Bidiversity

Article in the Times about luxury goods companies having to respond to give their demanding clients what they want.

The world has become addicted to luxury in the last decade, and while the small matter of global financial meltdown cannot simply be dismissed as a temporary inconvenience, it’s unlikely to strike a fatal blow to the spending patterns of the truly wealthy. What’s more, the survival-of-the-fittest shake-up prompted by such a sharp economic downturn does throw up potential benefits for customers who still have spending power: namely a renewed focus on service and a revival in creativity.

The article argues that brands should work hard “to invest in their consumers and secure their trust to create and build relationships”, says Claudia D’Arpizio, a Milan-based partner and luxury-goods specialist for consultants Bain & Company, which sounds like good news for customers still willing to fund a luxury lifestyle. For the seriously wealthy, D’Arpizio argues, the crunch “is not affecting purchasing power so much as psychology”, which means that, for the luxury industries, “understanding your different customer groups is the new mantra”.

The article goes on to say: Whatever else happens, customers for luxury products look likely to be more demanding and more discerning – they desire creativity, service and diversity. The polished performance of major players, such as Burberry and Louis Vuitton, both posting healthy global sales figures this autumn despite the black clouds of recession, backs the suggestion that it’s possible to weather the storm given the right strategic tools. Out of crisis often emerges the greatest innovation, of course.

Read the full article at : Times Online