Since its inception, the luxury industry has been a growth story. Product extensions, store network expansion, entering growth markets – especially China and digital commerce – have been the drivers of the last years. Business cycles? There were some downturns during the SARS epidemic and the financial market crisis in 2009. Soon after, growth resumed at an even accelerated rate, driven by many more consumers craving luxury goods. Few thought that the diversification in terms of products, geographies, sectors, and consumers could be affected by economic downturns. All that is needed is a constant growth of the luxury clientele and their disposable incomes for marketers to turn them into customers of the brand. Link to the article
GURZKI, H. and SOM, A. (2020). Innovation pathways for luxury brands – evolution or reinvention? The European Business Review.