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“Luxury is the counterpoint to a throwaway economy”

04 Apr 2024

News “Luxury is the counterpoint to a throwaway economy”
She is one of the leading specialists in the luxury sector in Portugal and oversees the Executive Training Course in Luxury Management at the Catholic University of Porto. Mónica Seabra Mendes has been coordinating this course that brings together the greatest experts in the luxury sector for over 13 years and is now preparing to celebrate its 20th edition.

Can a shoe be elevated to the status of a luxury item? What features are essential?
Shoes, especially women’s shoes, have always been an object of desire and a symbol of feminine power, but they have never had the status that they have today. In a more casual world, the trend is to wear and "abuse” sneakers, which have been elevated to cult status, but at the other end of the spectrum, it’s also about buying exceptional shoes based on purely emotional attributes. Functionality and comfort are left at the door! And this is where we position the shoe as a luxury item, as we define it by its intangible characteristics of beauty, differentiation, and status. There are many footwear luxury brands, especially in the women’s universe, that have been established in the market over the last 20 years, giving the footwear sector a status and a place of its own, separate from fashion and leather goods. From an economic viewpoint, the footwear sector has now a life of its own. The visibility and prominence of the market have been fuelled and encouraged by luxury brands. Who doesn’t know Manolo, Louboutin, Jimmy Choo, Aquazzura… of course we’re talking about shoes!

What do you think is true luxury?
For me, true luxury is knowing that an extraordinary object or experience has been created with me in mind and for me. In such an anonymous and artificially personalised world, I value real human relationships.

Does the fact that this definition varies from person to person make luxury more diffuse?
Yes, luxury has a personal meaning and therefore a wide range of meanings. Luxury is ultimately something we lack; it can be recognition and social status, or simply the need for a cool glass of water or to appreciate something beautiful. There is no room for judgment in this area, nor there are any right or wrong answers.

However, I aim to understand luxury from an economic perspective and to add these psychological and sociological levels to determine business and communication strategies. I am also interested in understanding luxury in a more concrete sense, in terms of its impact on society and culture. In this sense, luxury has a more precise understanding.

Do you think that the definition of luxury has changed in recent years? After the pandemic, we’ve started to look at some things differently, like experiences or travels. Has this affected the luxury world?
Luxury has an identity that defines it and is unchanging, but it has a materialisation and style that obviously adapts to the world. It’s normal for needs to change and for the response to those needs to change. Luxury is a world of privilege and the privileged. When something is no longer seen as such, it is no longer a luxury. The human need for luxury does not change. It’s only natural that after the pandemic, people looked for what they lacked most, the privilege they didn’t have. 

As for the question you raise about experiences, it’s very curious. There is a tendency to separate the "luxury of items” from the "luxury of experiences”, but luxury, whether material or immaterial, is by definition an experience. However, there is a demand for more dematerialised experiences, which proves what I just said: the identity of luxury doesn’t change, but its expression over time does. 

Can luxury and sustainability go hand in hand?
Of course! They have to be! Let’s not forget that the economic model of luxury is precisely the one that encourages the careful protection of timeless products that can be used, repaired and inherited. A luxury that respects the craftsmanship, preserves the material and immaterial heritage, and that today plays an important role in cultural patronage. A luxury that also follows a business model and a long-term vision that necessarily requires a more sustainable economic and financial model.  Luxury is the counterpoint to a throwaway economy. Of course, it also includes high-polluting sectors (tanneries, fashion…) and will have to play its part in environmental sustainability, where, let’s face it, it has not taken the lead that should characterise it. Today’s customers are transferring their civic responsibilities to the brands they consume, and the luxury customer is paying a premium to ease his conscience and is therefore even more demanding.
If they exist… who are the new luxury consumers? Or do you think it’s a sector that is condemned to a certain type of customer?

Never before in human history have there been so many consumers in the luxury market, and so many different types. Today’s generations are very different, creating real generation gaps. Then there’s the specificity of consumption in different geographical markets. A Chinese person has a completely different demand and need for consumption than a European or a Japanese person.  Luxury must respond in a very segmented way, through the product and/or the service, to a different audience that is looking for exclusivity. However, we can point to a new generation of consumers, mainly Asian, with a lot of purchasing power and much younger than the traditional luxury consumer. They are looking for products that are different, but they are also attracted by the power of the big brands. The greatest challenge is to understand who is buying and who is influencing these new types. There is clearly a more mature market with purchasing power still at the base of luxury consumption, but those who influence and determine the purchase are the younger ones. It’s to them that luxury brands are communicating.

What strategies have international brands adopted to reach younger consumers?
The strategy is simple: communicate with young people wherever they are, you can find them or lose them on social platforms. Communicate in their language and identify what is relevant to them. It’s been a challenge for century-old brands to respond to an audience so different from their usual one, but there’s no other way to build a future.

What is the profile of the luxury consumer in Portugal?
A luxury consumer has transversal characteristics in terms of access and purchasing behaviour, despite having specific tastes and styles, so I would say that a luxury consumer in Portugal is no different from one visiting another country. We know that local markets are mainly driven by (non-EU) shopping tourism, and Lisbon and Porto are no exception, nor are Paris and Milan. We know that we have a market of affection fed by Angolan and Brazilian customers, and we know that we have more and more Chinese and Americans consuming luxury and Portugal. The incentive to non-habitual residents with purchasing power has also comforted our market, not only in terms of property, but also in terms of personal luxury purchases. In addition, the Portuguese luxury consumer is consuming more, as there are now more brands and more products to choose from. We are therefore living in a virtuous circle in terms of the consumption of luxury goods in Portugal, with room for growth in the areas of gastronomy, hotels, entertainment, and culture.  I hope that this positive outlook will also help to motivate and encourage Portuguese brands to position themselves in this segment.

You coordinate an executive programme in luxury management at the Catholic University that is now in its 19th edition. What can we learn from this formation?
It’s in its 19th year! And this year we’re preparing to celebrate our 20th edition. It’s been 13 years… The most important and structuring aspect of this programme is to encourage people to think about excellence in a country that traditionally has little culture of luxury. It aims to motivate the participants to go the extra mile, pay attention to the details, serve better and do better, whether the person works with yoghurt, jewellery, or hotels. The programme also presents several national and international sectorial realities that inspire and illustrate the particularities of luxury management, highlighting the essential balance between an artistic and aesthetic side and the more rational side of the business. In the end, the course provides concrete and universal tools that can be applied to any product, service or project, regardless of sector or segment.

Have the Portuguese woken up to luxury?
Yes, they have! Not necessarily the consumers, because they’ve always been attentive, and if they haven’t bought more luxury in Portugal, it’s because of the scarcity of brands/products. What has changed is how economic organisations view luxury. Associations, companies, public institutions, the government, and the press, for example.

There is today an association that aims to promote Portuguese brands of excellence – Laurel – and we have already hosted the two most important luxury conferences in the world, we have just held the first Portuguese Michelin Gala, and we have inaugurated a beautiful museum dedicated to Portuguese royal jewellery. We also have new restaurants, boutiques, hotels, and flats with this positioning, new streets dedicated to luxury brands (Aliados, for example, in Porto…) and we even have Portuguese brands that want to flourish in this segment… We’re less afraid of saying the word LUXURY, and we’ve realised that the luxury economic model is probably the one that best serves our resources. We are awake, but it’s only the beginning of the journey.


Photo: Luís Gala/ModaLisboa