Luxury in 2021
22 : 12 : 21

While there will always be a demand for luxury goods and services, in 2021 we witnessed Anti-ostentation Attitudes gaining strength, forcing brands to develop more meaningful, accessible and honest communications. Indeed, the pandemic has put the luxury industry’s marketing practices under the microscope, while rising inflation, faltering health services and supply chain shortages mean flashy demonstrations of wealth are falling out of favour.

In China, the government has gone as far as preventing celebrities and influencers from displaying ‘extravagant pleasures’ on social media platforms. Meanwhile, in Europe, Bottega Veneta faced a backlash for flouting Covid restrictions with an event at the Berghain nightclub in Berlin. ‘It's become distasteful to say ‘look how ostentatious I am’ when you know so many people have lost jobs or have had their loved ones hospitalised,’ notes Elma Beganovich, co-founder of marketing firm Amra & Elma.

For the luxury sector, the challenge is remaining relevant during a time of global unrest and rising inequality. Electing progressive role models can help companies support social, environmental and community causes, as Burberry has demonstrated with it Voices of Tomorrow campaign.

In September, New York-based brand Telfar developed a 24-hour live-stream channel that combines shopping with entertainment. Tapping into the rise of Luxtainment, Telfar TV spotlights the work of Black, Indigenous artists and creatives of colour while advertising key pieces from the brand’s collections.

Available on Apple TV and Google Play, the channel rewards dedicated viewers by granting them exclusive access to regularly sold-out products. The programming includes occasional QR codes that redirect audience members to rare items from the brand’s collections. By exploring visual entertainment as a marketing strategy, the brand is aiming to capitalise on the prolonged engagement required to watch a TV show or streaming channel.

With Telfar TV, the label demonstrates how a hybrid of content and commerce can prove profitable and popular. As we look ahead to 2022, we can anticipate the luxury industry creating more immersive, entertainment-led retail and brand experiences; in particular, as the metaverse continues to develop, offering boundless opportunities for immersive brand moments.

After seven years of redevelopment, in July 2021 the Parisian department store La Samaritaine re-opened to customers. Acquired by LVMH in 2010, the historic site on Paris’s Right Bank is considered a landmark of the industrial age. First built in 1869 – with hand-painted floral motifs and ornate ironwork – the space has long been symbolic of luxury.

Preserving the history of the site while ushering the building into a new age, LVMH enlisted the help of 800 craftsmen to conserve the original accents and details of the structure. The refurbished store houses 600 brands and 50 exclusive partnerships as well as a luxury rooftop hotel, restaurants, spas and other services.

Beyond its vast retail offering, however, the building also provides 96 affordable housing units and a nursery for 80 children. By focusing on community and accessibility, the venue is transforming the luxury department of old into a welcoming assembly point for locals. Tapping into the tenets of Retail Redux, LVMH demonstrates how luxury spaces can help uplift those living around them.

Now that you know what shaped 2021, discover what’s on the horizon. Download our Future Forecast 2022 report comprising 50 new trends across 10 key consumer sectors, insights from our analysts and interviews with global innovators.