Luxury Brands and Strategies in Recession
Where in the market appears a brand that offers an iconic value in a luxury market? However if times are difficult— who on the earth requires these luxury products? Are they not first to get substituted by the cheaper choices? Thus obviously it is interesting to look on what are their assets or strategies in today’s time.
Sale is everywhere.
First 3 months of the year are filled with recession news: companies that are cutting costs & laying of staff, products brands rethinking the media budgets & channels, retail giving price cuts as well as mega sales even long after classical winter sale. Hyper luxury bands have been as recession proof is reporting declining the results.
L’Oreal is also struggling with slowing interest in the luxury products—turn over showed clear down turn for the expensive cosmetics & company is even expecting worse numbers at 2009 for the brands like Giorgio Armani, Yves Saint Laurent or Lancome, — they showed minus of around 6.8% in the turn over in 2008. Their strategy is to cut down luxury product variants as well as have stronger focus on the cheaper products, being available in many discount-oriented outlets. One more focus is the innovations, since consumers can be willing to give for the exceptional luxury goods.
It is not just the US market where financial crisis has direct effect on the consumer sales. Rapidly growing financial turmoil is affecting these fastest growing economies, even emerging markets like so called Brazil, Russia, India, and China are no longer secure terrain for the growth of global brands.
