Izzy Wharton is a senior strategist, trend forecaster, editor, and futures consultant with expertise in sustainability and innovation in design. Committed to re-imagining systems and structures, she's worked across multiple sectors with some of the world’s best-known brands on research and strategy projects as well as insights content.

Sabrina Faramarzi is a trend forecaster, futures researcher and journalist who’s obsessed with all things trend, innovation and design. When she’s not uncovering patterns across socio-cultural phenomena, she can be found at the latest electronic music night, swimming marathon lengths at her local pool, or worshipping cats on the internet.

The luxury industry faced substantial obstacles during the pandemic. From supply chain issues to the cancellation of catwalks shows and the impact on factory workers, shop assistants, artisans, and craftspeople who relied on the sector to make a living, the fallout was felt far and wide. But signs of recovery are emerging, with the reopening of 

 demonstrating the continued appeal of high-end retail experiences.

Although many luxury brands struggled through lockdowns, some successfully adapted in 2021, becoming leaner, more agile, and more suited to the modern consumer. “The sector is likely to see an increasing gap between digitally-enabled companies versus traditional players,” says luxury PR specialist Claire Adler. Fortnum & Mason, for instance, has made changes to tackle supply chain issues and digital requirements by 

. This kind of move recognises that the meaning of luxury has shifted for consumers, with many of them now buying online. The product is now less of a defining factor as HNWIs instead look for 

. The return to travel in 2022 will be marked by heightened expectations for exclusivity and safety, with some UHNWIs pursuing next-level holiday experiences in the form of 

Gen Yers and Zers are shaking up the luxury sector in other ways. Seeking increased 

 from brands, they’re pushing back against 

 became the first luxury fashion B Corp, providing an example of how to win consumer trust amid greenwashing fatigue. Younger cohorts have also fuelled the rental and resale boom, reflecting their sustainability concerns and 

. “Resale makes sense in luxury because, theoretically, luxury goods are better quality than mass-market products,” says market researcher Pamela Danziger. Brands such as 

 are supporting the right to repair while 

In this chapter of Canvas8’s 2022 Expert Outlook, marketing expert Dr. Dina Khalifa explains the importance of cultural relevance and accountability in luxury fashion, market researcher Pamela Danziger champions brand ecosystems as the future of luxury, and former luxury journalist Claire Adler demonstrates how brands are democratising precious gems.

Regional nuances will be key to making luxury resale work for shoppers around the world

Dr. Dina Khalifa is an experienced academic in luxury branding and marketing.

What has changed in the luxury sector over the past year?

One of the main consequences of the pandemic was the restriction on travel, which has changed where consumers shop. Because Europe has always been seen as a tourist destination, it was mainly international tourists who were buying in Selfridges and Harrods. With travel restrictions, destinations began to see a lot more local shoppers than before. As there was little expenditure on travel, local shoppers were buying more products and services, but were also spending more on wellbeing and other products related to health, such as organic beauty products made with natural materials.

There has also been a focus on sustainability. Younger consumers are now asking about the values of luxury brands, and many brands are providing more information. It’s not only about the environment – they also care about the social values of brands. Since the Black Lives Matter movement, many people were calling out luxury bands and calling for more commitment, prompting social media trends like #openyourpurse and initiatives like the Fashion Pact, an industry-wide coalition launched to share ideas and practises on how the industry can reduce emissions.

What predictions do you have for your sector in 2022?

The focus in the past ten years has been mainly on the environmental side of sustainability, and the industry is making a lot of progress towards evidence-based targets. What has been neglected is the social side, which has increased in prominence after Black Lives Matter and Asian hate crimes in the US. Many brands have been hiring chief diversity officers, but it's not enough. They need to look at diversity and inclusion across all levels of their organisations, from their marketing to C-suites. There needs to be a diversity of voices, products, and services that accommodate wider demographics. So, social sensitivity will be a major factor in 2022. Consumers are diverse and they want to see brands that reflect who they are and their needs. Brands need to alter their designs to cater to wider demographics, ethnicities, body shapes, and more inclusive sizing.

Something we’ll also see become more prominent is vintage and resale. We've already seen some brands collaborating with third parties, and Valentino announced the Valentino Vintage Project. It will have stores and boutiques in the next five years that will focus on vintage collections, directly owned and operated by Valentino. Rental is also important, and Selfridges already has a vintage shop on the side. It's not going to be surprising to see the likes of Gucci with a rental section in their stores. But we have to differentiate between regions when it comes to consumer attitudes, particularly in the luxury sector. European consumers have a lot of appreciation for vintage and second-hand products, but there isn’t as big of an appetite for that in the Middle East or Africa, for example. There still isn’t enough understanding as to why someone would choose to buy a second-hand item and the cultural value it holds in the West. Second-hand products are still seen as something that people with less income are inclined to buy.

The social cachet of pre-loved luxury varies around the world

HNWIs are open to engaging with their favourite brands across various lifestyle touchpoints

Pamela Danziger is a market researcher, speaker, and author focused on affluent consumers’ behaviours and mindsets.

A lot of luxury brands hadn’t taken online shopping and e-commerce seriously before the pandemic. Previously, there was a general consensus that luxury shoppers wanted to go in-store and have that in-store experience. So, while they were using online as a marketing tool, it really wasn't considered a key channel of distribution for more traditional brands. It was a big surprise how luxury consumers indulged themselves online quickly and easily, and they realised they could have all the convenience that online shopping gives.

I think that was a big surprise to brands – not just the resiliency, but how quickly consumers turned to the web. There must have been a tremendous pent-up demand for luxury consumers to buy things online quickly and easily. Everyone's very concerned about supply chains, which should not be that big of a concern for luxury because there is generally considered an artificial supply, but it's still a big concern for lots of people in the luxury sector right now. Can they get the products where they need to be? Can they get something manufactured or hand-crafted to go into the particular markets where the demand is?

The home luxury and furnishing sector has really benefited as a result of the pandemic. Brands like 

 did some really interesting things. When owner and CEO Gary Friedman introduced the concept of the RH ecosystem, it really was game-changing. The concept includes products, places, services, and spaces, and he made a big splash with museum-like stores. They were going to open hotels, and that got sidelined because of the pandemic, but that's going to be happening very shortly. RH village will be a destination like Aspen where you can buy an RH house, you can go to the restaurant, you'd go to the RH spa. I'm a total believer in the vision. They are innovating in the luxury market and we’ll start to see more of that brand ecosystem approach in 2022.

It’s also important to note that while everybody seems to be talking about young luxury consumers, the oldest Gen Yers are now 40 years old and are about to attain their real earning power. They’re going to be a lot more important moving forward. I’m very concerned about inflation. Luxury consumers generally are not impacted by inflation, but what we did learn during the 2008 recession is that they can be very cautious with their money. They'll make decisions in terms of their self-interest, and while it seems like luxury consumers are still willing to pay more for luxury goods, I think brands should be cautious. Inflation could take a big bite out of the retail economy.

I think that as more people get vaccinated or build immunity, there's going to be more activity and that pent-up demand to go out and do things is going to be big. That'll take some money out of luxury goods spending but, on the plus side, when people travel, shopping is a key part of their experience, either in advance of their trip or during their trip. I don't think that's going to necessarily take a lot out of the luxury sector long-term. I also think this adoption of e-commerce is definitely not going to go away, which may require brands to do even more to get people into their stores. Maybe they're going to have to look at what that store experience is and revolutionise it. The fact is that if you've got a person in the store, you can sell them more.

Brand ecosystems seek to build on the loyalty of existing customers

Young shoppers are steadily exploring the world of fine jewellery

Clare Adler is the founder of Claire Adler Luxury PR and a former luxury journalist for the Financial Times and other publications.

What has changed in the luxury sector over the past year? 

Over the past year, luxury consumers have been purchasing online rather than in-store. At the height of the pandemic, there were records broken, with Sotheby's and Christie's selling jewellery pieces that were the most expensive ever sold online. It will be a leading channel for distributing luxury by 2025, and that change of mindset is affecting everything now.

, which is an American jewellery house, made a lot of changes to its business. Its products are sold in thousands of stores across America, like Macy's and outlets owned by the Signet Group, so when all the physical stores closed, the brand had to adapt. It hosted many private, virtual appointments and experienced an almost 100% show-up rate for appointments and an almost 100% buying rate at these appointments because by the time people showed up, they were interested in buying. Signet then replicated these virtual appointments for its customers.

Coloured diamonds used to be only for royalty but have gained popularity since the ‘80s. Le Vian has been an absolute leader in bringing brown diamonds to a broader audience through its Chocolate Diamonds brand. It’s now launching Sunny Yellow Diamonds, bringing these to a new generation and positioning them as the next big thing in natural diamonds. The brand is making them much more inclusive and accessible for younger consumers by making them more affordable. All the while, it’s still giving that luxury feel. At the core of Le Vian’s mission is to enable every woman to own a piece of Le Vian jewellery. There’s also a shoe brand called 

, which works specifically with marginalised communities who make the different elements of its shoes. There's always a charitable link to everything the brand does. It’s linking luxury with philanthropy and the art world, and these types or purposeful brands will be important in 2022.

Sustainable and smaller production methods have always existed, but they’re very sellable now. Communication is key – everyone has to be honest – but something like this always brings opportunity for creativity as well. There’s an opportunity for everyone to improve the clarity, excitement, and creativity in communications around jewellery. In the last couple of years, there's been tension between the ethics of natural diamonds, which are mined from the ground, and lab-grown diamonds. There have been some misunderstandings across those two groups, but there's room for both in the industry. There are many people in the world who rely on the natural diamond industry, but there have been problems in the past. There has been a lot of work done in the last 20 years and the Responsible Jewellery Council is ensuring ethics and diverse representation in the industry. But both lab-grown diamonds and natural diamonds can potentially have ethical issues attached to them.

Additionally, the way that younger consumers are buying jewellery (often searching Instagram and TikTok) is the most important part of their shopping journey, so a lot of brands are eagerly looking to make themselves visible on newer social media platforms and embracing social marketing for younger audiences.

For young luxe shoppers, digital discovery will be the norm rather than the exception

How our mindsets will shape the luxury sector

For the Culture Steward, luxury is nothing without inclusivity – flipping the very essence of what the industry was previously about. From the likes of 

 embracing Chinese cultural practices to Farfetch launching a 

, luxury brands are defying gender norms and traditions, rethinking their products to reflect the consumers and cultures they belong to. Storytelling is key to capturing the Culture Steward’s attention, as is spotlighting the people behind the craft and providing new ways of tracking 

. “The Culture Steward might prefer to spend on something really special that they know the story behind – how it was made, who made it, and the materials that went into it,” says Adler. “They feel that luxury products are there to be treasured and cherished.” They also value connecting with their communities, so spaces like 

The Systems Sceptic is not interested in luxury for the sake of indulgence. But brands can’t afford to ignore them as many of them hold high spending power. They are also early adopters of new product categories (like 

) and believe that true luxury is quiet – something that 

 acknowledged by leaving social media. The Systems Sceptic wants to buy from brands that share their values, whatever the price tag, and they are savvier when it comes to sustainability. “Younger consumers are now demanding sustainability from brands and they're asking more questions,” says Dr. Khalifa. “They are not accepting facts or information presented by brands on face value anymore and are pressuring them to do more.” Though they are not immune to virtue-signalling, the Systems Sceptic is finding 

dining at Michelin-starred vegan restaurants

For the Contrarian, luxury is still all about indulgence, but cash-strapped individuals are seeking alternative ways to still experience luxury. From budget supermarket 

 offering shoppers the opportunity to buy vintage Gucci items to TikTokkers accessing luxury by buying 

, the Contrarian wants the high life to be accessible at many levels. Buy now, pay later services are also proving popular with this consumer cohort, allowing them to buy from brands like 

, which partnered with Klarna to offer more flexible payment solutions. These offerings are especially popular among Gen Zers, who are looking for entry-level items like 

. They also respond positively to brands that offer an element of surprise and don’t take themselves too seriously – see 

. Though they would like to think about sustainability, it is an added benefit rather than a priority for them. “There are very few purists. Most people are mixing and matching all their values and they're trying their best to be a good consumer and a good person,” says Adler. The Contrarian might invest in 

 and say they care about the environment but 

 is a luxury shoe brand that supports artisan communities with a commitment to bringing people out of poverty and into business.

 launched the RH ecosystem, which is transforming the concept of retail into a holistic, lifestyle-driven brand world.

 is a resale platform where owners of vintage Valentino items can trade older pieces in for store credit.

 has been an important brand in pushing the luxury industry towards more diverse representation, voices, and products.

 was initially an antiques brand, but amid growing interest in resale, it now offers used fashion, accessories, and jewellery.

 collaboration is an example of how heritage brands can be revamped for new audiences. It also highlighted the enduring power of luxury collaborations as a marketing tool.

Le Vian is bringing coloured diamonds to a broader audience through 

 – part of the brand’s efforts to make fine jewellery more accessible and democratised.

Pamela Danziger is an internationally recognised luxury market expert, author, and speaker who has specialised knowledge of the world's most influential consumers. A former recipient of the Global Luxury Award, she has also been named one of Luxury Daily's 'Women to Watch'. She's the author of ten books, including 

Meet the HENRYs: The Millennials that Matter Most for Luxury Brands

. As a senior Forbes.com contributor, she writes on the broader retail market with a special emphasis on consumer trends and innovative retailers that are leaning into them.

Global

Luxury

Sustainability

Community and grassroots

Watches and jewellery

Apparel and department stores

Resale and online marketplaces

How can the rental and resale market scale for global nuances? What can brands do to integrate themselves into everyday life? How are diamonds being made more accessible to younger shoppers? In this part of the 2022 Expert Outlook, we speak to three experts about the changing world of luxury.

How are women changing the luxury watch market?

How do young luxury shoppers understand value?

Has COVID-19 increased HNWIs’ experiential desires?

Can hedonistic lifestyles exist in a sustainable world?