Is luxury retailing/ Luxury goods Recession Proof?
I am often asked this questions in various forums, networking events ” Is Luxury retailing/ luxury goods recession proof ?”
Before I comment or share my views on this question, its important to understand what makes these luxury brands so special..
Brands like Ferrari, Lamborghini, Patek phillips, Rolex, Gucci, Loewe, Hermes evoke a certain kind of imagery in our minds which is aspirational & provides attitudinal & lifestyle experiences.
So what is Luxury?
I would like to define Luxury as “Business of selling dreams”. It’s a mindset.
“Why would i need to know as to how watch industry is doing, i am in luxury business” CEO of a very famous luxury watch brand once quipped….
This statement according to me says everything about Luxury brands and this statement holds so true in current times of economic challenges.
so what makes Luxury brands so different from other brands….When it comes to luxury, being unique is what counts, not any comparison with a competitor.Luxury is the expression of a taste, of a creative identity; luxury makes the bold statement “this is what I am,” not “that depends”– which is what positioning implies.
Heritage associated with luxury brand plays a very important role i.e. Louis Vuitton.
Aspirations, dreams, attitudinal kind of brand imagery, are some of the elements of playground for Luxury brands.
Believe me or not but yes Luxury brands are not bogged down by any economic downward trends infact, they are least impacted as well.
Connoisseurs of these brands remains brand loyal and help these brands to remain evergreen & everlasting.
When Mass-tige & hi-street brands are hitting the walls, the world’s most luxurious brands are reporting blooming sales spikes.
There are few brands that i would like to quote are coming from unconventional countries (which were earlier european dominated and making waves… one of such brand is Shangai Tang from China.(later acquired by Richemont group)It is indeed every marketeer or retailer’s dream to make his/her brand as cult as Hermes, LV, Rolex to name a few which could stand the toughest of times that any economist could ever predict.
Main thing to remember…”Stay true to your brand promise” while embarking on luxury business.I would like to conclude with beautiful quote from one of my favorite designer..