In a luxury landscape marked by global volatility, shifting demographics, and rising emotional consciousness, the definition of prestige is undergoing a radical rewrite. To capture this pivotal moment, I spoke with Erika Andreetta, Partner, PwC Italy, EMEA Fashion & Luxury Leader, an engineer turned luxury strategist whose consulting journey spans Ferrari, Luxottica, and Tod’s—about the forces shaping the industry’s future. “This is a pivotal moment,” Andreetta noted, “to reimagine a long-term strategy, not through short-term fixes, but by anchoring deeply in your brand's authentic values.” From circularity to immersive brand worlds, her insights reveal a seismic transformation already underway, rooted in emotion, innovation, and long-term value.
Emotion Over Ownership: Luxury’s Human Renaissance
The luxury sector is entering 2025 in a moment of recalibration. Amid economic slowdowns, leading brands aren’t retreating—they’re reshaping. “Clients are seeking meaningful, personalized, and immersive engagement,” Erika commented, underscoring the shift toward emotion over exclusivity. Experiences are now central to value creation. The rise of hyper-personalization—with customized products forecasted to reach €50 billion by 2030—is enabling deeper, more loyal relationships. As Andreetta put it, “Luxury experiences—travel, wellness, social events—are outpacing traditional goods. It’s a clear sign consumers want to connect, not just consume.”
Silver Power & Sustainability: The New Growth Engines
One of Erika’s most compelling points concerns the “Silver Generation”—a demographic she sees as key to future growth. “They value heritage, quality, and longevity,” she explained. Their purchasing power, rising from 28% to 33%, is shaping long-term brand strategies.
On sustainability, Erika was clear: “The era of vague ESG storytelling is ending. It’s now about proof.” She spotlighted innovations like the Digital Product Passport (DPP) as revolutionary tools. These track a product’s journey and offer transparency, helping customers make informed choices and enabling brands to build credibility. “Circularity must be embedded into the business model,” she emphasized, “not just offered as a post-sale service.”
Hospitality & Holistic Ecosystems: Living the Brand
Luxury brands are expanding into hospitality to build immersive ecosystems. “Consumers want to live the brand, not just wear it,” Erika observed. Whether it’s Saint Laurent’s sushi lounge or Dior’s mobile spa, these ventures invite clients into the brand universe through taste, space, and atmosphere. “It’s no longer about product—it’s about curating identity,” she said.
Gen Z & Emotional Intelligence
Erika pointed out that Gen Z demands emotional resonance and inclusion. “They reject exclusivity built on outdated codes and gravitate toward brands that invite participation,” she noted. Whether it’s Labubu collectibles or ethical fashion statements, this generation connects through meaning, not prestige. “To engage Gen Z, brands must be emotionally intelligent and culturally aware,” she asserted.
The Talent Imperative: Culture as the New Prestige
Internally, Erika emphasized the need for vibrant corporate cultures. “Prestige alone won’t attract top talent anymore,” she said. Brands must offer purpose, inclusion, and continuous development. She advocates building high-performing, cross-functional teams that reflect the same excellence consumers expect externally.
Courageous Evolution, Rooted in Purpose
As luxury enters one of its most transformative chapters, Erika Andreetta’s message is both visionary and grounded: embrace change boldly, but anchor it in authenticity. “Transformation begins from within,” she affirms—a reminder that true innovation starts at the core of a brand’s culture and values.
Short-term fixes won't build a legacy. The future belongs to brands that cultivate emotional resonance, invest in personalized experiences, and build lasting communities. “Build emotional connections beyond the transactional,” Andreetta urges, reflecting a shift from selling prestige to sparking meaningful engagement.
This new luxury isn’t about possession—it’s about feeling. It’s no longer enough to create beautiful products; success depends on nurturing high-performing teams, fostering inclusive cultures, and leading with intention. Because in this evolving landscape, how you lead matters as much as what you create.
