What Would Josiah Do?

Throughout my time in the luxury sector, I’ve been struck by a paradox. Luxury brands create some of the most beautiful, exclusive and desirable products on earth, yet our industry is rarely seen as serious – and the language that defines what we do can even be frivolous: a ‘luxury’ market in the sense of something indulgent, transient and nonessential.

This hasn’t always been the case. In fact, if we go back to the beginnings of British luxury in the 18th century, the sector’s founding father, Josiah Wedgwood, was seen as leading the kind of business that could transform the prosperity of the country. As Tristram Hunt points out in his piece for this book (p.20): “a growing array of political economists highlighted the merits of high-end making… [and acknowledged] luxury underpinned a strong, regional manufacturing economy.”

Fast forward more than 250 years and it’s high time luxury’s exceptional contribution was once more the conversation topic for political economists, not least because when Europe gained its first half-trilliondollar company earlier this year, our continent’s most valuable enterprise –and one of the ten biggest businesses in the world – it wasn’t a tech giant or big pharma, but the luxury conglomerate LVMH, built by another great founder, Bernard Arnault.

Here in Britain, policy makers, the City and UK plc, should be taking luxury very seriously indeed, acknowledging and supporting what our industry can do to drive economic growth and prosperity, treating it as the precious, powerful asset it really is. The sector Wedgwood started all those years ago has continued to deliver real value for Britain – Rolls-Royce Motor Cars, for example, has just published an independent economic impact report, showing it had contributed a staggering £4bn to the UK economy since it moved its car production headquarters to

Goodwood in 2003. As Walpole’s CEO, with a bird’s eye view of more than 250 of the UK’s finest brands, I know first-hand that Britain, as its own collective luxury powerhouse, has the brands, the talent and creative firepower to stand alongside LVMH and other luxury mega-groups, and to cement its role as a global centre of excellence in the industry.

It’s not only LVMH that has benefitted from the recent rise and rise of luxury brands. All players in the sector have seen growth from luxury’s continued post-pandemic bounce back, and last year the global value of luxury grew by around 20 per cent to an all-time high of €1.38tn. Despite the challenges for many businesses – after all, high energy costs, inflation and supply chain pressures are still with us – the consumer demand shows no sign of slowing. Perhaps two years of COVID-era constraints has acted as an indelible reminder that great joy, reward and pleasure is found in life’s nonessentials. Whatever the reason, luxury brands are responding to that increased desire for beautiful things and experiences by flexing their creative muscle in new, innovative and alluring ways.

This is good news for British luxury, not least because sales of luxury cars – including iconic British marques like Rolls-Royce Motor Cars, Bentley Motors, Aston Martin, Jaguar Land Rover and McLaren Automotive – hit a new record, reaching an estimated €566bn. And sales of fine wines and spirits were up 16 per cent on 2021, with spirits growing faster than wine, particularly ‘status spirits’ like single malt whiskies, one of the UK’s most desirable exports.

And it’s not only what people are buying that’s good for the UK, but who is buying, too. British luxury has long had a reputation for design, craftsmanship and an understanding of materials and has always been synonymous with longevity and timelessness. That reputation is now more valuable to us than ever because the growth of the luxury market is, and will continue to be, almost entirely driven by younger generations who are much more alive to, and engaged with, issues around sustainability and ESG. To succeed in the luxury sector, doing things not just the best way but also the right way will be crucial to attract and retain these important Millennials and Zillennials. The prevailing business philosophy for high-end brands must be one of ‘doing well’ by ‘doing good’.

These younger customers also have different tastes and expectations compared to earlier generations. Opulence and extravagance are out, minimalism and refinement are in. They prize craftsmanship, fine materials and longevity over superficial appearances. They’re concerned with personal meaning and crave uniqueness and personalisation in the products and experiences they choose. It is right here that the British tradition of handmade, bespoke products and attentive, individual service – and access –really comes into its own.

All the elements for success are there: a growing market, a new generation of young, savvy consumers, and a shift in what luxury means towards qualities and values where Britain has always excelled. We have the opportunity now to put the industries that make up British luxury at the heart of Britain’s economy – to be recognised and respected as a real and powerful industry that makes a vast contribution to both UK plc and our standing around the world.

The cover of this beautiful book, inspired by one of Wedgwood’s most emblematic creations, the Portland Vase, is a tangible reminder that the principles on which Josiah Wedgwood built his ground-breaking brand –quality, innovation, influence, relevance and a social conscience – are the values that still power the appeal of British luxury brands today.

British luxury has long had a reputation for design, craftsmanship & an understanding of materials & has always been synonymous with longevity & timelessness wThe Luxury Landscape is Walpole’s annual collection of essays that reflect the talking points and trends shaping our sector. Here, Nick Carvell introduces this year’s roster of writers lending their expertise to the Walpole Book of British Luxury 2023/2024

NICK CARVELL