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Economist Podcasts

Money Talks: Europe’s luxury crown

Jan 18, 2024
Thomai Serdari, a professor of marketing, and Ermenegildo Zegna, CEO of Zegna Group, discuss the dominance of European luxury brands, their success despite economic conditions, the evolution of luxury multi-brand platforms, controlling industrial know-how, and the investment potential of luxury goods.
39:09

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Quick takeaways

  • European firms dominate the luxury industry due to their rich history, heritage, and emphasis on quality.
  • Luxury brands maintain their position through vertical integration, brand consolidation, and balancing accessibility with exclusivity.

Deep dives

The Transformation of the Luxury Industry

The podcast discusses the transformation of the luxury industry over the past few decades. It highlights how the industry has grown from serving a small niche market to becoming a global powerhouse. The expansion of the luxury market can be attributed to the rise of wealthy individuals in countries like China and the Middle East. The episode emphasizes the democratization of luxury, with brands offering more accessible products like sunglasses and wallets. However, the episode also highlights the challenges faced by the industry, such as the recent slowdown in sales.

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