Chapter

Balmer, J. and Greyser, S. (2003) Revealing the Corporation, New York Routledge. Hamel, G. and Prahalad, C. (1994) Competing for the Future, New York Wiley. Harding, S. and Long, T. (2003) MBA Management Models, Hampshire Gower. Joyce, P. and Woods, A. (2001) Strategic Management, A Fresh Approach to Developing Skills, Knowledge and Creativity, London Kogan Page. Kapferer, J.-N. (2004) The New Strategic Brand Management, London Kogan Page. De Wit, B. and Meyer, R. (2004) Strategy, Process,...

Brand concept

The Andr Ross brand has its foundation in designing and producing highly-crafted bespoke products for a highly sophisticated clientele. This bespoke heritage base has been transferred to the production of a range of accessories for a broader luxury consumer group. This simple proposition that bespoke luxury accessories can be made available to a wider luxury market forms the essence of the brand. This brand core was developed from the recognition that the world's fashionable women invest in...

Products and retail

Andr Ross also places great emphasis on its product development as one of its key success factors. The products are designed through internal creative talent and external consultants and designers with outstanding experience. In some aspects, such as hardware production, the brand also partners with ateliers and matelliers with proven savoir-faire. This production flexibility provides the brand with the ability to easily adapt to changing consumer needs. The workmanship reflects handcrafted...

Customer care

Customer care and customer services are among the current buzzwords in the business vocabulary. Excellent customer service does not begin and end with placing pleasant looking employees behind polished desks to respond to queries. Effective customer care is extended to every aspect of a customer's contact with a brand. The current reality is that the majority of luxury brands have a poor rating among consumers with regard to the provision of customer services both online and offline. This is...

Conclusion

Andr Ross is one of the few new luxury brands that is neither owned nor funded by a large conglomerate or other corporate investors. It is also one of a handful of luxury brands that is completely and privately owned by a single person. The brand's founder and owner, Andr Ross Blencowe, is both a visionary businessman and a talented craftsman. This combination of skills is one of the core potential success factors of Andr Ross. Although the brand has set off on the right footing and headed in...

Community

The online consumer society consists of several communities of consumers with shared interests. The internet has equipped consumers with the tool to develop platforms where they can share stories of positive and negative experiences with different brands. These are called user-to-user communities. These communities have sprung up in the luxury fashion arena, although they have been prevalent in other sectors such as the airline industry. A notable example is the Louis Vuitton fan website at...

History

Andr Ross is a French luxury fashion accessories brand that produces and retails highly crafted luxury leather goods. It is considered to be the first truly French luxury brand of the twenty-first century and is also one of only two true luxury brands that have emerged from France in the last ten years. The brand's origin is France and its foundation is built on the specialized fashion savoir-faire of the artisans on Paris' Rue Saint Honor , where the company is based. The brand was formed to...

Content

The contents of a luxury brand's website are significant in sustaining the brand's image. The corporate, product and services information provided on the website should be up-to-date and highly interesting. The presentation style using text, images, video, sound and colour scheme are also expected to be well coordinated. In addition, other pleasantly surprising features that contribute to an enhanced customer experience should be incorporated in the website. This could be in the form of a...

Sound

Introduction About Musical Sound

In offline retailing, sound is used to evoke and stimulate different feelings in the subconscious of the shopper. This is achieved through music type, volume, pitch, tempo and other sound manifestations. For example, in physical store retail, fast music is used to generate high shopping traffic inflow and spending loud and funky music encourages impulse purchase soft music such as jazz and classical music prolong the length of time that customers spend in a store and slow tempo music reduces...

Final notes

The major features of the website and e-store design are summarized in Table 6.3. These tips, while not conclusive, provide a guideline to developing a highly luxurious and functional luxury website and e-boutique. Table 6.3 Dos and don'ts of website design 2. Provide multiple language choices in addition to multiple location contents 3. Apply a clear colour management plan 4. Align website design to brand image 6. Provide the browser with 'breadcrumbs' as a tracking device 7. Use clear,...

Cost

The cost of purchasing a product is not the same as the product's price-tag. The real cost that consumers bear includes the price of the product and additional costs like transport cost and travel time to and from the store, time lost in parking, time spent in the store, time spent at checkout points, the mental cost of shopping and in some cases the monetary cost of parking. E-retail saves the online consumer these costs and hassles. An additional 'cost' factor in the online sale of luxury...

Case illustration 4 is Andr Ross the first twentyfirst century luxury brand

There is a general perception in the luxury goods sector that it is difficult to develop a luxury brand in the current luxury business context. Several industry insiders have also acceded that a luxury brand needs a minimum of thirty years to assume luxury status. There are numerous reasons for these assumptions. The first is the notion that history and heritage makes a brand prestigious. A second reason is the massive initial capital investment required to introduce a new luxury brand in a...

Smell

Smell is a challenging human sense to transfer to the internet virtual environment because of the difficulty of reproducing aroma on the web. However, technological advancement aims to provide a means for online consumers to have a whiff of scent while shopping on the internet. One method is through a scent-smelling software called 'iSmell Personal Scent Synthesizer', still in development. This software is supposed to provide digital scent through a peripheral device plugged to a computer in...

Business lessons from Pierre Cardin

1 In luxury fashion, brand image is imperative and cannot be compromised. 2 A brand that aspires to attain or maintain a luxury status must have a clear Brand Concept and Brand Identity in order to create the appropriate Brand Positioning in the mind of consumers. Without these, a brand is going nowhere. 3 Licensing is always bad news for luxury brands. In a case where it is inevitable such as expansion in strictly governed markets, it should be kept to a minimum and all aspects of its...

The luxury eretail death wish list

If after reading this chapter you still subscribe to the primeval and unrealistic viewpoint that the internet and luxury goods are incompatible, then the ec retail death wish list below provides some guidelines for you. Good luck, you'll need it 2 Have a website with only one page x 3 Have a website but do not sell your products online. Only provide your global consumers with product images and tell them to travel to your store in Paris to buy them 4 Allow your products to be sold rampantly on...

Eretail strategy options

The next step after determining the suitability of the e-retail of luxury fashion goods is the selection of the appropriate e-retail strategy option. The core of the e-retail strategy is the choice of the approach to adopt towards e-retail. Several luxury brands often fall into the unfounded conclusion that internet presence and a strong brand identity equals guaranteed online sales. This is one of the biggest misconceptions of luxury e-retail. Success on the web is unachievable without a...

Convenience

Convenience is one of the most important advantages of e-retail. The internet provides online consumers the comfort to buy what they want, when they want it through an e-store that is open round the clock. Online consumers also have the benefit of combining online shopping with other activities. The internet also offers a retail location without associated problems like accessibility and transport. Convenience replaces 'Place' or 'Distribution' in the offline marketing mix. In order to make the...

Option seven information only

This e-retail option provides solely product and corporate information for customers and the public through the website. The majority of the global luxury fashion brands such as Chanel and Versace fall within the group of luxury brands that have this approach to the internet. This option shows a low commitment to e-retail and doesn't address the online consumer and their needs. While this approach may be intended to protect the brand integrity of exclusivity, it is no longer applicable in the...

Option eight no web presence

The 'no web presence' e-retail strategy indicates an aversion to the use of the internet for e-retail and also for information provision. Some luxury brands that currently adopt this approach are Prada, which has a single-page website with no information, although it occasionally features pop-up messages of news and events related to the brand. Other luxury brands like shoe designers Christain Louboutin and Manolo Blahnik don't have independent websites although their products are retailed from...

The luxury branding deathwish list

Managing luxury brands is a fascinating business. However, the development and implementation of effective strategies is a challenge that needs constant revision and high adaptability. Luxury brands must remain innovative and creative in their branding, marketing and retailing design. More importantly, there should be clarity and consistency in delivering a luxury brand's message to its audience. Every luxury brand worth their place in the market ought to ingrain brand knowledge and management...

Familiarity and confidence

This criterion is measured by considering the consumer's feelings of familiarity and confidence in products and services based on previous use, satisfaction and brand reputation. A consumer who is confident about the products of a brand is likely to purchase them online without feeling a strong need to physically handle the goods pre-purchase. This relates to the fact that luxury consumers that are most likely to purchase goods online are those that already have an existing relationship with a...

Business lessons from the Brits

1 The previously high entry barrier of the luxury sector has been lowered and it is now possible to launch a successful global luxury brand within a short time period. 2 A new brand doesn't need a long history of fashion and cultural assimilation to conquer the twenty-first century fashion market. 3 The role of country of origin in the luxury fashion is declining. 4 Modern fashion management requires constant innovation in product design and business management systems. 5 There is power in...

Authors note

I have a unique neutral position in not having a pedigree from any of the luxury key markets. This implies that my analysis in presentation of the luxury fashion sector is likely to be highly objective. Previous writers on the subject of fashion have often been accused of a biased point of view in favour of their countries or the brands that provide them with financial backing. So I hope these will be some of the criticisms I might escape. However, I apologise in advance if after reading this...

Business lessons from Andr Ross

1 It is possible to launch a new and successful luxury brand in the twenty-first century, without a long history and despite the high failure rate of new brands. This is as a result of several factors including the lowering of the high entry barrier into the luxury sector and info-tech. The cost of success, however, comes high, as the brand not only needs exquisite products but also a solid business and branding management system. 2 New luxury brands must highlight their brand core and use this...

Great moments in the history of fashion

The history and evolution of fashion is undoubtedly fascinating. The world of fashion has witnessed several important phenomena that have brought change to both its consumption patterns and management practices. Here are ten events that so far can be summed up as the greatest moments in the evolution of luxury fashion. They incorporate the facet of creative design, the influence of society and the management aspect of fashion 1 The early Egyptian era of opulence. 2 The Italian Renaissance...

The business strategy modelling process

As indicated earlier, business models are brand-specific because every luxury brand has features that make it unique and different from others. This means that the process of developing a business model for luxury brands and companies in other sectors ought to be flexible in order to accommodate company-specific features and market changes. As a result, the process of crafting a business strategy model for the luxury industry shown in this chapter is not a strict and inflexible magical tool but...

And beyond

The rest of the noughties and the following decades will feature symbolic developments in the luxury goods sector. Information and communications technology will become more extensively adopted by innovative brands, which will be extended beyond the Internet and e-retail to include Mobile Shopping and possibly iPod Shopping. There will also be advancement in sophisticated consumer behaviour tracking techniques such as Neuro-marketing science, which utilizes the measurement of the reaction of...

End notes

This chapter has highlighted the steps required in business modelling for the luxury fashion sector. As previously indicated, however, the model is not a magic tool for everlasting business success, but rather a guide that facilitates strategic direction. Its huge potential and positive impact will be most appreciated if it is applied effectively and revised frequently. This includes identifying and applying the features that are intricate to each luxury brand. The principles of the business...

Case illustrations

'Tell me your story and I'll tell you your future.' The purpose of this chapter is not to repeat the brand stories that have been written about extensively, like the famous tale of Burberry's brand repositioning or the redefinition of mass premium fashion by Zara. This chapter rather aims to raise questions related to the main issues of luxury fashion management, using relevant brands as illustrations. So, in the following pages, you will not find the interesting history of Louis Vuitton or the...

Burberry

The brand symbols shown are a mixture of luxury and prestige, premium and mass fashion brands. When you looked at each of the logos, something happened in your mind. You had a thought about every one of the brands, no matter how fleeting. Now take another look at the logos, this time a little bit longer. What connotations do you have from your perceptions of each of the brands If you make a note of them, you'll discover from your list that you already have an idea of their brand attributes,...

Case illustration 2 the boom and bust of boocom

The story of boo.com, the largest global e-commerce company to collapse during the 2000 dotcom crash, is very often told in business circles, especially to highlight a significant investment error. Boo.com was a major mistake there is no doubt about it. History has also shown that the failure of the company was more than a case of being a casualty of the emerging internet commercial sector. Boo.com failed as a result of the adoption of several external unfeasible strategies and internal...

Eretail indicators

Internet penetration in several countries is growing at a fast rate. In most developed economies, the percentage of the population with internet access is as high as 95 per cent. In the United Kingdom, more than 11 million people consider themselves as 'heavy' web users and this trend is similar in other countries. Other indicators show that by the end of 2006, more than half of the entire UK, German, French and Italian populations will be online, almost a 100 per cent increase from 2000. The...

So who are the true luxury brands

The traditional view of luxury has been affected by the recent changes in the luxury market. Despite this, the true luxury and prestige brands remain, unwavering and uncompromising of their core values and continuously influence their consumers' thinking. These brands have also benefited from long histories, as heritage and tradition have always played a vital role in the luxury goods sector. New brands that have devised strategies that enable them act as old brands also fall within this group....

Branding evolution

The notion of branding as part of ancient trading can be traced to the Greek and Roman empires, before the modern industrial revolution. During this period, market awareness was created through carving out shop route signs and product descriptions, in stone along footpaths. This method progressed on to the early sixteenth century when whisky distillers began to ship their products in wooden barrels with the name of the producer burned into them. The sole purpose of this method was to...

Level 3 formulate and analyse the strategy alternatives

The third level of the business modelling process involves identifying the tools to address the already spotted business problems and major business challenge. At this level, a set of realistic options of alternatives should be identified to solve the major business challenge and also address the minor problems. These options should be evaluated, using the pros and cons criteria. The strategy alternatives should also tackle the competitive market factors and provide the luxury company adequate...

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...

The luxury fashion marketing strategy

The process of branding begins from the marketing strategy, where the products and services are created and strategies for their pricing, distribution, promotion and positioning are devised for the target market s . Branding and marketing have a mutually beneficial relationship. Branding is a core aspect of marketing and also depends on the marketing strategy for its existence because without products and services which marketing devises , the branding process cannot exist. Marketing on the...

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....

Strategic implications for luxury brands

The analysis of the luxury consumer market has several strategic implications for luxury brands. It forms a basis for a clear direction in the formulation of branding and overall corporate strategy, and an understanding of luxury consumers also enables luxury brands to gain a competitive leverage in the marketplace. In order to achieve this, the following tips are imperative 1 Luxury brands must remain innovative and forward-thinking. 2 Luxury brands must streamline production processes for...

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...

Fashion

Silverstein, M., Fiske, N. and Butman, J. 2004 Trading Up Why Consumers Want New Luxury and How Companies Create Them, New York Portfolio Books. Tungate, M. 2005 Fashion Brands Branding Style from Armani to Zara, London Kogan Page. Time, Style amp Design, Spring 2004, 2005, 2006. Time, Style amp Design, Summer 2006. Luxury Briefing, July August 2004. Luxury Briefing, June 2005. Luxury Briefing, July August 2005. Luxury Briefing, September 2005. Luxury Briefing, October 2005. Luxury Briefing,...

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...

Customer franchise

Customer franchise is the sum of the associations of trust, confidence, image and overall feelings that a consumer has developed in relation to a brand, as a result of their experiences with the brand online. Customer franchise can be directly linked with brand positioning and brand equity, which have been extensively discussed in Chapter 5 of this book. The branding element is of paramount importance to luxury fashion brands because the brand strength sustains the online experience with the...

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...

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...

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...

Computing

Computer and logistics systems are fundamental in the effective functioning of the e-retail elements. Computing is required for effective control of the product range, orders and dispatch. In order to manage logistics like timely deliveries of goods in the right quantity and size and to the right location, effective computing and category management systems must be put in place. Other related issues such as electronic billing, taxation calculation and secure payments can only be achieved...

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...