Work in Progress: The Recession and Its Impact on Luxury
EXECUTIVE SUMMARY
Pre-recession, luxury was big, bold and blingy. Now, the sector is shrinking—not only because consumers can't afford the luxe life but because attitudes toward conspicuous consumption have shifted dramatically, especially in North America and Europe. Corporate misdeeds have cast the new rich as the new villains, and their luxury lifestyles are no longer an aspirational fantasy.
Luxury manufacturers are rethinking their strategies, shifting away from fast fashion and masstige. They're returning to their roots—producing the ultimate that money can buy—and they're responding to new definitions of what luxury...