x the Australian retail market has changed dramatically over the past decades (insert evidence) with a shift from in store purchases to a digital platform. With more consumers now choosing to purchase online, retail brands have had to move with the times. The general retail market had a stronghold in … to a decline in … due to pressures and consequences internationally from the GFC. However The luxury market in Australia saw growth of 24% in 2008 and 22% in 2009 during the GFC. This proved that it was not only a developing market for luxury brands, but also showed longevity and resilience. 15 years ago, luxury brands such as Burberry, Chanel, Dior were only obtained by purchasing overseas, (expand about income and quicker trends, search for price and style) however now …show more content…
Whereas previously the Australian market would stock items in conjunction with the corresponding season, it has now had to import items to sell parallel to that of its Northern Hemisphere counterparts. Having access online to view the current season's trends fresh of the European catwalks, waiting 6 months to buy the same outfits seemed ridiculous. Consumers of luxury brands like Burberry have the affluence to be able to afford elevated shipping charges and taxes and buying from foreign markets in lieu of waiting for the Australian market to follow its seasonal pattern. Burberry was one of the first luxury brands to join Facebook and now boasts 16 million+ page likes. Burberry knew that this type of platform was derived from friendship, so they gave it a personal connection, deciding to run all facebook collateral through the hands and mind of Christopher Bailey, head designer. It gave consumers an insight into his world, snippets of functionings, exclusive material and furthermore creating a friendship and partnership with consumers.
It is also important to point out opportunities and remove the threats. With that’s said, the luxury goods market is expected to reach over 350 billion dollars in 2015. This presents a great opportunity for Coach to grow and reach surging markets that they have not been successful in before. With the demand and forecasted spending on luxury goods rising, the amount of competition also grows presenting threats. Another threat arose in 2007 when economies were hit with a recession that effected consumer spending, such event could happen again.
Since not many luxury brands have entered smaller markets, there will not be sufficient market information to be analyzed; some markets might be completely greenfield for luxury handbag and accessories
Burberry today is considered one of the leading luxury brands of the word. Here is a synopsis of rise of Burberry:
...specific, the prices of leather goods, accessories, watches, jewelry, shoes and ready-to-wear of Louis Vuitton dropped by seven percent in 2008. Besides, Fujii takes some actions to face the challenges. For example, he sets an Internet business to follow the world trend and to enlarge the distribution channel. Also, he increases the product line to cover the children clothes and enlarges the market by opening stores in mid-size and small cities. Since Japan is still a developed country with wealthy families, the Japanese luxury market would still be a healthy and attractive market for Louis Vuitton and these challenges could be overcome in large extent.
Kapferer, J., & Bastien, V 2009, The luxury strategy: break the rules of marketing to build luxury brands. London: Kogan Page.
The unique heritage and Burberry’s Britishness are the significant resources that contribute to its success and premium price. Strong brand image as part of intangible assets contributes approximately 25% value to the organization in average (Keen 2003). To avoid discount or oversupply, Burberry needs to continue maintaining its long-term brand image (Berends 2004). Also, Burberry has a variety of product lines and attributes to high worth that makes it more competitive
For one, luxury can be defined through good health. For another, luxury can be defined through comfort. To many, luxury is defined through lavish possessions such as cars or jewelry. Regardless of how we perceive luxury, there is a journey behind how we achieve it. Cartier produced an exquisite commercial to celebrate the brand’s history. With the worldwide icon, the leopard, we went through the odyssey of Cartier’s history. The commercial started with a leopard statue of diamonds and jewels coming alive which symbolized the birth of the legacy of Cartier, the start of the odyssey. Then we start watching the leopard visit significant places of Cartier’s history: China, India, and France. All these places are important to the luxury industry. After the journey across different continents, we finally arrive in Paris where Cartier was founded, where
The high pressure luxury brand industry has evolved over the last few decades from a small and selective to a multibillion dollar arena offering significant potential and growth opportunity for the luxury brands that compete within its realm. With many luxury brands competing for over $225 billion (The Economist, 2009) in revenue each year it is easy to see how strategy plays an important role.
Retail work is best known for low pay, difficult customers, and long shifts. Although this is at times true, retail work can teach people valuable lessons and skills that are used on and off the job. As a Sears sales associate, I spent my last summer working in retail, enduring both tiresome hours and demanding buyers. Through this experience, I learned tricks and skills that are useful to survive a job in retail.
However, when looking to create a luxury brand, one must go beyond what is required of an ordinary brand, to create something of high value and therefore high prices. So instead of just having brand values, it should have brand beliefs, as this will create a stronger emotional connection with its customers. It should aim to go beyond having a logo, but rather a set of distinguishable icons and the brand’s points of sale needs to be somewhere that connects with its customers and becomes something of a pantheon among other retail outlets. Similarly the customer segmentation should have role reversal, so the customers want to buy their products. Luxury brands should instead of actively promoting their advantages over their competitors, never push the customers into buying their products, thereby offering mystique and letting the customers make the value creation. Lastly, a true luxury brand not only offers products but rather a way of life, allowing them to branch out over several product categories, into every aspect of their customer’s
Dubois and Czellar (2002) refer to luxury brands as those goods that can offer comfort, beauty and refinement. On the other hand, a prestige brand is referred to as a brand that has achieved a definitive level of accomplishment, either in the quality or performance. O’Cass a...
Under Arnault, the company was the world’s leading luxury product group. Arnault believed that LVMH control of retail chains was critical to luxury brand success. The finer points of retailing were believed to be, influencing of the overall image of luxury products, as much as the product attributes.
-Status symbols: Sophisticated customers who value the distinctive, exclusive collection seem to value the corporate-branded version of luxury. –Philip Martiz, chairman of the board
“Despite worldwide softness in the sale of luxury goods, LVMH has cemented its position as the world’s largest and most profitable player in the category. To stay there it must keep its customers loyal and its brand strong and find new markets worldwide” (Hazlett C. 2004). That is why in its mission they state to represent the most refined qualities of Western “ art de vivre” all around the world. Their objective is to be the leader in the luxury market, continuing to transmit elegance and creativity. This poses some major challenges, the main one is to keep being the leader in the luxury market through a sustainable growth. The main problem to achieve it is the high dependency on three main countries, France, Japan and USA. This becomes a threat because if there is an economic downturn in one country it affects LVMH directly that is why.
Vronti, P. & Vrontis, D. (2004). Levi Strauss: An International Marketing Investigation. Journal of Fashion Marketing and Management, 8(4), Pp.389-398.