Ask anyone in the luxury business about what well-heeled Chinese customers demand and the answer is almost unanimously pointed towards technology. But Bentley’s CEO, Dr. Frank-Steffen Walliser, has just claimed that digital will never be luxurious.
"It will be maybe expensive, but not luxury," Walliser told Newsweek, going on to state that there will be always be a need for good craftsmanship.
While many modern luxury brands will agree, there has been a huge shift in what the next generation of wealthy individuals want, with Istituto Marangoni, a leading private school of fashion, art and design, claiming that China will account for 25% of the global personal luxury goods market by 2030.
Gen Z and Millennials, who account 70% of luxury spending, are looking more towards advanced AI assistants, immersive virtual reality and the latest innovations in technology, rather than overt displays of wealth.
Walliser doesn’t deny the need to embrace new and emerging technologies, seeing as the company is slated to launch its first dedicated EV next year. But he does go on to say in his Newsweek interview that luxury is linked to material and craftsmanship, like art.
"Digital art is not so successful. I will not say that it does not exist, but is it the breakthrough? No, it's not," he goes on to explain.
Bentley has recently been doubling-down on its efforts to deliver hand-crafted and highly bespoke vehicles to those willing to pay for it.
A recent ‘Ombre by Mulliner’ gradient paint finish, for example, is said to take 56 hours of handcraft to deliver and costs around £50,000 / $67,000 / AU$105,000, according to one CarWow configurator.
Similarly, its One plus One Batur convertible features an interior hand-finished by Bentley's Mulliner division with contrasting driver and front passenger seats, complete with a bespoke, two-piece luggage set at the customer’s request.
As a result, three in four Bentleys are leaving Bentley’s Crewe HQ with bespoke Mulliner content. More than ever, according to Newsweek.
Analysis: Ignoring digital is dangerous
While the luxury automakers continue to lean heavily on their brand history and traditional production methods, the market has seen a significant downturn in China, which was once considered a major source of sales for the likes of Rolls-Royce, Bentley and more.
There have been changes in luxury taxes and financial uncertainty that will have impacted trade, but the boom in the EV industry has also opened up a sizable technological chasm between the east and the west.
What’s more, younger generations across the globe are increasingly looking for the latest digital features, advances in AI and automated driving technology as key reasons to make a purchase.
Xiaomi, for example, sold more than 135,000 SU7 models in China last year, despite being its debut EV, while Porsche managed to shift just 56,887 units of all of its models during the same timeframe.
In fact, most of the major German luxury brands are struggling in China for this very reason. Although it is still to be seen whether the likes of Xiaomi, Yangwang and more will make an impact beyond their domestic market.
Despite the fact that ultra-luxury brands tend to feel the economic impacts to a lesser extent, navigating the digital world remains a tricky task, as they don’t want to lose their identity but also want to avoid alienating new buyers thanks to a lack of technology.
Aston Martin’s recent pairing with Apple CarPlay Ultra is an excellent example of this, as the software proved excellent and arguably what CarPlay users have been demanding for years, but the masses of Apple-controlled screens also made the vehicle feel less special.
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