Kathrin Joa Luxury is at a crossroads. The panel discussion on the future of luxury, held at the Loft of Shared Dreams during the World Economic Forum in Davos 2025, highlighted themes of profound relevance and complexity.
As we move toward 2026, where millennials and Gen Z will account for 60% of luxury customers, the industry faces seismic shifts. These shifts are driven by generational changes, sustainability imperatives, technological leaps, and evolving cultural expectations. The panel’s dialogue explored critical pathways forward, where luxury finds its balance between tradition and transformation, exclusivity and inclusivity, and technology and humanity.
Below are some of my key takeaways and reflections from the enriching and thought-provoking conversation I had with my fellow panelists and our moderator Francesco Pagano:
Luxury brands have historically been catalysts of change—shaping desires on a truly global level, influencing culture, and driving innovation. The panel underscored how the exclusive realm of luxury is now embracing inclusivity and relatability to remain culturally relevant. Luxury’s power lies in its ability to disrupt norms and inspire societal shifts, but this power should be wielded with a greater focus on shared aspirations and collective progress. The challenge lies in maintaining an aura of exclusivity while fostering a sense of community and belonging.
Traditionally, luxury brands, especially in fashion or automotive, relied heavily on singular creative directors and designers as the custodians of their identity, shaping every facet of brand expression. However, the rapid turnover of these creative roles in recent years has led to a fragmented and inconsistent vision. A new model is emerging: one that flattens hierarchies and embeds brand values across entire organizations. By moving toward a collective embodiment of brand identity, luxury companies can ensure consistency, authenticity, and long-term resonance. This evolution not only secures a coherent brand narrative but also democratizes creativity within these organizations.
Luxury is no longer defined solely by products but increasingly by experiences. As consumers seek deeper emotional connections, brands must craft moments that transcend material possessions. The panel emphasized the growing shift toward “money-can’t-buy” experiences that reflect customers’ values and aspirations. Today, luxury is about creating memories, fostering connections, and offering immersive engagements that resonate on a personal level.
A core theme that resonated throughout the discussion was the need to reinstate a deeper commitment to quality and craftsmanship. In an era where fleeting trends often overshadow enduring value, luxury must reclaim its foundational promise: timelessness & legacy. True luxury goes beyond aesthetic appeal; it must be substantiated by tangible evidence of long-term value and meticulous craftsmanship. Moreover, this timeless quality embodies the true essence of sustainability—prioritizing durability, responsible practices, and creations that stand the test of time. Brands that invest in enduring quality and authentic narratives around their creations will not only stand apart but also reinforce their credibility and relevance in a fast-changing world.
The discussion on artificial intelligence and luxury revealed a nuanced perspective: AI is not a threat but a tool to enhance human creativity and efficiency. AI enables luxury brands to optimize operations, from supply chain innovations that reduce waste to personalized customer experiences powered by predictive analytics. Virtual fitting rooms and augmented reality experiences are just a few examples of how technology is revolutionizing the customer journey.
However, the conversation brought up a compelling question: how will the industry’s deep-seated need for authenticity coexist with the growing prevalence of AI-generated imagery? While AI has the power to create visually stunning and hyper-realistic content, there is a risk of eroding the personal, handcrafted qualities that define luxury. For luxury to remain authentic, AI-driven innovations must be transparently integrated with a clear acknowledgment of human artistry and curation.
The essence of luxury remains inherently human. The storytelling, emotional connections, and cultural intuition that define luxury must always be guided by human expertise. AI can support decisions and amplify efficiencies, but it should never diminish the personal and emotional elements that make luxury experiences meaningful. Instead, it should enhance them, ensuring that technological progress complements—rather than overshadows—the human touch. Balancing these advancements with the preservation of authenticity will be a critical challenge for the industry as it moves forward.
Looking Ahead: Luxury as a Catalyst for Community
As I reflect on the panel’s discussion, one overarching theme stands out: the future of luxury lies in its ability to adapt while staying true to its essence. Luxury brands have the unique ability to lead by example, setting standards not only for aesthetics and innovation but also for sustainability, inclusivity, and cultural relevance. To thrive, they must rethink their value propositions—moving beyond fostering loyal customers to cultivating thriving communities.
The Davos WEF 2025 panel reminded us that luxury is more than an industry; it reflects society’s values and aspirations. As we navigate this era of transformation, the brands that succeed will be those that embrace bold innovation while staying grounded in authenticity and aligning with human aspiration and vision. Luxury’s future is not just about evolution—it is about its power to pioneer change & leadership.