Recalibrating the luxury goods business model

It appears that there is a makeover of sorts beginning in luxury goods. Traditionally luxury labels have shunned direct to consumer sales channels in favor of their maintaining their existing distribution network of partners, franchisees and wholesalers. Now some are changing their tune and embracing online retail by opening their own store. Longines, which opened their store earlier this year, and today, the Wall Street Journal profiles the corporate makeover of Burberry (subscription may be required) which includes selling goods directly to consumers through their online store. The Burberry article does a very good job at highlighting some of the process changes that were required to support the new model.

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