The value of luxury in the AI era. A new “quality growth paradigm” is born!
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87
Since the high price tag associated with quality presents an ongoing barrier to entry for most consumers when it comes to premium and luxury brands, the two concepts “democratization of luxury” and “luxury as quality and rarity” seem incompatible. But a new growth paradigm has been identified if we apply the quantum approach and functional economy approach to the analysis of potential new “forms of luxury” (“luxury functionalities"), which could be both “non-luxury quality” and “luxury quality” depending on the “observer,” in line with the Schrödinger’s cat paradox. In the digital world, however, the “observer” has multiplied, and observation is ongoing and in real time. The luxury sector could inspire and generalize “augmented value creation” through “open value-building strategies” reinforced by national regulatory support (for example, the PACTE law in France, a country where the fashion and luxury sectors have a market value of more than 42 billion euros and account for more than 86 percent of exports). Further research will need to be carried out on this potential “augmented quality growth paradigm” inspired by the new luxury business model. JEL codes: D460, D470, D230, D210, (D82, D83, D84), P420, P470, E710.
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