Luxury is a multifaced concept. Luxury from latin “lux”, “luxuria” means rankness, extravagance, lust excess. Luxury definition is dependant from context, generations, nationalities.
“What one generation sees as a luxury, the next sees as a necessity” – Anthony Crosland, British politician, 20 century
- very wealthy and comfortable surrounding
- something desirable but expensive
- something very pleasant but not always needed in life.
The Foundation Altagamma is the global key place for understanding and researching of the luxury market. With the partnership with very significant and prestigious companies Altagamma releases 8 researches per year in this area. By 2015, Altagamma/Bain&Company press-release states 1044 B€ in all categories (with total growth comparing to previous year 14%). The categories are:
- Luxury cars (the biggest) with 405 B€, growing comparing to 2014 by 15%
- Personal Luxury goods with 253 B€, such as: apparel, watches, jewelry, shoes, leather goods
- Luxury Hotellerie 176 B€
- Luxury wines and spirit 64 B€
- Luxury food 45 B€
- Fine Art 40 B€
- High-quality design 32 B€
- Luxury private jets 21 B€
- Luxury yachts 7 B€
- Luxury Cruises 2B€
The research present financial and market performance of more than 250 of the worlds leading luxury goods companies and brands. The database of companies, known as the “Luxury Goods Worldwide Market Observatory”, has become a leading and much studied source for the international luxury goods industry. According to Altagamma, quantity of luxury consumers will rise from 380 millions by today to 440 millions by 2020.
Luxury is the spirit of Craftsmanship and it gives life to artifacts through:
Its all about excellence, for the sake of excellence, in any business process and product category. Its a different and global way to interpret a product, a brand or a business.
- The atelier of embroidery Lesage and button-maker Desrues for the Paris-Bombay Métiers d’Art collection for Chanel
- Van Cleef & Arpels – Making-of the Alhambra collection
- Fendi Fur Story
- Giuseppe Zanotti – Master Class of making a pair of stiletto shoes
- Louis Vuitton Savoir-Faire | Leather Goods
- How a Swiss watch is made Audemars Piguet
As an Industry The Luxury goods industry is defined by:
- a strong branding that relates to an exclusive lifestyle
- a superior quality and timelessness
- premium pricing
- stylish and extravagant terms of design
Luxury can be seen as goods distinguished by their inherent value (gems, precious metals, exclusive materials, land, ocean frontage,certain urban properties) or so unique and extraordinary that they command a premium price.
Since the environmental problems has become extremely important nowadays, in order to understand it, brands and companies tend to follow highly eco-friendly aspects in all chains of production and distribution stages. With luxury concept of timelessness, the products are made to endure forever, so all high-quality production process and distribution are engaged with question of ecology. Its also a question of reputation of a brand or company, a social responsibility and a way of gratification and understanding of their role as not only planets consumer but also a keeper of Earths well-being. Eco-trending, energy saving, labour equity pushing companies to support the Good. So Luxury industry might appear at risk of lack of resources (best cotton, silk, leather, cashmere for e.g.) and has to find a compromise between high demand of exclusive products by their consumers and sustainability beyond all profits.