Recently, Ian Schrager, entrepreneur, hotelier and co-founder of famed Studio 54, decided to create hotels that are luxury but without the services and amenities. Mr. Schrager’s hotel vision is luxurious experiences that do not depend on multiple on-site staffers and niceties. His vision is a segment he calls Economy Luxury.
Perhaps there is no more contentious issue in the luxury market today than what makes a brand “real” luxury? The industry establishment frequently claims that this brand or that one simply doesn’t measure up to their inbred standard, thus negating it as a competitive threat. But all that is changing, as the very definition of “luxury” is undergoing a paradigm shift in the consumer market.
Against a backdrop brought on by the pandemic, including supply chain snags, rising inflation and on-going geopolitical turmoil, luxury brands face another challenge. The consumers who are emerging post-pandemic are coming to the luxury market with new priorities and expectations from luxury brands.
The recession clock is ticking, and it’s gets louder as it ticks faster. JP Morgan Chase CEO Jamie Dimon told CNBC that a recession is all but inevitable. Others may argue that the recession has already hit, based on the traditional definition as two consecutive quarters of negative GDP growth, which occurred earlier this year. However, because unemployment remains low, many economists are reluctant to make the official recession call.
Ralph Lauren Company CEO Patrice Louvet and his executive team took to the stage recently in RL’s first investor presentation since 2018. Four years in the making, it was a big event lasting some four hours and backed up by a nearly 200-page presentation.
