The Evolution of Luxury 2025+ Volvo Cars & Kjaer Global

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11_2015 | The Evolution of Luxury 2025+ | © kjaer-global.com

PAST, PRESENT, FUTURE

Photo: Kjaer Global Paris

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THE EVOLUTION OF LUXURY REPORT

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LUXURY TIMELINE

2025+ I The Evolution of Luxury I © Kjaer Global | 98

LUXURY TIMELINE

Romans

Luxury valued but criticized ‘habros’ and ‘poluteles’

Spartans: anti-luxury

Colonialism

Romantic Movement

New Deal

Luxury: The disruptive power of desire

First Luxury Law:To limit excessiveshows of wealth

Cena Trimalchionis(Satyricon) by

Petronius

1705 Mandeville’s Fable of the Bees:Scandalizes with discussions of

luxury vs thrift

The Kings of Macedon:Art and luxury as symbols

of wealth and power

Luxury goods trade used to gain national economic advantage

1851 Great Exhibition, London: showcase for manufactured products

Venice and Genoa:Prime sites for trade in luxury

Dutch Golden Age: Sociableand inclusive urban luxury

Spread of Christianity

Catholicism: the 7 Deadly Sins

Luxury has negativeconnotations: Gluttony,

sexuality and sin

U.S.: The rise of Luxury and extravagance

• Closed• Inherited status• Class-based• Showing• Validating people

2nd IndustrialRevolution

1929 Stock Market Crash

1st IndustrialRevolution

1899 Thorstein Veblen’sTheory of the Leisure Class

Nouveau Riche

Le Corbusier’s Modern Functionalist architecture celebrates ‘urban speed’

Greeks

Scott Fitzgerald’s 1925 The Great Gatsby: exploration of decadence,

social upheaval and the hollowness of The American Dream

Classic Era--------1500------1700-----1800----1900s----1920s----1930s----1940s------1950s-----1960s----1970s-----1980s----1990s----2000----2010-----2020----2030+

Mechanization - Industrial Cities

Mass production - Industrial Regions

Conspicuous Consumption

4th IndustrialRevolution

The middleclasses grow but ‘old

money’ still rules

Mass Consumption

Keeping up withthe Joneses Hyper Luxury

Cult of the Individual

3rd IndustrialRevolution

Masculine values: power, dominance & risk

• Luxury must have value• Consumer centric• Experiences not ownership• Validated by peers

Emerging economies and new global power structures

Wall St. excess under fire: Tom Wolfe’s Bonfire of the Vanities

Higher social mobility

Rise of ‘New Money’

Evidence clearly points to human impact on climate

New Luxury

Internet Activism / Social Media

2014 Naomi Klein: This Changes Everything

2009 John Naish: Enough: Breaking Free from the World of Excess

2014 Jeremy Rifkin: The end of Capitalism

Soft Power + Humanism

The Internet of ‘Everything’

Feminine values: harmony, dialogue, relationships

and respect

Ayn Rand: laissez-faire capitalism and objectivism

Mass luxury

Automation: globalized industries

Robotics / AI:flexible networks

1972 Bhutan’s Gross National

Happiness GNH

The 0.1 % = rise of UHNW(Ultra High Net Worth)

Transparency

2013 Thomas Piketty: Capital in the

Twenty-First Century

Neo Liberalism

Behavioral Economics

Polarized wealth

Bourdieu’s 1978 Distinction argues taste expresses economic and social standing

The Internet

Emergence of ecology and environment movements

2013 Skidelsky: How Much is Enough?: Money and the Good Life

Post Luxury

Sustainability and innovation underpin luxury: craft rebirth,

human valuesand experiences

Happinomics Enoughism

1974 The Easterlin Paradox: More money ≠ more happiness

Old Luxury Modern Luxury

2011 Harvard: Altruism and sustainable behavior = Happiness

The rebuilding of Europe

Luxury is used to reinforce social and class distimction

The rise of Japan

Globalfinancial crisis

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Photo:: Kjaer Global

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NAVIGATING COMPLEXITY

Family Holiday in Norway - Photo: Harald Brekke

San Francisco Museum of Modern Art - Rendering: Snøhetta

New affluent millennials seek an intelligent balance between fast and slow paces of life

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Photo: Kjaer Global

Photo: Kjaer Global

MEANINGFUL EXPERIENCES

New luxury customers are not looking for more; instead, they want authentic and meaningful ‘deep’ experiences

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RIGHT •  Intuition •  Vision •  Possibilist

LEFT •  Facts •  Logic •  Pragmatist

Whole Brain Thinking – Kjaer Global © 2013

1.SCIENTIFIC (Profit)

2.SOCIAL (People)

3.EMOTIONAL (Planet)

4.SPIRITUAL (Purpose)

MULTIDIMENSIONAL THINKING

2.SOCIAL

3.EMOTIONAL

4.SPIRITUAL

1.SCIENTIFIC

The 21th century requires a much wider definition of success – hence, I propose a 4P outlook

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4. SPIRITU

AL

3. EMO

TION

AL

2. SOC

IAL

1. SCIEN

TIFIC

Foodie Culture Health = Wealth Good Cause

Work/LifeBalance

BrandEngagement

Glocalisation PublicPolicies

Green Growth

ClimateChange

Hyper Urbanisation

CulturalConsumption

InclusiveDesign

TheReal Thing

IntelligentReduction

Smart Living

RisingEconomies

Happiness HuntingThe Good LifeMindfulness

SocialCapital

QUALITY OF LIFE

No AgeSociety

Free-RangeParents

RedefinedFamilies

Digital Natives

Female Factor

Global Citizens

Active Leisure

Education 4.0

CleanTech

CloudIntelligence

The Global Brain

DialogueDriven

The Big Society

ThinkingCities

BioRevolution

Creative Class

BetapreneurshipCollaborativeCommunities

InnovationHubs

HealthChallenges

CrowdedPlanet

Bio Diversity

Turbulent Markets

Considered Consumption

ResourceShortage

One PlanetLiving

Radical Openness

Purpose DrivenLeadership

Soft Power

Lifelong Learning

AuthenticStorytelling

UNIVERSAL AWARENESS

WELLBEING LIFESTYLE CHOICES & CONSUMPTION A BETTER WORLD

ORGANISATIONS

ENVIRONMENTPOLITICS & LEGISLATIONSECONOMICS TECHNOLOGY

COMMUNICATION SOCIAL STRUCTURES

NewModels

Enoughism

TREND ATLAS 2030+UNIVERSAL VALUES

CARING ORGANISATIONS

MEANINGFUL EXPERIENCES

POLITICS & LEGISLATION ENVIRONMENT

A BETTER WORLD

QUALITY OF LIFE

TECHNOLOGY ECONOMIC DRIVERS

PATCHWORK SOCIETY COMMUNICATION

POSITIVE WELLBEING

TREND ATLAS 2025+

2.SOCIAL

3.EMOTIONAL

4.SPIRITUAL

1.SCIENTIFIC

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2.SOCIAL

3.EMOTIONAL

4.SPIRITUAL

1.SCIENTIFIC

* REAL-TIME INNOVATION * ACCESS EVERYWHERE * HUMAN INTERFACE * CURATOR’S STAGE * ONE PLANET LIVING * NEW CONNOISSEURSHIP * FEMALE FACTOR * THE GOOD LIFE

TREND COMPASS 2025+


Planet Oriented

Purpose Driven

Perform

ance

Foc

used

People Centric

ONE PLANET LIVING

NEW CONNOISSEURSHIP FEMALE FACTOR

THE GOOD LIFE REAL-TIME

INNOVA

TION

ACCESS EVERYWHERE

HUMAN INTERFACE

CURATO

R’S STAGE

TREND COMPASS

INTRO

Hyper Personal

Nordic Cool

Immersive Experiences

Imperfect Perfect

(Well)being 4.0

Conviviality

Textured Luxury

Mindful Living

Deep

Sto

ryte

lling

Glo

caliz

atio

n

Betterness

Co-

Infl u

ence

Ultra

Per

form

ance

Intelligent Reduction

Integrated Lifestyles Creative CapitalRATIONAL EMOTIONAL

ME

WE

TOMORROW’SLUXURY DRIVERS

NAVIGATING THE TRENDS“Luxury inhabits the realm of leadership and quality. Increasingly, luxury brands will be expected to expand their role as influencers of commercial behavior.”

To establish commonalities across regions we need to step back and look at luxury in the context of bigger shifts in society, as this enables us to extract the defining traits in a new luxury landscape. Global key society trends influencing consumption created the guidelines for our Trend Compass; these are essential building blocks that inform how all sectors – including premium – deliver to a new and diverse generation of consumers.

CONNECTED AND RESPONSIBLEResearch indicates that a new breed of affluent customers have highly individual ideas about what defines a premium object or experience, and require new key touch-points across sectors. Traditional definitions across all regions associated luxury with excess, something outside the realm of fundamental need, but this ‘lovely but inessential’ marker looks increasingly dated. Informed by today’s conscious consumption patterns, luxury is being influenced by everything from new technology and citizen-inspired collaboration to sustainability and nature rediscovery. Chief Sustainability Officer at Kering Group Marie-Claire Daveu believes the future is being directed by millennial mindsets: “The millennials are the most environmentally conscious generation to ever grace our planet. They are not only our future consumers but also our future talent and future leaders. In fact, 83% of millennials believe that businesses must take responsibility for their environmental impact.”

A NEW VALUE IN TIMEIn our expert interviews the notion of time as luxury stood out, with consensus on managing fast and slow paces of life to attain balanced and authentic wellbeing. Luxury will be about intelligent time, where real-time action / reaction, and personalized products and services will be the norm, with meaningful experiences also delivered to match people’s need for time out.

LUXURY MUST LEAD, NOT FOLLOWAccording to the MBI (Meaningful Brand Index) only 1 in 5 brands are perceived to make a meaningful difference to people’s lives; this tells us new luxury must lead, not follow, by defining new standards. Luxury brands must engage in corporate soul searching, asking themselves profound questions about their purpose, such as: why they exist and why anyone should invest in their brand. In this context, we asked: “could new luxury be the Nordic way?”. The Scandinavians are leaders in sustainability, with a democratic design philosophy combining skilled craft with ‘less is more’ and ‘built to last’ principles. Certainly, Nordic design adheres to the new integral synergy revealed by our research between luxury, refined aesthetics and maker responsibility.

RETHINKING LUXURYOur desktop research and interviews highlighted issues that premium brands will have to address to stay relevant and successful in an ever more complex experience economy. These are mapped and organized in the Trend Compass, and further explained in the trends section. So let this compass be a pilot for navigating the future, and use it to guide you through the changing landscape of luxury. COP21 will soon take place in the mecca of luxury: Paris. It might be a golden opportunity for rethinking luxury to ensure its relevance and authenticity to tomorrow’s mindful and affluent consumers.

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11_2015 | The Evolution of Luxury 2025+ | © kjaer-global.com 11_2015 | The Evolution of Luxury 2025+ | © kjaer-global.com

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WHO ARE TOMORROW’S LUXURY CONSUMERS? kjær GLOBAL

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11_2015 | The Evolution of Luxury 2025+ | © kjaer-global.com 2025+ I The Evolution of Luxury I © Kjaer Global | 4948

Emotional

4.IDEALISTIC PIONEERS- Principled- Seeking Balance- Self Development- Experiential

3.ADVENTURE HUNTERS- Open & Sharing- Sensorial & Tactile- Experimental- Responsible

THE GOOD LIFEBetterness + Mindful Living

NEW CONNOISSEURSHIPImperfect Perfect + Nordic Cool

ONE PLANET LIVINGGlocalization + Deep Storytelling

FEMALE FACTOR(Well)being 4.0 + Intelligent Reduction

PERSONASP

hoto: © K

jaer Global 2015

Photo: ©

Kjaer G

lobal 2015

2.NEW SOCIALITES- Cultural Curiosity- Expressive- High Touch- Personal Curation

Rational

1.PROGRESSIVE OPTIMIZERS- First Movers- Aspirational- Dedicated & Driven- Forward Looking

ACCESS EVERYWHEREHyper Personal + Immersive Experiences

PERSONA OVERVIEW

REAL-TIME INNOVATIONCo-Influence + Ultra Performance

HUMAN INTERFACEIntegrated Lifestyles + Creative Capital

CURATOR’S STAGEConviviality + Textured Luxury

Photo: ©

Kjaer G

lobal 2015P

hoto: © K

jaer Global 2015

Photo: ©

Kjaer G

lobal 2015

PERSONA MAP

Rational Emotional

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1.PROGRESSIVE OPTIMIZERS

PROFILE

Progressive Optimizers see innovation as the route to

excellence. Found in all age groups – but especially

among affluent Millennials – they set the trends that trickle down through the luxury market to the wider

economy. These high achievers thrive in fast-paced

environments and demand the best of themselves

and their chosen brands.

QUANTIFIED SELF

Progressive Optimizers have bought into the idea

of a quantified self, knowing that data will help them achieve ultra performance in everything from work and

health to travel and entertainment. They understand

their own worth, and happily ‘trade’ data in return for

hyper personalization, co-influence and transparent benefits, but data privacy is key to them.

AUTOMATION VS CONTROL

Aware of the paradox of smart technology, Progressive

Optimizers love the fact they can outsource tedious

tasks, automate other chores and have real-time

personalized experiences. The balancing act is in

control – they need to feel that automation does not

rob them of their autonomy or replace all ‘human

touch’ interactions.

OPPORTUNITIES

Hugely influential and tech savvy, they want special treatment and access to innovative prototypes. Their

influence is profound, as one of our experts advises: “Focus on creating enhanced relationships with these customers to become socially valuable …inviting

higher levels of participation and access to the brand”.

Special treatment and assess to innovative prototypes

Photo: ©

Kjaer G

lobal 2015 – Shanghai

BEHAVIOR

- First Movers

- Aspirational

- Dedicated & Driven

- Forward Looking

REAL-TIME INNOVATIONCo-Influence + Ultra Performance

ACCESS EVERYWHEREHyper Personal + Immersive Experiences

PROGRESSIVE OPTIMIZERS

Photo: ©

Kjaer G

lobal 2015 – Shanghai

“Millennial consumers,

currently aged 18-34,

will become the largest

generational segment in the

luxury market between 2018

and 2020.” Kjaer Global expert interview 2015REGIONAL INFLUENCE

Global, skewed Asia, EU, Scandinavia, North

America, LTA and Middle East

PROGRESSIVE OPTIMISERS

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Highbrow to counter culture, and everything in between

NEW SOCIALITES

2.NEW SOCIALITESPROFILEFor New Socialites, family comes first and status is living well and expressing themselves. Self-made rather than inherited wealth gives them a grounded perspective on life, but they thrive in creative communities. Time is their most precious luxury and they use a curator’s stage to cherish convivial and life-affirming moments of slow living.

CULTURAL MAGPIES New Socialites absorb a range of influences, from opinions of friends and tastemakers to face-to-face advice. Their definition of culture is similarly broad – highbrow to counter culture, and everything in between. Social memes are their currency and they enjoy disruptive ideas without forgetting the texture and value of cultural traditions.

SERENDIPITY VS PLANNINGMoments of serendipity are one of life’s great joys, and New Socialites enjoy the ‘stolen’ luxury of unplanned moments, especially since most decisions are carefully planned. Time poor, they rely on digital media to research and evaluate, so respond to seamless online service, with opportunities to interact and read others’ opinions.

OPPORTUNITIESUnderwhelmed by overt luxury, New Socialites do appreciate quality and love ideas that make life fun or super convenient. They crave solid advice and lasting relationships. One of our experts highlighted that, for them: “It’s about craftsmanship… doing something really, really well through all layers: from sales and customer treatment to after-sale contact”.BEHAVIOR

- Cultural Curiosity- Expressive- High Touch- Personal Curation

HUMAN INTERFACEIntegrated Lifestyles + Creative Capital

CURATOR’S STAGEConviviality + Textured Luxury

Photo: ©

Kjaer G

lobalNEW SOCIALITES

Photo: ©

Kjaer G

lobal 2015

“Offerings in this luxury segment will be safe, nice and more comfortable. Just the fact that you prioritize family shows a surplus in your time and energy, replacing luxury as it used to be – passive consumption.”Kjaer Global expert interview 2015

REGIONAL INFLUENCEGlobal, skewed West, EU, Scandinavia, North America, LTA and Asia

NEW SOCIALITES

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ADVENTURE HUNTERS


ADVENTURE HUNTERS

PROFILE

Adventure Hunters seek life beyond the mainstream

and have developed a new connoisseurship in their

hunt for the authentic, the wild idea or the lived

experience. Many are part of the upcoming millennial

cohort and, while they find cultural sharing attractive, they expect luxury with a conscience and sense of

place.

RAW LUXURY

The material world of luxury is a continuation of

Adventure Hunters’ passion for travel, food and

artistic expression, so they favor the handcrafted, the

tactile and the unspoiled. Their consumption universe

can be lived, breathed and tell a unique story – their

identity is underpinned by a pioneers’ mindset.

SHARING VS FIRST EXPLORER

While Adventure Hunters are global citizens –

inhabiting a digital universe, where stories are

swapped and intelligence passed on – they crave

unique discoveries. From the remote outposts of

Nordic Cool to the ultimate deserted island, they like

to put their flag up first, and then share the knowledge with their network.

OPPORTUNITIES

Adventure Hunters find things out for themselves, closely scrutinizing for quality, integrity and social

responsibility, so this makes niche, intelligent

messaging essential. Differentiation is more important

than innovation. One of our experts sees himself

in their mindset: “My generation is the future buyer of luxury, and we are searching back for traditional

experiences.”BEHAVIOR

- Open & Sharing

- Sensorial & Tactile

- Experimental

- Responsible

ONE PLANET LIVING

Glocalization + Deep Storytelling

NEW CONNOISSEURSHIP

Imperfect Perfect + Nordic Cool

Swede Magnus Nilson discovers local Nordic Cool

Photo: K

jaer Global 15 – The N

ordic Cook B

ook

3.ADVENTURE HUNTERS

Photo: ©

Kjaer G

lobal 2015 – Haukelifjell N

orway

REGIONAL INFLUENCE

Global, skewed Asia, EU, Scandinavia, North

America, Australia & Middle East

“At a time where everything

has become accessible, the

idea of inaccessibility

becomes an attractive path

to follow for people – and

for brands that aim to

differentiate themselves.” Kjaer Global expert interview 2015

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Intelligent reduction and elegant products

IDEALISTIC PIONEERS

PROFILEIdealistic Pioneers are proud of their achievements,

but measure success in meaning, not wealth.

Seeking a balance in every aspect of existence, they

want to give back to society. They practice everyday

mindfulness and are on a quest for spiritual growth,

craving intelligent reduction and elegant products

tailored round them.

MECOSYSTEMS Idealistic Pioneers perceive the world as a system of

things and beings and put themselves at the center,

expecting brands to treat them as unique individuals.

They need to both stand out from the crowd and

belong – personal pleasure with social principles –

and love experiential and transformative luxuries.

PURPOSE VS PLEASUREWith high expectations in all areas, Idealistic Pioneers

seek purpose and a clear raison d’être from brands – excellence and sustainable practices are a given.

While luxury, for them, is the harmony of a life lived

meaningfully, they enjoy sensorial pleasures without

guilt and are attracted to intellectual meeting points

that build connection.

OPPORTUNITIESAware of their privileges, Idealistic Pioneers are open

to creative ideas grounded in radical thinking. They

are particularly inspired by clever concepts with social

value. As one of our experts notes: “Luxury brands have a responsibility to take the privilege seriously by

providing leadership in creative, meaningful, ethical

and sustainable design”.BEHAVIOR- Principled

- Seeking Balance

- Self Development

- Experiential

FEMALE FACTOR(Well)being 4.0 + Intelligent Reduction

THE GOOD LIFEMindful Living + Betterness

4.IDEALISTIC PIONEERS

Photo: ©

Kjaer G

lobal 2015

Photo: ©

Kjaer G

lobal – Shang X

ia Shanghai 2015

“The nature of philanthropy has changed, from signing checks to deeper involvement – this requires reliable partnerships, and needs to be personal.” Kjaer Global expert interview 2015

REGIONAL INFLUENCEGlobal (skewed West & China) EU, Scandinavia,

North America and Asia

IDEALISTIC PIONEERS

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NEW LUXURY MANIFESTO

#1. INNOVATE OR DIE #2. BUILD EXPERIENCES BEYOND PRODUCTS #3. ENRICH LIVES, TIME IS IRREPLACEABLE #4. ENABLE MEANINGFUL CONSUMPTION #5. DELIVER ESSENCE, NOT EXCESS


The Evolution of Luxury 2025+ Volvo Cars & Kjaer Global

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