Luxury market is showing signs of recovery but then experts predicted something at the start of 2008, something different in the middle of 2008, in the late 2008 and in early 2009 too with reality hardly matching with the prediction. However, this time Financial Times has taken good care in bringing about some interesting issues associated with luxury markets. This has been published following the Luxury Summit 2009.
Bernard Arnault, Head of LVMH, the biggest luxury company in the world gave an interview to the Financial Times. He suggests that there will be many more businesses going bust in the luxury industry. Mr. Arnault blames it on over confidence among the industry players and the easy availability of credit which has caused this phenomenon to occur in the luxury industry. Interestingly, he points out a cogent observation that many market players have incomplete knowledge of how to manage in this uniqely challenging market and therefore have lost in this tough times.
Listen/view the interview here
In a similar interview, given to the Financial Times, Angela Arhendts, CEO of Burberry, discusses why market knowledge in luxury industry is extremely important and how Burberry is using its own knowledge in riding out this recession. She also focuses on the unique facet of the industry and how complicated it is for luxury strategists to cut costs as both consumers and suppliers have strong association with the price and the cost.
The Financial Times, today also provided this highly informative and insightful report on luxury marketing called ‘Business of Luxury’ which focuses on many important aspects including:
1: How luxury conglomerates are changing themselves in this tough market conditions.
2. Why luxury marketing plays by a different set of rules?
3. How to manage the quality transition in luxury market?
4. How luxury brands are using online marketing tactics?
5. Cost-benefit analysis of brand dilution in luxury market?
The report is available at http://www.pauravshukla.com/extra.htm
(Click on ‘FT Business of Luxury report’ link)