An analysis of the dichotomy of the Italian luxury industry in the light of global crisis
Munich, 17th of June 2015. In the years since the outbreak of the financial crisis of 2008, the luxury industry has garnered a great deal of interest not only from economists but the public eye, as it seems to be immune to the backlash grappling national economies.
Marketing expert Angela Alunni has now published the scientific essay “The Effects of the Economic Crisis on the Luxury Brand Market”, dealing with this topic. Her most recent work gives a brief historical account of the evolution in the general understanding of luxury goods, which in present times includes a multi-faceted view of the phenomenon. The research then puts emphasis on the Italian market, clarifying what role the luxury sector plays in the national economy and at what point the concepts of luxury and Made in Italy coincide.
Marketing Strategies for Luxury Goods “Made in Italy”
In her paper “The Effects of the Economic Crisis on the Luxury Brand Market” the author analyzes business strategies and tools to broaden the appeal of luxury products in the current environment of globalization and democratization of luxury, while not betraying the essence of the luxury concept per se. Access to the money market has provided those companies with the means to consolidate their financial standing, drive their development and has delivered an additional boost in brand recognition. Going public, especially for family-held small Italian businesses, is rewarded with a more effective penetration of emerging markets.
In very general terms, the author investigates the context and significance of Made in Italy and does not stop short of highlighting that the sell-out of Italian brands to foreign investors has drained Italy of close to ten billion euros between 2008 and 2013 alone. Prior to 2008, the big luxury companies had driven the growth of the entire sector. The segment has seen a decline in economic indicators during the height of the crisis, but more importantly a rapid recovery, pulling out with a gain in market share. This, however, did not translate to small companies in private hands, due to the limited financial and managerial resources at their disposal.
The portrayal of the Bvlgari case highlights these strategies and at the same time points to the challenges that the luxury industry Made in Italy has to face as a whole.
Angela Alunni is a seasoned international marketing and branding expert, delivering successful marketing portfolios for dynamic global businesses, especially a broad range of luxury brands. She has earned qualifications from UC Berkeley Business School in Marketing and Project Management and from Stanford Business School in Social Media Marketing, SEO and Branding. “The Effects of the Economic Crisis on the Luxury Brand Market” is her first publication.
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