Tastes and objects associated with exclusivity are evolving in an era where climate change, artificiality, uncertainty, and overexposure are driving the only growing industry beyond economic cycles.

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When an individual (from the middle class onwards) encounters a Louis Vuitton commercial, Prada handbags, Bentley cars, Rolex watches, Four Seasons rooms, Cohiba cigars, Blue Label Whiskey, or the latest model apartment in upscale neighborhoods, beyond their consumer mindset, they recognize the radiance sought by "high-end" products.

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Behind each element of these brands, products, and experiences lies a multitude of individuals seeking to reinvent the meaning of exclusivity without sacrificing the significance of legacies that can span weeks or centuries (such as Off White by Virgil Abloh since 2012 or the Santa Maria Novella soaps from Florence since 1221).

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For instance, I can assert from firsthand experience that choosing the music for a Celine, Fendi, or Vuitton runway show or campaign involves the collaboration of a dozen individuals from diverse fields like financial derivatives or interpretive dance, spanning at least fifteen work sessions. This precision contributes to the captivating nature of runway music.

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In a world where climate change, artificiality, uncertainty, and overexposure are reshaping values and preferences, the premium industry has emerged as a steadily growing force, resilient to economic cycles.

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The premium business is categorized into four major segments: hospitality, goods, food and beverages, and transportation. These combined areas generated approximately $2 trillion in revenue in the past year. Furthermore, this industry was among the few that continued to thrive even during the pandemic, adapting to a world that became more costly due to inflation.

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China's Dominance in Luxury Car Market:

China is the world's largest luxury car market, representing over 40% of global luxury car sales. Premium automobile brands like BMW, Mercedes-Benz, and Audi continue to experience significant growth in the Chinese market.

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Projected Growth of Online Luxury Market:

The online luxury market is anticipated to reach $112 billion by 2025, driven by an estimated compound annual growth rate (CAGR) of approximately 13%. Luxury e-commerce platform Farfetch reported a remarkable 71% year-over-year increase in revenue in 2021, underscoring the rapid expansion of online luxury sales.

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Robust Growth in Global Luxury Travel:

Global luxury travel spending reached an impressive $948 billion in 2019. The luxury travel sector is projected to maintain a strong growth trajectory with a CAGR of 6.1% from 2020 to 2027, indicating sustained demand for exclusive travel experiences.

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Surging Demand for Private Jet Bookings:

In the first half of 2021, private jet bookings witnessed a surge of around 75%, reflecting the strong demand for exclusive travel experiences.

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Expansion of Luxury Hotel Chains:

Luxury hotel chains like Marriott's Luxury Brands and Hilton's Luxury Collection are expanding their portfolios, with Marriott opening over 35 luxury properties in 2021 alone. The global luxury hotels market is projected to grow at a CAGR of 4.4% from 2021 to 2028.

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In fact, studies conducted by Harvard and Cornell confirm that exclusive objects and experiences, ranging from luxury handbags to high-end hotels with over a decade in the market, manage to be up to 30% less affected by declines in consumption or even recessions, primarily due to their central role in contemporary aesthetics.

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Nevertheless, an unusual concern has emerged in an industry where exclusivity used to equate to security. Thefts in premium stores, particularly in the United States where at least two incidents occur daily, resulting in average losses of $100,000 each, are poised to alter how premium brands present their offerings and how consumers engage with them. Another push toward digital migration.

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In this new premium era, five fundamental patterns have emerged as trends shaping the industry's current innovation:

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Silence.

In contrast to traditional ostentation, discretion has emerged as a key feature of contemporary luxury (often referred to as 'silent luxury'). Premium brands now focus on subtlety and elegance, opting for understated logos and branding. This approach creates an aura of exclusivity discernible only to those with a genuine appreciation for design and quality.

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Communities.

The concept of luxury has evolved into a lifestyle built upon exclusive connections and affiliations. Select communities like Soho House (watch out for their opening in Mexico City this September; I had the opportunity to visit their location in Juarez... it's set to be a top destination in the city) have become arbiters of luxury, determining who can access certain circles and experiences. These communities offer opportunities not only for exclusive places but also to connect with like-minded individuals in intimate settings, fostering networks.

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Naturalness.

Authenticity and a connection with nature have become hallmarks of contemporary luxury. Experiences that allow people to disconnect from urban life and reconnect with nature have become highly sought after. This quest for naturalness is reflected in organic and sustainable materials, environmentally friendly manufacturing techniques, and the currently trendy practice of upcycling in interior design.

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Handcrafted.

Currently, non-industrialized products have resurfaced as a key trend in the premium industry. Products with a history that carries a heritage based on the development of an object once again symbolize distinction and authenticity. This preference for the artisanal over the highly technological stems from a pursuit of uniqueness and the importance of preserving and honoring artisanal traditions and techniques passed down over time.

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Freedom.

In a hyper-connected and over-surveilled world, freedom has solidified itself as an invaluable luxury. Beyond mere time (which used to be the central concept of luxury prior to the pandemic), the ability to move and live without constraints, without the constant burden of observation and judgment, without financial or occupational shackles, the ability to choose what and where to work... has become the ultimate aspiration. Freedom is the definitive luxury in a world where privacy is increasingly scarce.

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In summary, in the post-2020 era, the concept of premium continues to evolve. Note that it's not only leading brands in the premium industries that are adopting these trends to create an identity resonating with the current values and aspirations of this sector. Premiumization: developing higher-perceived-value products within and for the mass market.

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I can attest that in most of the meetings I've had this year with FMCGs (the majority of my clients), while we discuss lowering prices to ensure access for the majority, we also approach with equal vigor the concept of creating the 'exclusive' version.

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The true 'gentrification of consumption,' a concept we coined with Petra, Sandrine, and Georgette at LVMH while brainstorming how to amplify a launch budget to grand proportions – something quite common in these industries due to their brand reputation's organic allure. The most valuable lesson of all, apart from having an excellent playlist.

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