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

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.

The luxury market is showing further resilience, and contradiction, from the economic crises spanning the world. In the Middle East, amongst high unemployment and rising food prices, one city is displaying a resurgence in its luxury retail sector.

Dubai was not immune to the financial crisis, and retailers reported a 45% decrease in sales in 2009, but thanks to demand by wealthy Emiratis and tourists from Russia, China and India, business activity in the UAE private sector hit an 18-month high in January 2011.  Back to indulge in their luxury delicacies, Dubai is back on track to regain its position as the second most attractive city in the world for retailers.

Chocopologie is one of the retailers that is ready to get Dubai back on the up. The chocolatier claims to sell the world’s most expensive truffle “La Madeline au Truffe”, selling for $272 a piece. Other truffles include the Antoinette, a dark chocolate heart dipped in white chocolate and French rose water.

Other products making a comeback include Dior mobile phones in a jeweled finish, and calf-skin leather bags, both from Dubai’s Rivoli Group, and platinum Breguet Double Tourbillion Classique Grand Complication watches, priced at over $440,000 apiece.  Auction houses Sotheby’s and Christie’s are also wanting a slice of the pie in Dubai, where they have seen some of the biggest sales.

Dr. Isaac Mostovicz provides personal coaching, team training and marketing programme development.

Following an early career in the diamond industry as CEO of S. Muller and Sons, he retains a strong professional interest in the diamond industry and in the wider world of luxury marketing where he continues to conduct research.

Academically, his post-doctoral work is focused upon understanding human logic –- specifically the nature of human interpretation and its impact on decision-making. The work has application in the fields of ethics, leadership, social responsibility and marketing.

His research has unearthed two opposite psychological types — Lambda (challenge-seeking) and Theta (unity-seeking). The tension between these two preferences affects choices we make in everything from diamond buying to corporate governance.

His consulting work is focused on overcoming ‘high stress’ or apparently ‘intractable’ situations where existing strategy processes may be failing.

Dr. Mostovicz applies ‘Janusian Thinking’ principles to help participants understand the hidden paradoxes undermining decision-making — and find ways to transcend them.

Dr. Mostovicz regularly contributes to journals and presents at conferences. Some highlights from his CV are as follows:

Qualifications:

• Ph.D., University of Northampton, University of Northampton, Business school, 2005-2008; Thesis title: Understanding of Consumers’ Needs for Luxury: The Role of Interpretation in Knowledge Creation
• MBA, Open University (UK), 1998-2000
• Hebron – Knesset Israel Rabbinical College, Jerusalem, Israel, 1973-1980

Career History – Summary:

• 1980 – 2006, CEO of S. Muller & Sons Diamonds NV, Antwerpen, Belgium
• 1987 – Present, President, Allied Diamond LTD., Tokyo, Japan
• 1997 – Present, President, Allied Diamonds, Inc. Los Angeles, CA
• 2002 – Present, Chairman, Janus Thinking LTD, HK

Business special achievement:

• 1999-2000, selected as one of ten DTC (De Beers) customers to market the De Beers Millennium Special Edition Diamond.
• 2000, Brand development under direct supervision of Prof. Leslie De Chernatony, Honorary Professor of Brand Marketing, Birmingham Business School

Membership of Professional and Other Associations and Bodies

Editorships:

• Associate editor, International Journal of E-Politics (IJEP)

Memberships:

• Academy of Management  (since 2008)
• Official Supplier, American Gem Society (since 1998)
• American Marketing Association (since 2000)
• Association of MBA, UK (since 2000)
• Fellow of The Chartered Institute of Marketing (since 2002)
• Chartered Marketer, CIM (since 2002)
• Member of the Antwerpen Diamond Bourse (Beurs voor Diamanthandel) (since 1982)
• Head of the steering committee, the Department of Management and Marketing Technology, The Hochstein Business School, Jerusalem College of Technology, Jerusalem, Israel (since 2009)
• Founding Member of the International Board of Governors, Jerusalem College of Technology, Jerusalem, Israel (since 2009)

Publications

Refereed Journal Articles/accepted:

1. Mostovicz, Isaac, Kakabadse, Nada and Kakabadse, Andrew, (2007), ‘The Diamond Industry as a Virtual Organisation: Past Success and Challenging Future’ Strategic Change, December 16(8): 371-384.
2. Mostovicz, Isaac, Kakabadse, Nada and Kakabadse, Andrew (2008), ‘Janusian Mapping: A Mechanism of Interpretation’, Systematic Practice and Action Research, June 21(9): 211-225.
3. Mostovicz, Isaac, Kakabadse, Nada and Kakabadse, Andrew (2009), ‘The Role of Leadership in Driving Ethical Outcomes’, Special issue of Corporate Governance: International Journal of Business in Society, EABIS special issue, September 9(4): 448-460.
4. Mostovicz, Isaac and Kakabadse, Nada (2009), ‘Dynamic model of Organisational Leadership’, Leadership and Organizational Development Journal (LODJ), 30(6): 563-576.
5. Mostovicz, Isaac and Kakabadse, Nada, (2009), ‘Means-End Laddering: A Motivational Perspective’, Problems and Perspectives in Management, September, 7(3), 65-74
6. Mostovicz, Isaac, and Kakabadse, Nada, (2009) ‘Is an Ethical Society Possible?,’ Society and Business Review,4(3) (forthcoming)
7. Mostovicz, Isaac, Kakabadse, Nada and Kakabadse, Andrew, (2009), ‘Is Leading through Strategic Change Necessary?’, Proceedings of the 5th European Conference on Management Leadership and Governance (ECMLG), Mini track on Management, Leadership and Governance in Relation to Information Systems, Hellenic American University, Athens, Greece, 5 – 6 November 2009, pp 117-124

Practitioners Journal Articles:

• Mostovicz, Isaac (2006) ‘Unmined Potential: How Coffee Could Save the Diamond Industry’, Market Leader, Summer, 33, 18-22,

Papers Presented at International Conferences

1. Mostovicz, Isaac and Kakabadse, Nada, (2008), ‘Debunking the Relationship Marketing Myth: Towards a Purposeful Relationship-Building Model?’, the 5th International Conference for Consumer Behaviour and Retailing Research (CIRCLE), University of Nicosia, Cyprus, March, 26th-29th.
2. Mostovicz, Isaac and Kakabadse, Nada, (2008), ‘Ideal Leader or Purposeful Strategist?: The Theory and Practice of Organisational Leadership’, 15th International Symposium on Ethics, Business and Society, Business and management: Towards more human models and practices, IESE Business School, University of Navarra, Barcelona, Spain, May 16th-17th.
3. Mostovicz, Isaac, Kakabadse, Nada and Kakabadse, Andrew, (2008), ‘Leading for Corporate Social Responsibility: The Role of Purpose’, 7th EABIS Annual Colloquium, Cranfield School of Business, Cranfield, UK, September, 11th-2th.
4. Mostovicz, Isaac and Kakabadse, Nada (2009), ‘Best Practice or Best Governance?’, 8th EABIS Annual Colloquium, IESE Business School, University of Navarra, Barcelona, Spain, 21 – 22 September.
5. Mostovicz, Isaac, Kakabadse, Nada and Kakabadse, Andrew, (2009), ‘Is Leading through Strategic Change Necessary?’, 5th European Conference on Management Leadership and Governance (ECMLG), Mini track on Management, Leadership and Governance in Relation to Information Systems, Hellenic American University, Athens, Greece, 5 – 6 November 2009

Sales of jewelry and watches in the United Kingdom have seen strong growth since 2000, with the market reaching $8.1 billion in 2005. Much of this market growth, which averaged 8% per year, is due to higher levels of consumer disposable income. While this growth is expected to slow down to an average of 5% annually between 2005 and€“ 2010, there are many factors which will continue to support strong market demand.

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