LEADERS: António Paraiso

Luxury is arguably the industry that has undergone the most disruptive changes over the years. To operate successfully in the luxury universe calls for a new and nuanced understanding of how luxury is changing and how companies create economic value and cultural value out of that change. Mr António Paraiso, expert in Luxury, breaks down the key trends that are shaping luxury’s future, from technology to sustainability.

Antonio Paraiso is knowledgeable in the fields of luxury, marketing, innovation, and international business. Antonio worked more than 19 years as International Sales Director and travelled around the world, developing extensive sales and negotiation experience in Europe, Japan, Middle East, Russia, Latin America, Australia and United States.

He is an enthusiastic communicator and regularly requested as a speaker in congresses and business events. He has spoken in conferences for Deloitte, LOEWE, Armani, L’Oreal, BNP Paribas, Personal Branding Congress, Sheraton, TEDx, Porsche, the Jewelry Fair, Procter & Gamble, the Marketing Congress, Alcon, Carnival of Luxury – The Luxury Fair, among others.

Firstly, it would be great to hear how is your experience working within the luxury industry. Can you give us some background into you and your career?

Thank you for inviting me for this conversation. I have always been fascinated by beauty, excellence and perfection. I am a bit obsessive with detail.

Then, in the 80’s I have read ‘A Passion for Excellence’ by Tom Peters and Nancy Austin, and this book had a big impact on my way of doing things ever since.

I have worked about two decades as International Sales Director in the textile and fashion industry. And when I decided to start my own business as marketing consultant, it was only natural the decision to specialize in the business of excellence. So, I decided to study Luxury Brand Management at IE Business School in Madrid and this was really a game-changer in my career.

Then, I started writing articles about trends in the luxury market, sharing ideas in my video channel and collaborating with Porsche, L’Oréal, Armani, Loewe, Procter & Gamble. luxury hotels and real-estate firms, among many others.

What does luxury mean to you?

To me, luxury means refinement and exquisite detail. I love the definition of luxury of Mademoiselle Coco Chanel. She said: Some people think that luxury is the opposite of poverty, but it is not. It is the opposite of vulgarity.

This completely resonates with me. The opposite of vulgarity is refinement and exquisite detail. Voilà!

What’s your favourite luxury?

My favourite luxury is travelling, discovering the world and treating myself to nice hotels, restaurants and spas. I like refined experiences much more than I like luxury objects.

I’ve visited 50 countries in the 5 continents, I’ve spent endless hours in museums, art galleries and walking around to discover places. I’ll never forget a piano concert at the Sydney Opera House, discovering antique shops in the narrow streets of Prague, getting goose bumps in the Matisse room at the Hermitage in Saint Petersburg, walking on hard frozen Baltic Sea in Helsinki, traveling around Switzerland by train (it is so beautiful), learning about the Incas and the Aztecs at the Anthropology Museum in Mexico City, the dolce far niente in a beautiful terrace in Positano, a dinner party hosted by an European Prince or being marvelled by the wonders of Istanbul and its rich culture. The memories of my trips are my true luxury.

With such a competitive market, how do António Paraiso differentiate their offering from other?

The market is very competitive indeed. I believe that I differentiate my offering with the blend of my personality, my creativity, my passion for detail and excellence, my sensitiveness for art and culture, my traveling experiences, along with my extensive academic education and my vast professional experience in international business. That blend is unique and makes my work different from everybody else’s.

Who are your typical clients?

In some countries, I work with the local operations of global luxury brands training their national teams and speaking at their annual conferences.

I also do consultancy work for national brands, mainly in Spain and Portugal, that wish to become premium. I help them design a strategy for excellence and sophisticate their presence in the market using specific luxury marketing tools to increase brand value.

Post-pandemic, has the consumer profile changed? Do customers have different expectations?

Luxury consumers are not all alike. There are many different consumer profiles from discrete to extravagant, from old money to new money, from Gen Zs and Millennials to Gen Xs. Having said that, there are indeed some notorious evolution in consumer behaviour, mainly from the younger generations. This change was slightly seen before the pandemic, but eventually accelerated post-pandemic. These clients are increasingly buying pre-owned luxury (something unimaginable a few years ago), are giving their preference to brands with a purpose and standing for causes and are embarking on digital purchasing experiences. Digitization is arguably the most important change that the pandemic accelerated.

Brands with clear sustainability practices are also preferred by most clients in the luxury universe.

For example, Rolls-Royce recently announced the launch of Spectre, the first fully-electric, noiseless, clean RR model with unprecedented on-board technology. The price tag for Spectre is in excess of $400.000. The production has not yet started and before its launch, in the US alone, 300 clients have immediately made deposits with the company to guarantee their reservation.

That says a lot about today’s customers’ expectations in the ultra-luxury universe.

Which luxury watch brands have successfully embraced digital at the moment?

Some luxury watch brands have been reluctant in going digital but the majority have slowly started that process 5 to 7 years ago.

Although most watch brands are doing digital reasonably well, I would highlight two brands that I believe are doing it very well, in that regard.

In 2019, Audemars Piguet launched the 11.59 watch line aimed at a younger, digitally connected community and it was the first Swiss watch company to open a store on Chinese digital platform WeChat, targeting the huge potential of the Asian luxury market.

IWC Schaffhausen has been using augmented reality technology to promote iconic watches and opened its first Virtual Boutique, a 360-degree digital reproduction of its flagship store in Singapore. Customers can walk around in the virtual boutique, look at watches and interact with each other as well as with an IWC sales associate.

What’s your perspective on the coming few years for the luxury industry?

I believe that a deeper separation between affordable luxury and inaccessible luxury will occur in the future.

Affordable luxury is increasingly democratized. Digital engagement and the metaverse will certainly rule in this domain to interact predominantly with younger consumers.

On the other hand, true inaccessible luxury for the affluent and mature elites, where rarity, very high exclusivity, refinement and culture are the norm, will keep investing in brand equity, trust and long-lasting personal relationships. Blockchain will be increasingly used to guarantee authenticity and uniqueness.

I believe that the future of the luxury industry will be driven by 3 pillars:

care for the Planet with sustainable practices across the whole supply chain, exploring new limits with innovation;

care for the People with social responsibility policies to leave a positive impact in society;

care for the Culture, fostering the spirit of excellence, the love for arts and beauty, strengthening relevance by feeding the soul and the mind.

Innovation & adaptation are success factors in the luxury landscape of tomorrow?

Innovation is a key ingredient in luxury. It has always emerged from the outstanding creativity of brand owners or creative directors.  All brands use it mainly to wow the client and to catch the interest of wealthy younger generations. It is a success factor in today’s luxury landscape, it has been in the past and it will certainly be in the future.

As far as adaptation is concerned, I have a different perspective. Luxury brands do not adapt to market trends nor consumer needs. Luxury brands are leaders, not followers. Trends are temporary while luxury is timeless.

However, luxury brands follow the evolution of society, in order to make meaning for those who are able and willing to buy. In my opinion, this is different from adapting.

Luxury is increasingly embracing the digital economy and sustainable practices because society is evolving in that direction and that is indeed an important success factor in the luxury landscape of tomorrow.

What does sustainability and circularity mean in luxury today?

Luxury objects normally show very high quality, seducing beauty and engaging symbology. They are very durable, sometimes they last forever, their owners have built a love relationship with them and have them repaired, when necessary and pass them on from one generation to the next in the family.

This culture of durability has always existed in luxury.

Luxury is not and has never been for consumption and disposal. On the contrary, it is meant to be admired, consumed, loved, preserved and to be left to the next generation.

However, climate change has brought a very high level of concern to all the luxury industry, which started quickly converting from a culture of wastefulness to a strong commitment with sustainability and planet protection. Nowadays all luxury brands invest in implementing sustainability strategies, not only within the brand operation but across the whole supply chain leading their suppliers to adopt the same sustainable action, as well.

As far as circularity is concerned, we have seen the boom of pre-loved luxury goods, mainly in affordable luxury.

According to recent studies by international consulting firms Bain & Co and McKinsey & Co. the market for pre-owned luxury is valued at $30 Billion right now and could reach somewhere between $65 Billion and $100 Billion in 2030.

So, I believe that sustainability and circularity in luxury mean the Future.

Luxury brands should position themselves as ambassadors for social responsibility?

Luxury brands are leaders, not followers. Most, if not all, luxury brands have a strong saying as far as corporate social responsibility is concerned. They understand that they are role-models and wish to leave an enduring mark in society. They are tremendous value creators, they make a lot of money, but they also return part of it to society with positive action. I believe that luxury brands are already ambassadors for social responsibility and for sustainability and in this regard, they are role-models for other companies and brands outside the luxury universe. It has not always been like that but in the last two decades the shift from wastefulness to a more conscious, sustainable and socially responsible approach is visible and clear.

I particularly like and praise the CSR policy and action of Montblanc, Kering Group and Ralph Lauren.

Montblanc has been partnering with Unicef since 2004 to raise funds and pay the education of millions of children in rural and less-favoured regions of the World.

The Kering Group, owner of Gucci, Saint Laurent and Bottega Veneta among others, has openly embraced two causes where they invest a lot of time and money: sustainability across the whole luxury supply chain and the fight against violence on women.

Mr. Ralph Lauren, himself, has chosen to support the fight against breast cancer and has created The Ralph Lauren Centre for Breast Cancer Research, a world-class facility with renowned scientists and state-of-the-art technology.

These are just three out of many examples of the positive impact of luxury brands regarding social responsibility. And they do it without seeking the spotlights. Chapeau!

Finally, what piece of advice would you give to someone wishing to work in the luxury sector?

I believe that it is not possible to do a good job, in any field or career without proper and regular training. So, I would suggest studying luxury management to those who wish to work in this sector. And then, permanent reading to update knowledge is needed.

Finally, one should develop a fine, elegant, cultured, sophisticated, creative sensitiveness and mindset to successfully work with luxury brands.

Educate your taste, refine your aesthetical sense, learn about design and history of art, put beauty in everything you do. Beauty is magnetic, beauty adds value and sells.