can afford to give away
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Luxury Trends 2015+

TOMORROWS PEOPLE

The key trends clearly indicate a polarised society sharing lifestyles and value sets across conventional borders
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Luxury Trends 2015+

CONTRASTING MINDSETS

The WE people
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The ME People

Luxury Trends 2015+

WE

LUXURY KEY DRIVERS

HONEST Transparency

TOGETHERNESS Glocalisation

CULTURAL

EMPOWERING Convenience

FULFILLMENT Philanthropy

NATURE

STIMULATING New Economies

REAL Authenticity

Rational
PROGRESS Convergence Technology INFORMED Intelligent Consumption

Emotional

ENGAGING Empowerment Brands

HOLISTIC Personal Pampering

EXCLUSIVE Deep Luxury

UNCONVENTIONAL Karma Capitalism

URBAN

POETIC

ME

The Trend Atlas indicates two key types: ME and WE people. The trends are closely linked to value sets that are essential when creating products and services
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URBAN TRIBES

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URBAN TRIBES - EXPERIENCES

ATMOSPHERE Urban and contemporary Scene setting - social performance Polished surfaces
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COMMUNICATION & MEDIA Specialist, individual & forward-thinking Clubs/magazines for connoisseurs Networking - an 'insider

KEY DETAILS Designer furniture and fittings Style before comfort Indoor & outdoor blend seamlessly

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URBAN TRIBES - FAVOURITE BUYS

SILHOUETTES Urban / Architectural / Technical Sleek and Tailored Sophisticated, Sexy Avant-garde
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FASHION & TEXTILES Luxury materials No superfluous trims Leathers and fur

DESIGNERS Comme de Garcon Yohji Yamamoto Costume Nationale

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CULTURAL EXPLORERS

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CULTURAL EXPLORERS - EXPERIENCES

ATMOSPHERE Urban community Social space and themed interiors Quirky, ironic and humorous
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KEY DETAILS Untreated woods and brick walls Well-worn leather Informal with focus on music

MEDIA & COMMUNICATION Intimate, stimulating and imaginative Insider knowledge viral marketing Peer-to-peer networks & web focus

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CULTURAL EXPLORERS - FAVOURITE BUYS

SILHOUETTES Eclectic with a personal twist Influenced by global culture Relaxed, informal edgy sporty
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FASHION & TEXTILES Contrasting reclaimed / luxury materials Loves badges, details and trims Abundant fabric and layering

DESIGNERS Marc Jacobs Paul & Joe Paul Smith

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NATURE SUSTAINERS

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Luxury Trends 2015+

NATURE SUSTAINERS - EXPERIENCES

ATMOSPHERE Inclusive spaces Sustainable & honest materials Relaxed and informal
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MEDIA & COMMUNICATION Socially & environmentally responsible Goods labelled with clear information Transparent sourcing

KEY DETAILS Un-pretentious without pastiche Cosy, caring and authentic Organic Everything

Luxury Trends 2015+

NATURE SUSTAINERS - FAVOURITE BUYS

SILHOUETTES Relaxed - Casual Soft and Layered Thoughtful and Creative

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FASHION & TEXTILES Organic materials, dyes and prints Sustainable sources Wooden beads, shells & cork trim

DESIGNERS No Logo & Independent brands Charity Shops Edun

Luxury Trends 2015+

POETIC MODERNISTS

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Luxury Trends 2015+

POETIC MODERNISTS - EXPERIENCES

Inconspicuous Luxury

ATMOSPHERE Calm and intimate Curated, Intriguing and spiritual spaces Considered and thoughtful
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MEDIA & COMMUNICATION Logic & intuitive information architecture Always Ideas over Logos Complex simplicity - a bit surreal

KEY DETAILS Inconspicuous High-spec Luxury Insider design and designers Sophisticated, artistic and light

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POETIC MODERNISTS - FAVOURITE BUYS

SILHOUETTES Geometric - intellectual cuts Minimal and modern romantic Otherworldly - pure and refined
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FASHION & TEXTILES Rich and textured fabrics High tech accessories and materials Shells and Mother of Pearl

DESIGNERS Hussein Chalayan Jens Laugesen Modern Vintage

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PLAN OF ACTION

# 1: From: Arrogant and snobbish To: Welcoming and Nurturing # 2: From: Brand validates customers To: Customers Validate Brand # 3: From: Price Premium is imposed To: Price Premium is Earned # 4 From: Command and control management To: Team-based Innovation and Learning # 5 From: Key assets - bricks & mortar To: Key Assets - People & Relationships # 6 From: Economies of scale To: Economies of Customer Share

# 7 From: Me too in multiple segments To: Unique & Exclusive in Few Segments # 8 From: Customers adapting to business To: Business Adapting to Customers # 9 From: Dialogue - feared and ridiculed To: Dialogue - Embraced and Acted Upon # 10 From: Disconnected interactions To: Seamless Customer Journeys # 11 From: Traditional luxury marketing To: Word-of-Mouth, Referrals # 12 From: Socially disengaged To: Socially Responsible

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Luxury Trends 2015+

CONCLUSION

To lead have perspective and be people-centric - truly empower people on all levels. Only then can you create successful products to engage tomorrows emotional experience hunters
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