Abstract
The luxury industry is large, complex and very competitive and one that has flourished significantly in the past couple of decades (Okonkwo, 2009a; Ko et al., 2016). Luxury was once known as a quiet industry that was driven by product excellence and managed by families. Its value proposition was made up of a mix of high-quality products, brand heritage, unique knowledge, exclusivity, personalisation of services, and bespoke communications fused with long-term relationships with selected clientele and categorised by high prices and prestigious physical stores (Kapferer, 2014). Most of the above is still relevant and true for the luxury industry, but nowadays much of the industry is driven by large conglomerates. The economic concentration is increasing with the top ten of the largest companies accounting for more than 50 percent of all revenues in the luxury industry (Deloitte 2016).
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
References
Achabou, M. A., & Dekhili, S. (2013). Luxury and sustainable development: Is there a match? Journal of Business Research, 66(10), 1896–1903.
Adams, A. (2013, December 5). Inside Rolex: Understanding the world’s most impressive watch maker. Forbes Magazine. Retrieved on the 22.09.2016 at 22:20 from, http://www.forbes.com/sites/arieladams/2013/12/05/inside-rolex-understanding-the-worlds-most-impressive-watch-maker/#6c2ac93c34ad
Atwal, G., & Williams, A. (2009). Luxury brand marketing – The experience is everything! Journal of Brand Management, 16(5–6), 338–346.
Baker, J., Parasuraman, A., Grewal, D., & Voss, G. B. (2002). The influence of multiple store environment cues on perceived merchandise value and patronage intentions. Journal of Marketing, 66(2), 120–141.
Baxendale, S., Macdonald, E. K., & Wilson, H. N. (2015). The impact of different touchpoints on brand consideration. Journal of Retailing, 91(2), 235–253.
Bilanz. (2004, October 27). Die Rolex-story: Die Legende Rolex. Bilanz – das Schweizer Wirtschaftsmagazin. Retrieved on the 22.09.2016 at 22:10 from, http://www.bilanz.ch/unternehmen/die-rolex-story-die-legende-rolex
Boston Consulting Group. (2016). Digital or die. The choice for luxury brands, https://www.bcgperspectives.com/content/articles/technology-digital-consumer-insight-digital-or-die-choice-for-luxury-brands/#chapter1. Accessed 25 October 2016.
Brexendorf, T. O., Mühlmeier, S., Tomczak, T., & Eisend, M. (2010). The impact of sales encounters on brand loyalty. Journal of Business Research, 63(11), 1148–1155.
Brexendorf, T. O., Kernstock, J., & Powell, S. M. (2014). Future challenges and opportunities in brand management: An introduction to a commemorative special issue. Journal of Brand Management, 21(9), 685–688.
Cristini, H., Kauppinen-Räisänen, H., Barthod-Prothade, M., & Woodside, A. (2017). Toward a general theory of luxury: Advancing from workbench definitions and theoretical transformations. Journal of Business Research, 70(1), 101–107.
Davies, I. A., Lee, Z., & Ahonkhai, I. (2012). Do consumers care about ethical luxury? Journal of Business Ethics, 106(1), 37–51.
De Barnier, V., Falcy, S., & Valette-Florence, P. (2012). Do consumers perceive three levels of luxury? A comparison of accessible, intermediate and inaccessible luxury brands. Journal of Brand Management, 19(7), 623–636.
Deloitte. (2016). Global powers of Luxury goods 2016. Disciplined innovation. Diegern, Belgium: Deloitte University EMEA CVBA. Retrieved from, http://www2.deloitte.com/content/dam/Deloitte/global/Documents/Consumer-Business/gx-cip-gplg-2016.pdf
Desai, K. K., & Keller, K. L. (2002). The effects of ingredient branding strategies on host brand extendibility. Journal of Marketing, 66(1), 73–93.
Fook, C. T. (2016). Our story. Retrieved on the 19.09.2016 at 17:50 from, http://www.chowtaifook.com/en/ourstory
Gallaugher, J., & Ransbotham, S. (2010). Social media and customer dialog management at Starbucks. MIS Quarterly Executive, 9(4), 197–212.
Godey, B., Manthiou, A., Pederzoli, D., Rokka, J., & Aiello, G. (2016). Social media marketing efforts of luxury brands: Influence on brand equity and consumer behaviour. Journal of Business Research, 69(12), 5833–5841.
Hajli, N., Shanmugam, M., Papagiannidis, S., Zahay, D., & Richard, M. O. (2017). Branding co-creation with members of online brand communities. Journal of Business Research, 70(1), 136–144.
Hermès. (2016). Annual report. Retrieved on the 19.09.2016 at 19:10 from, http://finance.hermes.com/var/finances/storage/original/application/630394b9a95603bf81b399744dbbf044.pdf
Hughes, M. U., Bendoni, W. K., & Pehlivan, E. (2016). Storygiving as a co-creation tool for luxury brands in the age of the internet: A love story by Tiffany and thousands of lovers. Journal of Product and Brand Management, 25(4), 357–364.
Kapferer, J. N. (2014). The future of luxury: Challenges and opportunities. Journal of Brand Management, 21(9), 716–726.
Kapferer, J. N., & Bastien, V. (2009). The specificity of luxury management: Turning marketing upside down. Journal of Brand Management, 16(5–6), 311–322.
Kapferer, J. N., & Laurent, G. (2016). Where do consumers think luxury begins? A study of perceived minimum price for 21 luxury goods in 7 countries. Journal of Business Research, 69, 332–340.
Kapferer, J. N., & Michaut, A. (2014). Luxury counterfeit purchasing: The collateral of luxury brands’ trading down policy. Journal of Brand Strategy, 3(1), 59–70.
Kapferer, J. N., & Michaut-Denizeau, A. (2014). Is luxury compatible with sustainability? Luxury consumers’ viewpoint. Journal of Brand Management, 21(1), 1–22.
Kapferer, J. N., & Valette-Florence, P. (2016). Beyond rarity: The paths of luxury desire. How luxury brands grow yet remain desirable. Journal of Product and Brand Management, 25(2), 120–133.
Keinan, A., Kivetz, R., & Netzer, O. (2016). The functional alibi. Journal of the Association for Consumer Research, 1(4), 479–496.
Keller, K. L. (2009). Managing the growth tradeoff: Challenges and opportunities in luxury branding. Journal of Brand Management, 16(5/6), 290–301.
Kering. (2016a). Group. About Kering. Retrieved on the 19.09.2016 at 17:35 from, http://www.kering.com/en/group/about-kering
Kering. (2016b). Brands. Retrieved on the 19.09.2016 at 21:00 from, http://www.kering.com/en/brands
Kim, J. E., Lloyd, S., & Cervellon, M. C. (2016). Narrative-transportation storylines in luxury brand advertising: Motivating consumer engagement. Journal of Business Research, 69(1), 304–313.
Ko, E., Phau, I., & Aiello, G. (2016). Luxury brand strategies and consumer experiences: Contributions to theory and practice. Journal of Business Research, 69(12), 5749–5752.
L’Oréal. (2016a). Brand l’oréal luxe. Retrieved on the 19.09.2016 at 18:10 from, http://www.loreal.com/brand/l’oréal-luxe
L’Oréal. (2016b). Group. Who we are. Our ambition. Retrieved on the 19.09.2016 at 18:25 from, http://www.loreal.com/group/who-we-are/our-ambition
L’Oréal. (2016c). Group. Our mission. Retrieved on the 22.09.2016 at 21:20 from, http://www.loreal.com/group/who-we-are/our-mission
L’Oréal. (2016d). Group. Who we are. Our values and ethical principles. Retrieved on the 19.09.2016 at 18:30 from, http://www.loreal.com/group/who-we-are/our-values-and-ethical-principles
Lauder, E. (2016a). Who we are. Retrieved on the 22.09.2016 at 20:15 from, http://www.elcompanies.com/who-we-are
Lauder, E. (2016b). Who we are. Culture and values. Retrieved on the 22.09.2016 at 20:10 from, http://www.elcompanies.com/who-we-are/culture-and-values
Lauder, E. (2016c). Our brands. Retrieved on the 22.09.2016 at 20:15 from, http://www.elcompanies.com/our-brands
Lee, J. E., & Watkins, B. (2016). YouTube vloggers’ influence on consumer luxury brand perceptions and intentions. Journal of Business Research, 69(12), 5753–5760.
Lemon, K. N., & Verhoef, P. C. (2016). Understanding customer experience throughout the customer journey. Journal of Marketing. http://dx.doi.org/10.1509/jm.15.0420
Luxottica. (2016). About us. Company profile. Retrieved on the 17.09.2016 at 14:40 from, http://www.luxottica.com/en/about-us/company-profile
LVMH. (2016a). About LVMH. The LVMH model. Retrieved on the 17.09.2016 at 13:10 from, https://www.lvmh.com/group/about-lvmh/the-lvmh-model/
LVMH. (2016b). About LVMH. The LVMH spirit. Retrieved on the 17.09.2016 at 13:15 from, https://www.lvmh.com/group/about-lvmh/the-lvmh-spirit/
Moon, H., & Sprott, D. E. (2016). Ingredient branding for a luxury brand: The role of brand and product fit. Journal of Business Research. http://dx.doi.org/10.1016/j.jbusres.2016.04.173
Nia, A., & Zaichkowsky, J. L. (2000). Do counterfeits devalue the ownership of luxury brands? Journal of Product and Brand Management, 9(7), 485–497.
Okonkwo, U. (2009a). The luxury brand strategy challenge. Journal of Brand Management, 16(5/6), 287–289.
Okonkwo, U. (2009b). Sustaining the luxury brand on the Internet. Journal of Brand Management, 16(5/6), 302–310.
Powell, S. M. (2014). Twenty-one years of the journal of brand management: A commemorative review. Journal of Brand Management, 21(9), 689–701.
Randhawa, P., Calantone, R. J., & Voorhees, C. M. (2015). The pursuit of counterfeited luxury: An examination of the negative side effects of close consumer–brand connections. Journal of Business Research, 68(11), 2395–2403.
Richemont. (2016a). Corporate social responsibility. Vision. Retrieved on the 17.09.2016 at 13:40 from, https://www.richemont.com/corporate-social-responsibility/vision/introduction.html
Richemont. (2016b). About Richemont. Retrieved on the 17.09.2016 at 13:45 from, https://www.richemont.com/about-richemont.html
Richemont. (2016c). Corporate social responsibility. Richemont as an employer. Retrieved on the 17.09.2016 at 13:50 from, https://www.richemont.com/corporate-social-responsibility/richemont-as-an-employer/your-journey-with-us.html
Rolex. (2016). Rolex history. Retrieved on the 19.09.2016 at 18:40 from, https://www.rolex.com/rolex-history.html
Romani, S., Gistri, G., & Pace, S. (2012). When counterfeits raise the appeal of luxury brands. Marketing Letters, 23(3), 807–824.
Stokburger-Sauer, N. E., & Teichmann, K. (2013). Is luxury just a female thing? The role of gender in luxury brand consumption. Journal of Business Research, 66(7), 889–896.
Swatch Group. (2016a). Group profile. Retrieved on the 22.09.2016 at 20:40 from, http://www.swatchgroup.com/en/group_profile
Swatch Group. (2016b). Group profile. Nicholas G. Hayek – message from the founder. Retrieved on the 17.09.2016 at 14:55 from, http://www.swatchgroup.com/en/group_profile/nicolas_g_hayek_message_from_the_founder
Swatch Group. (2016c). Brands and companies. Retrieved on the 17.09.2016 at 15:00 from, http://www.swatchgroup.com/en/brands_and_companies
Tsai, W. H. S., & Men, L. R. (2013). Motivations and antecedents of consumer engagement with brand pages on social networking sites. Journal of Interactive Advertising, 13(2), 76–87.
Valette-Florence, P. (2012). Luxury and counterfeiting: issues, challenges and prospects. Journal of Brand Management, 19(7), 541–543.
Wang, Y., & Griskevicius, V. (2014). Conspicuous consumption, relationships, and rivals: Women’s luxury products as signals to other women. Journal of Consumer Research, 40(5), 834–854.
Wilson, J. M., & Sullivan, B. A. (2016). Brand owner approaches to assessing the risk of product counterfeiting. Journal of Brand Management, 23(3), 327–344.
Wilson, J. M., Grammich, C., & Chan, F. (2016). Organizing for brand protection and responding to product counterfeit risk: An analysis of global firms. Journal of Brand Management, 23(3), 345–361.
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2017 The Author(s)
About this chapter
Cite this chapter
Kernstock, J., Brexendorf, T.O., Powell, S.M. (2017). Introduction: Luxury Brand Management Insights and Opportunities. In: Kapferer, JN., Kernstock, J., Brexendorf, T., Powell, S. (eds) Advances in Luxury Brand Management. Journal of Brand Management: Advanced Collections. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-319-51127-6_1
Download citation
DOI: https://doi.org/10.1007/978-3-319-51127-6_1
Published:
Publisher Name: Palgrave Macmillan, Cham
Print ISBN: 978-3-319-51126-9
Online ISBN: 978-3-319-51127-6
eBook Packages: Business and ManagementBusiness and Management (R0)