Taking Notice of Luxury

Isaac Mostovicz writes that that luxury can be a powerful industry in itelf...

After two years of lobbying, the European Cultural and Creative Industries Alliance – the overarching European luxury organisation – has finally got the attention of the European Commission (EC) according to this blog post in the Financial Times.

The article notes that it is surprising that this has taken so long, as of the top 25 worldwide luxury companies 17 are from the EU, and Europe is responsible for 75 per cent of the global luxury market, more than €170bn of the worldwide luxury goods consumption and employed in 2010 up to 1 million people in the sector.

Until now, luxury items were classified by the EC under sectors such as ‘fashion’, or ‘textiles’ which does not seem to recognise that luxury is a powerful industry in and of itself – and one which is, for now, growing at a rate which other sectors can but admire, with brands such as LVMH and Hermes posting strong quarterly results.

Hermes Bag

Hermes Bag

Luxury brands have a history of being innovative – either through their products, stores or, more recently, their digital brand building. This innovation is something which I believe organisations at all levels can learn something from, and I hope that the EC will encourage this innovation and growth as much as possible.

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