- Luxury fashion and beauty is a $300 billion industry rapidly evolving and becoming more focused on sustainability and purpose-driven brands.
- The luxury goods sector rebounded strongly after COVID-19, with a 21% growth in 2022 driven by luxury consumers worldwide.
- Sustainability is becoming increasingly important to consumers, particularly younger generations, and is essential for growth and brand reputation.
- Digital commerce and the metaverse are rapidly changing the luxury industry, focusing on being present where customers are and engaging with them in new ways.
- Altagamma Club will launch in Dubai on the 3rd of March, 2023. The club will unite all Altagamma managers and partners in the region, along with Italian and local institutions, to establish a network promoting the growth of "made in Italy" products in the region.
The luxury industry is evolving, and new governance trends are emerging. At the "Global Luxury Brands: Key Trends and New Governance" session moderated by Frederic Sicre, industry experts discussed the changing landscape of the luxury market.
Patrick Chalhoub, co-CEO of Chalhoub Group, pointed out that luxury is not just about a high price tag but a desire customers aspire to have. However, luxury is evolving, becoming more purpose-driven and sustainability-focused. From a brand perspective, there is more innovation and creativity. The COVID-19 pandemic has changed the luxury game, with customers becoming more purpose-driven and sustainability-focused.
Matteo Lunelli, Chairman of Altagamma Foundation, shared that luxury is becoming more inclusive, linked to the intrinsic quality of their creations. Nowadays, customers choose a brand because it represents the value they believe in. He also emphasized the importance of sustainability, noting that Italian brands have always been sustainable, as they must contribute to protecting their community.
The topic of sustainability was further discussed by Patrick Chalhoub, who highlighted the industry's commitment to sustainability. It is a matter of customer demand and commitment from industry leaders. Significant steps are being taken to become net-zero by 2030, focusing on recycled products and a circular economy.
The speakers also discussed the evolving digital landscape, with Matteo Lunelli stating that digital is the future and luxury consumers are getting younger and more digital. The importance of digital commerce was evident during the pandemic, as digital luxury sales doubled. Luxury brands must be present in the digital space and focus on how customers are evolving.
Frederic Sicre also announced that an Altagamma Club would be created in Dubai, UAE, to gather all managers of Altagamma and partners in the region to develop "made in Italy" in the region. This club will be a network supporting the growth of the region's Italian lifestyle and high-end brands. The announcement comes ahead of Investopia's upcoming event in Milan in May, which will be an opportunity to increase partnerships between the two regions.
In conclusion, the luxury industry is evolving, and new governance trends are emerging. Sustainability and digital transformation are becoming increasingly important, and luxury brands must adapt to these changing trends to stay relevant in the market. Creating the Altagamma Club in Dubai is a step towards developing "made in Italy" in the region. Investopia's upcoming event in Milan will be an opportunity to strengthen partnerships between the two regions.