Discover the meaning of the latest trends in the luxury industry with this resource from leading voices in the field
The thoroughly revised Second Edition of The Road to Luxury: The New Frontiers in Luxury Brand Management delivers a comprehensive overview of the foundations of, and new developments in, luxury brands. The book discusses a new wave of mergers and acquisitions, the rise of Gucci, the growth of Balenciaga, a variety of new collaborations between different companies, a growing support for sustainability, and the COVID-19 pandemic.
Readers will also benefit from the inclusion of:
- An insightful analysis of the impact and meaning of the COVID-19 for the luxury industry, particularly for market growth in China
- The creation of savoir faire and business plan competitions in the luxury industry
- LVMH's sponsoring of Viva Technology
Perfect for students in MBA programs or taking degrees or courses in Luxury Brand Management, The Road to Luxury will also earn a place in the libraries of executives and managers in the luxury business, marketing, branding, and advertising professionals and companies, and entrepreneurs interested in the workings of the luxury industry.
Table of Contents
Acknowledgments xi
About the Authors xv
Prologue xvii
Part I: Understanding the Luxury Business 1
Chapter 1: Introduction - Definition and Crisis of Luxury 2
Issues of Defining Luxury 3
Crisis 5
The Luxury Industry 7
Reaction to the Crisis of Global Markets 9
The Effect of a Crisis on the Luxury Industry 17
Strategic Response to Crisis 19
Conclusion 25
Chapter 2: Evolution of the Global Luxury Market 27
Evolution 30
How Has It Changed? 36
Luxury Industry Trends 39
Conclusion 48
Chapter 3: Who’s Who of Luxury 49
The Consumers 50
The Actors 52
Conclusion 94
Chapter 4: Branding 97
Market Saturation 98
Luxury Marketing: Highly Creative and Selective 101
The Nine Ps of Luxury Brand Marketing for the Nomad of Tomorrow 111
Discussion 134
Conclusion 134
Chapter 5: Brand Identity, Ethos, Clients 137
Brand Identity 138
Ethos 144
Clients 149
Discussion 154
Pricing of Luxury Goods 155
Conclusion 160
Part II: Luxury Management and Markets 161
Chapter 6: Family- Run Houses, Corporatization, and New Entrants 162
What Is a Family- Run Business? 165
Family- Run Business During a Crisis 183
Family- Run Businesses of the Future: Corporatization 184
Changes During the Transition from a Family- Run Business Model to That of a Corporation 190
Entrepreneurs and New Entrants into Existing Markets 194
Trends and Discussion 198
Conclusion 202
Chapter 7: Management Styles in the Luxury Industry 203
Path Dependency and Its Influence on Management Styles 205
Managing Paradoxes 210
Examples of Styles 218
Analysis 237
Conclusion 240
Chapter 8: Skills 244
Craftsmanship Through History 248
Entrepreneurial Designers 253
The Sales Team 253
Professional Managers 257
Perspective of the Conglomerates 259
Managing Talent 262
Conclusion 275
Chapter 9: Managing Operations and Supply Chain in the Luxury Business 279
The Challenge 282
The Global and the Local Supply Chain 285
Customer Relationship Management and Customer Experience 295
Conclusion 300
Chapter 10: Services: The Point of Sale 304
Issues at Point of Sale 307
The Customer Experience Dimension 311
The Service Dimension 316
The Phygital Dimension 319
Conclusion 327
Part III: Contemporary Issues and the New Frontiers 331
Chapter 11: Digitalization of Retail - E- commerce, Platforms, and Omnichannel 332
Introduction 332
Evolution of Distribution and Retailing 335
Conclusion 381
Chapter 12: Sustainability, Circularity, and the New Era of Luxury 384
Introduction 384
Definitional Issue and “the Right Strategy” 385
Social, Environmental, and Economic Challenges 387
The Social Challenge 388
The Environmental Challenge 389
The Economic Challenge 394
The Three Challenges 395
Forces Shaping the Sustainability Model for Luxury Business 396
Sustainable Business Model Best Practice for the Luxury Business 410
Conclusion 416
Chapter 13: New Markets and the Future 419
A Consolidated Industry 420
The Frontier Markets 421
The Pandemic Aftermath 433
The Future 440
The New Frontier 443
Chapter 14: Epilogue: How to Create a Luxury Brand 449
Case Studies on Luxury Entrepreneurship 451
Revisiting the 9Ps as the Essentials of Building a Luxury Brand 465
Expanding into International Markets as a Way of Growth for Emerging Brands in Frontier Markets 471
Research Design, Methodology, and Data Collection 475
Index 481
