Social Belonging on Sale
Materialistic cravings are no longer the end-all-be-all of luxury consumption. Luxury has always acted as conduit for emotional expression and forging connections, be it to an artist, brand, or a specific group; currently, affluent consumers are starving for something that transcends monetary value: a sense of community and social capital. This shift aligns with a simultaneous cultural reality – one in which one in four people grapple with loneliness worldwide, and the state of interpersonal relationships is grim. [1]
There is an unexpected correlation between our untethered global state and the allure of purchasing a Birkin or booking a sojourn to St. Moritz. This exploration posits that consumers no longer engage with brands solely for products. Instead, they long for connections, distinctive encounters, and a respite from the paradoxical isolation that comes with hyperconnectivity. But perhaps the true intrigue lies in how brands are architecting novel spaces in response to this shift.
The Savoy x Gucci Royal Suite. Photo Courtesy: Conde Nast Traveller.
The spaces we do (not) have inform our “social capital,” or the value, reciprocity, and overall quality of interpersonal connections. A trailblazing figure who shed light on the importance of real life socialization with others, Robert Putman is renowned for his data on declining social capital. His iconic work “Bowling Alone: The Collapse and Revival of American Community” dissects how the dwindling of communal activities and the spaces they require (namely, bowling) have led to a steep decline of personal networks. While a trip to Harrod’s certainly contrasts with bowling, both constitute activities that are inherently shaped by our social fabric and weave into our sense of connection.
Yet these impacts are not limited to a societal level; they are deeply personal. Consumption patterns are sensitive to deficiencies in interpersonal connections: lonely consumers, feeling the pinch of depersonalized service environments, tend to make socially significant purchases to bridge the perceived gap between their ideal and actual social bonds. They also embrace materialism, despite the reciprocal influence on loneliness. [2] Materialism, a potent yet fleeting antidote to loneliness, provides an even stronger façade of social capital when possessions somehow point to a group affiliation.
If individual behaviors are a mirror to one’s mental state, then the world of luxury goods, fine art, and five-star hotels reflect our collective emotional landscape. Overwhelming post-pandemic disconnection has led to a new dynamic: in-person shopping has turned into a predominant social activity, particularly within spaces such as malls or private stores. The captivating allure of these spaces is that they provide complementary social resources, not just goods for sale. [3] It’s akin to visiting a coffee shop for the same Americano you could make at home. The unconscious hopes for a shared encounter overpowers strictly relying on reason.
The annual Bain-Altagamma Luxury Goods Report affirms the growing preference for meaningful experiences: “Demand for luxury experiences reached historic highs as consumers, fueled by a sense of longing for social life and traveling, reengaged with luxury beyond products.” [4] Given this, it’s crucial for brands to consider their various audience segments and create connection spaces accordingly.
Brands are responding to this collective yearning in two significant ways. First, there is a rise in designated experiences, such as curated trips and exclusive pop-up events. These events, by nature, are meant to evoke a temporary sense of specialness. “In luxury, it’s about creating intimacy with customers and building brand ambassadors… You don’t get there by pushing promotions,” Ludwig Voll, partner at EY Parthenon explains. [5] In other words, digital engagement with clients is no longer cutting it. Actual experiences lie at the nexus of emotional connection, escapism, and memorability; effectively going “beyond products.”
Taking intimacy to the next level, Simon Porte Jacquemus reimagined his own bathroom for a surrealist installation within the prestigious Selfridge’s of London. The hyperphysical store, Le Bleu, wasn’t created to drive sales. Jacquemus points out the main goal of the azure space is simply to make people excited. “We want you to come in feeling welcome and have a great experience no matter what you do inside. You can also just walk in and take a picture.” [6] Radiating novelty and wonder, Le Bleu encapsulates how luxury brands are positioning themselves to connect with people above mere profit. Jacquemus’ approach not only taps into innate human desire for freshness, but also strategically aligns with evolving consumer preferences by turning spaces into stories that attract and engage a broader audience – those who may just want to take pictures.
Jacquemus “Le Bleu” Pop-Up at Selfridge’s. Photo Courtesy: L’Officiel Magazine.
Second, brands are recognizing the profound importance of face-to-face interactions and personalized service. Private stores are now eliciting a home-like atmosphere and give top clients unprecedented access. Unlike installations such as Le Bleu, private stores not only add a distinctive touch but also cultivate a heightened sense of exclusivity. Consumers are no longer expecting an entirely digital customer journey, nor should temporary pop-ups and limited events be the singular form of creative spaces. There is an expectation for personal touch woven into even the tech-savviest of brands.
Gucci Salons are a pristine example of this personal touch. First opening in Los Angeles in 2023, the Salons operate by appointment only and are exclusively reserved for Very Important Clients (VIC). Internally, the brand perceives the Salon as a medium for showcasing the brand's most refined offerings. The space extends past a private store, emphasizing how a combination of a high-end product assortment and a personalized client experience is pivotal to the success of this concept. [7] The apartment-like interiors are an experience within itself, adorned with artwork and furniture that can be easily tailored to suit the client’s wants.
Those lucky enough to be invited in are given complete flexibility in the desired amount of time at the Salon, with visits spanning to an entire day. Before arriving, staff collaborate with the client's preferred Gucci store associate or personal shopper to understand their needs, and make sure that the product display is personalized to their taste. Maurizio Pisanu, director of watches and jewelry at Gucci, claims the intention is to fill an emotional void. “The relationship must be emotional: that’s the primary element, which we prioritise above all.” [8] Sales are merely an expected outcome.
Gucci Salon on Melrose Avenue. Photo Courtesy: Business of Fashion.
There is an important caveat. "[Ultra-high-net-worth consumers] are more short on time than money. It's easy [for them to] buy products; it's more difficult to convince them to spend some time with you," Claudia D'Arpizio at Bain points out. [9] It is not a given that consumers will invest their emotions and time in a brand. The crucial task for brands is learning how to marry design, experience, and livability.
In this regard, Tiffany’s circa-1940 flagship stands out. After almost four years of renovation, the 57th St. and Fifth Avenue “Landmark” was reopened to include a VIP-only penthouse suite, complete with lavish Central Park views, a private dining room, and state of the art paintings around every corner. “The Landmark is much more than a jewelry store— it is a cultural hub with an exquisite showcase of architecture and superior hospitality, as well as cutting-edge art and design,” Tiffany CEO Anthony Ledru says. [10]
Sarah Sze, First Time (Half Life) (2023) in the Tiffany penthouse. Photo Courtesy: Artnet.
Esteemed architect Peter Marino is responsible for the creative reimagination of the flagship. The store is akin to an art gallery rather than a conventional retail space. Marino recognizes the importance of the space as a shrine to the brand and paradise for VIP clients. “You have to make art the focus, jewelry is so small. It can’t be a ring. With these vast rooms, it’s never going to be jewelry. It’s always going to be the art,” Marino explains. “The art” will be constantly changing, although there will be no more paintings by Basquiat, because “Equals Pi” (1982) is already strongly associated with the brand since being featured in the Fall 2021 “About Love” campaign.
Jean Michel Basquiat, Equals Pi (1982). Photo Courtesy: Alexander Arnault Instagram.
Thanks to Marino, the flagship doesn’t miss a single detail. The space gracefully anchors Tiffany’s 200-year-old heritage to the present, featuring nostalgic reproductions of 19th century Blue Book catalogues, an original Breakfast at Tiffany’s script, and the salon of legendary Tiffany designer Jean Schlumberger. Furnishings by French designers pay homage to the brand’s history of buying jewels in Paris, as well as its recent $15.8 billion dollar acquisition by LVMH.
Since opening, the number of custom designs has skyrocketed. Brand devotees can even tour the seventh floor which houses the high-jewelry workshop, speak with artisans, and watch their piece come to life. [11] These offerings affirm to people their jewelry is not simply a mass market good, but as uniquely personal as art.
Ellen Garretson Wade’s Tiffany’s Necklace. Photo Courtesy: Architectural Digest.
At the end of the day, luxury is not impervious to the contagion of loneliness. Brands are in a bilateral relationship with the human condition, and its perpetual wants. While Gucci Salons and the Tiffany’s Penthouse only begin to scratch the surface of transcending the material, they point to the important role of spaces in how we feel. Experiential spaces, by appealing to basic human desires, give people an ironic sense of distinction from the rest of humanity.
Keep in mind, though, exclusive spaces risk alienating entry-level consumers. The need for connection extends beyond socioeconomic bounds and requires a considered and inclusive approach. While Robert Putnam surely wasn't envisioning Gucci Salons when he sounded the alarm about eroding social bonds, the underlying desire for meaningful connection holds true. As artificial intelligence and digitalization cuts across industries, the question of how much we value space for personal connections looms over us.
References:
Ellyn Maese, “Almost a Quarter of the World Feels Lonely,” Gallup, October 24, 2023.
Shanshan Huang and Mingfei Li, “Consumer Loneliness: A Systematic Review and Research Agenda,” Frontiers in Psychology, vol. 14, January 20, 2023, https://doi.org/10.3389/fpsyg.2023.1071341.
Shanshan Huang and Mingfei Li, “Consumer Loneliness.”
Claudia D’Arpizio et al., Long Live Luxury: Converge to Expand through Turbulence, Bain-Altagamma, January 18, 2024.
Kati Chitrakorn, “What the New Customer Loyalty Looks Like,” Vogue Business, May 17, 2021.
Kati Chitrakorn, “From Jacquemus to Balenciaga: Luxury Fashion Brands Go Hyperphysical.” Vogue Business. May 4, 2022.
Tamison O’Connor, “Case Study | How Brands Sell Luxury to the 1%,” The Business of Fashion, January 29, 2024.
Tamison O’Connor, “Case Study | How Brands Sell Luxury to the 1%.”
Claudia D’Arpizio et al., Long Live Luxury.
“Tiffany & Co. Unveils Its Newly Redesigned New York City Landmark at 57th Street and Fifth Avenue.” 2023. Tiffany. April 20, 2023.
Hannah Martin, “Peter Marino Conjures a Private Paradise atop Tiffany & Co.’s Revamped Manhattan Flagship,” Architectural Digest, July 6, 2023.
Lily Holmes
Luxury Editor, MADE IN BED