Today, the sector is facing a profound changing of the tides. We are witnessing the greatest shift in luxury value perception in generations, spearheaded by next-gen forces. They don’t reject luxury, they just define it differently. In doing so, they are driving a fundamental recalibration of what luxury means and why it matters.

The base desires that fuel luxury have not changed. What has changed is how those desires are fulfilled. As cultural, technological, economic and social shifts converge, traditional expressions of luxury are increasingly misaligned with how people experience identity, ownership, wellbeing and meaning.

Gen-Z will become the number one customer group for luxury brands by 2020. But will they be your customer? Looking ahead, four territories are emerging as vital to the future of the sector:

1. Luxury is expanding into journeys of awakening, where spiritual and emotional wellbeing shape self-image.

2. Luxury is reimagining ownership, moving from possession to participation and co-creation – aided by the new economic tools of web3 and the blockchain.

3. Luxury is prioritising immersive presence, creating experiences that don’t just offer escape, by reconnection.

4. Luxury is living in sync with individual identity, biology, and emotional rhythm.

The future of luxury will not be defined by what people own, but by how brands respond to this shift in value – and whether they are willing to evolve with the generation redefining it.