The aim of the luxury industry is to create exclusivity. The rarer a product the easier it is to charge high prices, effectively making it a luxury item.
In many cases, the wealthiest people on the planet are unaffected by changes in the economy, they still have plenty of funds and can indulge in luxury items.
However, to survive, the luxury industry needs as many customers as possible. The balance is in creating customers while maintaining exclusivity.
The recent global pandemic highlights how difficult the balance can be. The price of gold actually rose during the pandemic. As usual, it is seen as a safe haven for funds. However, the industry as a whole suffered a slump in sales as people were reluctant to spend.
Since the pandemic, sales have improved dramatically, and part of this is due to the use of gold leaf. It has revolutionized the gold sector.
The secret for luxury brands is to use high-quality gold leaf, ideally handmade by experts with years of experience, like Giusto Manetti Battiloro.
Here’s how this gold leaf has revolutionized the industry and ensured the luxury sector continues to flourish.
Affordability
Luxury industries need high demand and low supply. The supply is controlled by the manufacturer, they deliberately produce low numbers of pretty expensive and high-quality items. The wealthiest want these items and will pay for them.
However, to increase profits, luxury brands need to attract more customers. To do this, they need to appeal to mass markets without losing their exclusivity.
Gold leaf is high-quality, real gold, and looks stunning. However, it is significantly cheaper than pure gold. The luxury industry has mastered offering two products to customers.
1. Gold
The premier product is solid gold, incredibly expensive, and can only be bought by the wealthiest people. It’s a true luxury item.
2. Gold Leaf
The second product is made to look the same but uses gold leaf. The best part is gold leaf is still genuine gold, will last for many years, and is still expensive enough to limit supply.
That means luxury brands can tap into a bigger market, reach more, but not all, people, and boost their profits while providing the customer with high-quality items.
Applications
Gold leaf is considerably more versatile than gold. You can add gold to a handbag but you’ll be able to create more detailed patterns with gold leaf.
In addition, gold leaf can be added to clothing, shoes, bottles, food, drinks, pictures, sculptures, and even vehicles.
This array of applications has opened up what the luxury sector can offer, making a substantial and positive difference in profits.
Summing up
Like any industry, the luxury sector needs to evolve to stay at the top of its game. Gold Leaf has made this possible. Its adaptable approach ensures it can be used with multiple products, boosting supply and demand without hindering profit margins.
It’s a win for the industry and the customer which is why it has, and will continue to, revolutionize the luxury sector.