In a nutshell, Luxury of today is becoming synonymous with a flourishing industry of surplus, targeting the world’s discretionary income in the very same ways as do many other consumer products and services. While a pragmatic voice would observe that such developments have occurred in response to customer demand, recent industry trends show a return to more traditional notions and definitions of luxury.

The transition from prestige to ‘masstige’ is about to reverse, and this tectonic shift will transform the industry for the coming decades as brands have to manage a return to traditional values and methods, while continuously increasing sales volume. As will become evident over the next decade, luxury brands that adapt early enough are most likely to emerge as future leaders.

The case of Louis Vuitton is a prominent example, and many more respectable names are taking immoderate advantage of the mass market opportunities waiting for them — ironically at the expense of the tradition and legacy that justifies their status in the first place. As a result, discerning buyers have found it harder to discover real value and satisfy their cravings for truly, authentically special goods and experiences.

One of the first major icons of the past century to see a need for adaptation is Mercedes-Benz. After a fateful decade of quality complaints, divestment of the Chrysler brand and discontinuation of Maybach automobiles, Daimler elected to refocus its attention on the prestige and quality Mercedes-Benz vehicles that once made it great — underlined by the ambitious claim ’the best or nothing’.

A similar movement is occurring in luxury hospitality, where properties focusing on sustainable tourism and organic, locally sourced goods and interiors emerge as the new super-premium options. A pioneer of this segment in Asia, boutique chain Alila Hotels is known for blending the ultimate in hospitality with eco-friendly lifestyles. On a smaller scale, Singapore’s fashion industry underwent a paradigm shift from global to locally inspired designs, notably through the ‘wear emerging designers’ campaign highlighting small labels to strengthen their competitiveness.

Turning back time, we would find that today’s liberal take on ‘luxury’ traditionally had no market. Without mass media, distortion of a product’s value was virtually impossible. What mattered was the skill, personality and style inherent in a good or service that determined its appropriate market value. However much luxury may have departed from its origins, it is returning to a model of value creation that encapsulates in equal parts tangible and sentimental value, requiring a major mindset shift, and moving towards accentuating the actual value inherent in a good, sensation or experience, rather than its price tag and facade.