Series entrepreneur. CEO and founder of Mirai flights, an instant charter flight booking service. Founder and owner of Aim of Emperor Group
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Jack Welch once said, “If the rate of change on the outside is greater than the rate of change on the inside, the end is near.”
The uncertainties and economic challenges that remain in 2022 suggest that 2023 may also be a vulnerable year, and Gen Alpha (people born in the early 2010s and later) are the ones most likely to be directly impacted by the instability and adversity that has occurred.
With annual reviews on the horizon and new year goals and resolutions fresh in our minds, I want to explore themes of digital growth and how the expansion and diversification of connected technology continues to provide exciting opportunities for the luxury industry.
Upcoming Trends: A Year for Authenticity and Vulnerability
I can see words like authenticity and vulnerability becoming buzzwords for brand advocacy in the future. from Altata World World Ultra Wealth Report 2022 (download required), shows that consumers from every affluent class are growing weary of the relentlessly optimistic yet condescending tone that permeates the social and cultural landscape.
With budgets getting tighter – approx six out of ten small to medium-sized businesses (SMBs) are expected to freeze or reduce their marketing spend in 2023, coupled with the continued efforts of Google To counter excessive advertising during general data breaches and data protection violations, it is more vital than ever that sensory experiences, macro shifts and global drivers become important aspects of your business model. Also been with every year stricter government oversight and oversight in areas such as decentralized finance (defi).
Brands need to look at the expansion of innovation, platform dedication and exploration. With billions of people now on the internet, it is the convergence of digital activities that will prevail alongside efforts to provide immersive experiences and purchases of digital content. In line with immersive experiences, faster mobile data rates can enable developers to deliver more immersive augmented reality (AR), virtual reality (VR), and metaverse experiences.
Integration of trends within the luxury industry
As the growth of the luxury market seems to expand the consumer 500 million by 2023it’s not a question of scaling back efforts or cutting headcount, but integrating smart metrics of loyalty and advocacy to fight competitors.
As far as I know about the private aviation landscape, there are ongoing supply chain disruptions in global aircraft manufacturing – evidence that the luxury ecosystem is not curtailing its supply, but trying to scale up to meet the demand that may is made through improved digitization.
Indeed, many growth drivers in the luxury industry are realizing record figuresand I see a culture of ambition, enhanced creativity and a willingness to take more risks as essential components for the luxury sector to look to in 2023.
As the shine begins to fade from the direct-to-consumer digital model that has propelled many brands over the past decade, I see the new year as the perfect time to evaluate and acknowledge some key strategic suggestions:
1. Look at growing regions
With world turmoil, including the war in Ukraine, it is helpful to explore and navigate new regions that offer optimistic expectations. As shifting patterns of wealth change, I see more diverse regions starting to emerge as market players; the one mentioned before World Ultra Wealth Report 2022 shows that countries such as those in Asia, the Middle East and Latin America are seeing a continued growth of ultra-wealthy individuals.
The Middle East in particular has become for many a new haven of growth with its tantalizing opportunities in areas such as local development, fintech and manufactured goods exports.
To avoid alienating consumers in an increasingly polarized and interconnected world, senior leaders must weigh the impact of brand equity when joining one of these markets before deciding to invest. Look in particular at mitigating unnecessary reputational risks or revenue losses.
2. Develop nuanced customer profiles
The critical cohorts of “generations” like Gen Z not only separate us from the traditional rooting of classes, but categorize people into much more segmented dialogues than before. With changing behavior patterns and omni-connectivity, it can be more challenging than ever to assimilate your digital presence and brand capabilities to come across as consistent and authentic across digital channels.
But even among these difficulties, unlocking individuality and self-expression to deliver the concept of “expressive luxury” can enable brands to weather the recession.
The value equation is no longer just about price, but about a combination of product, authenticity, value and ethics. These things should be inherently grounded in a long-term vision and purpose that can help your brand thrive in a positive tailwind, albeit in a weak economic environment.
3. Communicating Ethics
As brands’ desire to appeal to the masses and an alternative consumer base has grown, so has greenwashing, which can be defined as making sustainability claims that are misleading or even cover a questionable environmental record. The concept has resonated in recent years when it comes to brand authenticity.
When asked, consumers tend to say they care about sustainability and social responsibility, but their actions don’t always match their words. According to a recent poll by Getty Image, sustainability is simply put not so important for consumers as a convenience.
It is still true that huge efforts and huge improvements have been made in the luxury sector to ensure that action is taken, big or small, niche or mass. So, I suggest for the safety of brand reputation, it is crucial to ensure a hyper-vigilant approach when we talk about sustainability initiatives and achievements.
The luxury segment, including fashion, has experienced a wave of growth and prosperity supported by a revolution in digital distribution. However, as economic conditions become more difficult, luxury brands urgently need to think about how best to survive in the future. The growth of connected technology is creating numerous opportunities in growing luxury markets and opening up new ways to communicate your brand’s ethos and develop nuanced customer profiles.
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