Interview with Ms Uche Okonkwo

Luxury consumption has always existed in these markets but what has changed in recent years is the size of the consumer population with access to wealth and a high disposable income. This is a definite opportunity for luxury brands. On the other hand, emerging markets also have the financial resources to develop and manage their own brands especially with the lowering of the entry barrier into the luxury industry. This area will definitely evolve in the coming years.

The luxury fashion industry remains highly lucrative and intriguing but is currently undergoing an important evolution both in the competitive business environment and the consumer landscape. In terms of competition, factors like the internet, digital communications and private equity financing have contributed in lowering the entry barrier, making competition rifer. On the consumption end, the luxury market has broadened to include a mass of wealthy individuals with different characteristics, expectations and attitudes towards luxury goods. These are some of the challenges that luxury companies currently face.

In terms of overall evolution, the global luxury industry will remain lucrative in the coming years. The key markets for luxury goods currently show healthy economic growth and the emerging markets like China, India and Russia are even more promising. Several brands are achieving revenues of between 20% and 50% higher than forecasts and this trend is likely to continue. Luxury retailing will also take a new dimension through e-Commerce as several brands will be driven to retail their products and create intimate relations with consumers through the internet.

The idea for this book came in late 2003/ early 2004 when I was conducting an extensive research exercise on the business strategies of the luxury industry. I was quite surprised to discover that although the luxury fashion industry is a global multibillion dollar sector, it lacked a concrete business structure and strategic business direction. There was no existing text on luxury management in any language that addressed the industy’s major challenges. So I decided to write the book.

The landscape of the luxury consumer has definitely changed in the last few decades and consumers will continue to evolve even more rapidly than in the past. Luxury consumers will become more demanding and have higher expectations from luxury brands as a result of their increased access to information and brand offerings. The internet, digital communications and the opening up of international territories will play a key role in this evolution.

Luxury Fashion Branding is a business text that provides in-depth analysis of luxury fashion practices through modern business techniques. It brings into perspective relevant complex issues, such as brand management, marketing strategy, e-Business, retail management, consumer insight, business planning and modeling, customization, best and worst practices and luxury fashion industry’s historical evolution. These sections provide key strategic tools that will enable luxury companies to address the challenges of modern business management.

Both! To write this sort of book, you definitely need extensive research supported by practical experience in the luxury field. My background as a consultant for major luxury brands and training as both an MBA and PhD was essential in writing the book.

As we all know, luxury management is quite vast and it’s not very easy to touch on all of the facets in a book of 320 pages although the book features the major aspects of the luxury business. So I’ve made provisions for this in my next book, which will be published in 2008.

The book is designed as a hybrid text for luxury professionals, academics, analysts and business practitioners in general. I think each of these groups will find something of value in the book. It will also be appealing to luxury consumers themselves as the language and narrative is light and illustrated with images.

I received a lot support from several luxury brands, luxury professionals and luxury consumers while writing this book and I’m very thankful to them. I hope the book will provide something of value in to everyone who will read it.