In the bizarre business world, luxury goods and finance seem to belong to different fields, but they are inextricably linked, just like the stars in the night sky. Careful exploration can outline the unique outline of finance from luxury goods.
The birth of luxury goods, from a stroke on the design drawing, to the selection of top fabrics, and then to the elaborate work of craftsmen for several months, is behind the investment and circulation of huge funds, which is the first appearance of financial power. The brand needs to raise funds from the capital market, whether it is a debt bridge built by bank loans or the expectation of shareholders gathered by equity financing, it is like a rushing river, injecting vitality into luxury goods from concept to entity. At this moment, financial institutions are playing the role of resource allocators, evaluating risks, determining the flow of funds, and accurately transfusing potential luxury items according to multiple factors such as brand history, market potential, designer talent, etc., so as to wake up a piece of fancy clothes, a piece of famous watches, and a piece of artistic sculpture-like bags from nothingness and step into the realistic luxury stage.
The pricing system of luxury goods is an excellent interpretation of financial logic. It is not a simple cost superposition, but a complex algorithm that integrates brand value, scarcity and market supply and demand. The past glory of the brand is like the credit rating in finance, excellent brand inheritance and excellent reputation, which gives the product a high brand premium, just like the low interest rate and high pursuit of high-quality enterprises in the bond market by virtue of their excellent reputation. In terms of scarcity, limited sales of bags and orphan jewelry are scarce, such as limited-edition bonds or unique financial derivatives in the financial field, and the prices are soaring. The delicate balance between supply and demand in the market is like the fluctuation of the stock market. When a new product is released, the market is hot and there are many buyers, and the price is rising, just as active stock drives up the stock price because of investors' competing pursuit; On the other hand, if the market is indifferent, the brand will activate the market, stabilize the price and maintain its value coordinate in the luxury financial market through promotion and joint name, just like enterprises adjust dividends and buy back shares.
The marketing and promotion of luxury goods is another world of financial operation. The brand's large-scale advertisements in the world's top fashion magazines, the fantasy show that was built at the fashion week, and the sky-high contract that invited the top stars to speak, behind these marketing methods, is the precise control of financial expectations on the market. As a fund manager, the brand knows well the consumer psychology, wealth level and aesthetic taste of the target customer group, and invests the funds in the channels that can maximize the brand exposure and reputation. Every advertisement and every show is an investment in brand assets, expecting to get rich returns in future sales revenue, just like different asset allocation in financial portfolio, pursuing long-term brand value appreciation and market share improvement.
From the birth, pricing and marketing of luxury goods, the power of finance is everywhere. It is like a lighthouse in the dark night, illuminating the way forward of luxury goods industry, guiding the flow of capital, shaping the trend of price and carving the future of brands. The two interweave and dance, composing the luxury movement in the commercial world, and revealing the capital wisdom and financial logic hidden behind material luxury to us.
