Master 2 Luxury brand management
How is the business of luxury shoes adapting to the challenges of new consumer demand, geographical availability and modern marketing? Please discuss these issues, as well as the factors are shaping our industry today and tomorrow?
21st of December 2012
I decided to focus on the shoes industry, because is a more complex business. Women are attracted naturally by shoes but men don’t. The luxury Maison, the luxury brands have design and created numerous of accessories even shoes. Because how to file down the catwalk without wearing the pair of shoes of the same brand. Nowadays, the industry, the position the demand change quiet a lot and people doesn’t want to be wearing from the head to the feat with the same label on it, they mix. With the appearance of fashion shoe maker as Christian Louboutin, Roger Vivier, Jimmy Choo, Edouard de Seine… How could do luxury brand to retake market share? I will respond first to the main question and at the end of my analysis I will answer to this one.
To answer I will split up into six observations.
First one: New generation demand, online, website… Generation Y Second one: Return to arts and crafts
Third one: Adapting to the new market Asia, and what’s next? Forth one: Fair Trade market
Sixth one: Premium brands
Whatever the past history of the shoes and more precisely luxury shoes, the future it’s what I going to talk about, because that’s only what we have to focus on. People’s behaviour change rapidly and the industry has to take into account the new demand. People now doesn’t want to follows trend but want to create it… What is the demand of those new generations all around the world?
Definition of luxury:
The word luxury is a difficult term because is really a subjective way to see products and things according to people. A person living with less than five euros per day will feel that taking a Macdonald menu is part of luxury, but for a person with a high income: like the CEO of LVMH group Bernard Arnault would consider that buying a Bugatti Verone is luxury. Depending of your income everything could be part of the luxury world, depending also of the circumstances, your knowledge, and background…
Michel Chevalier and Gérald Mazzalovo on their book Luxury Brand Management: a world of privilege (2008) define a luxury brand as a brand that is selective, exclusive and contributes an emotional and creative value to the customer. They set three criteria for a product to be considered luxurious; it needs to have an artistic dimension, be the result of craftsmanship and it needs to be international. Regarding the artistic aspect, the product must be perceived as a refined object, almost like a work of art. In the aspect of craftsmanship, the object should be designed in a way that the consumer wants to believe that it is unique.
In the other hand, J-N Kapferer defined in The Luxury Strategy:[pic] As you can see all the definition are different because Luxury is a complicated word and can be ambiguous. Everyone has his own perception of luxury.
First what is the Generation Y: “The generation of people born during the 1980s and early 1990s. The name is based on Generation X, the generation that preceded them. Members of Generation Y are often referred to as “echo boomers” because they are the children of parents born during the baby boom (the “baby boomers”). Because children born during this time period have had constant access to technology (computers, cell phones) in their youth, they have required many employers to update their hiring strategy in order to incorporate updated forms of technology. Also called millennials, echo boomers, Internet generation, iGen, net generation.” This definition comes from...