Luxury trends to watch in 2021

1) NFT Luxury

The global pandemic aided the launch of the NFT phenomenon with luxury brands revolutionizing with the digital innovation. Non-fungible tokens are forms of digital assets that can be bought and sold with a proper certificate of authenticity and ownership. The only variation is that they are non-tangible. NFTs are hyped amongst buyers because of their uniqueness and originality. People want to buy them because they are the one and only in their form. Gucci launched its first ever digital sneakers called the Gucci Virtual 25 sneakers for $12. The luxury industry awaits for more such innovative creations by top-notch brands diving their way to the virtual world.

2) The Sustainability Picture

Millennials are progressive buyers of luxury and with this they are also aware of the adverse effects on nature that accompanies their purchase decisions. Luxury brands are expected to maintain transparency and practice sustainability in their operations that now attracts most of the millennials who are trendsetters and associate brands with themselves. Amongst the first luxury brands was Gucci to ban fur from all their collection. Studies have also shown that millennials are willing to spend extra money on products that have been manufactured considering all possible forms of social responsibility and sustainability in practice. Jewellery brands like Pandora has plans to create pieces using recycled metal in the coming years.

3) The Technology Swing

Luxury brands have introduced technology in their retail experiences such as Augmented Reality. Mobile app AR features by beauty brands where customers can try on makeup virtually, to smart mirrors installed at retail stores to try on apparel and find all the necessary information on the material, color, stock etc. has been an evidence of the penetration of artificial intelligence into the luxury industry. A new user interface such as the voice command is another instance of technology dominating the buying experience of customers. Without having to visit brick and mortar, customers can purchase products online with the help of voice controlled e-commerce services. Lastly, the introduction of Chatbots for better customer shopping experience has always been exceptional.

4) Pre-owned Luxury

This trend is partially linked with the need of sustainability amongst young consumers and partially with transforming consumer preferences. With respect to ecological responsibility, using a pre-owned bag rather than buying a new one can immensely help the environment and improve carbon emission reductions. Pre-owned luxury has highly gained popularity and is available on almost every luxury selling e-commerce platform. Secondhand luxury goods are in high demand by potential customers and are expected to be resold by luxury brands directly for a promising retail experience.

5) The Digital Galaxy

The pandemic has affected customer-shopping experience by nearly a hundred percent. From retail store sales to almost a significant amount of traffic shifted online, it has been a notable revolution. Brands have the ideal opportunity to improvise and innovate in these times. Brands are now offering the live shopping service with the touch of personalization. Gucci Live is a well-known live shopping experience that connects potential clients to a personal advisor who informs the customer on the collection and assists in purchase. It is a highly interactive and personalized service and an ultimate offering by brands, enabling clients to make purchases without having to physically visit stores.