The Lifestyle Era: Luxury’s Opportunity in Home and Hospitality – BoF Insights Report
The intersection of fashion and lifestyle is reaching new heights as luxury brands like Prada and Dior venture into the world of hospitality and home design. The recent opening of the Prada Caffè at Harrods in London caused a stir on social media, with a viral TikTok reel garnering 220,000 views within the first 24 hours.
This move by Prada is part of a larger trend in the industry, with brands like Fendi, Aquazurra, and even mass fashion players like Boohoo and Mango expanding into home collections. The Covid-19 pandemic has shifted consumer priorities, with people now placing greater importance on their living spaces and seeking out experiential goods to enhance their homes.
According to market research firm Euromonitor International, sales in home and hospitality categories are expected to grow at a compound annual rate of approximately 7 percent through 2026. This growth is driven by post-pandemic shifts like hybrid work and a desire for immersive experiences at exclusive restaurants and hotels.
High-net-worth individuals are also increasing their spending on home design, with a 12 percentage point post-pandemic increase in purchases of furniture, decor, textiles, fragrances, and tableware. Brands like Dior, Chanel, and Gucci are seen as top choices for luxury home design products, but even non-luxury brands like Zara are making a mark in this space.
Fashion and beauty brands are seizing the opportunity to expand into lifestyle categories not only to open new revenue streams but also to build greater brand affinity with customers. By creating immersive experiences through hotel and dining extensions, brands can strengthen their connection with consumers and showcase their home offerings.
As the industry continues to evolve, brands must craft fresh narratives for these ventures that resonate with customers’ desire for quality and tastefulness. BoF Insights’ latest report delves into the dynamics behind the lifestyle boom and provides a framework for brands looking to invest in home and hospitality categories. With insights from high-net-worth consumers and industry leaders, this report is a must-read for brands looking to tap into the growing lifestyle market.
