Luxury reimagined

Smooth étoupe calfskin leather, a flap top and an iconic turn-lock closure. The Hermès Birkin has become one of the most luxurious designer handbags of all time since its debut 40 years ago, despite a price tag of at least EUR10,000 and a long waiting list. Less long-lasting but equally distinctive, a Rouge Hermès lipstick can be yours for just EUR70.

Inclusive luxury might sound like an oxymoron. Yet affordable ranges are just one of the ways in which the sector capturing the hearts of the younger generation, broadening its audience and nurturing loyal future customers who will grow with the brand, potentially expanding along its product range over time.

The likes of Balenciaga and Miu Miu are introducing more affordable ranges of scarves, accessories and lifestyle goods. Fragrances, sunglasses and wellness experiences are becoming increasingly popular as a lower cost way to experience luxury.

As well as affordability, this also caters well to younger consumers who want more personalised treatment – not just customisation with embroidery of initials, but trusted recommendations and engaging content. They are spending more on experiences and, when they buy goods, they want to feel that as an experience too.

While most luxury items are still bought in a traditonal shop, online touchpoints influence an estimated 80-90% of purchasing decisions. Digital platforms allow consumers to carry out research and even try on goods in augmented reality (AR). The digital world opens up an entirely new customer base: one billion people tuned in to watch designer Pharrell Williams’s star-studded debut fashion show for Louis Vuitton.¹ Retailers are using technology to entice consumers (for example with personalised screen savers, digital gifts, options to upload own photos) and to target theirmarketing.

Community content is particularly important, with styling tips and authentic testimonials. And that’s not just true for younger audiences – brands are also reaching out to older consumers by using models and brand ambassadors of their generation.

The key is to broaden your reach without diluting the brand, according to the Thematic Advisory Board of Pictet Asset Management’s Premium Brands strategy. That means emphasising heritage and craftmanship in any digital storytelling.

Globalisation presents another interesting challenge. On the one hand, consumers want their luxury items to be globally recognisable. On the other hand, every market has its own local idiosyncrasies. Here, too, an experiential approach can work. Balenciaga’s Spring 2025 show in Shanghai, for example, embraced local culture with invitations shaped like xiaolongbao steamed soup dumplings – with the actual dish then served at the event, in collaboration with a local restaurant.

All that, though, is not to say that luxury brands are turning their backs on their classic designs and high-end items. In cars, jewellery and handbags, innovation is less striking and there are fewer calls for new products every year. These sectors have higher barriers to entry, and buyers value their timeless quality.

Here, variety may come in a new colour or a different material, or in the form of limited edition online drops and capsule collaborations. At nearly 200 years old, the Louis Vuitton brand is synonymous with timeless classics. Yet, it also has a strong tradition of keeping things fresh and attracting younger fans through collaborations with streetwear brands like Supreme and Comme Des Garcons, as well as with artists like Takashi Murakami.

By blending new with timeless and embracing new technology, the luxury sector is thus becoming more inclusive, finding new audiences while retaining the air of distinction. That lipstick could be just the start of a customer’s life-long relationship with the brand.