Cross-Channel Retail Offers Solution To Luxury’s Failing Model

The growth formula that luxury brands have relied on in recent years is already failing, according to an executive from Exane BNP Paribas at the FACC Luxury Symposium 2016. Recently, the luxury sector has been reliant on growth in China and among Chinese consumers and has responded by increasing prices and opening more stores. However, a number of deflationary forces are already hampering in this route, and luxury must now find a way to generate growth. “It’s not that the formula is not going work in the next two years,” said Luca Solca, managing director, global luxury goods at Exane BNP Paribas. “The formula we looked at hasn’t worked for the last two to three years. The change of ROIC in 2012 and 2014 is -5 percent.”  Read more at Luxury Daily.