'Considered purchasing' is driving luxury

Purpose is driving consumer purchase behaviour. No longer is the simple premise of buying high-end fashion and luxury goods just for the sake of ownership a valid business model for brands.

Customers are seeking meaning and value and purpose-driven companies know their clients are awake and sensitive to global happenings. They care about the big picture of where the products they consume come from.

In 2019, the notion of quality over quantity - less is more - will be the reigning ideology. Brands need to ask themselves what they stand for and what is their purpose beyond profit, because that is what their customers are asking. Consumers want more meaning in their lives and they will invest in brands that help them achieve their aspiration, states the Positive Luxury 2019 Predictions Report.

Backing up their findings, Deloitte’s Global Powers of Luxury Goods Report supports the notions that aspirations of status are losing relevance, as "desires of being seen as ethical, tasteful and discerning are most compelling."

The origin of things

Responsible sourcing is now an integral supply chain strategy that requires brands to find a balance between reaching financial goals, ensuring quality and improving environmental and social practices.

Furthermore, safeguarding raw materials is crucial for a luxury brand since high-quality goods are often manufactured with the finest natural materials, many of which are rare and precious.

"I firmly believe that improving a product’s environmental performance will give customers ever-greater pleasure in their product experience. That’s why we pursue our efforts to integrate environmental ”performance at the design stage," Louis Vuitton CEO Michel Burke states in the Positive Luxury 2019 Predictions report.

While purchasing power may have shifted from brands to consumers, for luxury brands it will be vital to think global and act local. Especially as countries like China will be responsible for driving sales.

China to be greatest buyer of luxury by 2025

According to McKinsey 30 percent of luxury purchases in China are driven by word-of-mouth marketing, making it the most influential factor in the purchase decision, above the in-store experience. Further more, Chinese millennials are expected to buy up more than 40 percent of the global luxury market by 2025.

Credits: Positive Luxury 2019 Predictions Report, image Positive Luxury website