The New Status Symbol: Health & Wellness12th May 2020
When everything is uncertain, everything that is important becomes clear. In 2020, the answer is clear: being well is a prerequisite to doing well. Ownership does not equate to success in the minds of the new luxury clientele anymore, because the ultimate aspirational product today is self-improvement.
Spanning across sectors like beauty, fitness, travel & fashion, is one of the world’s fastest-growing market segments, the new megatrend that is growing exponentially: the wellness industry. In this article, we will dive into how the principles of luxury are changing the focus to self-transformation & wellness. According to the Global Wellness Institute, the health & wellness market reached $4.2 trillion in 2018, which signifies the remarkable growth of health-conscious spenders around the world. Data by Statista suggests that during that same time, the market size of Personal care, beauty, and anti-aging was a whopping $1,082.9 billion with athleisure fashion and wellness tourism industries are expected to grow at an annual growth rate of 6.5 percent. One of the driving forces behind this disruptive growth is Millennials, the changing appetites of this generation have skewed away from material goods to experiential and transformative goods and services.
From sustainable smart homes to conscious beauty, sustainability, and healthier lifestyle choices, the millennial generation is causing a seismic shift across all industries. A ColdwellBanker report shows how millennials have seen a boost in both buying power and population. In fact, by 2030, research estimates that millennials will hold five times as much wealth as they have today, giving them significant power in shaping future luxury trends. Driven by these Millennials, along with social media and online DTC retail, wellness brands are seeing unprecedented growth in their respective industries, as High Net-Worth Individuals and Ultra High Net-Worth Individuals across the world are willing to pay a premium for perceived wellness solutions.
Daniel Langer from Jing Daily, provides data-driven insights from China, where COVID-19 is gradually getting better. The article shares an important message on how health and wellbeing is already a megatrend in China that touches all aspects of life, from mental wellbeing to organic cosmetics and nutrition. Consumers are placing more value on a holistic approach rather than a hedonistic one.
In a series on the future of wellness in luxury, Florine Eppe Beauloye and Samantha Woodworth from Luxe Digital, write about the deep desire for health and wellness that is radically reshaping what luxury brands need to offer to their consumers and how they communicate the value of their goods and service. Advancements in medicine, healthier lifestyle choices, and health trackers are profoundly rebuilding luxury and redefining consumers’ expectations from brands and businesses everywhere. Companies will now have to prepare safety measures for store re-openings and provide positive reactions through fostering the power of community and loyalty programs. With experiential retail offerings replacing traditional formats, it’s clear that health has now become the new wealth.