The LUXE Report 2025 - Report - Page 5
2. Culture Is the New
Competitive Advantage
4. Elevation and Desirability
Are Key
While sales of luxury goods such as handbags
and watches have shown signs of slowing, luxury
experiences, including travel, events and hospitality, are
booming.
Luxury has always been about status, but Kramer showed
how the meaning of status is shifting. It is no longer simply
about display, but about elevating people.
Kramer shared data showing that global business travel
spend is projected to surpass $2 trillion by 2028, despite
recent economic headwinds.
This is because people are seeking memories over
materials, and moments over merchandise, especially
since Covid. But also, because experiences are
increasingly tied to culture.
“Culture eats strategy for breakfast,” he reminded the
audience, quoting Prof Peter Drucker. “Products and
services are more interchangeable than ever. The new
competitive advantage is culture , and shaping culture
has a cost. It doesn’t happen virtually.”
Companies are investing heavily in experiences not just
to reward, but to retain and inspire talent. In a world
where speed, automation and AI make products easy to
copy, culture becomes the true differentiator.
This is why incentives, conferences and live experiences
matter more than ever. They are not “extras” but strategic
levers. Kramer urged the audience to see themselves
not as organisers, but as architects of culture, with the
power to help clients nurture loyalty, engagement and
competitive advantage through shared experiences.
3. Co-Creation Elevates
Experiences
Through a playful “chocolate shop” analogy, Kramer
showed how luxury has evolved: from selling products,
to personalisation, to co-creation.
“What’s happening now is that you co-create the
product with your customers,” he explained. “You invite
them in, and they help shape the experience that’s just
right for them.”
Harley Davidson is a powerful example. Rather than
simply engineering better bikes, they brought customers
into their workshops through “Project Rushmore,” cocreating features and building a brand around rebellion
and belonging. Customers even tattoo the Harley logo
on their bodies, a sign of emotional ownership no
competitor can replicate.
For events, it means involving guests in shaping
journeys, themes, or activities — creating a deeper
sense of ownership and resonance. Whether it’s
co-designed itineraries, participatory workshops, or
personalised touches, co-creation transforms attendees
from passive consumers into invested participants.
“If you manage that, and you’re tapping into emotion, price
becomes secondary,” he said, pointing to MasterCard’s
“Priceless” campaign as a masterclass in elevating through
emotion. At its core, the brand is about zeros and ones
and financial transactions. Yet by leaning into moments that
money can’t buy, it created one of the most powerful and
enduring brand campaigns of all time.
The same principle drives luxury fashion. From Louis
Vuitton’s “life is the journey” ethos to Hermès’ iconic Birkin
bag, desirability is what fuels value. As Bernard Arnault,
CEO of LVMH, put it bluntly: “It’s not about growth or profit,
but the development of desirability.”
For luxury event planners, the equivalent is designing
experiences that don’t just entertain but transform. Kramer
shared an example from his time with a luxury automotive
brand, which offered an ice driving experience: guests
didn’t just have fun, they left as better drivers, with a new
sense of mastery.
“If you can help people step into a new version of
themselves, it’s the Holy Grail. Emotion always wins
over rationality.”
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