IDEAS home Printed from https://ideas.repec.org/a/pal/jorapm/v17y2018i4d10.1057_s41272-018-0140-6.html
   My bibliography  Save this article

The future of luxury: mega drivers, new faces and scenarios

Author

Listed:
  • Ian Yeoman

    (Victoria University of Wellington)

  • Una McMahon-Beattie

    (Ulster University)

Abstract

What is the future of luxury? Using scenario planning, this paper explores four possible futures of luxury set in 2030. Scenario 1, Trading Up to Luxury, discusses how consumers with increased wealth aspire to buy luxury products and experiences. Scenario 2, Prestige Luxury, focuses on the behaviours of the seriously wealthy and examines how the mega-rich influence luxury markets. Scenario 3, Enrichment and Experiential Luxury, illustrates how the concept of luxury has become less about materialism and more about experiences. Scenario 4, Craft and Authentic Luxury, illustrates how the exclusivity of luxury is framed by craftsmanship, history and uniqueness. This paper is based on an examination of the evolution of luxury as a concept and highlights eleven contemporary drivers of change including the democratisation of luxury, demanding consumers and premium pricing. The study allows those involved in luxury industries to understand change and, using the scenarios, to position their products or experiences.

Suggested Citation

  • Ian Yeoman & Una McMahon-Beattie, 2018. "The future of luxury: mega drivers, new faces and scenarios," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 17(4), pages 204-217, August.
    • Handle: RePEc:pal:jorapm:v:17:y:2018:i:4:d:10.1057_s41272-018-0140-6
    DOI: 10.1057/s41272-018-0140-6
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1057/s41272-018-0140-6
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1057/s41272-018-0140-6?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Dion, Delphine & Arnould, Eric, 2011. "Retail Luxury Strategy: Assembling Charisma through Art and Magic," Journal of Retailing, Elsevier, vol. 87(4), pages 502-520.
    2. Ian Yeoman & Carol Wheatley & Una McMahon-Beattie, 2017. "Trends in retail pricing: A consumer perspective," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 16(2), pages 174-200, April.
    3. Parguel, Béatrice & Delécolle, Thierry & Valette-Florence, Pierre, 2016. "How price display influences consumer luxury perceptions," Journal of Business Research, Elsevier, vol. 69(1), pages 341-348.
    4. Béatrice Parguel & B Delecolle & Pierre Valette-Florence, 2016. "How price display influences consumer luxury perceptions," Post-Print halshs-01374021, HAL.
    5. Roux, Elyette & Tafani, Eric & Vigneron, Franck, 2017. "Values associated with luxury brand consumption and the role of gender," Journal of Business Research, Elsevier, vol. 71(C), pages 102-113.
    6. Kapferer, Jean-Noël & Laurent, Gilles, 2016. "Where do consumers think luxury begins? A study of perceived minimum price for 21 luxury goods in 7 countries," Journal of Business Research, Elsevier, vol. 69(1), pages 332-340.
    7. Béatrice Parguel & Thierry Delécolle & Pierre Valette-Florence, 2016. "How price display influences consumer luxury perceptions," Post-Print hal-01819615, HAL.
    8. Elyette Roux & Eric Tafani & Franck Vigneron, 2017. "Values associated with luxury brand consumption and the role of gender," Post-Print hal-01464979, HAL.
    9. Kastanakis, Minas N. & Balabanis, George, 2012. "Between the mass and the class: Antecedents of the “bandwagon” luxury consumption behavior," Journal of Business Research, Elsevier, vol. 65(10), pages 1399-1407.
    10. Li, Guoxin & Li, Guofeng & Kambele, Zephaniah, 2012. "Luxury fashion brand consumers in China: Perceived value, fashion lifestyle, and willingness to pay," Journal of Business Research, Elsevier, vol. 65(10), pages 1516-1522.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Asian, Sobhan & Wang, Jian & Dickson, Geoff, 2020. "Trade disruptions, behavioral biases, and social influences: Can luxury sporting goods supply chains be immunized?," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 143(C).
    2. Nazia Nabi, 2023. "Segmenting travellers of luxury destinations in a post-pandemic era," Service Business, Springer;Pan-Pacific Business Association, vol. 17(3), pages 747-770, September.
    3. Farzana Zainurin & Lindsay Neill & Heike Schänzel, 2022. "Considerations of luxury wine tourism experiences in the new world: three Waiheke Island vintners," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 21(3), pages 344-353, June.
    4. Areej Algumzi, 2022. "Factors Influencing Saudi Young Female Consumers’ Luxury Fashion in Saudi Arabia: Predeterminants of Culture and Lifestyles in Neom City," JRFM, MDPI, vol. 15(7), pages 1-13, June.
    5. Raluca-Giorgiana Chivu (Popa), 2021. "The Role of Marketing in Luxury Tourism: A Case Study on the Structures of Tourist Reception in Romania," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(2), pages 636-645, December.
    6. 'Phil' Klaus, Philipp & Tarquini-Poli, Annalisa & Ahmed Mostafa Alawad, Nawal, 2022. "Lifestyle of the rich and famous: Exploring the ultra-high net-worth individuals’ customer experience (UHCX)," Journal of Business Research, Elsevier, vol. 147(C), pages 49-58.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sharma, Amalesh & Soni, Mauli & Borah, Sourav Bikash & Haque, Tanjum, 2022. "From silos to synergies: A systematic review of luxury in marketing research," Journal of Business Research, Elsevier, vol. 139(C), pages 893-907.
    2. Shukla, Paurav & Rosendo-Rios, Veronica & Khalifa, Dina, 2022. "Is luxury democratization impactful? Its moderating effect between value perceptions and consumer purchase intentions," Journal of Business Research, Elsevier, vol. 139(C), pages 782-793.
    3. Pillai, Kishore Gopalakrishna & Nair, Smitha R., 2021. "The effect of social comparison orientation on luxury purchase intentions," Journal of Business Research, Elsevier, vol. 134(C), pages 89-100.
    4. Mbaye Fall Diallo & Norchène Ben Dahmane Mouelhi & Mahesh Gadekar & Marie Schill, 2021. "CSR Actions, Brand Value, and Willingness to Pay a Premium Price for Luxury Brands: Does Long-Term Orientation Matter?," Journal of Business Ethics, Springer, vol. 169(2), pages 241-260, March.
    5. Rosenbaum, Mark S. & Ramirez, Germán Contreras & Campbell, Jeffrey & Klaus, Philipp, 2021. "The product is me: Hyper-personalized consumer goods as unconventional luxury," Journal of Business Research, Elsevier, vol. 129(C), pages 446-454.
    6. Ko, Eunju & Costello, John P. & Taylor, Charles R., 2019. "What is a luxury brand? A new definition and review of the literature," Journal of Business Research, Elsevier, vol. 99(C), pages 405-413.
    7. Ostovan, Nima & Khalili Nasr, Arash, 2022. "The manifestation of luxury value dimensions in brand engagement in self-concept," Journal of Retailing and Consumer Services, Elsevier, vol. 66(C).
    8. Grigorescu Adriana & Ion Amalia Elena, 2020. "Innovation and product management – The direction of the 21st century luxury market," Proceedings of the International Conference on Business Excellence, Sciendo, vol. 14(1), pages 1035-1045, July.
    9. Kauppinen-Räisänen, Hannele & Björk, Peter & Lönnström, Alexandra & Jauffret, Marie-Nathalie, 2018. "How consumers' need for uniqueness, self-monitoring, and social identity affect their choices when luxury brands visually shout versus whisper," Journal of Business Research, Elsevier, vol. 84(C), pages 72-81.
    10. Kapferer, Jean-Noël & Valette-Florence, Pierre, 2018. "The impact of brand penetration and awareness on luxury brand desirability:," Journal of Business Research, Elsevier, vol. 83(C), pages 38-50.
    11. Holmqvist, Jonas & Wirtz, Jochen & Fritze, Martin P., 2020. "Luxury in the digital age: A multi-actor service encounter perspective," Journal of Business Research, Elsevier, vol. 121(C), pages 747-756.
    12. Adriana Grigorescu & Amalia-Elena Ion, 2022. "Qualitative Analysis of Sustainability and Innovation Within the Luxury Business Sector," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 13(4), pages 3150-3171, December.
    13. Kilsheimer Eastman, Jacqueline & Iyer, Rajesh & Babin, Barry, 2022. "Luxury not for the masses: Measuring inconspicuous luxury motivations," Journal of Business Research, Elsevier, vol. 145(C), pages 509-523.
    14. Chen, Ning & Petersen, Francine E. & Lowrey, Tina M., 2022. "The effect of altruistic gift giving on self-indulgence in affordable luxury," Journal of Business Research, Elsevier, vol. 146(C), pages 84-94.
    15. Pizzetti, Marta & Chereau, Philippe & Soscia, Isabella & Teng, Fangyuan, 2023. "Attitudes and intentions toward masstige strategies: A cross-cultural study of French and Chinese consumers," Journal of Business Research, Elsevier, vol. 167(C).
    16. Jebarajakirthy, Charles & Das, Manish, 2021. "Uniqueness and luxury: A moderated mediation approach," Journal of Retailing and Consumer Services, Elsevier, vol. 60(C).
    17. Zahra MajlesiRad & Abdol Hamid Haji pour Shoushtari, 2020. "Analysis of the impact of social network sites and eWOM marketing, considering the reinforcing dimensions of the concept of luxury, on tendency toward luxury brand," Future Business Journal, Springer, vol. 6(1), pages 1-19, December.
    18. Purohit, Sonal & Radia, Karan Nilesh, 2022. "Conceptualizing masstige buying behavior: A mixed-method approach," Journal of Business Research, Elsevier, vol. 142(C), pages 886-898.
    19. Marta Pizzetti & Philippe Chereau & Isabella Soscia & Fangyuan Teng, 2023. "Attitudes and intentions toward masstige strategies: A cross-cultural study of French and Chinese consumers," Post-Print hal-04207447, HAL.
    20. Fraccaro, Annalisa & Macé, Sandrine & Parguel, Béatrice, 2021. "The not-so-odd couple: Odd pricing in a luxury context," Journal of Business Research, Elsevier, vol. 136(C), pages 356-365.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:jorapm:v:17:y:2018:i:4:d:10.1057_s41272-018-0140-6. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.