Redefine Exclusivity

From IRL members’ clubs to VIP spaces in the metaverse and meaningful experiences for micro-communities, upmarket brands have opportunities to add exclusive value to their luxury credentials (WGSN)

In the e-commerce era, luxury brands need to remain agile to deliver meaningful value to the 1%. At a time when access to luxury goods is increasingly democratised, demand for elevated service and VIP access to products and experiences remains central to expressions of prestige.

The rapid digitisation of the luxury retail sector has forced brands to make huge strides in service and experience. According to Bain & Co, by 2025, Gen Z and Millennials will account for 70% of the luxury market and contribute 130% of luxury market growth. As these consumers increasingly live cross-channel lifestyles, how brands serve them in the digital realm will become more important.

Online will become the single biggest sales channel for personal luxury goods by 2025, making up 30% of the global market, closely followed by mono-brand physical retail stores at 28%. The cornerstones of luxury service, including exclusive access, private viewings and personalised services, will need to shift online.

Luxury brands proactively establishing their digital presence have shareholder rewards statistically higher than those deemed ‘digital laggards’, according to McKinsey. The aim is to fine-tune their digital approach to retain exclusivity in a crowded market.

Yet, for many traditional luxury consumers, meaningful and tangible experiences remain a priority. In this context, heritage brands are doubling down on exclusive and personalised experiences that elevate the brand relationship and reinforce loyalty.