The Road To Luxury: The Evolution, Markets and Strategies of Luxury Brand Management
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.
About the Authors xiii
Prologue: The Pink Bag 1
Chapter 1: Introduction: Definition and Crisis of Luxury 5
Issues of Defining Luxury 6
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
Chapter 2: Evolution of the Global Luxury Market 29
How Has It Changed? 38
Luxury Industry Trends 40
Chapter 3: Who’s Who of Luxury 47
The Consumers 48
The Actors 50
Chapter 4: Branding 89
Luxury Marketing: Highly Creative and Selective 92
Cobranding: Does It Enhance Branding or Selling? 107
Brand Extensions 109
Storytelling: Culture, Event, and Communication 115
Digital Marketing 119
Chapter 5: Brand Identity, Clients, and Ethos 133
Brand Identity 134
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
Chapter 7: Management Styles in the Luxury Industry 195
Path Dependency: Management Styles 197
Managing Paradoxes 202
Examples of Styles 210
Chapter 8: Skills 235
Historical Craftsmanship 238
Entrepreneurial Designers 240
The Sales Team 243
The Professional Managers 244
Skills Required 245
Managing Talent 248
Chapter 9: Services: The Point of Sale 265
Issues in Point-of-Sale 268
The Customer Dimension 269
The Service Dimension 277
Chapter 10: Systems and Operations in the Luxury Business 285
The Challenge 286
Global Supply Chain 290
Customer Relationship Management 295
Information Technology 301
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
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
Chapter 13: Emerging Markets and Emerging Market Luxury Brands 367
Strategic Actions 404
Chapter 14: The Future and Questions to Ponder 411
Research Design, Methodology, and Data Collection 421
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.
- New book highlights the issues that define the luxury industry in the 21st century
- Reveals the winning and losing tactics of many well known players in the luxury industry adopted during and post recession
A new book by Wiley offers a comprehensive overview on how the growing sector in luxury market has witnessed the shifting sands of time. The Road to Luxury: The Evolution, Markets and Strategies of Luxury Brand Management (Wiley; January 2015; ISBN: 978-0-470-83002-4, Hardcover; US$59.95), shows how luxury is no longer reserved for the elite and how it has evolved over time from family businesses to conglomerates, old luxury to new luxury and uber luxury to affordable luxury.
Christian Blanckaert, a former executive vice president of Hermès and leading expert in the luxury industry; and Ashok Som, one of the pioneering thought leaders in designing organizations and an expert in Global Strategy; claims that a recent trend has shown that luxury consumers are looking for brands that provide them with an emotional state of mind through a unique and sensual experience. “The story of the evolution of luxury is really about the evolution of society,” they said.
In their new book, the authors highlight the issues that define the luxury industry in the 21st century. This includes intellectual property rights and counterfeits, evolution of luxury industry, the effect of global economic crisis on the luxury industry, reaction to the crisis of global markets and how the luxury sector responds to the crisis.
“There was no universal response, nor any universal language. Chanel speaks Chanel, Hermès speaks Hermès, and Gucci has its own vocabulary,” said the authors.
The book also reveals the winning and losing tactics of many well-known players in the luxury industry that are adopted during and the post recession. These effective tactics are explained in a topic called, ‘Eight P’s of Luxury Brand Marketing’. This section expands on the requirement for highly creative and selective branding principles catered for the new age luxury managers and aspiring luxury entrepreneurs.
The Road to Luxury is a practical resource that provides an in-depth look into the luxury phenomenon. It uses relevant data and statistics on the current market trends, enabling the reader to apply the recommended tactics to his/her own business needs.
"I enjoyed reading this 360-degree overview of the Luxury world and I think it could become a sort of a 'Bible' for everyone belonging to or studying to enter this challenging world," writes Giovanna Furlanetto, President of Furla, in praise to the book.
The Road to Luxury is now available at the publisher's website at www.wiley.com.
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