{"id":178817,"date":"2023-05-31T11:22:02","date_gmt":"2023-05-31T09:22:02","guid":{"rendered":"https:\/\/www.monaco-tribune.com\/2023\/05\/how-must-the-luxury-industry-evolve-to-stay-competitive\/"},"modified":"2023-05-31T11:28:15","modified_gmt":"2023-05-31T09:28:15","slug":"how-must-the-luxury-industry-evolve-to-stay-competitive","status":"publish","type":"post","link":"https:\/\/www.monaco-tribune.com\/en\/2023\/05\/how-must-the-luxury-industry-evolve-to-stay-competitive\/","title":{"rendered":"How must the luxury industry evolve to stay competitive?"},"content":{"rendered":"\n

The answer lies in 3 key points, raised in Monaco at the Financial Times Business of Luxury Summit 2023.<\/strong><\/p>\n\n

The Sporting Monte-Carlo hosted the Financial Times Business of Luxury Summit 2023 from 21 to 23 May. The event was organised by the famous British newspaper The Financial Times, and drew entrepreneurs from different business sectors to talk about the luxury industry, its growth, its challenges and, above all, its ability to adapt to the new environmental challenges.<\/p>\n\n

The three-day event was an opportunity to broach a range of topics and look at how the luxury industry needs to evolve if it is to survive. <\/p>\n\n

1. Luxury must be sustainable<\/h2>\n\n

The speakers began with the observation that the greenwashing era is coming to an end. From now on, companies cannot just make announcements: they must take concrete action to implement environmental strategies, or they will lose ground. <\/p>\n

\n
\"prince
Prince Albert II spoke at the FT Business of Luxury summit gala dinner – \u00a9 Benjamin Arthur \/ FT Live<\/em><\/figcaption><\/figure>\n<\/div>
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\"princess
Prince Albert II and Princess Charlene at the FT Business of Luxury Summit gala dinner\u00a9 Benjamin Arthur \/ FT Live<\/em><\/figcaption><\/figure>\n<\/div>\n

Prince Albert II, who attended the event, said that “We do need to set a path not only for economic but also ethical progress (\u2026) When we last gathered here in 2009, the theme of the summit was ‘Beyond green economics, ethics and enticement.’ I\u2019m glad to see that since then many brands and companies have fully embraced the challenge of sustainable luxury, constantly innovating and improving their social responsibility. \u2026 but there\u2019s room for further improvements\u2026 Actions can and should speak louder than words.”<\/p>\n\n

Monte-Carlo Fashion Week working towards greener, more sustainable fashion<\/a><\/p>\n\n

2. The luxury industry must adapt to new technologies<\/h2>\n\n

The luxury goods industry is evolving through Web 3.0, a decentralised web using blockchain technology, and particularly through digital fashion. Today, consumers are even buying virtual clothes, for example in video games such as Fortnite, to customise their avatars. But these seemingly purely virtual purchases influence our physical world and the way we consume.<\/p>\n\n

“The metaverse is real,” says Alice Delahunt, founder and CEO of the SYKY fashion platform. “It will mature in ten years’ time. It democratises and decentralises talent.” To back this statement up, Alice Delahunt compares the phenomenon to the social network Instagram, which has given rise to a whole new generation of photographers. “We have to keep in mind that more and more Gen Zs [born between the late 1990s and 2000s, Ed.] spend more money on luxury goods for their avatars. 70% of Gen Z personal style is influenced by their digital style,” says Alice Delahunt.<\/p>\n\n

Can luxury tourism successfully embrace sustainability?”<\/a><\/p>\n\n

3. Luxury must offer a new kind of tourism<\/h2>\n\n

Overtourism bears significant responsibility for greenhouse gas emissions. Since Covid, tourism-related activities have declined a little, but there has also been a shift in tourists’ desires and needs. <\/p>\n\n

“Covid really delivered a great kick to our backside, we took things for granted before, we had more than 70 percent of our customers coming from other countries and suddenly there was no travel,” says Michael Ward, Managing Director of the famous London luxury store, Harrods. “The real key now is to make everything experiential. [Covid] changed the way we had to approach our local customers. We created, for example, the most beautiful hairdressing salon in the world, and had the third-best world sushi chef on board. The locals are coming in \u2013 more than 50 percent \u2013 and with China re-opening their borders and a continued US tourist boom \u2013 that\u2019s the cherry on the cake for us.”<\/p>\n\n

Tom Marchant, owner and co-founder of luxury travel agency Black Tomato, says that the way we travel since the pandemic has changed our priorities. “During Covid, people realised how important travel is to their lives and how much it defines them,” he says, adding that since Covid, tourists have wanted to improve the quality of their trips.<\/p>\n","protected":false},"excerpt":{"rendered":"

The answer lies in 3 key points, raised in Monaco at the Financial Times Business of Luxury Summit 2023. The […]<\/p>\n","protected":false},"author":60,"featured_media":178308,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[247,243],"tags":[2844],"post_sectags":[3975],"post_format":[2468],"class_list":["post-178817","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-news","tag-events-en","sectag-luxury","format-story"],"acf":[],"yoast_head":"\nHow must the luxury industry evolve to stay competitive?<\/title>\n<meta name=\"description\" content=\"The answer lies in 3 key points, raised in Monaco at the Financial Times Business of Luxury Summit 2023. 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