CHRISTIAN KURTZKE

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NIKE & AMAZON. SEPHORA & GALERIA KAUFHOF. / WILL ECONOMIES OF SCALE KILL PREMIUM & LUXURY?

I started noticing it about a number of years ago: Someeone who used to be a very good customer of one of the world´s leading fine jewelry brands was getting a private presentation in their prestigeous flagship store, in the Via Montenapoleone in Milan. At the end he decided for the purchase and was just on his way out- with the jewel. He was used to go like that and pay later. There had never been a problem so far. But a young man suddenly stopped him and asked him to "pay right away" or "forget the deal". The client was pretty irritated and wondered who this young man was that obviously lacked style and class. Well, it was the new manager - who just got hired from Procter & Gamble to drive growth of luxury business.

Since then I have seen many signs of an increased "fast-moving-consumer-product thinking" in luxury. It is the direct consequence of brands that have evolved fromsmaller authentic manufactories to big global corporations. As a result, they have undergone a fundamental change of values and become industrialized. Their success is no longer customer intimacy & excellence, but only quantified by "number of items sold". Will that logics sustain?
 
https://www.forbes.com/sites/quora/2017/07/19/amazon-and-nikes-partnership-could-mean-the-end-of-big-brands/#262d507c3864