Why Many Luxury Leaders Prefer not to Use the Word Luxury
Luxury is a three faceted word. It refers first to a concept, very subjective thus always hotly debated. It is also a very lucrative macro-economic sector that has been growing over the last 25 years. Finally, it also designates a very specific strategy, distinct from other strategies such as a fashion strategy, a premium strategy or a masstige strategy. Any company can adopt a luxury strategy even if it does not produce the classical goods or services traditionally associated with the luxury sector. Apple is a typical example.
When is a Vuitton not a Vuitton?
The purchasing of fake luxury goods has increased dramatically in recent years and counterfeiting now functions as a parallel market to the luxury industry itself. But what are the real reasons for the emergence of this shadow market and how big a threat does it pose for luxury brands?