Fashion big names flood into Moscow
The King of Luxury Bernard Arnault, the Head of Louis Vuitton Moet Hennessy, says the keys to success in the luxury business are quality and time. And he's not alone.
“I do not think you can bring luxury without culture, without great deal of work, without a great deal of back history and building this brand across the world to represent something in particular and to stand for something,” insisted Menkes
This timeless aspect of luxury makes it challenging for a young economy like Russia to create aspirational brands, but that is not holding back Russian spending on the best the foreigners have to offer.
Economists predict that in 10 years time, around 30% of all luxury sales will be in BRIC countries, meaning Russia as well as in Brazil, India and China.
But although luxury brands welcome this globalisation because of the higher sales it brings, its presenting them with something of an identity crisis, as they ask themselves does “Luxury” become less luxurious as it becomes less rare?
Leading fashion designer Tom Ford says its time for luxury brands scale back.
“To be blunt we make too much stuff, fewer things have been designed,” confessed Mr Ford.
Global spending on luxury goods is already greater than that spent on tourism and its forecast to double in the next five years topping $US 500 billion.
But the sector leaders will have to work out how to retain the luxury of their brands, as their products sell more and become more commonplace.