This edition of Accuracy Talk Straight addresses the luxury sector and the value of brands. The luxury economy is in the spotlight for differing reasons: on the one hand, for the global success of its leading groups; on the other, for societal issues.

From just a few months of press reviews, the glowing comments of experts, communicators and opinion leaders are clear for all to see, including:

• The growing weight of the sector in the CAC 40 reflects its contribution to the French economy, generating exports, jobs and tax revenues.
• With its global actors and brands that are extremely profitable and growing strongly, Old Europe – and particularly the trio of France, Italy and Switzerland – is showing that it knows how to monetise its traditions and quality of life.
• The sector is protecting and investing more and more in its suppliers and subcontractors, safeguarding local expertise.

However, questions emerge. Some are recent, such as the increasing amalgamation of the luxury industries and artistic production, grouped under the misleading term ‘creative industries’, or the diminished economic elasticity, a reflection of growing inequality. Others are older, from social utility to buyer motivations and the Veblen effect, the assumed submission of the Global South to the intellectual and cultural creation of the Global North, as well as questions of taste around garishness imposed by the economic model of what is, more than ever, an industry.

The contributors to this newsletter will enlighten us on this fascinating industry.

Xavier Chevreux – Partner, Accuracy
Accuracy Talks Straight #10 – One Partner, One View (Editorial)