The luxury market continues to grow. The rising standard of living in the emerging markets, the increased brand and image consciousness combined with a trend towards affordable luxury, the growing number of high-net-worth individuals (HNVI’s) and mass affluents – such drivers bring growth but also create risk. The largest challenge for luxury brands is to grow their reach while maintaining their brand and product exclusiveness. Exclusiveness and expansion have to be brought into harmony, based on a balanced strategy to ensure that growth does not take place at the expense of the brand – the crucial asset of a luxury goods manufacturer or retailer.
Especially in the luxury market, having a well-devised strategy for targeting the right audience along with a product, licensing and service portfolio tailored to the brand core values is essential. Furthermore, the same product and service quality needs to be ensured in an international, often even global distribution network, as the industry for luxury goods is almost unique in its degree of internationalisation. Many players are increasingly viewing horizontal and vertical integration as well as diversification into neighbouring luxury segments as a way of realising growth potential.
The main focus of our work lies on trend and potential analysis, strategy and business development, market and target group segmentation, brand checks and repositioning of luxury brands as well as target screenings.