"The COVID-19 emergency has been an accelerator of trends that were already establishing themselves", claims Matteo Lunelli, producer of the strongest wine brand (Ferrari) in Italy and president of Altagamma, the foundation that since 1992 has brought together "the enterprises of the high cultural and creative industry that promote Italian excellence, uniqueness and lifestyle throughout the world”. Or to put it briefly, made in Italy luxury. And the truth is that something in the world of Italian luxury has changed with Covid. Although, as Lunelli says, digital was already becoming essential, it is undeniable that the health emergency, the consequent global economic crisis, and the collapse of travel (both leisure and business) are changing the paradigms of this market which, needless to specify, is worth a lot for the Italian economy.
It's the same High-end Consumer and Retail Insight, now in its seventh edition and packaged with the Boston Consulting Group, to try to take stock and trace the identikit of the luxury consumer over the next 2-3 years. Highlighting contrasting scenarios. Meanwhile, it is surprising that although 54% of True-Luxury consumers do not expect to resume international travel for six months, it is instead the experience, rather than the purchase of products, that is the new preference of a good portion of consumers: 43% of the top ones (more than half in the US) already before Covid, 40% still now.
Experience means home design, wellness, haute cuisine and even tourism, even if the Altagamma analysis forecasts the resumption of international travel in no earlier than 9 months, and, among other things, Italy is declining as the preferred destination. As far as experiences are concerned, home tech and fine wines and spirits are forecast at the top, with a decline in exclusive cruises, luxury bars and clubs and even works of art. As for the products, since Covid, casualwear will emerge victorious: sneakers, t-shirts, even cosmetics. The so-called hard luxury will pay the price, within 2-3 years: watches, jewels.
Another contradiction: the Chinese will continue to spend and be attracted by the strongest and most recognizable brands (confirming the pre-Covid trend), while the western market is destined to slow down, also showing a greater appreciation for a more discreet luxury, for slow fashion and the intrinsic quality of the product. "Sobriety is the way" in the West, "Extra is cool" in China, thus summarizes Altagamma's research to describe the polarization on the way. In short, Chinese consumers will confirm themselves, no offense, more frivolous: the preference for products with strong brand recognition will increase by 14%, confirming a preference for elements of extravagance and fun as opposed to more traditional values (craftsmanship, quality and timeless aesthetics ).
Westerners, on the other hand, will see this paradigm decrease by 9%. The good news however is that China alone is worth 35% of the Luxury market, even if another less good one arrives immediately: due to the crisis and more difficult travel, that clientele it will now focus primarily on the internal market. And Italy is no longer his favorite destination: today it is only in third place, while before the pandemic it was in first place. Asians are also the most confident about the recovery of the luxury market: 77% believe it will be fast, against 36% of the average consumer in the other countries interviewed (USA, UK, Germany, Italy, France, Japan, South Korea, Russia and Brazil, with the most pessimistic feedback from Russia and Japan).
How to intercept the new trends? According to Altagamma, focusing on Clienteling 2.0. That is, all online but not only, ensuring that the relationship with the customer is nurtured seamlessly both in-store and online, and combining human and data capabilities using advanced tools. True-Luxury consumers will greatly appreciate digital personalization in the coming years (examples are Gucci Live and Live Shopping at Galeries Lafayette): 46% of respondents say that they will appreciate more personalized digital clienteling in the future, especially Chinese consumers ( 76%) and Italians (57%). Consumers will have a high expectation on the level of service they will receive, by expecting the same treatment between digital and offline channels.
“Digital becomes essential – confirms Lunelli -, but personal contact enhances it with tailor-made proposals for a Clienteling 2.0. Lastly, as never before, tourism is a lever for the development of top-of-the-range products and for the entire country where the offer should be repositioned upwards with a national strategic plan”. "To regain the interest of Chinese consumers and reassure other tourists, the priority for the Italian authorities and high-end brands is to collectively sponsor our country's brand", he adds Nicola Pianon, Senior Partner and Managing Director of BCG.
