Читать книгу Luxury Brand Management in Digital and Sustainable Times - Michel Chevalier - Страница 47

In the automotive business, everybody is trying to reduce the time it takes to develop a new car so that the product line can be changed more frequently. In many businesses, it is possible to turn a situation around in little more than a year. Sometimes, for fast-moving consumer-goods products, it is possible to launch a product, have an immediate and clear indication of how well it is selling in the stores, and get sales to cover the original investment costs within 6 months.

In the luxury world, launches often take much more time and investment. To launch a new perfume, it is necessary to come up with a complete line, from extracts to eau de toilette, even a “bath line,” and for each item there is a need for a costly glass bottle mold and a plastic cap mold. Such molds can take up to 12 months to make. Then a large quantity of the product has to be manufactured, so that at the time of the launch the new perfume can be immediately available in a large number of countries. The lead time for a launch can be anything from 18 months to 2 years. Then in the first year, for major launches, it is not uncommon to spend an amount equal to the first-year sales forecast on advertising and promotion. It often takes 3 or 4 years to start making money.

In the watch business, too, timing is crucial. The design and manufacturing processes have to be completed in time for the Geneva or Basel watch fairs and now specific group brands jewelry fairs at the end of February or beginning of March each year. If the deadline cannot be met, the launch is delayed until the following year.

Table 2.1 Fashion Cycle for a Fall–Winter Collection

Exclusive fabric commitments	September–October, year t – 1
Development of prototypes and matching with fabrics	September–October, year t – 1, February, year t
Fashion show	February–March, year t
Order-taking from multibrand stores	March, year t
Delivery to the stores	July, year t
Sale at full price	September–December, year t
Bargain sale	January–February, year t + 1