Magazines Archives - 2009 August

Luxury retailers facing difficulties in a changing market environment (No Image)
Story 3 - News Feature

CONTRARY to predictions made last year about luxury goods’ resilience to recession, luxury retailers are now facing difficulties coping in an environment where the rules have been altered. To survive the global crunch, the sector will have to change its dynamics to address the reversal of fortunes.

According to Luxury Retailers: Readjusting the Business Model in the Midst of a Global Crisis, a report released last month by Verdict Research, the world economic downturn has “shattered some cherished myths and radically changed the rules of the game”, leading to the emergence of “a significantly different luxury retail sector at the end of this crisis”.

According to Luxury Retailers: Readjusting the Business Model in the Midst of a Global Crisis, a report released last month by Verdict Research, the world economic downturn has “shattered some cherished myths and radically changed the rules of the game”, leading to the emergence of “a significantly different luxury retail sector at the end of this crisis”.

The research included, among factors that have re-shaped the rules of the luxury retail game, the downturn in Europe and Japan as well as the US’ difficulty in “negotiating the liquidity trap” .

“The global downturn has affected the fortunes and real incomes of the global elite [in countries] from China to Russia and [others in] the West, curbed global travel levels … and, perhaps most significantly, fundamentally changed the consumer attitudes of the mass market,” the research company indicated.

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