While Europe’s luxury groups have focused on long-term brand building, maintaining an “illusion of exclusivity,” US luxury houses have chased short-term sales by boosting distribution as wide as possible once a brand becomes fashionable, then suffering the blowback when the brand becomes too ubiquitous and crashes.“Today’s luxury market is about maintaining the illusion of exclusivity, while selling units by the millions. Shatter the illusion and brand cachet is lost,” Luca Solca, head of luxury goods at Exane BNP Paribas wrote earlier this year. “America’s large luxury players [have been] sprinting to sell as much as possible, as fast as possible, then suffering the consequences.”
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