Luxury goods : selling a dream

Download the report

Olivier BOMSEL

Directeur adjoint du CERNA - École des mines de Paris

Default speaker image


Directeur général d’Hermès International

Default speaker image


Président-directeur général de Thierry Mugler

Seminar Guest speakers | Monday March 23, 1998

The luxury goods industry in France has a turnover of one hundred and five billion Francs and employs as many people as the entire aeronautical industry. Managers of the luxury goods companies say that they earn money by "selling a dream". According to Olivier Bomsel, the luxury industry is effectively based on representations associated with an object bearing a particular brand name which significantly increases the customer's "willingness to pay". In the opinion of Alain Bucaille, luxury goods enable the individual to indulge himself in the richness of the sensations which they bring. As far as this is concerned; there is no price limit either for the manufacturer, who aims for perfection which he himself sets, regardless of cost, or for the customer who is fascinated by this perfection. Didier Grumbach describes the difficulties faced by the large fashion houses with the emergence of prêt-à-porter (ready to wear) clothes. The luxury business must meet the challenges of a massive production, ie. the management of rare goods with controls on their distribution.

The entire article was written by:


This session was published in issue n°13 of the Journal de l'École de Paris du management, entitled Savoir s'étonner .

Google Analytics cookies
This site uses cookies from Google Analytics, these cookies help us to identify the content that interests you the most and to identify certain malfunctions. Your navigational data on this site is sent to Google Inc.