ESCP Europe Alumni Magazine - n°158 - Janvier/Février 2015 - 18

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By Anne FUHRHOP (08)

Coming-of-age
It is considered common knowledge that Luxury and Germany constitute an
oxymoron but reality is rather different. Explanations given by Anne FUHRHOP
who works in a Freelancer fashion start-up belonging to a wellknown German
network for luxury goods.

It is broadly accepted that the
German genome radiates technological excellence, industrial
power and engineering culture.
Very few dare say you can find in it
the genes of chic, elegance, taste
and this twist of extravagance that
differentiates luxury from simple
high-end goods. Beyond the
clichés, reality is rather different.
Indeed, the German economy has
never grown multinational luxury
behemoths comparable to Kering,
LVMH or Richemont. However,
a number of large industrial firms
undoubtedly produce luxury goods
and services: Porsche, Lange &
Söhne, Bechstein and Montblanc,
to name a few. Less visible are a number of midsize family-owned companies -deeply rooted in the
famous Mittelstand culture- which produce luxury
goods. These producers have developed unique
savoir-faire and refinement, sometimes over several generations, and boast best-in-class products.

Federate the efforts to promote the sector within
the German economical and political powers.
The sector represents 60 bn€ of wealth creation
and 160 000 employees.
● Federate the efforts to establish relationships
with luxury producers from other countries. In that
perspective, the Meisterkreis meets for example
with the French Comité Colbert on a regular
basis.
● Strengthen business relationships between the
members, from exchanging views and best practices to developing co-branding initiatives.
n Unite to jointly imagine commercial initiatives
directed to the German and foreign markets.
n In Summer 2014, the Meisterkreis launched
a national campaign aiming to raise awareness
against counterfeit and for intellectual property.
n Lufthansa Private Jet division is setting up a
business offering Luxury journeys in Germany
providing foreign High-Net-Worth (HNW) clients
with bespoke tours, namely Chinese travellers
to shop and discover the German heritage and
technical know-how. This should also contribute
to building Germany's reputation as a country of
luxury.
●

Evolution of this sector
A common culture
Those players have generally grown on their own,
and true to their traditional German business
culture, have built their legacy on the very tangible
qualities and features of their products. From a
marketing perspective however, only a handful
of them have succeeded in converting their own
expertise into real recognition as genuine luxury
players, thus missing out on part of the benefits
of the luxury positioning in terms of brand equity:
widespread awareness, improved pricing power,
brand extension capabilities. In 2011 in an effort
to help structure the sector, the Meisterkreis was
founded, a professional association of businesses
active in the luxury good industry with the following
goals:

- ESCP Europe Magazine N° 158 - Janvier/Février 2015

French might always be more chic and effortless, for French luxury is an integrated part of
the national lifestyle. Conversely, as working as a
craftsman in luxury is socially much less accepted
in Germany; German brands struggle in finding
young talents passionate about joining the quest
to become a «Meister». But things are starting to
change for this truly European sector and as Anton
Wolfgang Graf von Faber-Castell puts it: «The interesting thing with the Meisterkreis is the diversity
of the sectors, and the network with the members
of Comité Colbert will widen the point of view on
our common culture. Our standards and our quest
for quality are uniting us.»
●

ESCP Europe Alumni Magazine - n°158 - Janvier/Février 2015

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