E&M

2020/4

Gabriella Lojacono

The World of Luxury is No Longer the Same (Which is Good)

The luxury sector is facing some important strategic challenges: the increase of production volumes and the improvement of profitability; the new management of sales offers; the compromise between exclusiveness and inclusiveness of its products; the difficulty of exceeding expectations when standards are already very high; and the country of origin as a lever for expansion at the international level. The contact with customers outside of stores or the virtual world has pushed many luxury brands to enter the hospitality sector; a strategy that responds to the desire of new generations to spend their money for a memorable experience rather than to purchase physical goods.

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