Information Technology Reference
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opportunities set the perfect backdrop for unprecedented wealth creation
which also stretched to the creative and entertainment industries as well as
sports and manufacturing. The support of the capitalist market structure in
most developed economies and the access it provided to instant cash, credit
and capital led to the change of status for a substantial segment of different
populations. As this trend spread around the world through the globalization
machine, different attitudes towards money emerged and materialism, con-
sumerism and instant gratification became the order of the day. With the
opening up of the access to wealth came increased international travel and
convergence of cultures, which subsequently led to the global consumption
culture that is very much present today. All these set off a course of interna-
tional expansion of the luxury market as never seen before. Luxury brands
like Louis Vuitton, which multiplied their global store numbers from two
in 1977 to 130 in 1989, took a massive turn to internationalization and as I
write the brand has 430 stores around the world. Other brands like Giorgio
Armani, Gucci and Cartier have not been far behind with store openings
worldwide. Even American brands that have been known to stick to the
home territory due to market size and economic gains began to take bold
steps beyond their shores, with Tiffany's moving from ten stores mostly in
the US to 184 stores around the world in just ten years.
The international market opportunities also meant that luxury brands were
gaining access to new territories with consumers characterized by different
cultural and aesthetic codes as well as perceptions and definitions of luxury.
The vastness of these markets, including parts of the US, the extended EU,
China, Brazil and Russia, and the potential they held for future revenues
prompted certain brands to introduce multiple junior lines within the prod-
uct ranges, setting off a trend of accessible and affordable products through
sub-brands created within the parent brand. Mini-versions of major luxury
houses including Valentino Red, Armani Exchange, Just Cavalli, D&G and
Versace's Versus were born, giving rise to what has been called by many
“masstige” or accessible luxury consumption. This movement also led to
the success of high-end brands like Coach and Proenza Schouler and the
introduction of several others like Massimo Dutti, Juicy Couture and Rock
& Republic, whose models have followed the “accessible luxury” route or
what some may call “high-end luxury”. The luxury client that emerged in
this scenario became one that viewed luxury with not only desire, but also as
an extension of themselves and their lifestyles.
As all these were taking place the barriers of entry into the luxury market
were being broken down, new brands began to emerge in several segments to
compete with the established brands. The Internet became the vehicle behind
this with its vast opportunities for visibility, communications and retail. The
boom of the latter has played a key role in the current reality of the changing
mind-set of the wealthy towards luxury. The freedom of access to information
about luxury brands which the Internet provides has led to the closing up of
