Leaders in Luxury 2008 provides forum for ‘big’ brands

Sparkling luxury goods are what this region is all about and according to Reuters the Middle East is predicted to be the fastest growing region for High Net Worth assets at 12% per year. However, with such economic uncertainty sulking about the globe like the bloke at the party who everyone avoids and just wants to go home, can luxury goods survive and even thrive in the current climate? City Times spoke with the Chairman of the conference and Consultant & Executive Director of ESSEC’s MBA in International Luxury Brand Management, Denis Morisset to find out.

Mr Morisset has worked for more than twenty years in the Luxury Fashion Industry and occupied CEO/COO positions with companies such as Polo Ralph Lauren (Europe), Pierre Balmain and Giorgio Armani (France). His particular focus and passion is emerging markets. He has collaborated with international companies on brand extensions and branding issues. Denis’s advice has also been invaluable to new brands and designers from emerging markets on their international distribution and retail strategies.

‘The Middle East is already quite a mature market,’ Mr Morisset began. ‘This industry is about passion, it’s about the products and craftsmanship. For the brands to talk about their history and heritage, to educate people in and around this industry, like designers or shopping mall for example, about how they work at this time is very interesting and why we make conferences like this.’

‘We have touched upon the current financial situation and have asked some of the key players their view on that. At this moment as we speak in the region people do not really feel the impact of the crisis either financially or psychologically. Coming from France where I am based of course it is a very different story. I think no one would believe me if I said there has been no impact. Yes in Europe and the US just after the end of September sales were impacted in many different places. But I think it is difficult to draw a conclusion at that point because every week there is bad news and people are not in the mood for consuming. It is too early to tell whether the crisis will have a long-standing effect and whether it will be restricted to some mature economies or whether it will spread to the BRIC countries. If it does not spread to emerging markets then the effect of the crisis will not be so big. But again I think it is too early to say.’

Mr Morisset revealed that even before the crisis big brands’ foci were moving away from traditional market places and over to developing countries where the demand for brands is big business. So put your bargain hunting shoes back in the wardrobe and don’t expect Gucci or Versace to be putting up closing down sale signs just yet, there is still plenty of life left in the luxury market for the foreseeable future.

david@khaleejtimes.com