As we continue our December special, we meet our CEO,Carlos Mosca.

With a rich background spanning political risk analysis, mergers and acquisitions, and investment in groundbreaking projects, Carlos has a unique perspective on the evolving consumer landscape.

His journey from analysing geopolitical risks to identifying high-potential investments has equipped him with unparalleled insights into what makes a business thrive.

We have asked him to share some of his insights and explain how we moved from one field—due diligence—to actively investing in blockchain-driven projects, innovative AI solutions, cryptocurrencies, and the growth of SMEs.

Innovation, Creativity and Foresight

Q1: Thank you for joining us today, Carlos. Before we dive into the future of luxury, could you share a bit about your journey and what led you to create NorthStar Consulting?

Carlos: Absolutely. My career has been quite diverse. I started as a political risk analyst, then moved into mergers and acquisitions (M&A) due diligence, and eventually became an investor in innovative and promising projects.

Throughout these experiences, I realized that many companies, regardless of size, with great products struggle to become sustainable, international, and established brands.

This realisation led to the creation of NorthStar Consulting. We aim to bridge the gap and help these businesses navigate the complexities of growth and expansion.

I recently read a LinkedIn post where someone discussed brand-driven sales. At NorthStar, we specialise in transforming companies into profitable yet sustainable brands.

After COVID-19, I noticed a significant misconception among SMEs, particularly those investing online.

They mistook the pandemic-driven surge in online shopping as successful internationalisation. Many companies and inventors approached me for investments without conducting thorough business reviews and market analyses. It pained me to turn these investments down but no investor would give money away when faced with vague ideas or ‘beliefs’.

This is why I believe there is a major gap in the market. Our mission is to help leadership understand the complexities of doing business, growing a business, and creating equity.

Q2: That’s fascinating. Following up on that, what do you believe are the key factors that make a project or a person a good investment opportunity?

Carlos: From my experience, there are a few critical factors any investor looks for:

• Market Potential: The project should address a significant market need or gap. It’s essential to understand the target audience and the demand for the product or service. For example, our recent project in the renewable energy sector tapped into a growing demand for sustainable solutions, leading to rapid market adoption.
• Innovation and Differentiation: The project should offer something unique or innovative that sets it apart from competitors. This could be in terms of technology, design, or business model. Our approach to integrating AI with traditional industries has been a game-changer, providing unparalleled efficiency and new revenue streams. However, that inclusion takes time, planning, support and vision.
• Scalability: The business should have the potential to grow and scale efficiently. This includes having a clear plan for expansion and the ability to adapt to different markets. Knowing that one sells in Singapore more is not what I call a clear plan for expansion. So many factors play a role in planning an expansion, and I think no investor would risk investing in wishful thinking. Our strategic partnerships and market analysis have enabled us to scale successfully across multiple regions.
• Strong Leadership: A capable and visionary leadership team is crucial. However, I believe it is important not to universalize one’s perspective of the world. Having a one-view and not being able to alter, change, and improve is a clear red flag, at least for me. Investors look for leaders who are not only passionate but also have the skills, interests, curiosity, and experience to drive the business forward. Our leadership team’s diverse backgrounds and adaptive strategies have been key to our success.

Q3: NorthStar’s recent report, “Luxury Update 2025: A Changing Tide,” led by you, suggests that consumer sentiment towards luxury goods is shifting. Can you elaborate on these findings?

Carlos: Certainly.

At NorthStar, we conducted extensive research, interviewing over 700 consumers, industry experts, and stakeholders.

What we found is a growing disconnect between traditional notions of luxury and what modern consumers value.

While quality and craftsmanship remain important, there’s increasing scepticism about inflated prices and a perception that luxury has become overly focused on status symbols.

Q3: The report mentions a potential evolution in the definition of luxury. What does this entail?

Carlos: We’re seeing a shift towards what we call “quiet luxury” – an emphasis on understated elegance, timeless design, and personal values over ostentatious displays of wealth.

Consumers are prioritising experiences, sustainability, and personal fulfilment. They’re looking for brands that align with their ethical and environmental concerns.

Follow-up Question: But then, how about ‘louder’ brands?

Carlos: We have established that there are different types of high-networth individuals. When I talk about quiet luxury being a new feature, I am referring to the exclusive 1% that does not need to buy into ostentatious luxury. Those are certainly important and they form what we could call the “medium tail” of luxury (followed by the long tail of luxury that makes it a sustainable enterprise).

Q4. This is indeed something we ought to explain more. Perhaps in a separate article. However, if what you are saying about “quiet luxury” is happening, it suggests a move away from conspicuous consumption. What are the drivers behind this shift, how niche is it now and will it then reach the “medium” and the “long tail” of luxury you refer to?

Carlos Mosca: Several factors are at play. Firstly, consumers are becoming more discerning and questioning whether the price of luxury goods is justified by a commensurate increase in quality. They’re savvy and aware that they can often find similar quality and craftsmanship from lesser-known brands or artisans at a fraction of the price.

Secondly, there’s a growing awareness of ethical and sustainable practices. Consumers, especially younger generations, want to know where their products come from and how they’re made. They’re looking for brands that are transparent and responsible.

Finally, we’re witnessing a cultural shift away from materialism and towards experiences. People are seeking deeper meaning and connection, and they’re less interested in accumulating possessions for the sake of status.

Will it become a more mainstream phenomenon? While I cannot predict the future with certainty, there are clear signs that these trends are gaining momentum, particularly among younger, globally connected generations. However, the adoption of ‘quiet luxury’ will vary significantly depending on cultural contexts and local values.

My primary focus is on Asia, where expressions of luxury are deeply intertwined with cultural structures, societal expectations, and the pace of economic development. In some regions, luxury remains a symbol of status and achievement, making more ostentatious displays prevalent. Yet, we are starting to see subtle shifts in preferences, driven by increasing global influence, growing environmental awareness, and a desire for more personalized, meaningful experiences.

As these cultural structures evolve, there may be moments of alignment or divergence between ‘Western’ and ‘Eastern’ ideals of luxury. What we are likely to see is not a universal adoption but rather a dynamic interplay between regional and global forces, shaping luxury in diverse ways. My role is to closely monitor these developments and provide insights into how luxury brands can navigate and adapt to these shifting paradigms.

Q5: What would this mean for traditional luxury brands?

Carlos: Traditional luxury brands face a pivotal moment. They need to adapt to this evolving landscape or risk becoming irrelevant. Here are the key areas they should focus on:

• Embrace Quiet Luxury: Shift focus from conspicuous consumption to understated elegance. While this trend may not be universal, it is already gaining traction, and being aware of it is crucial.
• Reinvest in Quality: Invest in exceptional materials and traditional techniques to restore consumer trust. This goes beyond Corporate Social Responsibility; it’s about making genuine commitments that resonate with consumers.
• Prioritise Sustainability: Adopt ethical and sustainable production methods, and be transparent about sourcing and manufacturing processes. Consumers are increasingly valuing brands that demonstrate responsibility.
• Offer Unique Experiences: Collaborate with artisans and lesser-known brands to offer exclusive, limited-edition products.

Q6: You mention that blockchain technology holds potential for the luxury sector. How so?

Carlos: Blockchain can address several challenges facing the luxury market, particularly the issue of counterfeiting. By providing a secure and transparent record of a product’s journey from origin to sale, blockchain enhances authenticity and builds consumer trust. It can also be used to ensure sustainable sourcing and ethical production practices.

Q7: What opportunities does this shift present for SMEs in the luxury market?

Carlos: The challenges faced by traditional luxury giants present a significant opportunity for SMEs. Smaller brands are often more agile and can respond more quickly to changing consumer preferences. They can embrace the trend of “slow luxury” – focusing on bespoke craftsmanship, sustainability, and transparent production processes – to cater to consumers who are seeking quality and meaning over brand status.

Q8: How can NorthStar support SMEs in navigating this evolving luxury landscape?

Carlos: At NorthStar, we specialize in helping SMEs navigate the complexities of the luxury market. We offer services such as market entry strategies, internationalization support, and sustainability consulting.

Our expertise can help SMEs adapt to these changing dynamics and build a strong, responsible brand presence.

Final Thoughts

Thank you Carlos for sharing your insights. It seems the future of luxury is moving towards a more conscious and considered approach to consumption. It will be fascinating to see how brands respond to this changing tide.