Opinion | Obscene Prices, Declining Quality: Luxury Is in a Death Spiral

We’re seeing endings everywhere, in both obvious and non-obvious ways. Let me count the ways.Despite Trump’s non-brand-approved appearance, McDonald’s is failing as a major E. coli outbreak hit their (icky) onions (along with Burger King and Taco Bell too), sending shares down. It’s not just the E. coli but one of the brand’s fry suppliers closed m... See more

As engineering has improved and knock-offs have increased, though, the two-hundred-year tradition of physical luxury goods is fading away.

One key secret to the art of pricing luxury goods is mastering “limited edition s.” The supplier must strictly abide by its own limit; otherwise it risks losing its credibility and reputation. The limited number of units determines the scarcity and thus the value of the luxury good. A prerequisite for successful luxury goods pricing is the skill to

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One key secret to the art of pricing luxury goods is mastering “limited edition s.” The supplier must strictly abide by its own limit; otherwise it risks losing its credibility and reputation. The limited number of units determines the scarcity and thus the value of the luxury good. A prerequisite for successful luxury goods pricing is the skill to

... See more

With a decrease in discretionary spending and a shift away from non-essential goods, there’s been a redefinition of luxury.

This kind of bundling also occurs in the luxury watch market. Dealers occasionally need to buy a bundle which includes models that are hard to resell. These models often end up in gray-market channels, where original watches get sold at steep discounts. This kind of price erosion is toxic for luxury goods. A customer who has paid $25,000 for a watc

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