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Why Luxury Should not Delocalize: a critique of a growing tendency

Abstract : Many famous luxury brands have recently planned to delocalize their production. Many applaud luxury brands for closing production sites in their home countries, considering such cost optimization to be a rational evolution. But others claim that in doing so, luxury is losing its soul. This article reminds managers that any decision must be analyzed and evaluated within the context of a strategy. Luxury is a subjective concept but a luxury strategy is not: luxury's ability to sustain its high prices and profitability is governed by strict rules. What Prada and others are doing is, in reality, discontinuing their luxury strategy, in favor of a fashion strategy, without acknowledging this explicitly. In fact, the luxury strategy is a specific business model. Fashion is another, governed by a completely different set of working principles.
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https://hal-hec.archives-ouvertes.fr/hal-00715585
Contributor : Antoine Haldemann <>
Submitted on : Sunday, July 8, 2012 - 4:54:53 PM
Last modification on : Sunday, January 27, 2013 - 4:15:40 PM

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  • HAL Id : hal-00715585, version 1

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Jean-Noël Kapferer. Why Luxury Should not Delocalize: a critique of a growing tendency. European Business Review, Emerald, 2012, pp.58-63. ⟨hal-00715585⟩

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