.:Luxury watches, bags, shoes and jewellery
have not become average basket products but have been recording two-figure growth since 2008. This a paradox of the times. The 2008 financial crisis was marked by a luxury goods rush with growth in particular due to emerging countries such as Southeast Asia and Brazil. The main groups are launching retail concepts for these countries before Europe.

This growth is vital for luxury groups who have implemented a downstream integration process. It has resulted in the direct recovery of the distribution industry and extension of the own-brand retail network. The method proved effective for market leaders (Hermès, Chanel, Louis Vuitton, etc.) who have a product offer that encourages profitable boutique networks combined with the resources for financing heavy investments. This strategic orientation also showed its limitations proving to be expensive and profitability has sometimes been disappointing. Market changes were under-estimated and the distribution industry absorbed resources that had not been invested in products and creation.
The main challenges for leading luxury brands are therefore to control and optimise the distribution network; corners, DFS and boutiques will increase the luxury-specific environment and optimise profitability.

A large number of outsider luxury companies coexist alongside the dominating leaders. They represent a heterogeneous whole in terms of share ownership, products, capital resources, production system organisation and distribution. Some have opted for niche strategies, others want to position themselves as alternatives to the established luxury brands in the aim of switching from outsider to challenger status. These companies are changing the sector's competitive game and, at a time when the cash flows of the leaders are coming together, are likely to represent targets for external growth operations that need to be resumed fairly quickly.

What are the market dynamics, by area of consumption and by product segment? What are the new market niches and what of their potential? What strategic impact does increasing competitive pressure have on the market? How is the distribution industry changing? What strategic orientations and financial flexibility do luxury companies have? What are the probable change scenarios of competitor positions?

A few references

 

• International product launch for a luxury brand
• Duty Free project and Fashion positioning of the concept in Korea
• International marketing campaign plan for a luxury brand
• Mission to optimise the own-brand and wholesale network
• Development of new boutique concepts in China
• Development of new point of sale services for consumers