The Covid-19 pandemic has reshaped the landscape of luxury goods consumption, as noted in the latest World Luxury Tracking report (WLT) by Ipsos. The report underscores how the ongoing health crisis has prompted a redefinition of luxury, emphasizing personal well-being and leading to a more localized, digital, and sensorial approach to luxury consumption.
In the wake of lockdown measures and travel restrictions, consumers are reevaluating their relationship with luxury goods. The 2020 edition of the WLT survey reveals a shift towards a more fundamental and discerning view of luxury, with individuals turning to luxury items for satisfaction and self-actualization in the absence of travel experiences. This trend has given rise to a new concept of luxury in the digital era, as affluent consumers from the USA, China, and Europe seek gratification through luxury purchases.
The Covid-19 pandemic has accelerated the adoption of online luxury shopping, with a noticeable uptick in purchases made through various digital channels. Multibrand sites, label e-shops, pre-owned luxury platforms, and social media channels have become popular avenues for luxury shopping, with consumers valuing efficiency, personalization, and data security in their online shopping experiences. Categories such as skincare, perfumes, wines, champagnes, and spirits have experienced heightened demand during periods of lockdown, underscoring the significance of sensory pleasures in luxury consumption.
Luxury consumption is increasingly perceived as a privilege, with consumers identifying themselves as part of an exclusive elite. This sentiment is particularly evident in China, where luxury goods are seen as integral to daily life. Despite economic challenges, Chinese consumers are more willing to invest in luxury items post-crisis, encouraged by their enhanced digital interactions with luxury brands.
In the United States, affluent consumers have displayed resilience amid the pandemic, rediscovering the value of luxury as a realm of creativity and imagination. The emphasis on well-being products has diverted attention away from traditional luxury segments such as watches and jewelry. Conversely, European consumers exhibit a more cautious approach, with diminishing economic confidence leading to a reluctance to modify shopping behaviors. Nevertheless, Europeans are embracing new luxury experiences centered around personal care and well-being, with a growing inclination towards cruelty-free and ethically sourced products.
Overall, luxury consumption in the era of Covid-19 underscores a yearning for authenticity, top-notch quality, and emotional enrichment. As the definition of luxury undergoes transformation in response to global challenges, affluent consumers seek meaningful experiences, innovative offerings, and a deeper connection with luxury brands in the digital realm.
For further information on luxury consumption trends amid the pandemic, check out the World Luxury Tracking report here. Additionally, explore how luxury brands are adapting their strategies to the new consumer landscape here.
