The Road to Luxury: The New Frontiers in Luxury Brand Management

by Ashok Som, Christian Blanckaert

Overview

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.

Product Details

ISBN-13:	9781119741312
Publisher:	Wiley
Publication date:	10/26/2021
Edition description:	2nd ed.
Pages:	512
Product dimensions:	6.10(w) x 9.00(h) x 1.30(d)

About the Author

ASHOK SOM is Professor of the Management Department at ESSEC Business School. He is one of the pioneering thought leaders in designing organizations and an expert in global strategy. He is author of more than 110 cases, articles and books. He mentors start-ups and holds a PhD in Business Administration from the Indian Institute of Management in Ahmedabad, India.

CHRISTIAN BLANCKAERT is Senior Advisor of EPI group, Eurazeo, Vilebrequin and Furla. He is a board member of the Yves Rocher Group. He has previously served as Chairman and CEO of Hermès Sellier and Executive Vice President of Hermès International.

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