AltoPartners: Digitisation and the Democratisation of Luxury
the changes, and challenges, within the Luxury Goods sector
The white paper also acknowledges participation from fellow AESC Members: Accord Group/AltoPartners; Backer & Partners/AltoPartners; Diversified Search/AltoPartners; Jack Russell Consulting/AltoPartners; MKG Partners/AltoPartners; Plonge/AltoPartners; Search Partners International (SPi)/AltoPartners.
Amid the gloom and despondency of global markets, the luxury goods business – contrarily – is booming. The sector experienced back-to-back growth in both 2017 and 2018, increasing by 5% per annum to an estimated €1.2 trillion globally, fuelled by millennials who are hitting their peak earning stride and the burgeoning middle class in China and India.
A new white paper from AltoPartners concludes that luxury brands can no longer afford to rely on their reputations. The rapid digitisation of the consumer experience has put the spotlight firmly on an organisation’s ability to support multiple, secure online touchpoints that reflect both the brand’s values and the consumer’s expectations of the brand. In particular, the use of machine learning and AI to track and interpret shoppers’ digital footprints will be key to providing customised shopping and browsing experiences. This is a highly specialist area and we can expect to see more IT and Tech executives being inducted into the corner offices of the fashion capitals of the world. While the potential for clashes exist, of far greater interest is how brand shamans and tech gurus will collaborate to shape our experience of luxury in the next decade.