ABSTRACT
Having seen how shifting norms and values coincided with significant socio-economic changes, I examine how the supply side of this process has accordingly changed paying particular attention to fashion. Alongside the emerging mass markets and retail emporiums a select group of producers (and retailers) emerged who offered limited quantities of very expensive objects that were functional but nonetheless distinctive enough to confer the aura of sophistication and wealth. Emphasizing high-quality materials and craftsmanship, such producers were justifying the high price/high value-added relationship. But in order to satisfy a growing demand worldwide for their products they needed to assume many of the operating efficiencies of mass produced companies. The luxury goods industry thus changed from a disaggregated marketplace of multiple suppliers to an industry where in many cases goods are manufactured in larger quantities by an increasingly consolidated set of global companies. Such structural changes, market dominance and scale efficiencies have positioned luxury goods companies as effective shapers of consumer demand. Whilst increasing the volume of their goods to meet new market demand, they continue to emphasize the exclusive, rare and virtually unaffordable products that are characterized by artisanal production and constitute the special refined segment of luxury goods. I note how style remains a cultural and normative phenomena that can change rapidly but also remain remarkably predictive as a marker of one’s position.
