Luxury Management Remains in Style

Rupal Patel took a break from her career as a patent lawyer in Chicago to enroll in an MBA program with a luxury specialization this fall, trading in the Windy City for the sparkling shores of the French Riviera. A student at the International University of Monaco’s business school in Monte Carlo, she is spending the year taking classes with titles such as “Luxury Consumer Behavior” and “Managing Luxury Brands,” and is planning on a career in anti-counterfeiting.

Despite the hit the economy is taking on the luxury industry, Patel is optimistic her degree will give her an edge in the job market when she graduates, she says.

“I think being focused and having a specialization, especially in luxury, makes a person more marketable in this economic climate,” Patel says. “The ultra-wealthy will always buy luxury goods, regardless of the fluctuations in the economy, so that kind of gives us some hope.”

Patel is one of a growing number of students who, despite the uncertain times, are setting their sights on a career in the luxury sector. In the past decade or so, more and more schools, many based in Europe, have started to offer MBA degrees in luxury-brand management. The programs, which give students the chance to specialize in sectors such as fragrance and cosmetics and wine and spirits, have become increasingly popular as top luxury brands have seen double-digit increases in profits in recent years.

But with sales of big-ticket items such as Champagne, designer handbags, and watches expected to slide this year, the outlook is not quite as rosy. Analysts at Bain & Co. said in a recent report that global luxury sales could slide by as much as 7% in 2009, while analysts at UBS are predicting a 5% revenue decline. Despite these gloomy forecasts, applications to luxury MBA programs are on the upswing, with students betting the luxury industry will bounce back, according to a number of schools that specialize in the area.

RISING ENROLLMENT

Applications have also doubled this fall at the International University of Monaco’s Monaco Business School, which started a master’s in luxury goods and services and an MBA with a specialization in luxury management several years ago. There are 38 students in the master’s program and about 12 MBA students concentrating in luxury. Sandrine Ricard, the associate dean, says the school started the programs in part because a growing number of companies were demanding managers with more specialized skills and understanding of the luxury market.
In addition, more mainstream brands are starting to develop luxury product lines, further fueling the demand for expertise in the sector, Ricard says.

“You can have the best product ever, with top quality and a very high price, but that still doesn’t make it a luxury product. There’s something a little magic about a luxury brand,” she says. “You have to be initiated and understand how it works. It’s a lot more specialized and complex than it seems.”

By  Alison Damast