Luxury Report 2024: A new definition of luxury

In its Luxury Report 2024, the agency Matter of Form presents three key topics that will have a significant impact on the luxury sector: the decline in status, hyper-personalisation and the brand multiverse. As a British company, Matter of Form continuously analyses the results of visionary luxury brands in order to gain forward-looking insights.

The most important facts at a glance:

• The term “luxury” requires an innovative approach that focuses on cultural changes and social trends.
• The most important trends in the luxury industry in 2024 include the decline in status, hyper-personalization and the development of a brand world.
• Entrepreneurs should think long-term, make their brand timeless, focus on a unique character and develop innovative ideas through contextual considerations to keep the brand alive and relevant.

The changing nature of trends and luxury

What defines luxury today? Is it the expensive watch on the wrist, the car in front of the garage, a simple umbrella term for high prices? No, it hasn't been for a long time. In the coming year, trends in the luxury sector are facing major changes:

Authenticity instead of status

Today, luxury no longer necessarily goes hand in hand with high social status. The bond between class and power is dissolving down year by year. Things like expressiveness and group affiliation now play a significant role. One example of this is the Apple brand. Despite more expensive rival products, the brand is successful because it's not just the price that counts here, but the sense of belonging: anyone who owns an Apple product is a creative mind with a sense of aesthetics. Brands should therefore remain completely true to their promises and their image, especially this year.

Artificial intelligence and automation

The recent years have been marked by a strong digital transformation. Artificial intelligences and algorithms deliver hyper-personalized content to consumers. This development is becoming increasingly precise, making it challenging for media consumers to think and live outside their own bubble. As every trend is followed by a counter-trend, there is a growing desire for surprises. The human soul cannot be satisfied solely through technical codes. For the luxury industry, this means: more creativity and character, more soul, instead of simply satisfying needs.

Building brand worlds

A brand consists of a sum of components, a complete brand world, not just a big picture. Matter Of Form recommends so-called brand interactions. These involve end-to-end experiences between the brand and end consumers. A shared experience, thus reinforcing the relationship between consumer and brand.

Brand strategies for 2024

But what do these trends mean for entrepreneurs? These approaches are suitable for brands today's environment:

1. Think long-term:

Make your brand as timeless as possible so that it remains relevant even after the fade-out of a trend.

2. Focus on your brand essence:

Be aware of your core competencies. Emphasize the character of your brand. Try to work from the inside out. Every genuine character has edges and corners—surprise your audience with them.

3. Make your brand compact:

Only with context-driven considerations can you find new ideas that keep your brand vibrant.

Innovation and authenticity define luxury in 2024

The concept of "luxury" takes on a new dimension this year. It evolves from the traditional notion into a diverse approach encompassing various categories, including innovation, society, and culture. However, 2024 brings not only challenges but also opportunities for the luxury industry: brands can establish a brand image that remains sustainably relevant through innovations and authenticity. Due to the shift in values, even brands outside conventional luxury have the opportunity to captivate consumers with their brand philosophy and honesty.