By John Zogby
Oh, God, Tuscany! The region has it all – world class cities like Florence and Pisa, incredible lush farmland, natural resources and skilled labor that produce among the world’s finest leather goods, timepieces, wines, and marble. The seacoast is just fine. Just fine, indeed.
I traveled to Tuscany and spoke to many local public officials and to a series of business and industry associations and shared with them my ideas on the growth of Secular Spiritualism – living with less, reordering life’s priorities, the need for something more authentic out of life besides material goods. Needless to say, the Italian leaders were particularly interested because they included among them representatives of some of the most important luxury good producers on earth. While the Great Recession has not hurt Italy as much as other countries, the economy there is highly dependent on the export market. Thus, how to move beyond the economic doldrums and prepare for a consumer with different priorities?
We had terrific conversations and my conclusions pointed to a unique opportunity to reposition their goods and brands. Certainly, people will continue to enjoy luxurious goods and extravagance, but to a lesser extent, particularly Americans and Europeans. With a burgeoning middle class and new wealth in countries like Brazil, Russia, India, China, and the Gulf, new demand will cover some of the losses in the West. But the issue in the West is less one of wasteful spending. I believe that conspicuous consumption will be gone for a long time. Rather, the issue is long-term value of products. “Made-in-Italy” should not represent short-term satisfaction and enhanced social status but instead should be defined in terms of a long-term investment. A Bulgari watch should not be used for flash but to define longevity, the highest quality.
This will involve new messaging, new branding, and a change of emphasis. Anyone who can produce such wonderful products will be able to re-position them well.
#1 by Anthony Chipoletti on October 24th, 2009 - 10:14 pm
my DNA ancestor was living in Tuscany 17,000 years ago, a mitochondrial mother called Tara bt oxfordancestors dot com which tested my DNA and gave me a detailed reference to my ancestor
#2 by Michael Carmichael on December 7th, 2009 - 9:24 am
Agreed. Luxury will simply redefine itself as sustainability to leap across the millenial abyss and transform our understanding as value. Brands will not dissolve, they will morph into icons of sustainability.