{"id":506,"date":"2020-11-17T16:53:47","date_gmt":"2020-11-17T16:53:47","guid":{"rendered":"https:\/\/www.luxurymarketreview.com\/?p=506"},"modified":"2020-11-17T16:53:49","modified_gmt":"2020-11-17T16:53:49","slug":"the-future-of-luxury-pos-covid-19-by-interbrand","status":"publish","type":"post","link":"https:\/\/www.luxurymarketreview.com\/ru\/2020\/11\/17\/the-future-of-luxury-pos-covid-19-by-interbrand\/","title":{"rendered":"The future of Luxury P\u00f3s-Covid-19 by Interbrand"},"content":{"rendered":"

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According to a recent study by Interbrand, the success in the luxury sector for many brands will depend on several key factors.\u00a0<\/h2>\n\n\n\n

While it is clear by now that all luxury brands across all sectors will be negatively impacted by the Covid-19 pandemic, a faster recovery depends on several key factors \u2013 desirability \/ exclusivity \/ finest quality \u2013 craftsmanship \/ creativity \u2013 innovation \/ credibility \/ consistency.<\/p>\n\n\n\n

Desirability<\/strong><\/p>\n\n\n\n

There is no universal recipe and this may very well depend on how consumers perceive a certain brand. This can depend on all the other elements which make up the DNA of luxury. Consistency in terms of quality may be different when it comes to design \u2013 the power of the DNA of a most desirable brand may also come from ultimate creativity not even following trends and not creating products based on marketing research.<\/p>\n\n\n\n

Exclusivity\/Scarcity<\/strong><\/p>\n\n\n\n

It usually relates to limited editions which in some cases are also collaborations. It is also about limited availability of certain products especially in the case of brands which offer for sale online only a small part of its collections. Customers would also need to make an effort to search whether other stores feature the desired product or having to place an order, which in some cases, it would take some time.<\/p>\n\n\n\n

Exclusivity is also about customisation or the possibility to configure its very own version of a luxury product. Beyond placing your initials on a product, a consumer would be able to opt for a very specific colour or a raw material that is not normally used for the specific product \u2013 which could be the case of a handbag, a pair or shoes, a watch or even a car. In the case of a car examples include bespoke engine performance or customised bedding (ex. mattress, linen and pillows) in the case of hotels.<\/p>\n\n\n\n

Finest Quality\/Durability<\/p>\n\n\n\n

The real winners are the brands which demonstrate consistency and reliability when it comes to sourcing the best quality materials such as leather or the finest fabrics. Hermes and Louis Vuitton have their own crocodile farms while Loro Piana and Ermenegildo Zegna secure the finest wools, cashmere or vicu\u00f1a by owning or financing farmers. Brunello Cucinelli is a brand which has built an exceptional reputation for securing the finest quality cashmere.<\/p>\n\n\n\n

Despite advanced technology, connoisseur luxury consumers will always appreciate hand-made products, whether it is about apparel, handbags, shoes, watches or jewellery. Hand-made craftsmanship requires extensive training and major companies invest consistently in the various crafts.<\/p>\n\n\n\n

Creativity \/ Innovation<\/strong><\/p>\n\n\n\n

Innovation also comes in the way luxury brands communicate whether in print or on social media. Achieving the WOW factor which makes people remember a certain design feature or a reflection of certain products in lifestyle, will remain a major challenge. Addressing different markets and cultures most often requires bespoke brand communication campaigns.<\/p>\n\n\n\n

Credibility<\/strong><\/p>\n\n\n\n

Irrelevant brand extensions can be risky \u2013 examples of the worst such initiatives include: Porsche branded residential project in Miami, Ellie Saab<\/em> branded residences project in Dubai or Versace Hotels<\/em>. At the opposite, most successful such product extensions are Bvlgari Hotels & Resorts and Lungarno Hotels (Ferragamo Group).<\/p>\n\n\n\n

The Bvlgari Hotels<\/a> are a most sophisticated reflection of the brand DNA and its Italian heritage \u2013 with an impeccably \u2018hard luxury\u2019 architectural concept perfectly conceived and implemented by Italian interior designer Antonio Citterio. The very scarce and subtle reflection of Bvlgari\u2019s main products, jewellery and watches at the Bulgari Hotels is what lends credibility and desirability. Without even attempting to become restaurateur, the fine dining restaurants at all its hotels are overseen by<\/p>\n\n\n\n

Post Covid-19 pandemic outlook<\/strong><\/p>\n\n\n\n