As the values of brand, craftsmanship and the never-ending quest for experiences become more important with luxury shoppers, Altagamma is taking proactive measures to help its members stay current.
After a post-pandemic boom, the luxury market has cooled a bit in the past year or so. The personal luxury goods market dipped to 363 billion euros in 2024, a 2 percent decline compared to 2023, based on the annual Luxury Study, released by Bain & Co. and Fondazione Altagamma. That dip was partially caused by macroeconomic tensions, decreased Chinese demand, and a marked withdrawal by aspirational consumers, those spending less than 5,000 euros annually on luxury goods and services.
As chairman of that foundation, Matteo Lunelli has a bird’s-eye view of the factors that are impacting the Italian luxury goods sector and the 100-plus brands of excellence that are involved with the Made in Italy initiative.
During an interview Friday morning, he noted that the luxury market is still “far above” the market value and consumer consumption of 2019. While the very high end of the market is strong, the aspirational luxury market has weakened due to economic pressures. With shoppers more inclined to spend for a live experience than to purchase goods, they are investing in luxury hotels, “super fine dining,” luxury cruises, super-luxe yachts, private jets, and expensive sports cars, which continue to gain interest, Lunelli said.
With shoppers are also gravitating toward brands that align with their personal values, Altagamma abides by the idea that high-end products must be excellent in everything that they do, he said. That includes the creation of a product, how it is developed and the way that workers are treated. To that end, the organization has charted common values for members to abide by. With many Made in Italy companies intrinsically linked to their home communities such as Ferrari and Lamborghini in the “Motor Valley,” that can include research centers and schools.
Lunelli said, “That is the strongest element of sustainability. When you are linked to the community and the territory, then you feel even stronger about protecting the environment and the duty of contributing to the preservation of art.” (As in Renzo Rosso’s funding a restoration campaign for the Rialto Bridge and Diego Della Valle’s and Tod’s Group sponsoring the restoration of Milan’s City Hall.)
Through an adopt-a-school program, Altagamma is helping to build the pipeline for future workers not just through specialty skills but in more contemporary fields like marketing. In existence for a few years, more than half of the members have signed on with the program. In addition, many of the members including Brioni and Canali have their own “academies” within their respective companies for traditional Neopolitan tailoring to create next-generation talent and preserve craftsmanship. “It certainly has to be a priority for us. In a world of artificial intelligence, the value of craftsmanship — made-to-measure and made by hand — will have an even stronger value in the future,” he said.
Speculating about the degree of jobs that may be jeopardized by AI, Lunelli said, “I hope that artificial intelligence allows us to do what we do in a better way, but certainly the world will change. But I don’t think that anyone would love to be served by a robot. The heart of the hospitality business has always been human. In a luxury hotel, the greatest luxury would be to have a wonderful human being serving you and waiting on you,” Lunelli said. “In a world where robots will become better and better, the value of a tailor and made-by-hands goods will be even stronger.”
Through his full-time role as president and chief executive officer of Ferrari Trento, there is a restaurant at one of its vineyards, where the way in which diners are greeted and treated by servers is a key part of the experience beyond the chef-prepared meal. “In a world of artificial intelligence, artisanal intelligence will be even more valuable in the future. That’s why preserving craftsmanship and handmade is so important.”
With some trades and training dating to the Renaissance in Italy, the country’s strengths in development and production also benefit non-Italian brands including French ones that use Italian houses, Lunelli said. Noting how many Italian brands are rooted in their respective communities like Fendi and Brunello Cucinelli, he said those settings also have a natural beauty, age-old architecture and design aesthetic that helps to distinguish Italian craftsmanship.
From his standpoint, the success of the Made in Italy initiative has benefited from international tourists visiting the country and enjoying “the beautiful cities and our culture and lifestyle.” Through his day job in wines, Lunelli understands how Italian brands always serve as “ambassadors to Italy.” Whether enjoying a glass of wine with friends or buying a garment for a memorable occasion, those products are simultaneously evoking the Italian lifestyle, he said. “They are links to our lifestyle, culture, cities, citizens and traditions. The best way to promote the Italian lifestyle is to welcome some to Italy and have them leave with a positive experience.”
Looking ahead, another challenge for “brands with beautiful heritages” is to be more contemporary to attract a new generation. That balance of tradition and innovation is no small feat. Citing how some men’s brands have managed to add a more casual infusion without walking away from their more formal base, Lunelli pointed to Zegna and Loro Piana. Just how women are gravitating more toward luxury cars, gender stereotypes are becoming less prevalent across all categories, Lunelli said. “We are all a little independent about gender. There are many people, who are passionate about beautiful things that are crafted in a perfect way. That can certainly be a watch, a car or clothes,” he said.
Emphasizing how experiences are the main attraction for luxury shoppers, Lunelli noted that younger generations, which are less interested in ownership compared to their predecessors, seek experiences too whether that be a concert or traveling the world. To that end, LVMH Moët Hennessy Louis Vuitton and other luxury labels have ventured into hospitality and brands are tying into experiences in different ways such as Moncler’s Grenoble fashion show earlier this year. Referring to his company’s Ferrari wine, Lunelli said while he hopes people will remember the taste, even more “I hope they remember where they had it, the people they shared it with and the emotion that is linked to it.”
As cellphones have cultivated a certain sense of isolation and observing memorable moments on social media versus actually having them, the luxury sector’s interest in experiences may heighten. There is also an effort underway to explain the value of quality fashion compared to fast fashion.
With more China-made goods being shipped to Europe in lieu of the U.S., where stiffer tariffs are in place, Lunelli said it is important to inform fast-fashion shoppers about the sustainability that comes with buying something that lasts for years, as well as the environmental benefits and the treatment of workers. “When I see fast fashion booming, it is very important to teach the younger consumers about what are the values behind what you are buying and how they are produced,” he said.
With the middle class in the U.S. and Europe being impacted by the Trump administration’s mandated tariffs, this has put a dent in the aspirational luxury sector, Lunelli said. However, most luxury brands are trying to absorb as much of the increases as they can. But that is expected to change next year, he said.
To encourage camaraderie among all of the managers of Altagamma brands in different cities, the organization has opened clubs in New York, Dubai, Tokyo and Shanghai. They are also being linked up with local Italian institutions and some international partners to share ideas and initiatives. In New York, one idea that is up for discussion is showcasing Italian craftsmanship in store windows. From Lunelli’s view, Italian shops in other countries are makeshift Italian embassies of the Italian lifestyle. “A store window for an Italian brand on Fifth Avenue represents Italy,” he said. “I hope very much that we will tell the story of Italian craftsmanship in the windows of the shops.
Altagamma also works with European counterparts like Comité Colbert in France and Walpole in the U.K., among others. Together, they have formed the European Cultural and Creative Industries Alliance to promote European luxury. The name reflects how behind European-made luxury goods there is culture and creativity. Ten percent of European exports are from the cultural and creative sector, Lunelli said. Altagamma is also increasingly playing up the cultural and creative. “Internationally, ‘luxury’ is the easiest word, but in Italy we do not like to use that word. Luxury can sometimes be interpreted as someone, who is a show-off. We like to speak more about excellence,” he said.
