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Gucci - Global Luxury Goods
The luxury goods industry is unique from all other industries. When we compare global luxury brands like Gucci or Porsche with e.g. Coca-Cola, which is also a global brand, we find striking differences. In the example of Coca-Cola, the brand's success is based on conveying the American image. This will not be a good selling point in countries like Afghanistan. However, Gucci and Porsche, being luxury products, are known for quality and tradition, which is accepted all over the world. The segments of the population in Afghanistan that would accept Gucci as a global brand and perhaps buy its products will not buy Coca-Cola. The difference is in the general brand identities of luxurious goods and commercial goods. Luxury products are globally accepted for the quality they provide (and thereby the upper-class image), while more commercial goods will have a USP that will not be favored globally.
Another generalization we can draw is that the luxury goods industry is in general less cyclical than are comparable products in the mass market. This is mainly due to the fact that, the buying power of luxury goods consumers is good even in difficult economic times. In times of recession, the middle class will accumulate savings, while the upper class individuals still have their image to uphold, therefore keep on spending.
- Ford Motor Company: Supply Chain Strategy Analysis from HBS Case
- General Motors Financial Analysis
- Gucci - Global Luxury Goods
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