CONSUMERS

Experiential Ownership: Luxury’s New Challenge?

by

Winston Chesterfield

|

This is the featured image caption
Credit: This is the featured image credit

The notion of luxury is shifting from permanent, physical object ‘possession’ to transient, intangible ‘experiential luxury’ – a change which has put luxury’s traditional hierarchy at risk of revolution, writes Wealth-X.

Over the last decade, collaborations between luxury brands and contemporary artists have gone beyond mere artistic partnerships towards a new kind of luxury branding.

PARIS – Art and fashion have always developed side by side, for fashion, like art, often gives visual expression to the cultural zeitgeist. During the 1920s, Salvador Dalí created dresses for Coco Chanel and Elsa Schiapparelli. In the 1930s, Ferragamo’s shoes commissioned designs for advertisements from Futurist painter Lucio Venna, while Gianni Versace commissioned works from artists such as Alighiero Boetti and Roy Lichtenstein for the launch of his collections. Yves Saint Laurent’s vast art collection, recently auctioned at Christie’s in Paris, testified to his great love of art and revealed the influence of a variety of artists on his own designs.

In the 1980s, relationships between luxury brands and artists were advanced when Alain Dominique Perrin created the Fondation Cartier. In the Fondation Cartier pour l’Art Contemporain, a book marking the foundation’s 20th anniversary, Perrin says he makes “a connection between all the different sorts of arts, and luxury goods are a kind of art. Luxury goods are handicrafts of art, applied art.”

The Fondation Cartier pour l’Art Contemparain building in Paris

The notion of luxury is shifting from permanent, physical object ‘possession’ to transient, intangible ‘experiential luxury’ – a change which has put luxury’s traditional hierarchy at risk of revolution, writes Wealth-X.

The notion of luxury is shifting from permanent, physical object ‘possession’ to transient, intangible ‘experiential luxury’ – a change which has put luxury’s traditional hierarchy at risk of revolution, writes Wealth-X.

A common refrain of the past half-decade has been the decline of luxury ‘ownership’ and the rise of luxury ‘experience’. If this is to believed, then we are moving, they say, away from permanent, physical object ‘possession’ and ‘personal luxury goods’ into transient, intangible, service-dominated ‘experiential luxury.’

The data seems to support the theory. Luxury appears to be evolving into ‘being’ and ‘doing’ than simply ‘having.’ More money is spent on luxury travel, the classic ‘experience’ category, than any other category. Of the $1.8trn spent on luxury between 2013-14, $1trn was spent on ‘services.’ An incredible $460bn was spent on luxury travel adventures such as expeditions to the Antarctic or bespoke safaris. A mere $170bn was spent on personal luxury goods. (Source: BCG).

“ What we call luxe today is just ridiculous ”

Some commentators point to the fact that notions of luxury, particularly in mature Western markets, are becoming more sophisticated and personal, in contrast to the badge-led luxury of developing markets.

Whilst everyday ‘luxury’ items such as designer handbags are still valuable companions for consumers, this is met with scorn by certain commentators. “What we call luxe today is just ridiculous” says Pierre Berge, Yves Saint Laurent’s lover, business partner and now patron of the arts “A handbag that a woman takes with her all over the place — to a grocery store, through the airport — I cannot imagine how that can be considered luxury.” (Source: NY Times)

Indeed, many would agree that what is ‘everyday’ cannot, by definition, be a luxury. But a woman’s brand of handbag, much like a man’s wristwatch, is an everyday ‘reminder’ to its owner and those they encounter that they ‘belong’ at a certain level of society.

“ Experiential luxury is one-off and unrepeatable. This makes the moment of experience ever more important ”

Much of experiential luxury is one-off and unrepeatable. This makes the moment of experience ever more important; particularly for those trading up into it.

Therefore, experiences have had less of a potential to act as a reminder in this way; enjoying the rooftop spa at the Berkeley Hotel or taking a NetJets flight to see an opera star at a palace in Spain are private, personal experiences.

In fact, the privacy and rarity of these ‘moments’ is often why they are more coveted by wealthier clientele than physical, personal luxury products. With little to prove, the wealthiest individuals are less concerned with luxury badges and whether they are accepted in social groups; personal requirements and tastes shape their worlds.

Ithaa restaurant, Maldives

For the less wealthy, those occasionally trading up, luxury experiences are even rarer. Although that makes them more luxurious in one sense, it has made them difficult to trade on. They have been transient, temporary. They represent one-off sorties into the ‘way the other half live’; for those conscious of their social position, they do not have the solid, everyday reassurance of an Hermes bag or a Patek Philippe watch; extravagances that the mass market or merely affluent have clung to as badges of their ambition as much as anything else.

It has therefore been elite personal luxury brands that have dominated the last half-century, following the revolution of advertising, photography, the growing and intrusive cult of celebrity and advanced brand lifestyle marketing and sponsorship. Before brands, it was materials and jewellery that visually demarcated a social grade; fine silks, gold, silver and precious stones were totted up on some gilded abacus.

However, this predicted decline in physical ‘ownership’ would seem to threaten such straightforward social delineation; were it not, it has to be said, for the increasing dominance of social media in our everyday lives.

“ Sharing on social media has revolutionised the nature of luxury experiences ”

Sharing on social media has revolutionised the nature of luxury experiences. With ever-growing networks of family, friends and like-minded individuals, people are freeze-framing and sharing extraordinary and socially-aligning ‘experiences’; check-ins at five star hotels, VIP boxes at rock concerts, first class cabins on airlines, boat charters, helicopter excursions and Michelin-starred meals.

Far from fleeting, in-the-moment enjoyment and inward enrichment, these individuals are also ensuring that they externally ‘own the moment.’ And instead of sharing a small photo album with a family group, there is an enormous temptation to open up these galleries to the thousands and millions of followers.

These captures are also opportunities to create something that has the appearance of permanence out of something transient; a small sense of ‘ownership’ in something that is impossible to own.

“ Both are symbols of a lifestyle, but one has greater currency as an emulation of social alignment ”

They are also arguably far more effective in crafting a ‘lookbook’ of a desirable lifestyle than the simple presence of a Balenciaga handbag: an expensive handbag is often seen as a significant lifestyle ‘investment’ as it is used every day whereas a short stay at the Hotel de Paris is more a symbol of true extravagance. Both are symbols of a lifestyle, but one has greater currency as an emulation of social alignment.

Whilst this is obviously good news for the experiential luxury categories of travel and entertainment, it should also be reassuring and exciting for personal luxury goods. The deep societal codes of luxury and elitism are, it would seem, alive and well.

To further investigate the concept of experiential luxury on Luxury Society, we invite your to explore the related materials as follows:

6 Latest Luxury Brand Experiences: Michael Kors, Givenchy, Burberry
4 Latest Luxury Brand Experiences: Chanel, Burberry, YSL
10 Top Luxury Brand Experiences

Winston Chesterfield
Winston Chesterfield

Director, Wealth-X

Winston is a Director at Wealth-X Custom Research. He consults a wide range of clients and brands across the luxury sector.

CONSUMERS

Experiential Ownership: Luxury’s New Challenge?

by

Winston Chesterfield

|

This is the featured image caption
Credit : This is the featured image credit

The notion of luxury is shifting from permanent, physical object ‘possession’ to transient, intangible ‘experiential luxury’ – a change which has put luxury’s traditional hierarchy at risk of revolution, writes Wealth-X.

Over the last decade, collaborations between luxury brands and contemporary artists have gone beyond mere artistic partnerships towards a new kind of luxury branding.

PARIS – Art and fashion have always developed side by side, for fashion, like art, often gives visual expression to the cultural zeitgeist. During the 1920s, Salvador Dalí created dresses for Coco Chanel and Elsa Schiapparelli. In the 1930s, Ferragamo’s shoes commissioned designs for advertisements from Futurist painter Lucio Venna, while Gianni Versace commissioned works from artists such as Alighiero Boetti and Roy Lichtenstein for the launch of his collections. Yves Saint Laurent’s vast art collection, recently auctioned at Christie’s in Paris, testified to his great love of art and revealed the influence of a variety of artists on his own designs.

In the 1980s, relationships between luxury brands and artists were advanced when Alain Dominique Perrin created the Fondation Cartier. In the Fondation Cartier pour l’Art Contemporain, a book marking the foundation’s 20th anniversary, Perrin says he makes “a connection between all the different sorts of arts, and luxury goods are a kind of art. Luxury goods are handicrafts of art, applied art.”

The Fondation Cartier pour l’Art Contemparain building in Paris

The notion of luxury is shifting from permanent, physical object ‘possession’ to transient, intangible ‘experiential luxury’ – a change which has put luxury’s traditional hierarchy at risk of revolution, writes Wealth-X.

The notion of luxury is shifting from permanent, physical object ‘possession’ to transient, intangible ‘experiential luxury’ – a change which has put luxury’s traditional hierarchy at risk of revolution, writes Wealth-X.

A common refrain of the past half-decade has been the decline of luxury ‘ownership’ and the rise of luxury ‘experience’. If this is to believed, then we are moving, they say, away from permanent, physical object ‘possession’ and ‘personal luxury goods’ into transient, intangible, service-dominated ‘experiential luxury.’

The data seems to support the theory. Luxury appears to be evolving into ‘being’ and ‘doing’ than simply ‘having.’ More money is spent on luxury travel, the classic ‘experience’ category, than any other category. Of the $1.8trn spent on luxury between 2013-14, $1trn was spent on ‘services.’ An incredible $460bn was spent on luxury travel adventures such as expeditions to the Antarctic or bespoke safaris. A mere $170bn was spent on personal luxury goods. (Source: BCG).

“ What we call luxe today is just ridiculous ”

Some commentators point to the fact that notions of luxury, particularly in mature Western markets, are becoming more sophisticated and personal, in contrast to the badge-led luxury of developing markets.

Whilst everyday ‘luxury’ items such as designer handbags are still valuable companions for consumers, this is met with scorn by certain commentators. “What we call luxe today is just ridiculous” says Pierre Berge, Yves Saint Laurent’s lover, business partner and now patron of the arts “A handbag that a woman takes with her all over the place — to a grocery store, through the airport — I cannot imagine how that can be considered luxury.” (Source: NY Times)

Indeed, many would agree that what is ‘everyday’ cannot, by definition, be a luxury. But a woman’s brand of handbag, much like a man’s wristwatch, is an everyday ‘reminder’ to its owner and those they encounter that they ‘belong’ at a certain level of society.

“ Experiential luxury is one-off and unrepeatable. This makes the moment of experience ever more important ”

Much of experiential luxury is one-off and unrepeatable. This makes the moment of experience ever more important; particularly for those trading up into it.

Therefore, experiences have had less of a potential to act as a reminder in this way; enjoying the rooftop spa at the Berkeley Hotel or taking a NetJets flight to see an opera star at a palace in Spain are private, personal experiences.

In fact, the privacy and rarity of these ‘moments’ is often why they are more coveted by wealthier clientele than physical, personal luxury products. With little to prove, the wealthiest individuals are less concerned with luxury badges and whether they are accepted in social groups; personal requirements and tastes shape their worlds.

Ithaa restaurant, Maldives

For the less wealthy, those occasionally trading up, luxury experiences are even rarer. Although that makes them more luxurious in one sense, it has made them difficult to trade on. They have been transient, temporary. They represent one-off sorties into the ‘way the other half live’; for those conscious of their social position, they do not have the solid, everyday reassurance of an Hermes bag or a Patek Philippe watch; extravagances that the mass market or merely affluent have clung to as badges of their ambition as much as anything else.

It has therefore been elite personal luxury brands that have dominated the last half-century, following the revolution of advertising, photography, the growing and intrusive cult of celebrity and advanced brand lifestyle marketing and sponsorship. Before brands, it was materials and jewellery that visually demarcated a social grade; fine silks, gold, silver and precious stones were totted up on some gilded abacus.

However, this predicted decline in physical ‘ownership’ would seem to threaten such straightforward social delineation; were it not, it has to be said, for the increasing dominance of social media in our everyday lives.

“ Sharing on social media has revolutionised the nature of luxury experiences ”

Sharing on social media has revolutionised the nature of luxury experiences. With ever-growing networks of family, friends and like-minded individuals, people are freeze-framing and sharing extraordinary and socially-aligning ‘experiences’; check-ins at five star hotels, VIP boxes at rock concerts, first class cabins on airlines, boat charters, helicopter excursions and Michelin-starred meals.

Far from fleeting, in-the-moment enjoyment and inward enrichment, these individuals are also ensuring that they externally ‘own the moment.’ And instead of sharing a small photo album with a family group, there is an enormous temptation to open up these galleries to the thousands and millions of followers.

These captures are also opportunities to create something that has the appearance of permanence out of something transient; a small sense of ‘ownership’ in something that is impossible to own.

“ Both are symbols of a lifestyle, but one has greater currency as an emulation of social alignment ”

They are also arguably far more effective in crafting a ‘lookbook’ of a desirable lifestyle than the simple presence of a Balenciaga handbag: an expensive handbag is often seen as a significant lifestyle ‘investment’ as it is used every day whereas a short stay at the Hotel de Paris is more a symbol of true extravagance. Both are symbols of a lifestyle, but one has greater currency as an emulation of social alignment.

Whilst this is obviously good news for the experiential luxury categories of travel and entertainment, it should also be reassuring and exciting for personal luxury goods. The deep societal codes of luxury and elitism are, it would seem, alive and well.

To further investigate the concept of experiential luxury on Luxury Society, we invite your to explore the related materials as follows:

6 Latest Luxury Brand Experiences: Michael Kors, Givenchy, Burberry
4 Latest Luxury Brand Experiences: Chanel, Burberry, YSL
10 Top Luxury Brand Experiences

Winston Chesterfield
Winston Chesterfield

Director, Wealth-X

Winston is a Director at Wealth-X Custom Research. He consults a wide range of clients and brands across the luxury sector.

Related articles

CONSUMERS

5 Must Know Facts About China’s Millennials

CONSUMERS

Report: Decoding Luxury Marketing Milestones in China: Lunar New Year

CONSUMERS

In 2024, expect more of the same. Now is the time to optimise.