Performance improvement |
The luxury goods industry has seen core customers trading down to lower-price products and spending less. In general, luxury goods having been hardest hit as consumers cut back on discretionary spending. The main challenge today is the need to strip costs down to minimize the impact of reduced sales in order to remain competitive for when the recession eases.
Our service solutions
- Our holistic cost reduction approach enables quick wins and a sustainable effect to generate cash flow (60% of savings), process improvements (20%) and targeting structural issues (10%) at a time when the industry is facing decreased sales and rising raw material costs.
- Intelligent rightsizing enables lowering headcount in a more sustainable way to keep the balance between headcount reduction and sustained operational performance. The identification and retention of critical skills, capability and capacity is essential to being well positioned once the market begins to recover.
Our strategy and operations teams can help you to understand the sustainability of proposed actions and look beyond immediate cost savings, taking into consideration your wider strategic agenda.
