The Evolution of Luxury and how family offices can support it

« It is only to the happy, that tears are a luxury. »

I was only 15 when I first get on board a yacht. She was a beautiful 72′ sail boat and I think I will never forget her. The beauty of the lines, the profound colour of multicoated varnished handrail, the wool carpet under my bare feet when I entered, the mix of scents from the sea or the wax on the wood, the feeling of being surrended by beauty, and protected in such a unique cocoon… All these things, the whole experience of it, would always mean luxury to me.

And in fact, to many people, a yacht is often considered the epitome of luxury.

Fast forward a few years, I started working as a business assistant for a small family retail group in Southern Spain. I would help choose, order, and receive the stock of couture clothes for the several boutiques owned by the group.
Ungaro dresses, Valentino purses, Versace leather jackets, D&G, Moschino, Lagerfeld, Christian Lacroix, etc. It always felt like a privilege being able to touch (and sometimes try on!) those precious and delicate pieces.

Years went by and this time I was working for a watchmaking family group in Geneva, Switzerland.

By then, you might have noticed some pattern in my life! 😉

I had the chance to chat casually with one of the oldest watchmaker in Switzerland. Learning about different techniques, seeing the precision in the movements, the extreme attention to detail even in places no one would see, like the inside of a pocket watch. I will always admire the level of quality, and the commitment to uniqueness provided by Swiss watchmakers.

All these examples could illustrate perfectly what is luxury, or what comes to the mind when we hear this word.

I am not that old, but this is already old stuff!

What if this definition is outdated?

The newer generations have totally different codes when it comes to their definition of luxury, especially for those born into wealth. Here is what they have to say:

• Freedom : This is the first word that comes to mind when asked about luxury. Having the freedom to persue your dreams, to do what you love most, and less of what you hate. Feeling free to be your true self, without pressure from anyone. Being free to venture without fear of missing or failing. There are so many aspects of this freedom concept!
  
• Health : It might seem obvious, but I like to repeat it because I have seen many individuals in denial of it. It is not wise nor reasonable to take good health for granted. To so many people, it is only a dream they can never reach. Being conscious about the privilege it is to be healthy, promoting healthy habits, creating a healthy culture, or raising healthy kids, are probably today’s most underestimated luxury.
  
• Time : I already told you how I know Swiss people have the best watches. But those who can say they have time, are the richest on earth!
  Time is the rarest of our possessions. We must be good stewards of it, and make the most out of it. Being appreciative of the time we have, spending it with our loved ones, feeling proud of the past, and excited about the future. Don’t you think it is true luxury?
  

How can a family office support these newer definitions of luxury?

First of all, I think it is about time to talk about it openly with the family.
Hand over some self-assessment test and ask the family members what is THEIR personal definition. Then ask them how this definition fits with their family or their personal values.

• Does it make sense?
• Could we align those values with what could be considered luxury?
• Could we better control the impact linked to it, by making it conscious?

It’s all about being intentional!

Read again the definitions. Freedom, health, time. In my opinion, they are precisely what a family office can bring to a family, the added value UHNWI are seeking when setting up their own family office.

It is the duty of a good family office to offer solutions to promote those new codes of luxury:

• Give time back to the family because they know everything is managed properly,
• Provide health (physical and mental) and well-being programs,
• Organise couple retreats,
• Support next-gens personal projects so they feel included,
• Propose philanthropic ventures as family projects,
• Listen to the old generation, document or record it and keep it for the future,
• Slow down the pace of things when they seem heavy to the family,

The list is yours to complete, as those are just a few examples of what your family office can, and should, do for you.

Money can buy whatever you can dream of, but if you don’t manage your wealth with purpose, you might finally be missing out the true luxury :

« Freedom to live, health to thrive, and time to cherish. »