Barneys New York filed for bankrupt, and Bergdorf Goodman is a consignement shop. Is it a nightmare or a hell of reality show?
“We’ve learned that half of our customers recycle. So forget online. We’re now the newest luxury consignment shop — and you’re handed your money immediately.” wrote Page Six on what said CEO of the Neiman Marcus Group Geoffroy van Raemdonck
The key issue is just one: true luxury and high volumes are incompatible.
While for fashion the true story is that it cannot be sustainable because it changes products every month and the rotation in-store must be high, for luxury (that should have a much more narrow target) products should be extremely well crafted, designed to last and to be timeless.
That’s the same for a luxury car. Automobili Lamborghini S.p.A. was obliged to launch an SUV to dramatically increase volumes. Because the supercars offer must be kept at certain levels.
Ferrari stock is worth 12 times more than Tesla following Barron’s article.
There is a reason for that.
It’s called rarity and exclusivity.