Page 47 - #195 Dec2024/Jan2025

RLI RETAIL INSIGHT

Indulging With Impact:
Where Luxury Meets Purpose

In our final Retail Insight of the year, Charlotte Harrington, the Co-CEO of Belu
has kindly taken some time out from her day job to pen an article that takes a
forward-thinking look at the luxury sector and how its current position is the
beginning of a new marketplace in the future.

hat does the future of luxury look like? parallel lines, experiencing the familiar cognitive luxury industry. This is the space where Belu 27 - 28 January 2025
WAs costs mount and sustainability tops dissonance of indulging despite its impact. But exists - where business is done differently and
the global agenda, mindsets and markets are what if we reframe this dynamic as an intersection where consumers feel they can make their own KAFD Conference Center, Riyadh
constantly shifting - so as with many other retail – what does this space look like and can businesses tangible difference by choosing it.
markets, the blueprint for tomorrow’s luxury ever be commercially successful there?
landscape is still a work in progress. The answer is yes. But before we delve into DOING BUSINESS DIFFERENTLY
But what can help brands define the path how, let’s take a look at the current global It’s clear that the current business model Bringing the global and regional retail community to Riyadh
ahead, is to use the growing consumer conscience luxury landscape. needs to evolve. But in today’s challenging and
as a compass to navigate it. By doing so, businesses The global luxury market is in transition unpredictable economic climate, change isn’t
can future proof themselves, fuel the industry’s - Although global luxury spending broke records always easy to navigate - especially when the
evolution and play an active part in shaping a in 2023, there has been year-on-year growth in success of your company is on the line.
brighter future - rather than simply sitting back and luxury goods and the interest in luxury experiences How can brands adapt, build consumer
watching it unravel through clenched teeth. is escalating - there are also early signs that the trust and demonstrate a clear purpose without
So - where to from here? As we interrogate market’s growth may be slowing down. sacrificing quality or profit? Crucial to this
this transition, the same questions understandably Luxury has a sizable impact - With the world’s journey is prioritising transparency, accountability,
emerge: How can tomorrow’s luxury market hospitality industry, fashion industry and retail commitment and collaboration.
reduce its impact? Can caring about the planet supply chains contributing up to one per cent, According to a 2023 survey, 74 per cent
ever be commercially viable? How can brands stay eight per cent and 25 per cent of greenhouse of consumers prefer buying from brands that
relevant, resilient and ahead of the curve? gas emissions respectively - it’s fair to say the are transparent about sustainability practices
The answer to all these questions is the luxury market continues to have a sizeable and progress towards targets. A great way
same: It’s about purpose, having passion, taking environmental impact. to achieve this is through regular reporting;
action, caring about people and using business Brands need to evolve - With 77 per cent of providing clear, verifiable information about
as a force for good. luxury consumers in Europe saying sustainability sustainability efforts and their impact. But
It’s about joining a movement of like-minded is an important purchasing factor and 52 per cent simply expressing commitment isn’t enough -
businesses that belong to something bigger willing to pay up to 10 per cent more for green your business needs to embody it. Daniel Grieder Sebastian Picardo Nicolas Santi-Weil
than just buying and selling - setting yourself luxury goods, staying relevant, resilient and ahead Brands can and should be at the forefront of CEO CEO CEO
apart by integrating progressive thinking of the curve requires brands to lean further into efforts fuelling positive change - but this doesn’t Hugo Boss Holt Renfrew AMI Paris
and purpose into core business strategies, innovation and sustainability. have to mean compromising on quality or profit.
operations, mission and vision. Purpose-driven is the future - Arguably Locally-sourced, purpose-led and sustainable
But wait - aren’t purpose and luxury mutually the more conscious consumers - Gen Z and can be the pinnacles of tomorrow’s luxury
exclusive? Millennials - are estimated to make up 25 per landscape. We can build a bridge between
cent - 30 per cent and 50 per cent – 55 per cent elegance and environmental impact, premium
PURPOSE IS THE NEW BLACK of luxury purchases by 2030, respectively, so experiences and ethical practices. And, like
What springs to mind when you think of luxury? the demand for sustainable luxury is likely only Belu, businesses can thrive at the intersection
Perhaps it’s provenance, authenticity, integrity, going to grow. of purpose and luxury - future proofing
bespoke or attention to detail. Now think about What this all points to, is that a new marketplace themselves and fuelling commercial success
what defines purpose – any overlap? is emerging: Purposeful Luxury. This is what that while delivering positive impact for economies,
We often think about luxury and purpose as intersection looks like. This is the future of the society and the environment alike.

Stefania Vardouli Faysal AlMalki Massimo Basei
CEO CEO CCO
Mary Katrantzou AlMalki Holding Pandora

www.retailsummitsaudi.com
46 RETAIL & LEISURE INTERNATIONAL DECEMBER 2024/JANUARY 2025