Luxury goods

Recent global market evolution has introduced a new consumption paradigm.

But that doesn’t mean luxury brands don’t face their own type of challenges.

The growth of new business models such as renting, evolution of distribution channels to online and own retail, emergence of a new, more lifestyle-driven consumer base and changes in government incentives and tax regulations in many markets makes having the right commercial approach more important than ever to boost growth and enhance brand equity.

Customers seek quality, authenticity, and a deeper brand history than in other industries. And consequently, some luxury goods possess the rare characteristic of positive price elasticity: The higher the price, the higher the demand.

Similarly, scarcity is a critical element of success for luxury products, so producing and selling fewer items makes consumers want them even more and more willing to pay a higher price.

Getting the strategy right between the two sides is essential while realizing the value of your brand.

That’s where we can help. Simon-Kucher has strong expertise in the luxury goods industry, especially with international pricing and portfolio strategies, consumer engagement, loyalty and omnichannel experience.

All designed to maximize value, customer satisfaction and brand loyalty.