Chapter 7
Le new luxe
‘The interpretation of luxury has become completely individual. No
one can define luxury for others any more.’
Aaron Simpson, CEO QuintessentiallyA different fashion landscape
The definition of luxury has changed. Although the term ‘luxury’ is a paradox
in itself, the concept of fashion that is tagged ‘luxury’ is no longer the same
as it was as recently as twenty years ago. In the last several decades, the
luxury sector has undergone a significant evolution as a result of several
factors, which are carefully examined in this chapter. The analysis provides a
portrait of the current luxury environment and acts as a catalyst for strategy
development to manage the sector’s present and future.
As indicated in the earlier chapters of this book, luxury fashion has always
been a fundamental part of history and society. From the beginning of the
nineteenth century when modern luxury fashion began, to the middle of the
twentieth century, the luxury fashion market was a small and specific niche
consumer sector made up of aristocrats, celebrities and the world’s royals.
During this period, fashion sameness was the order of the day and luxury
fashion consumers were pleased to dress the same. In the present twenty-first
century environment, the story is totally different.
The transformation of the luxury scene has been due to several factors.
First, a mass group of wealthy consumers has emerged throughout the world.
In the last three decades, a vast amount of wealth has been amassed by indi-
viduals due to several economic, social, and technological breakthroughs.
This has created a multitude of wealthy people. For example, twenty years
ago China had no middle class but, presently, the growth rate of the country’s
upper-middle class and young urban professionals is among the highest in the
world.
Secondly, the high entry barrier that the luxury sector guarded for
centuries has been lowered due to advancement in business and management
practices, driven by globalization and the internet. As a result of the lower
entry barrier, several luxury and aspirational brands have emerged in the last
few decades. In addition, ‘mass’ fashion brands have attuned their business
strategies to resemble those of luxury brands and now offer similar goods at
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