BUSINESS REPORT ON LUXURY
The business of luxury goods has shifted in past decades from a sector of artisan and familial producers to one of a handful of global and emblematic Houses. The origins of luxury goods in rare materials and products that were sourced from particular regions of the world has continuously developed with the recognition of increasing subtleties in quality: from the intricacies of techniques in production to the hand of a particular artist and to the emblems of a designer. Sales of luxury goods have always rested on an incarnation of our intense desires for particular goods or producers that lead us to sacrifice significant expense to possess them. Whilst it remains possible to articulate the unfolding of this desire on the basis of the qualities of products alone, success in the modern landscape of luxury is critically determined by the recognition of legitimate expertise of a producer in a given field and the status that is subsequently accorded to its name. The business report then considers the strategic management required that elicits desire and cultivates a particular reputation in culture.
Due to the fact that the financial equity of luxury goods rests on the integrity of its products and its societal recognition, it requires specific management in order to ensure and protect its relevance and longevity. The simultaneous expansion and consolidation of the modern luxury goods sector demonstrates the critical necessity to acutely understand the challenges in business that are unique to the sector and the subtle nature of desire. This not only illuminates the rationale behind the subversive and at times provocative practices in the business, but also demonstrates that beyond social ostentation and seductive communications the correct handling of luxury goods is essential to ensure the successful continuation of Houses of exquisite quality and significant culture. The following report has been derived from the managerial literature on luxury goods to systematically evaluate the practices involved in the production, communications, retail and distribution of luxury goods in terms of their cultivation of desire and the achievement of a particular status in society.
Contents
Executive Summary.
Introduction and Background.
Financial Characteristics and Markets.
Heritage, Status and Authority.
Management Organisation.
Product and Materials.
House Identity and Style.
Marketing, Retail, Distribution and Comms.
Creative Legacy and Renewal.
Cultural Heritage.
Sustainability.