Getting the Luxury Business Model Right

Source: BoF, Jan 2011

Luxury fashion is a very exciting business which can generate substantial returns if you get the formula right. Not only is there the ability to charge up to ten times the cost of manufacturing a garment and the potential to build a global business; apparel can be the beginning of a page-turning blockbuster, accessories and leather goods are the next chapter, fragrances and eyewear licenses the well-oiled plot. The story can have a happy ending with the promise of many sequels to come.

Is the designer brand becoming redundant?

Life has also been made more difficult for designer brands, initially by the proliferation of fast fashion brands with a credible fashion offering. Zara, Mango and H&M have been extremely successful at attracting the fashion conscious consumer by interpreting catwalk trends with a time to market that would make Philip Green’s head spin.

Managing seasonality

Harnessing creative talent – the increasing importance of the merchandiser

Create a bestseller but know when to let go

Invest in retail but focus on the detail!

A dynamic supply chain can drive profitable growth

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