Big luxury is a big experiment. We've never had huge publicly traded conglomerates driving such a large portion of the luxury market before. Could it be the paradigm has reached it's full potential and is now on the decline? I for one hope so. I think this system does not serve the customers, creativity or quality, though I fear it's too big to fail.
The closest thing I spend money on just to show that I have it is my Seiko5 watch. I have never really been a customer of truly luxury products, but I always see luxury spending as a kind of feedback mechanism that reflects societal balance. Wealthy people spend absurd amounts of money to display their wealth, and in a way, this acts as a sort of "tax" on them. By "we," I mean the working class. I even consider buying a Seiko5 watch a luxury expense to show that I am a middle-class father who respects traditional mechanical watches and wears them with pride. I also own a Garmin watch, which I typically wear.
To support that idea, I need to check how profitable luxury brands compared to other
Industries, but I believe they are mostly niche businesses which is hard to scale.
So selling 50 ferrari per year means we have a huge organization to manufacture them. And they are not something to make rich people richer, it is opposite. It is a wealth tax.
Many publicly traded conglomerates are facing a reckoning. We are seeing this with Starbucks, Nike and in luxury. When it comes to a luxury, it may be felt more because they are dependent on their brand and identity. When higher up's are focusing on cost cutting, in most cases, they have taken it too far and it is impact the customer experience and therefor the brand itself. When sales were decreasing, most luxury brands decided to make keep revenue artificially high by increasing their prices, when they should have been trying to solve the "traffic jam" and reconnect with their audience and refocus on what made them a luxury brand in the first place.
Excellent write up. Luxury story needs to change and the culture needs to include people with various levels of buying power. Simply, they’ve lost touch…
Big luxury is a big experiment. We've never had huge publicly traded conglomerates driving such a large portion of the luxury market before. Could it be the paradigm has reached it's full potential and is now on the decline? I for one hope so. I think this system does not serve the customers, creativity or quality, though I fear it's too big to fail.
Just to provoke a conversation, it seems it is not that big to fail.
https://www.statista.com/outlook/cmo/luxury-goods/worldwide 473b$ revenue as Statista said.
The closest thing I spend money on just to show that I have it is my Seiko5 watch. I have never really been a customer of truly luxury products, but I always see luxury spending as a kind of feedback mechanism that reflects societal balance. Wealthy people spend absurd amounts of money to display their wealth, and in a way, this acts as a sort of "tax" on them. By "we," I mean the working class. I even consider buying a Seiko5 watch a luxury expense to show that I am a middle-class father who respects traditional mechanical watches and wears them with pride. I also own a Garmin watch, which I typically wear.
To support that idea, I need to check how profitable luxury brands compared to other
Industries, but I believe they are mostly niche businesses which is hard to scale.
So selling 50 ferrari per year means we have a huge organization to manufacture them. And they are not something to make rich people richer, it is opposite. It is a wealth tax.
Forgot to add, empires fall when they lose touch with people let alone fashion houses.
Many publicly traded conglomerates are facing a reckoning. We are seeing this with Starbucks, Nike and in luxury. When it comes to a luxury, it may be felt more because they are dependent on their brand and identity. When higher up's are focusing on cost cutting, in most cases, they have taken it too far and it is impact the customer experience and therefor the brand itself. When sales were decreasing, most luxury brands decided to make keep revenue artificially high by increasing their prices, when they should have been trying to solve the "traffic jam" and reconnect with their audience and refocus on what made them a luxury brand in the first place.
Excellent write up. Luxury story needs to change and the culture needs to include people with various levels of buying power. Simply, they’ve lost touch…