Now that we know that the Luxury industry is not as insulated from the economic downturn as much as many luxury and fashion CEOs would like, what's a brand to do?
Milton Pedraza, CEO of the Luxury Institute, is thinking two steps ahead. Yesterday he shared with The Business of Fashion a 7 point plan for coping with the economic malaise that is quickly sweeping across the world. We thought it was compelling and have excerpted the key points here.
1. Eliminate the Hobbies: Renew your focus on what you do best and innovate within those categories.
Many luxury brands have entered into categories where they have no expertise because they want to be "lifestyle" brands. Some categoriesare logical extensions for a luxury brand but most are not a good fit and will be marginally profitable.