Seminar at APLF: Luxury Goods and the Leather Industry - Follow the Money

'Futurologist' David Shah began by saying, "The ultimate luxury is to buy nothing". Over the course of the next two hours he explained what he meant.  Generally, he spoke on the future of luxury goods: specifically, on the leather industry which is part of the luxury market.   The occasion was a seminar held during the recent APLF - Materials, Manufacturing and Technology (MM&T) and Fashion Access held in Hong Kong.  Mike Redwood was the seminar moderator with Mr Shah, the featured speaker. Although individual opinions vary somewhat among those who attempt seriously to explain forthcoming trends most generally agree there are 5 'Levels of luxury', and they are: 1. Superficial extraverts: interested in acquiring status; 2. Discerning and design renowned: "I am beginning to understand culture"; 3. Emotion and experience,where emotional Quotient(EQ counts with more empathetic and self aware individuals; 4. Responsible and aware of the eco-ethical concerns; 5. Intellectual and poetic - which is the state of buying nothing.     Mr Shah explained that while China is at Level 1 Europe is moving towards Level 5. Interestingly, the Europeans, who had built the luxury brands now are gradually shying away from them.    More people are getting richer (especially, but not exclusively in Asia) and changing the image of luxury in the process. Luxury brands are no longer for the rich only; they are made available to the masses. As the rich are not into buying, luxury products are not about rich people anymore.  Instead, it is the middle class people who aspire to be rich. Thus mass-tige is born. Mass-tige means mass market prestige which emphasises design, innovation, functionality and sophistication. This sector of the middle market is getting interesting for the future of luxury brands. While, Asia is heading towards a boom, Europe is slowing down (economically speaking). The future is to consume less, buy less and produce fewer children. Consumers in the West are moving away from style and content towards classic style which is more than content. Europeans however are increasingly concerned about sustainable production, eco-clothing, mother earth, carbon footprint etc. They will focus on ethics, the ethics of the company will be more important than where the products are made."The power of the future si in industry and not in the brands. We can do anythign with nanotechnolog and science."  Brands are seen by consumers as squeezing out the local business and reducing local variety and culture. The question is how to combine these concerns and attitudes with luxury? How to create eco-agenda with consumer appeal? Mr Shah offered some ideas.   People who have lots of money do not care about brands or for that matter, material things. They are the hobo chic. Rarity will be attractive to those who have everything. If they buy, they wish to buy limited editions; hence limited editions will be the 'in' thing. It is the oyster shell concept where there is only one pearl to be found in each oyster. Limited edition offers a bigger leeway for the producers to experiment on product designs, mixing machine technology and handicraft. "I am the manufacturer: this is who I am" For the rich customers, shopping is a form of entertainment. The future of retailing is about the experience of buying. The store is less about the products, and more about the 'wow' affect. Retail shops are not about displaying items, it is about the extraordinary experience the shop offers the customers. Luxury is about having things that are unique, that are not ubiquitous. The hollow brand is dead, wrote the Winkreative and Wallpaper magazine. People are looking for legitimate experiences, a producer who says "I am the manufacturer; this is who I am."    Retail environment is more like an art gallery and the sales people are curators and interpreters. Reclusive retail, apartment retailing, isolation retail, reinterpretation of minimalism are some of the concepts evolving as the rich value their privacy avoiding publicity. They want to be private people - rich and discrete. One would need an invitation to visit the shop, which is located in extraordinary exclusive places.    There is a plea for socially responsible design based on quality, reliability and responsibility. The consumer is discerning, valuing products that are up-market yet don't advertise their value, clothing that is expensive yet simple and not showy. They want to be reminded of a new simplicity, a luxury that is about memory and rest, rather than complexity and excess. It is the smell of austerity.   Money does not make us happy, Mr Shah reminded the audience. We want to hide in nostalgia.  We are down shifting, we want a quieter and slower life involved with activities such as knitting, enjoying tea time, going to the museums, and scrap book mania. As the consumers become more intellectual, they will think before they buy and buy only what is needed and look for quality. It is not about showing off but just doing what is needed and buying the real thing. Real products without advertisement, value for the money and middle price range items will be sought after. Design products that we want to hold to New simplicity and new austerity is emerging with no logos, no labels and no brands. However, it does not mean consumers will not buy. THEY WILL BUY LESS BUT BETTER: THEY WANT SIMPLE SOLUTIONS THEY CAN BUILD ON."This is the new austerity. Just you, the mirror and your hairdreser".  They are looking for manufacturers they can trust rather than the brands. They want to bring back proven things from the past, and to have product designed that we will want to hold on to. The future of fashion is in machine made uniquely designed products. It is where technology and science meet art and design. High-end designs will be innovations through technical development. This rests heavily in new materials' development. Without new materials there will be no new designs. 'Fashion' magazine will give way to 'Design' magazinesand we will look for new ideas at the Milan Furniture Show rather than Premier Vision.    In Europe and the USA, we are beginning to move from left to right brain thinking. In his book 'A whole new mind: why right-brainers will rule the future', author and analyst, Daniel Pink, argues that we in the west need to bear in mind six new business essentials – Design, Tell me a Story, Empathy, Play, Meaning and Symphony. Europe's future rests in its creativeness and Asia is still shy to acknowledge its ability. We want to see the value - and we do not care if you are Tom Ford  In conclusion, Mr Shah said the future of luxury is in personal touch, express yourself, super normal not show off, invest in passion and emotion with good sense, recognising that money cannot buy you time, love and happiness. Remember that women run the world, 'womanomics' - as women do most of the buying,we must learn how to sell to them. We are moving to another level of design seeking new experiences. Therefore, be colourful, be individual, and mix the past with the future and technology with elegant design. Know and understand which level of luxury is your targeted market and offer them the right products.   CarloRivetti of the C P Company, and a member of the panel at the seminar observed, "Luxury is something you cannot buy, it is a state of mind. It is watching the sunset with the one you love". The future for Italian brands is in tailor-made one of a kind item. There is a trend to go back to 'one product' by 'one brand'. We are going back to luxury as defined before; luxury is culture, he added.    David Shah is a renown 'futurologist' and the publisher of Textile View, View2, Viewpoint, View Colour Planner, and View China If you wish to contribute to the APLF News, with your experiences in the industry, your observations, or general thoughts on the direction the industry is going, we would like to hear from you. Email: aplf-news@aplf.com How long has your company been attending APLF? If you wish to be involved in the celebration of the 25th anniversary of APLF, we would like to hear from you. Email: aplf-news@aplf.com. Subject Headline: APLF 25th Anniversary