on flickr” url=”http://www.flickr.com/photos/uggboy/4983970643/sizes/o/in/photostream/”]Despite the luxury good market suffering from a global crisis in 2008, the industry is now projected to increase by 10% to €168 billion by the end of 2010, according to Bain & Company. This is close to its 2007 historical market peak of €170 billion.With big brands becoming bigger and the emergence of an increasingly sophisticated consumer, luxury good providers have much to learn from the rapidly evolving market trends.
There are three factors to pay attention to: China, a generational shift and an enhanced customer experience. Penetrating into China's market with a tailored value proposition will be important. Also, recognising the general shift --baby-boomer retirement and the connectedness of Gen Y-- is crucial. And finally, enhancing the customer experience with an integrated online and offline experience will be essential to gaining customer loyalty.
Source: Bain & Company