In the past, luxury goods were intended for a small group of people (aristocrats, clergy) and represented the way to show wealth and prestige. Today, luxury takes on a more democratic meaning as through a working carrier many more people can afford the desired object. The function it fulfils today is not only that of a social marker, but also a means for personal empowering (the value of the luxury product for its symbolic meanings, lifestyle or to express one's taste and personality). The real increase in income over the last few years has given the possibility of enjoying the prestige of owning a luxury item to a larger group of people, even younger on average. The change in the role of women in society, with the opportunity to shop for herself, has allowed her to make herself a nice gift independently and which can reflect her personality, her needs and her image. The growth of educational levels, the increasing need for experiences and emotions, the development of new technologies, globalisation, are the reasons why society has changed, allowing access to the world of luxury to large number of consumers and pushing companies to develop new strategies.
The global luxury goods market has achieved massive growth of + 135% in these two decades and in Italy it contributes 7.4% of GDP, as said by Matteo Lunelli, President of Altagamma.
Personal luxury goods are transversal in the manufacturing world, from clothing, footwear, cosmetics to watches and jewelry.
We can define luxury goods by considering both functional factors (high price, excellent quality, rarity, extraordinariness, aesthetics, symbolism) and emotional (mainly linked to the expression of personality and perception). The quality derives from the singularity of the raw materials used, from the craftsmanship, from the type of production process, while the rarity is given by a perceived scarcity of product that affects the degree of desire. Objective beauty is what captures immediately and is given by design, shapes and details.
The best way brands can differentiate is to focus on the emotional side that gives personality to the brand and its products.
Today, luxury lovers are not just consumers of products, but consumers of luxury experiences, in which they love tradition, elitism, eccentricity and sensuality.
Over the past 20 years, the number of luxury consumers has risen from 90 million to 330 million. They are highly digital consumers, almost everyone has a Smartphone, they are users of social networks, they follow and communicate with their favorite brands, they get information, express opinions and love word of mouth. Shopping for them is an experience in which they are very demanding. Other factors that further influence their choices, such as inclusion, diversity and environmental sustainability, have given brands further ideas in communicating their mission.
The period of the pandemic, which also strongly affected this sector and the need to adapt its business models to new trends, and new emerging technologies, had a strong influence on the luxury market. As analysed by McKinsey & Company, 2020 marked a loss of 90% compared to 2019 which recorded a growth of 4%. Already in 2021, a path of recovery began, after the turbulent moment, marking the first significant signs, thanks to the Chinese solidity, the recovery of the United States and the explosion of the digital ecosystem, as reported by Bain & Company in collaboration with Altagamma. Further trends will mark a physiological change in the sector, which will be characterised by an efficient digitisation, the increase of local consumption, projection towards the needs of the new generations that will determine the evolution of the market, the necessary attention to sustainability issues and ethics with implementation of systems based on blockchain and NFT technology.
The forecasts are optimistic and lead to consider 2022 and 2023 as years that will allow the lost values to be definitively recovered, returning to those reached before the pandemic. The world of luxury will continue to grow despite the difficulties because it has been able to transform itself, anticipating and following trends.
The jewelry and watches sector recorded a 12% growth worldwide in 2021 compared to the previous year, despite the limitations in international travel.
Jewelry is one of the most important sectors that bring the culture, tradition, quality and style of Made in Italy to the world of luxury. Together with the entire luxury sector, it was one of the most reactive sectors, with a positive trend already in the first quarter of 2021.
From what emerges from the focus on the goldsmith sector elaborated by Intesa Sanpaolo, one of the most important banking groups in Europe, the world demand for jewelry consolidates a significant rebound of 60% in the second quarter of 2021 and the Italian goldsmith sector perfectly captures these signs of recovery with a turnover up 80% compared to the lows of the first half of 2020, but which is already surpassing the same period of 2019.
The pandemic has accelerated the process of change in this sector which, compared to others, tends to take longer, leading it to develop new business models including innovation and high-tech production. In the last 10 years the world of jewelry has had a strong awakening and from 2018 a significant acceleration that lasted during the pandemic, a period certainly necessary for the consumer to return to value the uniqueness, originality, exclusivity of a product, bringing intelligent and at the same time precious and rewarding purchase back to the focus of its values.
Avel Lenttan Jewelry is an innovative start-up that well represents the Made in Italy thanks to the Italian design and craftsmanship brought to the charm of the world of luxury jewelry. It is the brand that has understood from the beginning how important it is to intervene on the market with products and services capable of accelerating the technological development of this sector, while respecting its tradition. Thanks to innovative ideas and technological skills, it has been able to develop solutions for sustainability, traceability and digitisation systems at the center of attention, thus increasing the value of the product and offering the consumer greater guarantees and reliability. Bringing a jewel with a technological heart to the world means giving a shock to the evolution of the jewelry sector which, as a true protagonist of luxury goods, gets a new look, even more brilliant than before.