In the luxury market, supply exceeds demand

This grants brands enormous negotiating power that can influence the stability of companies throughout the entire production chain.

To defend yourself, you can certainly continue to work on price, invest in research and innovation, and try to improve service.

In the long run, however, you risk seeing your competitive space increasingly squeezed among other actors in the production chain and brands.

Alternatively, you can look beyond and try to build opportunities: upstream or downstream integration in new points of the supply chain, entering new markets, expanding the range of products or services offered, or selecting new supply channels.
 
We call these opportunities strategic options.
 
The necessary condition for fully seizing these opportunities is to have an adequate organizational structure and be ready to embrace changes, and have goals to achieve.

Being prepared means first understanding what internal skills can be relied upon and which ones are needed instead.