especially evident in the United Kingdom, where immigrants from India,
Pakistan and the Caribbean have helped shape the national culture and
identity. Their influences have affected the fashion styles, tastes and
product preferences of the entire country. Also in France, the effects of
the dress culture and style of immigrants from North Africa and Asia is
gradually being reflected in the French fashion style. The case is similar
in other parts of Europe and America, notably the USA and Canada. This
factor has created new expectations and success opportunities for new
luxury brands, and has also led to globalization of fashion tastes.
9 The lowering of the entry barrier to the luxury goods sector. The
highly protective luxury goods industry has opened up. New luxury
brands such as Jimmy Choo, André Ross and Paul & Joe have emerged,
creating more competition for brands and more choices and variety for
consumers. These brands have also proved to up-and-coming designers
the feasibility of launching a new luxury fashion brand in the twenty-first
century.
10 The increase in outsourcing of the manufacture of luxury products
and services. Several luxury brands manufacture their products in Asia,
East Europe and South America where labour costs are substantially
lower than in their home countries. This has created cost-saving opportu-
nities for the brands but also a loophole for the manufacture of counter-
feit luxury goods. Also luxury brands are increasingly outsourcing their
customer services through independent call centres, which leads to cost-
saving but might also result in sub-standard services and unmet consumer
expectations.Luxury consumer market indicators
Several luxury brand managers accede that the luxury goods sector doesn’t
require market segmentation like other categories of goods. While this view-
point is credible in some areas, the luxury market environment has changed
dramatically and consumer groups need to be monitored. Luxury brands need
to understand who their customers are, where to find them and the key factors
that drive their behaviour. This is an aspect of market segmentation. For
example, trend-watchers from London-based company The Future
Laboratory have identified two groups of young and wealthy consumers that
make up the luxury consumer population. They are Young Urban
Professionals (YUPs for short) and New Entrepreneurial Nomads (NENs for
short). These consumer groups exhibit characteristics that make them appro-
priate targets by luxury brands. In addition, there is a consumer group that is
found neither among the extremely wealthy consumers nor the newly wealthy
youth, and which also makes up an important market segment for luxury
brands. However, the affluent market has no single or defined target and no70
luxury fashion branding