After a period of unwillingness to use franchising, the luxury business changes its codes and starts developing this way, too. Nutrition, fashion, jewelery and also leather accessories are all the sectors which are successful in franchising both in France and over the world.

Luxury nutrition is going down in franchising

Chocolate-manufacturer, confectioner, grocery, cookery specialist: luxury nutrition shows itself in different forms. Franchising provides extraordinary possibilities of expansion.

The example of the Fauchon brand is especially revealing in this respect. Created in 1886 in Paris, this business of luxury nutrition and grocery decided to go for the adventure of franchising in 2010. Thus, before the end of November, Fauchon was going to inaugurate its first franchised boutique in Bordeaux, France. This revolution for Fauchon was going to bring in a revenue of roughly 2.5 million euros for the Parisian office, starting from the first year.

Luxury chocolate business is not on vacation as far as franchising is concerned. A chocolate business called Godiva, a Belgian quality benchmark in the area, has over 4000 sales points on all the continents and, thus, it has established as a luxury and refined gormandize symbol in the world.

Franchising fashion

Be it clothes or shoe-making, fashion affords itself more and more often the luxury of development of a franchising network.
Lanvin, the oldest haute-couture house in Paris decided to try itself in franchising. First, Lanvin brand reserved international development for franchising. However, now it uses a partnership scheme in France, too, for example, in Bordeaux. Subsidiaries have also given luxury clothes brands for franchising licenses. Bonpoint is an example of this high quality offer. This brand still dedicates itself to a larger audience and is developing in the international market.

The sector of luxury shoe-making has also had to resort to franchising schemes in order to continue growing. Finsbury, Loding or Paraboot are also the brands which have handled successfully the challenges of franchising.

Franchising in jewelry

Luxury business by definition, jewelery now seems to refuse from its taboos and goes for franchising more freely.
Mauboussin, for example, has developed an extraordinary policy of franchising development. By eliminating the distances defined by traditional codes of jewelery, this brand breached the franchising line and launched its products in Asia: in Seoul, Hong Kong and Macao.
Bulgari is also commercializing jewels, luxury watches and accessories under franchising licenses. Thus, the Italian group is now present in Europe, North America, Middle East, Asia and Africa.

Franchising in leather accessories

Another big luxury sector is that of leather accessories and its great names have also opened up for franchising in order to facilitate expansion and growth.
Lancel is omnipresent player in the market of leather accessories, which enjoys a unique position over the territory of the "French Freedom", and it has been developing its franchising schemes since 1978. This brand is now present in many countries of the world and counts over 500 sales points.

Le Tanneur, a creator, developer and manufacturer of leather accessories and high quality accessories since 1895, has launching its franchising scheme in 1994. Its expansion has been continuous since then. This brand opened eleven new shops in 2009 and is planning to develop its network of shops at 7-10 new ones a year, mostly, in towns of less than 50,000 residents.

International development of luxury brands under franchising

Certain markets offer perspectives of development which might be especially lucrative for luxury franchises in their own regions.
China is really Promised Land in this respect. While the luxury market was declining by 8% in the rest of the world in 2009, it gained over 12% in the Middle Kingdom. Indeed, despite the crisis, Chinese consumers who have money continue spending at an equal level in the market of cosmetics, perfumes, jewelery, and fashion.

Moreover, the future seems equally radiant. According to research data, most Chinese plan to increase purchases of luxury products in the future. As far as their choices are concerned, the Chinese are still inclined to buy high quality brands known in the rest of the world. Franchising schemes provide a supplementary source of income in this segment, too. Indeed, franchising schemes correspond to the limits of the Chinese market and follow the requirements of the Government. Foreign luxury brands have all the possibilities to develop their franchising schemes within China.

Besides, Morocco - especially its economic capital Casablanca - has become gaining an appeal for luxury brands which have become accustomed to expanding there via franchises. Luxury has found its unique place in the white city, a neuralgic center of Moroccan economy. Luxury specialists, encouraged by the economic boom and requirements of new customers seeking for luxury brands, invested in Morocco and found there a place for making profits. The segment of clients seeking for luxury brands has become more democratic and, therefore, larger. This segment is no longer composed of elite public, it actually includes now doctors, engineers, top managers or young entrepreneurs who have seen their social status improve and who have developed their own preferences for exquisite products.

Conclusion: franchising is a perfect answer to the luxury market which has been increasingly more democratic.
Luxury is no longer reserved to the richest countries nor to the social elite. New customers, once they have found supplementary income, become more diversified every day. Demand is growing and this makes luxury brands develop new offers. In order to meet this new challenge, the luxury brands have dared breach their own taboos and resorted to franchising schemes which turned out pretty successful. Franchising has, therefore, imposed itself a royal road of expansion of the luxury market.