We once hailed the vast amount of wealth the U.S. had seen over the past few years and the countless opportunities luxury brands had to fill their coffers. Times have changed, and with it, the means in which luxury brands can exist in this new era. We’ve been asked our thoughts on how luxury companies can survive. Our counsel has not changed – build relationships with your customers.
The challenges luxury brands are currently facing were created by the very opportunities that originally fueled their growth. From the influx of overnight millionaires with demands for more, luxury companies increased their production and created brand extensions to meet every scale of luxury buyer – from the $300 Coach handbag buyer to the $1.5 million Vacheron Constantin Tour de l’Ile consumer. The gilded age is over, and new values created by hard-earned economic lessons are now redefining what motivates a U.S. customer to buy luxury. Continue….