Luxury Packaging A bridge over troubled waters
With the fizz of the luxe era at risk of going flat, and customers starting to ask serious questions about their purchases, can packaging can provide some of the answers?
deeply with those that value ethical and environmentally conscious choices. As a result, brands want to talk loudly about their sustainability strategy.
NEW LUXURY, NEW NARRATIVE Young people could be key to reamplifying the luxury market.
Gen Z consumers are starting to buy luxury goods at age 15, three to five years earlier than millennials did, according to a report from Bain & Co. By 2030, younger generations will become the biggest buyers of luxury by far, representing 80% of global purchases.
The language of luxury is changing. From conspicuous to conscious. From ownership to participation. From loud to quiet. However, two traits will always hold currency in the next generation of luxury: creativity and confidence.
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f you had to boil the state of luxury down to one word, it would be enduring. Its connection to the past, present and future is a testament to its enduring appeal. For a long time, the idea of combining luxury and sustainability seemed like a paradox. Often billed as a collision of two worlds; one that covers itself in opulence and extravagance, the other speaks to conspicuous consumption and societal and environmental concerns. You would have been forgiven for thinking the challenge was insurmountable. Luxury has long been regarded as a platform for showcasing wealth and social status. Still, a fresh perspective has emerged, indicating that luxury and sustainability can cohabitate happily. In bridging luxury and sustainability and shaking off the segment’s far-from-exemplary past, some luxury brands are now striking the right balance between driving the desire for luxurious experiences and products and doing the right thing for the planet.
Responsible packaging means many new issues for the luxury packaging market, such as practicality, cost, material choice, aesthetics and maintaining brand image. Is asking brands to adapt and develop innovations somewhere
at the crossroads of beauty, usefulness and respect, to guarantee the future of luxury, too much to ask?
DRESSING FOR SUCCESS
At the turn of the year, most projections for 2024 predicted the resilience of luxury would be tested.
In recent weeks, Gucci owner Kering has issued a profit warning, with shares down 20% in the first quarter. That was echoed across the industry, with British fashion house Burberry falling 3.3% and Louis Vuitton owner LVMH down 1.6%. In addition, Ted Baker is nearing collapse, and Rolex is opting not to raise its prices for the first time in years; it is easy to comprehend the nervousness. While we have witnessed many brands overhaul their supply chains to ensure more sustainable practices at every stage, we will likely see a significant ramping up of branding and packaging as they seek to reflect their new ethos in one of the most public-facing areas of their business, product packaging. Brands that can demonstrate an overall commitment to reducing their carbon footprint will likely find themselves ahead of the competition and resonate more
Heritage credentials are no longer enough to win over the new generation of luxury consumers. While luxury’s legacy of superiority and quality may hold older audiences under its spell, Millennials and Gen-Z and their respective motivations are driven more by values and beliefs. Standing out increasingly means standing for something. The designer’s role is becoming increasingly strategic and about upholding a brand, adding value and conjuring a narrative that aligns with a brand’s wider work on sustainability. Brands must work hard to eliminate bad practices and convince consumers that they’re doing the right thing by buying with them. Reflecting all of this and more in product packaging is no mean feat, but it has never been more important for luxury brands to get it right.
The luxury market has been built on mystique, tradition, decadence and aspiration. With determined work, particularly through the malleable conduit of packaging, it is possible for high-end brands to redefine quality. As always, it is down to innovative packaging manufacturers to provide the experience-driven consumers of the future with the type of luxury that is required, but also to provide sustainability.
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June 2024
www.convertermag.com
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