The Road To Luxury

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