As consumers become more conscientious about their purchasing decisions, the demand for transparency has become paramount. Knowing where a product comes from and how it is made is a critical factor before committing to a purchase. This shift in consumer behaviour has reverberated across industries, prompting brands to rethink their value propositions in the face of increasing scrutiny.
The luxury sector faces a unique challenge in meeting consumer demands for transparency. Indeed, what makes products luxurious – taste, heritage, prestige – is often difficult to assess. As a result, there is a lack of clarity in how value is generated in luxury markets, how it progresses through various stages of production and distribution and how it is ultimately conveyed to consumers. Such a situation offers favourable conditions for counterfeit products to flood the market, eroding consumer trust and brand reputation.
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