The nineties

The 1990s was a decade of explosive global consumption of modern luxury fashion goods, spearheaded by the vast expenditure of Japanese and Middle Eastern consumers on luxury goods. As a result, the majority of the existing luxury brands launched international market operations, notably in Japan. Luxury brands also expanded their product portfolios and placed increased emphasis on accessories like leather goods and jewellery, in response to consumer demand. The decade also witnessed rapid...

What is branding really

'Brands' and 'branding' are among the most abused and misunderstood terms in the business vocabulary. If you ask the average consumer of luxury goods to define a brand, they'd probably relate it to a 'brand name' like Versace or Dior, or to a product like the famous Herm s Kelly bag. But if you prod deeper, you'll discover that consumers have different perceptions, feelings and attitudes towards different brands, simply because each brand is unique and customers understand the different...

Option two aligned expertise

The aligned expertise strategy identifies e-retailing as a major source of the core competence of luxury brands. This strategy indicates a high commitment to the development of e-retail. It combines expertise in offline and online retail strategies to produce a continuous outstanding experience for consumers. It recognizes the internet as a key sales channel and gives it a prominent position alongside offline retailing in the company's overall strategy. This e-retail option is capital-intensive...

The rise of the yankees

The nineteenth century was the beginning of America's influence in global fashion. This was propelled by extensive industrial and economic growth as well as growing levels of literacy. Increased opportunities in different sectors, notably in New York, also contributed to American fashion progress. Although most of the fashion products retailed in New York at this time were imported from France and the rest of Europe, American fashion consumers developed sophisticated tastes from extensive...

The nineteenth century and modern luxury fashion

The nineteenth century marked the beginning of the modern luxury goods sector and the launch of many of the highly valuable luxury brands that we know today. The rapid development of the fashion industry during this period was made possible by the bolstering of social and economic conditions and rising prosperity. The demand for luxury goods remained high and extremely talented and entrepreneurial designers emerged and grasped business opportunities made possible by their predecessors. In...

The dolce vita style blast

Italy like France is a country known for fashion creativity and expertise. It has been a major fashion force for centuries, from the period of the Roman Empire until today. Italian fashion know-how and production expertise is widely accepted as the best in the world. Brands like Gucci, Prada, Salvatore Ferragamo and Bvlgari have contributed significantly to establishing an important position for Italy in the world of fashion. However, unlike France, which views fashion as a form of art, Italy's...

Business lessons from boocom

1 Launching a new business requires a solid business plan and business model. No matter how conversant the business founders are with the sector, the business plan is inevitable. 2 It is important to thoroughly understand the market environment before launching a new business, especially in an emerging sector such as the Internet. 3 Any company that desires to sell fashion goods must first create a BRAND with well-defined dimensions of Brand Concept, Brand Identity, Brand Personality and Brand...

Customize me

'The one word definition of true luxury in the 21st century will be bespoke.' Daniele de Winter, CEO, Daniele de Winter Cosmetics, Monaco Henry Ford, the man who founded the Ford Motors Group and brought automobile ownership to the masses, famously made a statement in the early twentieth century about the colour and design choices that his customers could have of the Ford Model T car. He said 'The customer can have any colour as long as it is black.' His unenthusiastic comment about providing...

Level 4 implementation plan

Figure 9.5 The implementation planning level of the luxury fashion business model Figure 9.5 The implementation planning level of the luxury fashion business model The fourth level Figure 9.5 of the business strategy modelling process involves the development of an implementation plan for the chosen strategy option. The plan features connected factors such as a risk assessment, the cost of the strategy plan, the required execution time-frame, the potential success or failure rate and a...

Communication

Communication is a two-way cooperative process between a company and its consumers. It provides access to feedback and more importantly to insight into consumer needs and expectations. Marketing communication adopts several methods in the exchange of information such as through customer services. The internet enhances customer services through instant information exchange with online consumers using emails and live chats. Communication is the equivalent of 'Promotion' in offline marketing....

How the future looks

In as little time as the next decade, the luxury marketplace will definitely be different from what it currently is. The causes and effects of the changes that have been evaluated so far are proof of the changing environment. The current luxury environment requires a shift away from the product-focus strategy to the adoption of the consumer-focus strategy. This means making consumer needs the central point of brand strategy development. It also means that the future will be difficult for brands...

Option three separate business

The brands that apply this strategic option recognize the importance of e-retail but approach the channel with caution. The e-retail activities are therefore developed through a separate and independently managed company. An example is eluxury.com owned by Louis Vuitton Moet Hennessey LVMH , the parent company of Louis Vuitton. LVMH uses eluxury.com as a platform of e-retail in the US market for the products of several brands in its portfolio such as Louis Vuitton, Christian Dior, DKNY and Marc...

The eighteenth century France and luxury fashion

The eighteenth century was a century of contrasts in wealth and status. The prominence of France as the centre of style, civilization, education, intellect, arts and culture continued to rise during this century. By the end of Louis XIV's reign in 1715, the supremacy of France in fashion and lifestyle was unarguable. The rise of France led to the fading of Italy's influence in fashion especially as Italian fashion became less unified and more regional. Louis XIV established himself as the...

Whats in a name The history of luxury fashion branding

'What is in a name That which we call a rose, by any other name would smell as sweet.' William Shakespeare, English playwright 1564-1616 In the quote above, legendary English playwright William Shakespeare raised an age-old question, 'What is in a name ' In the luxury fashion branding scene, the 'name', in other words the 'brand name', is everything. This is because it is the 'brand name' and the 'brand logo' that attracts consumers to a brand and launches the often enduring relationship...

Visuals

Sight is the most powerful medium of attracting and retaining the interest of online customers. Visuals involve the use of tools and aids that luxury brands can manipulate to create a memorable web experience. These tools include the colour scheme, pictures, video clips, slide shows, three-dimensional product views, zoom facilities of whole and parts of products, text font, style and size, interactive flash media, full screen mode and graphics. The homepage of a luxury brand's website is the...

Effect 1 the rise of the masses

The brands formerly known as mass fashion brands, like Zara, H amp M and Top Shop, have gone through a dramatic change in the last few years. These changes have been rapid and innovative and the brands seem relentless in innovating new retail and branding techniques. For example, while the UK's Top Shop is busy taking fashion retail to the homes of fashionable Brits with its 'Top Shop To-Go' service, France's Naf Naf distributes free postcards to consumers and tourists, with images of gorgeous...

Consumer attributes

Consumer attributes identify the characteristics that shape online consumer behaviour. This factor is weighted higher 0-30 points because consumers' attitudes have greater influence on purchase decisions. It measures the percentage of the target consumers' responsiveness to e-retail. It is scored from 0 non e-responsive to 30 90 per cent e-responsive . A sample ES test is provided in Table 6.2. It highlights the e-retail potential of sensory goods. A total score of 30 and above indicates likely...

Business lessons from Armani

1 It is imperative for a luxury brand that wants to remain competitive in the market to understand everything about its consumers. 2 It is possible to successfully extend a luxury brand into several sub-categories without diluting the brand equity. This strategy however requires meticulous crafting, implementation and management. 3 Brand and product stretching beyond 'traditional' luxury goods categories is a viable strategy but needs effective management and an alignment of all the brand...

Who wants to be customized

Fashion Consumer Behaviour Styl

If you ask a randomly selected manager from a luxury brand to name one of the most prominent traits shown by the current luxury consumers, they're likely to tell you that it is individualism and independence of choice. It is absurd that several luxury brands are aware of this need and yet continuously ignore it. It seems like something that is read in journals and newspapers and discarded, only to be dug out of the brain when required to give smart answers to delicate questions. Customization...

From Egypt to Crete and Greece 700 bc to 1150 bc

The cretan period also known as the Bronze Age was the first real period of European civilization and the fore era that influenced European fashion and lifestyle. crete was the centre of bronze and ceramics production and exports and its structured system and emphasis on development ultimately influenced the fashion of the time. As time progressed and the society developed, fashion also developed. Researchers have found indications of permissive half-male nudity, where people working in...

What went wrong

Boo.com was beset by problems from the start. Its launch date was postponed several times as a result of unready operational systems, and this had monetary and time-cost consequences. When the company eventually commenced operations, the anticlimax that followed the months of anticipation was inevitable. However, within weeks the business was already being overwhelmed with problems leading to restructuring plans that included frantic efforts at cost-cutting that led to employee dismissals. The...

Luxury fashion emarketing and ebranding strategy

Consumers decide to visit websites according to the information and products they seek but they re-visit websites according to the experiences of their previous visits. These experiences are shaped by effective e-marketing and e-branding strategies. The internet is a pull marketing medium, which contrasts with the push medium used in offline marketing. This is because internet activities function on the premise of drawing or 'pulling' consumers to visit websites while traditional marketing...

Luxury fashion eretail strategy

In order to implement a successful e-retail strategy, it is important to have a clear plan, which is in line with the organizational long-term branding and marketing goals. Global luxury fashion brands often have excellent offline brand positioning strategies but repeatedly ignore or underplay the effect and importance of strategic online branding. Several strategies have been identified for the successful e-retail of luxury fashion goods. They are discussed further in this chapter. The...

Ebranding strategy

Luxury Fashion Branding

Branding and marketing on the web have often been misinterpreted as one and the same thing. While the branding and marketing concepts complement one another, their application is hardly identical. As has been repeatedly emphasized throughout this book, a brand is the sum of all the feelings, perceptions and experiences a person has as a result of contact with a company and its products and services. This means that branding strategy constitutes of factors that can be linked to consumers' minds,...

America fashion and commerce

The mention of Italian, English or French fashion immediately conjures up an image of a particular style in the mind. When 'American fashion' is referred to, however, people usually become confused. This is because unlike European fashion, which had an early evolution and definition, the American fashion style was unclear and difficult to describe during its evolution between the twentieth and twenty-first centuries. The perception of American fashion has ranged from the casual look comprising...

What is customization

Customization is simply the adaptation of goods and services according to individual consumer needs. It is the tailoring of the offerings of a company to provide multiple choices and variety in such a way that every consumer finds exactly what they are looking for. Customization is not the same as product variety, neither is it the same as personalization. Creating customized goods from the existing product portfolio is different from launching multiple or seasonal product designs. Also,...

Customization

Fashion Product Customization

The demand for customization of products, services and web experiences is an aspect of the increasing expectations of online consumers. In the present luxury market, consumers desire to be recognized and provided with personal attention. In line with this, they expect the websites of luxury brands to provide tools to customize and personalize their experiences with the brands. One method of achieving this is through implementing techniques that aid in manipulating features of web pages such as...

The future luxury fashion consumer

There is no doubt that the luxury consumer will continue to be highly sophisticated, stylish and informed. The current luxury consumer can comfortably navigate around the luxury terrain and expertly position luxury and massmarket brands in a hierarchical order according to their values and offerings. This clear frame of reference has not been witnessed in the luxury consumer landscape until now. In the future, consumers' awareness of their self-worth will continue to increase, and they will...

Website and estore design

A crucial aspect of the online branding strategy development of luxury goods is website and e-store design. Luxury fashion website and e-store design ought to aim to achieve more than basic, functional requirements, through a focus on an enhanced web experience for every visitor to the website. This is because e-retail involves a constant flow of innovative concepts of differentiation to meet the high expectations of the online consumer. One of the most powerful pioneering tools of designing...

Case illustration 5 what does Britishness mean in luxury fashion

What Does Britishness Mean

There has always been a silent credence that the traditional luxury fashion arena belongs to France and Italy. This is perhaps because of the special affinity these two countries have had with fashion as an intricate part of their cultures for centuries. This fact is apparent from the host of the current major global luxury fashion brands originating from France such as Louis Vuitton, Chanel, Yves Saint Laurent, Christian Dior, Chlo , Herm s and so on and from Italy such as Prada, Gucci,...

Strategic option one eretail only

Retail Strategic Option

The main activity of the luxury fashion retailers that have adopted this strategic option is that of exclusive e-retailing of luxury fashion goods. As a result, Figure 6.6 The e-retail strategic options Source Adapted from Harris and Dennis 2002 Marketing the e-business. Most feasible 4. Channel integration Figure 6.6 The e-retail strategic options Source Adapted from Harris and Dennis 2002 Marketing the e-business. all of the company's strategies are developed and attuned to online customer...

Method 1 customizing standardized products

The product portfolio of luxury brands features goods found in the permanent or seasonal collections. These products, although differing in colour, style and design, form a part of the standardized goods that luxury brands provide to their mass consumers. They are purchased off the counter and the choices that consumers have regarding these products are restricted to colour, size and sometimes cost. Customizing standardized products could be exploited in two ways. The first approach is to...

What could have saved boocom

The story of boo.com indicates that the company largely left its performance to fate because of the high confidence and assumption of automatic success in the new e-business sector. This is a major error that indicates a lack of understanding of fundamental business issues. Boo.com could have supported its business goals with identifying and implementing feasible strategies and including these in a solid business model. The company could also have put in place effective planning, monitoring and...

Effect 5 accessible luxury

Another important effect of the changing luxury scene is the increased accessibility of luxury fashion. Luxury fashion goods are now available to more consumers as a result of two major factors. First, the luxury consumer market has expanded and there are more people that can afford luxury goods, all over the world. Secondly, the product portfolio of luxury brands has undergone a modification as several products that previously had the 'exclusivity' attribute have been diffused to include...

Early civilization fashion 3200 bc to 80 bc

The concept of beauty and its association with human beings can be traced to the Christian Bible, when Eve, the first woman created by God according to Christian beliefs, placed a flower over her ear to make herself more beautiful and attractive to Adam, the first man. The Bible also provides other historical accounts of the lavish consumption of luxury materials like gold, silver and myrrh during the times of King David, King Solomon and the Queen of Sheba, particularly between 1010 bc and...

Effect 6 intangible luxury

When the question, 'What is luxury ' was posed to several people, including professionals in the branding and luxury goods fields, their answers included intangible qualities such as time, family, health and well-being, rest, travel, peace, essence, desire and substance. Others say that luxury is a dream and this dream mainly comprises of intangible qualities that are lacking in consumers' lives. Yet others insist that luxury is now a question of personal perspective. These answers reflect two...

Connecting loops

The business strategy model provides a clear picture of a luxury brand's complete business direction. This includes an analysis of the internal and external environmental factors as well as strategic challenges and alternative proposals and their implementation tactics. The features highlighted in the Luxury fashion strategy business model Globalization Diversification E-commerce Democratization Q Low sales Market share Slow growth Inventory cost Increase market share and decrease operations...

Usability

Usability is the backbone of a website and crafts the online experience through navigation, functionality and interactivity. It is an essential element for a high-impact customer experience and can contribute substantially to a luxurious online atmosphere. The usability of a website is determined by its effective application of tools that enhance the ease of navigation, speed of operations and an overall pleasant web atmosphere. Luxury consumers expect reliable and fast service online and at...

Level 2 identify the strategic challenge

This level of analysis features the existing and or potential problems the company is facing or is likely to face in the future. A luxury company should normally have a set of current business problems or potential problems that act as a challenge. Some of these problems would have been uncovered during the current situation analysis in Level 1. Others might be spotted through identifying what competitors have missed in their strategy development. In order to spot a luxury company's major...

History

Pierre Cardin was born near Venice in Italy in 1922, as Pietro Cardin. He was the youngest of 11 children and his father was a wine merchant who provided a comfortable life for his family. However, during the First World War, the family was forced to migrate to the south of France to escape poverty. Pierre Cardin was only two years old. Pierre grew up in France and had dreams of becoming an actor and dancer. The Second World War however ended this dream but also brought another opportunity for...

Licensing methods and results

The major retail strategy adopted by Pierre Cardin is licensing of the brand name to third parties in multiple product categories. The company currently has more than 900 licensing agreements in several product groups like fashion and accessories, wines and spirits, confectionary, toiletries, home decorations, furniture, restaurants and hotels, among several others. These licensing agreements span more than 140 countries. In addition to these, there are several Pierre Cardin stores which retail...

Case illustration 3 the effect of licensing on Pierre Cardins brand equity

Pierre Cardin, whose name and business has one of the highest global recognition levels in the luxury fashion sector, is not only a fashion design icon, but has also become an institution. At his current age of 85 years, Pierre Cardin has a career in fashion spanning more than 65 years. He continues to preside over a fashion empire that he built from nothing and still owns 100 per cent. He has been described as the godfather of the fashion industry and as an unparalleled revolutionary. The...

What are the benefits of customization

Mass customization brings multiple benefits to companies and to consumers. The most prominent of these are increased customer satisfaction and lower total production costs and time. Increased customer satisfaction is achieved through empowering customers with the tools to choose their products and services the way they precisely want them. This is one of the quickest routes to brand loyalty, repeat purchases and increased sales. Customization also reduces the risks of comparative shopping with...

Product characteristics

The product characteristics are classified in terms of their physical and virtual attributes. The products, which appeal to one or more of the human senses of sight, sound, taste, touch and smell are grouped as physical goods. Those that require a minimal use of the human senses and a high level of 'intellect sense' are classified as virtual products. Luxury fashion goods naturally fall within the physical goods group while services such as travel and banking fall within the virtual products...

New selling techniques

In order to gain competitive leverage in a more demanding retail climate and satisfy a more impatient consumer group, new and creative forms of luxury retailing are required. Luxury consumers have increasingly busy lifestyles and their shopping for luxury goods has become more challenging as a result of a crowded luxury market and the unavailability of online luxury shopping. This means that they are restricted to shopping in stores in most cases. However, several consumers no longer desire to...

Corporate and brand strategy

The Pierre Cardin brand and the man Pierre Cardin have one personality and identity. There have been minimal significant conscious efforts made to separate the personality of the brand Pierre Cardin from the man himself, Pierre Cardin. Although Pierre Cardin is the owner and ambassador of the brand Pierre Cardin, the brand entity has been entwined with the personality of Pierre Cardin, his beliefs, business practices and evolution. It is quite impossible to think about the brand without...

Conclusion

While the French brands have maintained an outlook on fashion as an art form that must be guarded and treasured, British brands view fashion as a business venture that is sustained by artistic talent and business innovation. The British brands therefore develop and apply their corporate strategies accordingly, while recognizing the core competences of the sector such as creativity, skill and brand development. These varying approaches raise an important question. What is the current luxury...

The effects of the changing environment

The results of the changing definition of luxury and other phenomenal transformations in the luxury sector are several. However, chief among these is clearly described by the frequently used phrase 'the democratization of luxury'. This expression means that luxury goods or goods that resemble luxury goods are now available to an increased number of consumers. This visible fact is also seen in the current consumer behaviour of 'trading down' in some categories of goods like basic consumer...

The confusion and clarification of fashion cobranding

Co-branding occurs when two different companies pair their brand names in a marketing context. This could include new or revived products, services or ventures as well as advertising or distribution outlets. The tactic of co-branding has been rare in the luxury goods sector mainly due to the high level of competition and brand protection among luxury brands. It is however currently gaining acceptance and popularity. The attempt at co-branding is believed to have been started by haute couture...

Marketing strategy

The Armani fashion empire currently employs 4,800 people worldwide, owns 13 factories and has 300 outlets in several countries. This feat was not achieved by accident but through carefully developed business strategies and models that have been effectively implemented. The following is a summary of the main elements of the Armani marketing strategy Product The Armani product range is developed under different subbrand categories to fit with the market requirements and to address different...

Are luxury fashion products suitable for eretailing

The early part of this chapter identified the major reasons for the late adoption of e-retail by luxury fashion brands, ranging from concern over diluting the brand aura to the popular consensus of the incompatibility of sensory goods and the web. Although these arguments have some logical business credibility, the reality is that it is possible to sell luxury goods online profitably. As proof to this, luxury brands like Louis Vuitton, Christian Dior and Gucci are pioneering e-retail in the...

Emarketing strategy

Marketing is often wrongly summed up as marketing communications, in other words advertising and public relations. From a tactical viewpoint, marketing strategy comprises of a holistic approach that incorporates the development of products, pricing, distribution and promotional techniques. There are also important additional elements of the marketing strategy like the assessment of the competitive and consumer market environments and factors that contribute to competitive leverage. The online...

Acknowledgements

A few years ago, a professional contact granted me an enormous favour and when I asked how I could possibly repay him, he said, 'It's simple. Write a book and put down my name as the author ' If this formula works in business circles, then I owe all the people mentioned below 'books', if not in this lifetime, then maybe in the life to come. First and foremost, I'm grateful to all the companies and brands that graciously granted me permission to reproduce their company images in this book. They...

Effect 4 the new luxury brands

The entry barrier of the luxury fashion sector has been lowered, as pointed out earlier in this chapter. In the past, several decades were required for a new luxury brand to build its credibility and awareness among consumers. Today, however, the timeline has reduced substantially. The main factors that have contributed to this are the internet which provides rapid and uniform information to consumers worldwide making the creation of brand awareness easier and the globalization of fashion...

The Renaissance Italy and fashion 15th and 16th centuries

The explosion of the Renaissance period changed the face of fashion and art forever. This was a period of cultural development in the whole of continental Europe. It was also an era of exchanges, inventions, discovery, communication and travel between the East and the West. The Asian world was discovered by the Portuguese during this period and Christopher Columbus also discovered America in 1492. There were also other discoveries notably in medicine as well as cultural progression. The...

Level 5 performance measurement indicators

The final step in the business strategy modelling process is the identification of suitable performance measurement indicators that will be used to check the progress of the implemented business strategies. These indicators are often applied in the weeks and months following the adoption of the business strategy model. Their main objective is to track the progress of the business model and to identify areas of improvement. The following are three performance measurement frameworks that address...

Option five the eretail mall

Eretailmall

The e-retail mall is a website that sells the products of multiple luxury brands with a single check-out point. This strategy has been adopted mostly by offline luxury departmental stores such as Macy's and Neiman Marcus and by pure-play e-retailers like net-a-porter.com, yoox.com and eluxury.com. Another notable company that has implemented the 'e-retail mall' strategy in an elevated manner is glam.com. The website innovatively and creatively combines the different aspects of fashion retail...

Method 6 allowing the consumer to customize the process

This method of customization involves close collaboration with consumers both during the product development and final assemblage stages and the retailing and delivery stages. Allowing the customer to participate in the customization process provides a total experience on every facet of the offerings of a brand. The consumer is invited to be a co-creator and an in-house collaborator and adviser in the process of designing and providing their desired products and services. This gives the...

Method 2 point of delivery customization

Value Chain Apple Products

Products and services can also be customized at the point of sale or delivery. This can be done in the physical retail store or through the online boutique. This method is most efficient through rapid and quick modification of products and services. Examples include personalized packaging choices, printing and delivery of personalized 'thank-you' notes to customers at the payment point and the already cited Customer Relations letter, which could be personalized instead of the classical mistake...

Business concept and strategy

At the time of boo.com's launch, its founders stated the following We believe very strongly that in Boo.com there is a formula for a successful business, and fervently hope that those who are now responsible for dealing with the company will recognize this. In retrospect, it is evident that boo.com had no clearly defined business concept or strategic plan except the over ambitious plan to make the company both the largest and most sophisticated e-retailer of fashion goods in the world. Its...

Seventeenthcentury baroque fashion

The Renaissance period was the age of Italian influence, while the Baroque era which existed between 1600 and 1750 was the century of France. This period witnessed the prominence of France and the French lifestyle in Europe and the rest of the world. The high influence was made possible by the King of France, Louis XIV, who is often referred to as, 'Le Roi Soleil' The Sun King or 'Louis Le Grand' Louis the Great . He was an exceptional ruler who reigned for 72 years and had enormous political,...

Luxury consumer market indicators

Several luxury brand managers accede that the luxury goods sector doesn't require market segmentation like other categories of goods. While this viewpoint is credible in some areas, the luxury market environment has changed dramatically and consumer groups need to be monitored. Luxury brands need to understand who their customers are, where to find them and the key factors that drive their behaviour. This is an aspect of market segmentation. For example, trend-watchers from London-based company...

The luxury fashion business strategy model

'A stand can be made against invasion by an army no stand can be made against invasion by an idea.' Victor Hugo, French writer and poet 1802-85 It is perplexing to find out that when several practitioners in the luxury goods management are questioned about their business strategies or business models, they often look puzzled. The majority of these managers perceive business models and strategy plans as documents drafted by consultants to be filed away and reproduced during the annual reporting...

How can luxury brands customize goods and serviceso

The luxury industry has several misconceptions regarding mass customiza- o tion of goods and services. The most prominent of these misleading ideas is that mass customization increases operations costs. Another misapprehension is that the 'supposed' high costs incurred through customization will automatically be transferred to the price tags of the end products, making the products more expensive for consumers. There is also the doubt that luxury consumers will be willing to pay more for...

The case of designer outlet shopping villages

Roca Outlet Village

Discount shopping is a major retail feature that attracts consumers to brands. In pursuit of the best value for their money, consumers are ready and willing to go an extra mile for certain types of products including fashion goods. It was on this premise that the concept of discount outlet centres was developed for fashion goods. In the early days of this phenomenon, discount outlets were found mainly in North America, and were often warehouse-style retail centres on the outskirts of major...

Method 5 customizing the online experience

One of the most efficient and cost-effective ways of providing customized products and services to customers and creating a special relationship in the process is through the web. The internet is a medium that provides endless opportunities in product development, production streamlining and online retailing. It is also an excellent means of tracking consumer preferences and storing information that could be used for the future development of products and services. The online experience that a...

Method 3 customizing the retail shopping experience

Retail shopping forms an intricate part of the luxury consumer's total experience with the brand, and the shopping experience can be customized according to customer preferences. Consumers have become increasingly individual in their tastes and inclinations and have differing and changing needs during shopping. These needs are now too varied and unpredictable. The apparent common consumer indicators such as age or gender are no longer adequate for grouping or measuring consumer retail needs....

Charles Frederick Worth Le Pre de la haute couture 182695

Charles Worth Fashion Designer

It is impossible to write about the origins of luxury fashion without paying tribute to Charles Frederick Worth, the man who began everything about Figure 2.1 Charles Frederick Figure 2.2 A design of Worth Worth, the man who invented showing his elaborate style and haute couture and later became attention to detail the first fashion entrepreneur Figure 2.1 Charles Frederick Figure 2.2 A design of Worth Worth, the man who invented showing his elaborate style and haute couture and later became...

Option six limited eretail

Luxury Fashion Website

This e-retail strategy option recognizes the value of e-retail in specific markets while overlooking other markets. Luxury brands that adopt this option implement e-retail in a single or few markets and often leave an unfilled market gap in other regions with a ready online consumer population. Limited e-retail also provides a narrow range of products online, rather than the complete product range. This strategy is currently the most widely adopted by the few luxury fashion brands that have...

Customer value

Consumers seek satisfaction from a brand's products or services through obtaining solutions to their needs and wants. In the case of luxury consumers, these might include emotional and psychological needs. When a luxury fashion consumer purchases a new timepiece from Rolex, the overall pleasure he obtains from the product not only originates from the physical attributes of the wrist watch itself, but also emanates from a package of contentment gained through the total brand experience which the...

Level 1 evaluate and understand the current situation

The current situation of a company is the complete overview of the Internal, Micro and External aspects of the business. This includes the features of the internal organization such as The company's core competences. They are the distinctive features that only the company possesses, which make it unique and dynamic and create competitive advantage in the long run. These inherent and specific attributes could also include a combination of integrated and applied knowledge, skills and attitudes,...

Effect 3 trend watching trend tracking and luxury services

Luxury Fashion Trend Images

One of the main reasons that consumers have become marketing experts is their desire to be trendy at all times and in some cases, at all costs. The majority of luxury consumers now follow fashion trends religiously, which has led to their becoming self-fashion stylists. Their fashion knowledge has also led to an ability to interpret hidden branding and marketing messages that are targeted at their subconscious. The need to be trendy is being fuelled by the mass media, notably fashion magazines...

C Option four channel integration

C Channel integration involves the effective streamlining of both the online 2 and offline retail channels. Brands that adopt this option recognize the presence of an online consumer group and provide a trading platform to satisfy cd them without compromising the strong emphasis placed on offline retail activities. This e-retail option is the most feasible for luxury fashion brands ro at the moment as it effectively aligns the online and offline retailing activ- gt ities and utilizes internal...

Store concept

Fashion Store Concept

The store is an integral aspect of luxury retailing and is crucial in representing the brand identity and meeting the expectations of visitors. The store is often the first point of real physical contact between consumers and brands. A brand's identity is mostly projected through the store concept, from where an image is either crafted or harmonized. This image leads on to a mind positioning and internal judgement of the brand by consumers. For example, if a consumer sees the advertisement of a...

Emerchandizing

E-merchandizing involves product presentation and online selling techniques. These feature several methods that have been directly transferred from offline retailing and modified accordingly. They include the e-store layout and the product presentation style. Other tools of merchandizing like atmosphere enhancing features, ought to be implemented in the e-store to enhance the brand aura. For example Gucci.com, Vuitton.com and Dior.com utilize tools like zoom and alternate product view options...

What is a business strategy model

Business Development Strategy Model

A Business Strategy Model in simple terms is a graphical representation of the elements, processes, plans, tactics and all the features that make up the direction that a company follows in executing its activities. It comprises features that are identified after the assessment of several factors. These features are also some of the elements that would normally be found in a Business Plan of a start-up company. However, the factors are designed to be useful to both old and new companies. These...

The internet as a retail location

Louis Vuitton Sandton City

The internet is the most accessible platform for retailing the products of global brands as well as enhancing brand equity and customer relationships. This includes luxury fashion brands, which thrive on global awareness and operations. The famous retailing adage, which states that 'the three most important things in retail are location location location', recognizes location as the central aspect of retail, and this reasoning can also be applied to the internet, Fast and convenient shopping...

A different fashion landscape

The definition of luxury has changed. Although the term 'luxury' is a paradox in itself, the concept of fashion that is tagged 'luxury' is no longer the same as it was as recently as twenty years ago. In the last several decades, the luxury sector has undergone a significant evolution as a result of several factors, which are carefully examined in this chapter. The analysis provides a portrait of the current luxury environment and acts as a catalyst for strategy development to manage the...

The celebrity connection

Contemporary Luxury Brand Endorsement

Celebrity endorsement of luxury fashion is hardly a new phenomenon but has been in practice for several centuries. Charles Worth, the man who invented haute couture in Paris in the nineteenth century understood the importance of linking celebrities to brands, even before this was recognized as an important marketing communications tool. To promote his fashion house, La Maison Worth, he sought a high society lady and influencer of court fashions Princess Von Metternich, wife of the then Austrian...

The product

Core Product Analysis Shoe

A product is everything a consumer receives from a company in exchange for a cost. These include physical goods and services. A product has two dimensions the tangible features that we can see, touch, smell, hear or taste and the intangible features that we feel and experience. Using this brief definition, it is clear that the luxury goods sector is highly product specific. The meticulously crafted luxury goods that consumers purchase are tangible objects to treasure, while the intangible...

Effect 2 from fast fashion to throwaway fashion

While fast fashion addresses the fashion consumer's demand for constant design change, a new spin-off trend called 'Throwaway Fashion' has also emerged. Throwaway fashion is directly linked with the disposable nature of the current consumer society towards products. This consumer attitude characterized by frequent disposing of goods has been transferred to luxury fashion from other product categories like basic consumer goods. Consumers presently have a throwaway attitude towards a wide array...

From Rome to the Byzantine Empire and the Middle Ages ad 4501500

The Byzantine Empire, located between Europe and Asia, existed between the 5th and 12th centuries ad. The capital of Byzantine, constantinople, was considered the richest and largest centre of commerce and fashion of the period which contributed to its influential role in the development of culture, fashion and history. The era witnessed an even higher level of taste and demand for luxury goods than the Roman Empire. Emperor Justin I and his wife, Theodora, had a refined taste in luxury goods...

Online luxury fashion consumer behaviour

Adoption Process Consumer Behavior

The existence of an online luxury consumer population is no longer in question and this consumer segment is also growing rapidly and steadily. Luxury fashion consumers frequently make online purchases through the limited available luxury e-retail websites. They are also more willing to make continuous online luxury purchases than offline. For example, apparel is one of the fastest growing e-retail product categories globally. An indication is that in the USA, online sales of apparel were...

Luxury retail location

Luxury Retail

The most popular slogan in retail is the following The three most important things in retail are location, location, location. This watchword is used to emphasize the indispensable nature of an appropriate location in retail. Retail location involves more than physical space but includes the choice of a place that is most suitable for the sale of the products or services in question. An inappropriate retail location is difficult to overcome, irrespective of the feasibility of the rest of a...

Promotion

People Looking Street Billboards

Promotion involves communicating the message of a brand to consumers through various means. The means of communication include advertising, personal selling, sales promotion, public relations, sponsorships, cold-calling and several others. Additional 'new' promotional methods are online banner advertising and pop-ups e-mail alerts and mobile phone alerts movies, music and books celebrity collaborations and the recent iPod-casting. Traditional brand promotion is a one-way process while...

The luxury brand index

Table 2.1 lists most of the fashion designers and brands that have contributed to shaping the global luxury fashion market. Some of these brands have Table 2.1 Luxury fashion brands index Table 2.1 Luxury fashion brands index Nazareno Fonticoli and Gaetano Savini Some brands might have been omitted as a result of either the unavailability of data regarding their founding dates and origins or the reluctance of the brands to reveal these. Some brands might have been omitted as a result of either...

Brand equity

This answers the question 'Who likes you ' Brand equity is a term that has been much used and confused and has attracted endless questions and debates. In simple terms, it is the sum of all distinctive qualities of a brand that result in the continuous demand and commitment to the brand. It is a set of attributes, elements and liabilities linked to a brand that add to or subtract from the value placed on the brand by consumers or companies. Brand equity is a means to an end, the end being the...

What are the challenges of customization

The prospect of customizing products and services to a wide audience constituting of millions of global consumers is a task that holds several challenges for luxury brands. The first major challenge of mass customization is the transformation and integration of the complete internal organization for mass customization. This is a challenging task as it involves a complete change of operations systems and processes as well as the reorientation of the employees to be receptive to customization. It...

Effect 7 a borderline identity

Hierarchical Structure Primark

As has been extensively discussed, the change in the luxury scene raises several questions about the real meaning of luxury. It also queries the criteria for defining the brands that can currently be tagged as authentic luxury brands and what they represent for luxury consumers. In the previous luxury market scene, luxury brands were meant for a specific niche consumer group and there were only a handful of brands that could immediately be identified as luxury brands. This was the era when a...

Case illustration 1 the Armani brand extension success story

Armani Brand Extension

The brand Giorgio Armani is considered to be Italy's most glamorous luxury brand. The founder and designer of the brand, Giorgio Armani, is also widely viewed as one of the most talented fashion designers in the world. He is the source of much of the brand's allure and intrigue. His personality and disposition in addition to his creative talent and business acumen have contributed to establishing the Armani brand as a global fashion empire and one of the most valuable brands in the world....

Branding strategy

Armani Brand Extension Model

The Giorgio Armani branding strategy is one of the most extensive and yet one of the most meticulously managed in the luxury fashion sector. The brand has skillfully crafted a single umbrella identity, personality and image from which other sub-brands have been developed. This is a delicate and risky venture for a luxury brand but the success that Giorgio Armani has achieved in managing a portfolio of sub-brands under the platform of a single brand is both remarkable and worth emulating. The...

The case for eretail

Technology has definitely changed the landscape of consumer behaviour and the way business is conducted, including luxury fashion management. The impact of the digital revolution on consumers in the last ten years is overwhelming. The Internet has empowered consumers more than ever before and has elevated their product and brand expectations. The Internet also provides online consumers with instant information, and lower switching costs in terms of time, information, product comparison and...

Retail extension

Luxury Fashion Store Paris

The retailing scene has undergone dramatic development in the last three decades and continues to evolve. The current consumer culture has embraced shopping as more than an act of necessity. Shopping is now a leisure, cultural and entertainment activity in several parts of the world. For example, 'Mall Shopping' is currently a major pastime in Dubai, London and most American cities, and has become a strong competitor for other forms of arts and cultural activities. The phrases 'Meet me at the...

The brand identity

Aakers Brand Personality

This answers the question 'Who are you ' The brand identity is the next branding element that is developed after the brand concept has been established. The identity of a brand is who the brand truly is and how consumers perceive the brand. In other words, the attributes and identifiable elements that make up the brand and how these are perceived and interpreted by the people that come in contact with the brand. This is the essence of the brand. The brand identity comprises of the brand...

Method 4 producing bespoke goods

French luxury cosmetics and fragrance brand Guerlain has been creating exclusive bespoke fragrances for more than two centuries and continues to do so at the Maison Guerlain on Paris' Avenue des Champs Elys es. The process of creating personalized fragrance involves close collaboration with the client to identify their personality, scent preferences and scent memories. This information is used to create the final product, packaged and presented in a Baccarat bottle. The process takes...

Who is the luxury fashion consumer

Consumers drive the luxury fashion sector. Any luxury brand that aims to succeed in the increasingly competitive luxury market environment needs to understand everything about the luxury consumer. And there's a lot to understand When we say 'luxury consumer', we don't mean only female fashion victims whose purses are stashed with endless cash and unlimited credit cards. Although women are highly influential in luxury buying decisions and constitute a large proportion of the luxury consumer...

The menace of fake luxury goods

To commence the discussion of this highly important topic, it is imperative to set the record straight by defining counterfeiting and its boundaries. There are four levels of the luxury faking business 1 A counterfeit product refers to a 100 per cent copy of the original product made to deceive consumers into believing that it is the genuine product. 2 A pirated product is a copy of a genuine item but produced with the knowledge that the consumer will be aware that the item is fake. 3 An...

Modern business principles

The story of Charles Worth hasn't been recounted simply for entertainment, it is rather an important illustration that draws out highly relevant business guidelines for practitioners in the luxury fashion sector and beyond. Charles Worth applied two major principles that made his fashion business highly successful. The first was his utilization of influential people in society as a publicity tool. He had an early realization of the importance of attaching his name to the celebrities that could...

The twentyfirst century fashion consumption environment

The personality and expectations of the luxury consumer are being shaped by several factors in the consumer market and general society, and an understanding of these factors provides an insight into the current consumer behaviour. More importantly, these factors are also indicators of the likely future behaviour of luxury consumers. The following are the factors that currently influence their behaviour 1 The rapid growth of information, communications and mobile technology. It is no longer news...

People

People in the luxury branding mix refers to everyone that is affected by the brand and everyone that affects the brand. These include those involved in the development of products and services, brand management and the employee-wide staff involved in the daily business processes. People also constitutes customers and the general public whose attitudes and predisposition towards a company and a brand affects its performance. People are the most important element of any service because the...