Popular Luxury a threath for Classic Luxury?

Richad is an über wealthy Expat living in Dubai. His and his family’s wealth go back 4 generations from the time his grandfather set up their trading business in the East. Unlike many, he believes in the calculated risks and in being content with everything. That’s always been his philosophy in life and business.

There is an aura of confidence, calm and ease in his voice as he opens up to me; because at the core of it all, he’s made it. He truly believes that money doesn’t grow on trees. So although he and his family are privileged and lucky, he knows that this has come after working very hard for over 30 years in preserving and growing what wealth his father had passed on.

He is by nature a more conservative and cautious man, and he believes that with age comes the wisdom of spending lavishly because you deserve it rather than splurging for the sake of it. He has always been a moderate man except when it comes to his shoes! He feels he deserved them with his hard earned money so there is no feeling of guilt associated with the purchase at all. He loves luxurious items because they are unique. “Not everyone knows or can recognize a Berlutis, only those who know.”

Classic wealth will always exist, recession or not. Those are the true representations of the luxury industry. This industry, in the incredible boom around the world, became like all other industries, commercial and available to all. With easy credit the mass had access to luxury.

Classic Luxury is still prevailing. It’s those few, ‘in the know’, that will always seek uniqueness. One they genuinely believe they so deserve!!

The Challenge is to bring back the exclusivity of luxury brands to those privileged few. And not to fall in a New Larger Luxury Community.

Luxury and Women - New product lines?

Are women part of the New Luxury's development ?

Traditionally, the luxury market has been pitched to men. Pedraza says this will change because women are more active in the job market, launch more new businesses and graduate from college with advanced degrees in greater numbers than men. And, lest we forget, women typically outlive their husbands and inherit their wealth.

"Wealthy women have everything except the respect of luxury marketers," Pedraza says. "They're under-marketed. Banks and asset management firms largely ignore them."

But that's changing, especially in consumer goods. Companies like Coach and Gucci have long defined top-of-the line products in their sector. In the past, they've relied on a few top designers to exemplify taste. In the future, companies pitching products to the rich will depend more on feedback from their customers and design will become more of a collaborative effort, Pedraza says.

Does Luxury Have a Future?

What has made luxury a luxury will always remain true. There are elements of luxury that are foundational and have endured over time. But because we do not live in a static world, people have changed and the context for luxury has shifted. As a result, luxury expressions and manifestations will change over time. Once defined by social significance (owning a lot of expensive things), luxury has evolved to be about personal importance (creating unparalleled experiences for oneself).

Luxury consumers still want to consume; they’re just looking for ways to justify it. In turn, she infers that luxury is nuanced and multi-dimensional. Some of the new dimensions could include:

• Ethical: Luxury is less about expensive and inaccessible materials/craftsmen. It’s more about just methods of production, fairly sourced materials, and having an interesting and transparent back-story.

• Altruistic: Luxury experiences or products that give back.

• Productivity: Luxury with an element of utility that allows one to maximize their time and experiences.

Luxury has endured because it never loses sight of its foundation. But if luxury brands continue to act the same in a changed world among a changed consumer, they risk becoming irrelevant.