Signs of the new definition of luxury

Hi it's David. Before I head back to Singapore, let me share with you what I've noticed about what luxury means—and what it doesn't. [View in browser]( [Bloomberg]( Hi there, this is [David Ramli]( in London. For the past three months I’ve been working for Team Pursuits, far from my usual role in Singapore writing about the curious world of family offices, sovereign wealth and hedge funds. Part of that Singapore coverage involves meeting people so wealthy they need [entire private companies]( just to manage their lives and money. And most are very uninterested in brands, per se, focusing more on the experiences, the quality and provenance: Luxury brands are only valued if they happen to be frequently excellent. One principal sources her scarves from a maker in South Asia who also supplies pashmina to Loro Piana and others. Another works directly with gem polishers. One thing that’s crystalized for me during this short vignette in London is that the meaning of “luxury” might finally be changing for the rest of us, too, as we place even more value on time and effort. Tech companies have long treasured “time spent” by users on their apps and services. Now consumers seem to be increasingly careful with their own precious resources. Aspirational shoppers have been forced to concentrate on the lower tiers of [Maslow’s hierarchy of needs](—food, shelter and heating—[since late 2022](. And in a way it means the mass-affluent are shifting their values to match up with those of the established-rich. Canada Goose slashed annual forecasts. Photographer: Graham Hughes/Bloomberg Sales at top houses—[LVMH](, [Prada](, [Gucci]( and even [Canada Goose](—are slowing or falling despite seeming invincible during the pandemic. It’s tempting to blame a poor Chinese economy, rising inflation, higher interest rates and the disruption of easy credit. And yes, they’ve played a massive role in separating the truly rich from the credit card wealthy. But travel spending is through the roof, exceeding pre-pandemic levels in [several]( key markets. Americans who have cut back on everything from [pricey booze]( to [modern art]( are [traveling abroad]( in record numbers, [driving up hotel rates]( from Paris to Sydney. That’s something I’ve seen personally during trips to vibrant, tourist-filled cities across Europe and North Africa. The epically long queue for cookies at Amsterdam’s Van Stapele Koekmakerij. Photographer: David Ramli/Bloomberg Two stories I’ve worked on emphasize this point. The most unconventional is a story we just published about [a material that is more valued than fine cashmere](, hardier than camel hair and better than wool in almost every way. One spinner says it could be compared with vicuña, the exquisite alpaca hair prized by fashion houses like Loro Piana and Zegna; They each have pages dedicated to the so-called “fiber of the gods”—[here for Loro Piana]( and [here for Zegna](—and products that cost thousands of dollars. But if I told you what it is before saying all that, you might say, “Ick, no.” That’s because it’s dog hair. Believe it or not, when gathered and processed correctly it can be a hyper-sustainable material. The other was the [outrageously successful $50 million auction]( of Queen singer Freddie Mercury's belongings by Sotheby’s, which almost quadrupled estimates. As executive [David Macdonald]( told me, it was an extraordinary moment showing the value people place on items that evoke strong emotions and joy—regardless of the broader economy. “Even when times are tough, there’s this almost pleasure in the connectivity with someone like Freddie Mercury,” he says. Take the [tiny silver Tiffany & Co mustache comb](, with an estimated value of between £400 to £600. It might not scream luxury to you, sitting on someone’s bathroom shelf. (Or, hopefully, um, somewhere a little more secure.) It sold for £152,400. How to party like a [value investor]( I’m soon leaving London for Singapore, where I’ll go back to meeting with [people who are rewarded]( for managing enormous amounts of money as stingily (they would say “prudently”) as possible. The best of them can’t help but absorb that mantra into their bones, and I hear it when I speak with them—down to their travel preferences. Here are a couple I can share. Some say they like to experience the world’s most luxurious hotels—without paying thousands of dollars to stay overnight. The [Royal Mansour in Marrakech](, for example, has opulent grounds and historic bars that usually are only accessible by guests. But one investor told me you can enter for just the price of a meal at one of the many restaurants. So I did: Here’s the Royal Mansour hotel in Morocco, where rooms cost thousands of dollars a night. Photographer: David Ramli/Bloomberg They also like to be friends with people who are members at private clubs. You might think I’m obviously referring to [Soho House](, [Annabel’s]( or [Quo Vadis](, but no. Instead, ask the universe for an invite to establishment clubs that have existed for so long their wine cellars are now priceless by sheer force of age. The [2009 Alter Ego de Palmer, Margaux](, listed at [£1,100 per case](, is perfect for drinking and available to members of the [East India Club]( for less than it’ll cost you at a wine merchant. American tipping culture is infecting the rest of us When I got to London, I noticed that more drinkers and diners said they were [being quasi-forced to tip](. For American readers, this may seem like an obvious, necessary and just expense. ([Here’s how much]( American service workers expect in tips.) Please don’t look down on the rest of us. There are true cultural differences in education and expectations. So it was a quandary for me—someone who comes from Australia and works in Asia where tipping is not the norm. In London the tip is often automatically added to the bill. While it’s technically optional, you’ll be causing a scene if you demand it be taken off. And what used to be a 10% surcharge has climbed to hit as much as 17.5% in some establishments. Many ways to tip at a coffee shop in Union Market in Washington. Photographer: Al Drago/Bloomberg [Like most Australians](, I’m not against tipping per se but rather what it has come to represent. Across the US, tips have long been used to make up the basic living wage that service staff need to live, because employers in many states are only required to pay [$2.13 an hour](. That means it would take a waiter more than eight hours (without tips) to make enough to buy just one pair of the $18 briefs in [Kim Kardashian’s new menswear line](. (We wrote Monday about how Skims is now the [official underwear partner]( of the NBA, which is apparently a thing.) Restaurants reason that diners will be more willing to accept “optional” extras than higher menu prices. It’s a technique that may work as a sugar hit for struggling eateries. But in the longer term, as Bloomberg Opinion columnist [Bobby Ghosh shows here](, it could be hurting service workers. And it’ll cause resentment among clients—many of whom would rather be served by someone earning a good wage. There weren’t enough cars in this newsletter, so here are some auto stories The latest and greatest from [Hannah Elliott]( and the team, just ahead of the [F1 Las Vegas Grand Prix](. [The Mercedes G-Wagon Is Going Electric. We Had the First Test Drive]( [What to Do at the F1 Las Vegas Grand Prix Besides Watch the Race]( [BMW’s 2024 XM Hybrid SUV Is Big and Powerful. It’s Just Not Great]( [Jeep’s Jump to $100,000 SUVs Risks Leaving Loyal Buyers Behind]( [Channel Your Inner Mad Max and Learn How To Go Off-Road With Ford]( [At Formula 1 Las Vegas, Celebrity Chefs Will Feed You for $11,000]( And if you read just one thing... I’m going to cheat and give you three things to read. Omega’s new landlord is… a Rolex subsidiary. Photographer: Antoine Antoniol 1. [Andy Hoffman]( had [this cracking story from Geneva]( about how a subsidiary of [Rolex]( just bought the building where rival watch-maker [Omega]( has its flagship boutique. I was fascinated for two reasons. The first was the blatant chutzpah it represented. The other is how it counters the popular narrative of downtown retail stores being eaten up by e-commerce and virtual-reality malls. Yes, digital platforms can and have taken up sales of cheaper, commoditized or discounted items. But when we’re talking a [Vacheron Constantin Overseas Moon Phase Retrograde Date]( for about $43,800, not including taxes, you might want to do it in person. (Andy’s our main watch correspondent. You can get [alerts for his stories]( or [join our watch club](.) 2. [Lisa Fleisher]( scored some [insane renderings]( of planned [Habitas]( resorts, set to be built into rocky outcrops in northwest Saudi Arabia. Be it reflective mirror finishings, or twisting concrete slices, or stalagmites shooting sharply from the earth, it’s equal parts sleek and Bond villain chic. Just one of the renderings we have of the planned Habitas Oasis resort in Leyja, part of Neom in Saudi Arabia. Source: Habitas Every wellness influencer will certainly be ringing up to try to score a free stay. It’s in the planned Saudi Arabian [megacity of Neom](, and [big questions remain]( about the project’s economic and environmental viability. 3. Finally, my London office-mates [Sarah Rappaport]( and [Damian Shepherd]( have done great work tracking the run of conversions [changing the face of central London](. From the [Old War Office]( being turned into the [new Raffles Hotel London]( to the ex-Imperial Chemical Industries site hosting apartments like The Gainsborough, which is listed for £18 million. A corner apartment at the Whiteley. Source: The Whiteley I do hope care is being taken not to disenfranchise the locals who give some of these areas life. Without them even The City risks one day becoming nothing more than a series of extravagant shells placed on the bank of the Thames. New for subscribers: Free article gifting. Bloomberg.com subscribers can now gift up to five free articles a month to anyone you want. Just look for the "Gift this article" button on stories. 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