The Road to Luxury

A thorough, comprehensive guide to the luxury goods industry for executives, entrepreneurs, and students interested to know about the luxury business

As key new luxury markets like Asia, Latin America and Africa continue to expand, The Road to Luxury: The Evolution, Markets and Strategies of Luxury Brand Management gives professionals interested in the industry a holistic understanding of luxury market dynamics around the world using stories, experiences, relevant data and statistics on current market trends. For investors, the book offers valuable insight on where the industry is headed. For industry insiders and executives, it presents valuable data with which to craft successful business strategies.

• The definitive insider's guide to the luxury sector by leading figures in the field

• Includes rigorous academic data, including information on the business attractiveness and appropriateness of various country markets

• Examines strategies and success factors of key players, and insight into the systems and operations, retail, distribution and e-commerce, emerging markets and emerging brands, as well as management styles

For professionals in the luxury industry, as well as those studying it or investing in it, The Road to Luxury presents a complete and information-packed resource covering virtually every aspect of this growing sector.

Autorentext

ASHOK SOM is Professor of Global Strategy in the Management Department at ESSEC Business School, Paris-Singapore. He is the founder of the India Research Center, was the Founding Associate Dean of the Global MBA program, and the founder of the Global Management Programs on Luxury and Retail Management (in partnership with Indian Institute of Management (IIM) Ahmedabad, India. CHRISTIAN BLANCKAERT is the Chairman of Petit-Bateau. He is also the Senior Advisor of Eurazeo and a board member of Moncler and Champagne Piper-Heidseick. He has previously served as Executive Vice President of Hermes International from 1996 to 2009.

Inhalt
Acknowledgments xi

About the Authors xiii

Prologue: The Pink Bag 1

Chapter 1: Introduction: Definition and Crisis of Luxury 5

Issues of Defining Luxury 6

Crisis 8

The Luxury Industry 10

Reaction to the Crisis of Global Markets 12

Effect of Crisis on the Luxury Industry 18

Strategic Response to Crisis 20

Conclusion 25

Chapter 2: Evolution of the Global Luxury Market 29

Evolution 32

How Has It Changed? 38

Luxury Industry Trends 40

Conclusion 44

Chapter 3: Who's Who of Luxury 47

The Consumers 48

The Actors 50

Conclusion 88

Chapter 4: Branding 89

Luxury Marketing: Highly Creative and Selective 92

Cobranding: Does It Enhance Branding or Selling? 107

Brand Extensions 109

Pricing 112

Storytelling: Culture, Event, and Communication 115

Digital Marketing 119

Discussion 129

Conclusion 130

Chapter 5: Brand Identity, Clients, and Ethos 133

Brand Identity 134

Ethos 140

Clients 144

Discussion 149

Conclusion 153

Chapter 6: Family Houses, Corporatization, and New Entrants 155

What is a Family Business? 158

Family Business during Crisis 177

Family Businesses of the Future: Corporatization 178

Changes during Transition from Family Business to Corporation 182

Entrepreneurs and New Entrants 186

Trends and Discussion 190

Conclusion 193

Chapter 7: Management Styles in the Luxury Industry 195

Path Dependency: Management Styles 197

Managing Paradoxes 202

Examples of Styles 210

Analysis 227

Conclusion 230

Chapter 8: Skills 235

Historical Craftsmanship 238

Entrepreneurial Designers 240

The Sales Team 243

The Professional Managers 244

Skills Required 245

Managing Talent 248

Conclusion 261

Chapter 9: Services: The Point of Sale 265

Issues in Point-of-Sale 268

The Customer Dimension 269

The Service Dimension 277

Conclusion 280

Chapter 10: Systems and Operations in the Luxury Business 285

The Challenge 286

Global Supply Chain 290

Customer Relationship Management 295

Information Technology 301

Conclusion 302

Chapter 11: Retail, Distribution, and E-Commerce 307

Channels of Distribution 309

Travel Retail and Duty-Free Stores 324

Strategic Decisions in Geographic Expansion 328

Online Distribution and E-Commerce 331

Conclusion 335

Chapter 12: Intellectual Property Rights and Counterfeiting 337

Counterfeiting: Issues for Luxury Brands 340

The Issue of Legality 344

Is It an Emerging Market Phenomenon? 346

Effect on a Brand 347

Examples of Responses to Counterfeiting 350

What to Do to Prevent Counterfeiting? 353

Gray Market 362

Conclusion 364

Chapter 13: Emerging Markets and Emerging Market Luxury Brands 367

Brazil 369

Russia 381

India 386

China 395

Strategic Actions 404

Conclusion 409

Chapter 14: The Future and Questions to Ponder 411

Research Design, Methodology, and Data Collection 421

Bibliography 427

Index 433