The luxury industry is undergoing an unprecedented transformation. While Europe remains its cradle, its growth is now taking place in India and the United States, which remain strategic markets. But this expansion is confronted with complex realities: cultural codes, commercial practices and HR challenges specific to each region.
In a sector where brand image and excellence are essential, how can standardization and local adaptation be reconciled? How can teams be managed smoothly when regulatory and cultural frameworks vary radically from one country to another? An analysis by Jérémy Mimoun, Country Leader France at Deel.
The United States and India: two growth engines with immense opportunities… and unique constraints
While China still dominates the Asian market, the United States and India are now essential territories for the luxury sector. But their dynamism brings with it major HR challenges.
In the United States, the leading luxury market in terms of value, the new generations are redefining the codes. Customer experience, innovation, second-hand goods: expectations are changing, as are employment models. The massive use of freelancers and digital experts requires increased flexibility in talent management and a revision of management methods.
At the same time, India is expected to grow between 8 and 12% (1) annually, making it the second largest Asian luxury market. But its linguistic diversity, changing regulations and varied forms of employment complicate brand expansion. Structuring a stable team in a country with 25 official languages and 300 dialects is a challenge in itself.
In these two markets, traditional HR models are reaching their limits. Brands must now adapt their strategies to reconcile flexibility and compliance, without compromising the image and excellence that are their strength.
The human resources headache in the luxury sector
Behind the glittering shop windows, the luxury industry is based on a mosaic of professions and statuses. Independent artisans, shop assistants, digital consultants and influencers: each profile involves specific HR constraints.
The use of external service providers is exploding, accounting for up to 40%(2) of the payroll of some companies. This flexibility is a strategic asset, allowing the workforce to be adjusted to market trends and to integrate specialized skills. But it complicates international management. How can global consistency be guaranteed while respecting local obligations?
The major luxury houses already operate with a global HR department supported by regional relays, a model that ensures consistency and compliance. But this organization is being tested by the diversity of legal frameworks, tax systems and management cultures. Managing a digital expert in Los Angeles, a sales advisor in Mumbai or a craftsman in Tuscany is a completely different reality. However, the alignment of these HR models is essential to preserve the stability and competitiveness of the brands.
Reinventing the HR strategy of luxury: solutions for a globalized world
In such a fragmented environment, luxury companies can no longer be satisfied with HR management compartmentalized by country. They must combine strategic vision and local adaptation, by structuring processes capable of guaranteeing both agility and compliance.
The challenges are numerous: attracting and retaining talent, streamlining international mobility, managing a hybrid workforce of employees, freelancers and external partners. But they can become opportunities to build a resilient and differentiating HR model.
Several levers are emerging:
- The deployment of global platforms to centralize talent management while integrating local constraints;
- A “glocal” organization of HR teams, combining a global vision and on-the-ground expertise;
- The rise of intercultural training for managers;
- The strengthening of the employer brand on an international scale;
- And the integration of digital tools to support mobility, collaboration and the management of varied profiles.
Far from being a simple administrative issue, talent management is becoming a central lever of competitiveness. In the luxury sector, excellence no longer depends solely on the product, but also on the ability of brands to finely orchestrate teams with multiple cultures, statuses and aspirations.
Featured photo: Getty Images/Unsplash+
