Luxury could be defined as the ostentatious display of sumptuous goods that require above-average resources to acquire. These goods—and also services or experiences—are characterized by not being basic necessities, but rather are usually related to vanity, adornment, or social prestige. But what might lead a luxury consumer to invest (or spend) on products and services that could be entirely dispensable in their life? 

According to LVMH, luxury is a business of offer, not of demand. Luxury goods can include the following categories: high-end cars, personal luxury goods (fashion, accessories—for example, leather goods—high-end beauty products and fragrances, fine jewelry and watches), hospitality, fine wines and spirits, gourmet food, furniture, art, private jets, and cruises.

Luxury represents sources of a sense of privilege, taste and refinement, generating distinctive recognition by relevant others, due to the power of the brand.

Luxury communicates value and is the vehicle between meaning and its signifier. In the social context, the prestige of a brand, earned through its legacy or heritage, cost, innovation, craftsmanship, or mere advertising, is transferred to the individual who wears it. It is the image perceived in our consumer society, even unconsciously.

In the context of marketing, if a celebrity, whether a public figure or someone relevant in their field, wears a watch, for example, whether organically and genuinely, through collaborations, or directly through advertising contracts, they transfer their social status or communicative impact directly to that "object of desire," popularizing it among their followers—or detractors—through imitation and reinforcement, "humanizing" it, or becoming the face or representation of their target audience.

Luxury, then, symbolizes access to very quality objects, memorable experiences, and personal services that surpass the most hedonistic expectations of the contemporary consumer. Haute couture, high-fashion, and premium brands have capitalized on their name and legacy in the industry to evolve into luxury brands that sell everything from lipstick to perfume.

While luxury expresses the desire for a beautiful life, according to architect Werner van der Meulen, in an interview for Lifestyle Magazine: “Luxury is not just opulence, it is feeling that your environment helps you in different ways to enjoy life more,” emphasizing facilitating processes, and that functionality takes precedence over form.

1. Exceptional quality and top-tier materials. This can also be justified as research and development (R&D) of new materials and processes that simplify and respond to market and societal needs, as well as the preservation of artisanal techniques.

2. Scarcity and guaranteed exclusivity. Limited production, access through private sales, pre-launches, or pre-orders of collections.

3. Delivering experiential rewards, loaded with positive emotions. Experiential marketing is more about how the brand makes you feel, placing its perceived value on something entirely subjective. For example, Tiffany’s blue is the color of dreams.

4. Signed by prestigious brands (an undisputed symbol of distinction and status). This helps you "earn" that recognition, with goods and services endorsed by the brand image. 

5. Exclusive distribution through authorized channels rigorously controlled against counterfeiting.

6. Personalized services and individualized attention. At this point, after-sales support, repair services, and customization options are available.

While the shift to online shopping saw a significant increase of 20% between 2021 and 2022, transforming how consumers access exclusive products, the 2020s have been marked by evolving consumption patterns:

1. Rediscovery of the unique value of vintage products, for their craftsmanship and heritage: The rise of pre-owned, pre-loved items.

According to The FASHIONPHILE’s 2025 Ultra-Luxury Resale Report, “Shoppers used second-hand style to signal taste, individuality, and resistance to mass trends. Status shifted from trend consumption to identity curation. Resale offered a platform for crafting personal narratives, rather than following seasonal scripts. It was personal expression through purposeful acquisition (…) they curated pre-owned pieces that told stories, asserted individuality, and challenged traditional notions of luxury consumption. They rebelled against throwaway fashion culture by using resale to engage with trends meaningfully, buying pieces with history, resale value, and personal significance.”

2. Rethinking the concept of ownership: Renting emerges as an innovative business model applicable to luxury brands as well, where consumers prefer authentic and unique experiences rather than simply acquiring exclusive objects.

Renting designer wardrobes: The pragmatic logic of pay-to-use is born.

Today's luxury consumers are increasingly interested in subtle ways of expressing themselves. Furthermore, there is a growing demand for sharing memorable experiences. 

Immersive experiences have become a crucial strategy for establishing meaningful connections with consumers, making experiential marketing an undeniable strategic imperative. The Millennial generation are searching for authenticity in-depth experiences that resonate emotionally, speaking to the consumer's heart. Marketing is becoming deeply emotional, focusing on the consumer's own convictions, and less on features or benefits.

In an era where brand loyalty is declining—or almost nonexistent—the experiential marketing strategy fosters interaction, positive brand association, and customer loyalty, often prompting consumers to share their experiences online, becoming authentic and active brand ambassadors (advocacy).

Strategic collaborations between brands, sponsorship of an event, (or with artists, influencers or institution like a museum) have emerged as the most effective tool for attracting and retaining new consumer segments.

According to FASHIONPHILE, searches for the Louis Vuitton x Murakami collaboration jumped 1,119% this year, compared to 2024.

Consumption patterns are evolving. With consumers allocating fewer resources to material goods and more to transformative experiences, there is a critical challenge that luxury brands must address creatively.

Strategic storytelling is emerging as one of the most powerful tools for creating lasting connections with consumers. There is a genuine interest in learning about each brand's story, its creative processes, and its artistic inspiration. To be effective, the content must be inherently credible, authentic, unique, and captivating, achieving a deep connection with consumers.

Engaging means stimulating all five senses. Research shows that people retain approximately 35% of what they smell or taste, 5% of what they see, 2% of what they hear, and 1% of what they touch.

On the other hand, luxury sector customers continue to deeply value exceptional craftsmanship (think of the scarcity of skilled labor to execute a specific technique), functionality, and design.

2. Consumers express their personal values ​​and deepest convictions through a careful selection of brands, seeking those that authentically reflect their individual ideals and aspirations. This alignment between consumer and brand values ​​creates a lasting and meaningful emotional connection.

3. Luxury brands have the power and the responsibility to encourage socially desirable and constructive values ​​in contemporary society, acting as agents of positive change and establishing new ethical standards in the luxury industry.

First, health; the precariousness of public systems and the collapse of insurance make prevention essential over treatment, giving rise to the wellness movement, self-care, and an awareness of holistic self-care.

Second, the “premiumization” of everything, understood by Diageo as “a trend in which customers choose or invest in higher-quality products and experiences. This often involves choosing quality over quantity and seeking experiences that provide a genuine sense of satisfaction,” resulting in higher spending per customer. Designer coffee? Designer chocolates? Nothing seems too much for the consumer eager to access goods and services that were once reserved for the elite.

Thirdly, travel. In this respect, I believe the purpose of the art of travel has become blurred.

Is a business trip truly essential, given how interconnected we are? Are we traveling for genuine pleasure, or to escape the routine (to which we will inevitably return in two weeks)? Do we truly want to expand our culture, connect with other communities, learn about their history, broaden our minds and experiences, or are we doing it simply to accumulate miles and feed our hedonistic ego (understood as the pursuit of momentary pleasure, without considering the long-term implications) for the sake of "I was here"? Is it truly the best investment we can make, or are we merely mortgaging our financial future just to accumulate photos and souvenirs? And even more crucially, is this model sustainable for global carbon emissions and for the lives of host communities? Are we prepared to face a new global crisis?

Sustainability is defined as “the ability to meet the needs of the present without compromising the ability of future generations to meet their own needs.” This concept encompasses interconnected environmental, social, and economic dimensions.

Sustainability has become the most disruptive and influential trend of the decade, redefining the standards of the luxury industry.

For example, pre-ordering (the option to reserve and pay for a product in advance of its official launch) allows brands to produce on demand and reduce waste, which benefits sustainability and the design of more complex pieces, as items are made specifically for the customer after the purchase has been finalized.

The high-end cosmetics and fragrance segment has also taken concrete steps to mitigate its environmental impact: reducing carbon emissions in its production chain and retail space, as well as reducing waste and plastic in packaging, offering more sustainable products and services, and guiding its own consumers to make more responsible choices, for example, by encouraging bottle refills.

This generation of millennials and centennials wants something they can personalize, which is why customization has become so popular. From engraving your initials on your bag, hiring an embroidery service for your bachelorette party, to designing your own sneakers.

Personalization contrasts with fast fashion because of the time it takes to be crafted, and because is designed for an audience of one.

The biggest challenge of customization for luxury and high-end brands is effectively communicating the consumer's personal taste, preferences and identity, while preserving and respecting their brand identity.

Luxury brands focus on building a strong individual identity, a brand DNA based on heritage and values. DNA is like a frame which is shaping each and every single decision you make. Make DNA very explicit, very simple.

A brand DNA is expressed through visible symbols, signs, or codes, and functions as a comprehensive strategic framework that guides and shapes every organizational decision. Defining a brand DNA means knowing who you are and sticking to that.

It is imperative to make the DNA exceptionally explicit and accessible, effectively sharing it throughout the entire organizational structure to ensure its understanding and universal adoption.

To determine your brand DNA, you can answer this question: What would the world “miss” if your brand had to suddenly disappear?

Be very clear about who you are and where you come from, and then build upon solid foundations to support your brand's future growth.

The luxury business is essentially a retail business, and its strategy must be based on customer satisfaction and performance. Nothing outside of that deserves to be included in this category.

The latter is based on:

1. The meaning of products in society (a facet of materialism)

2. The consumer's identity (and their self-congruence in their choices, which reflect their personal expression).

In conclusion, while the luxury industry is based on objective characteristics, it is also subject to the value perceived by the consumer, influenced by the society with which they interact, their values, emotions, needs, and aspirations, making it a highly subjective concept as well.

"We would not compromise quality for innovation, because innovation is only a means to achieve excellence." LVMH

Jessymar Daneau Tovar (@letroupe)