FT Business of Luxury 2023

Published 12 June 2023

Author

Tim Jackson

8 min read

The luxury industry is in flux as brands balance business growth with eco-ethical operations and expanding their digital (even metaverse) presence. These topics ignited conversations at the FT Business of Luxury Summit in Monte Carlo (May 21-23), where experts gathered to discuss the social, political and economic forces shaping tomorrow’s elite brand landscapes.

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Crafting Responsible Luxury Brands

By 2026, the global luxury goods market is expected to be worth €494bn ($530bn), up from €388bn ($416bn) in 2022 (Boston Consulting Group, 2022). Although speakers were optimistic about continued sector growth (despite economic headwinds), they noted that larger brands, with the resources to enter new markets, have an advantage as luxury’s top regional customers shift.

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Sarah Willersdorf, global head of luxury for America’s Boston Consulting Group, said: “Back in 2019, millennials and Gen Z made up 40% of the luxury spend. By 2026, it’ll be 75% of the spend, with Gen Z 15-20% of that.” These younger luxury consumers engage primarily online, opting for rigorous pre-purchase social media research and imagination-fuelling AR try-on tech.

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“If you want to build a billion-dollar luxury business, then product alone is not enough,” said Marco de Benedetti, co-head of Europe private equity for US asset management firm Carlyle. Luxury consumers want brands with impeccable ethical and environmental practices – practices that proposed legislation aims to enshrine in law.

FT Business of Luxury 2023

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Topics

Metaverse

Advertising & Branding

Cost of Living

Digital

Ethics

Leisure

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