The future of luxury. A Davos talk

A unique panel of fashion and luxury experts met in Davos, during the famous World Economic Forum (WEF), to discuss the future of the industry. The discussion took place at the Loft of Shared Dreams, a fantastic location run by László Ujpál, Marina Cvetkovic and Annina Müller. The experts were Sophie Furley (WorldTempus), Jana M. Arden (Capgemini), Kathrin Joa (Brandpulse) and Stefan Berger (FACES Media Group).

Besides being a strategic global industry, worth $1.5 Trillion, according to Bain – Altagamma (2024), Luxury can shape the very fabric of society. We wouldn’t be able to talk so easily about our vulnerabilities without Alexander McQueen. We wouldn’t have women empowerment without the looks and style by Yves Saint-Laurent, Coco Chanel and Giorgio Armani. Gianni Versace helped us talk openly about homosexuality and AIDS. And the list goes on and on.

Fashion and luxury have always been a free zone and a haven for innovators, disruptors and emancipators of all sorts. Luxury and fashion have always been at the forefront of social change. Do you want to make something stick with people? Make it contagious, elevated, compelling, fashionable, irresistible. Fashion and luxury are about us, first.

The future of luxury is one where quality and values will be more and more fundamental in the future and for new generations, according to Kathrin Joa, Strategy Director at Brandpulse, a consultancy. Consistency and authenticity are a must-have, and brand names cannot get away with it any longer. Ms. Joa has been working, for example, on the brand relaunch of BOSS, which is one of the best and most comprehensive relaunches of all times, which really brought an entire company into a new life stage, thanks to a hard push from the top, solid investment into the relaunch and a plan to affect every corner of the company. Jana Arden, at CapGemini, adds that the value that any brand offers needs to be properly communicated, and that portfolio architecture, pricing, and the whole marketing mix need to be in line with the brand essence and go to market strategies.

Brands need more depth, according to Stefan Berger, boss at Faces Media, namely time spent against what they stand for and where they want to take their fans in the short and long term. Sophie Furley, Editor in Chief at World tempus, highlights how luxury watch brands have been starting to collect data and knowledge about their VIPs and fans, to know them, serve them at best, and give them ‘unreasonable’ experiences, which means things that money can’t buy.

The network of stakeholders and supporters around a brand is everything. It’s not a product per se business. It’s a people business, as we said. It’s all about the fans, and the value that brands can exchange with them.

The world looks shaky, as we look at geo-politics and the latest tech developments, driven by AI. Luxury and fashion maisons will need to adopt AI fast, keeping their human touch where it matters. They especially must lead the way in social change, starting from more female leaders and more diversity, as the world seems to veer towards more conservative policies and programs. Sustainability and traceability are also a ‘hot zone’ for all luxury players. The challenges are there, and yet the industry has the history and capabilities to nurture a community of lovers of savoir-faire, beauty, quality and humanity. The why luxury exists has never been more compelling. Tech will help, for sure. New generations will bring new ideas to the table. The Davos platform created the ideal conditions to discuss the shared dream to make luxury and fashion even more desirable, as they build confidence and social status across generations of change-makers.

Written by Francesco Pagano.
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