MARKETING IN LUXURY FASHION INDUSTRY:
CONTEMPORARY METHODS OF CUSTOMER ATTRACTION
By Ivanova Evgeniya
1.1.Getting to know luxury
1.2.The global market of luxury goods
1.3.Methods of customer attraction
What exactly do we mean by " luxury"? Most of us are able to recognize a luxury product, but we are unable to define the specific characteristics that contribute to the concept of luxury. This is because our perception of luxury is individual, it depends on our individual real-life experiences. We each value a different aspect of what we call luxury. It may be to do with rarity , class, quality or comfort.
Why do wear the best suit (dress) when going for an important meeting or interview? Why do we make sure that we do not use a cheap perfume when going on a date? The aspect of self-indulgence is intertwined with the socially directed motives when it comes to luxury. The concept of luxury has been present in various forms since the beginning of civilization. Its role was just as important in ancient western and eastern empires as it is in modern societies. With the clear differences between social classes in earlier civilizations, the consumption of luxury was limited to the elite classes. It also meant the definition of luxury was fairly clear. Whatever the poor cannot have and the elite can was identified as luxury.
The meaning of luxury and the sorts of customers that buy luxury have continually been evolving, but never as dramatically as in the past 20 years. With more potential customers , the luxury sector is today healthier than ever - increasing at around three times the rate of worldwide wealth.
The luxury goods industry is unique in that it is an industry that relies strictly on marketing and promotion to sell products to a specified group of people. It is also an industry that is well guarded and difficult to find any information on. However, the luxury goods industry is very fascinating and the products themselves signify prestige and status. Although a select few are able to afford luxury goods, the vast majority of people who are exposed to advertisements for certain products generally have aspirations of being able to own these products someday.
The theme of this course paper is really topical nowadays, because each luxury brand takes care about its image, performance, and service in order to attract more and more customers and to gain customers loyalty. The success of each company depends mostly on clients, so to develop the business successfully each company has to care a lot about marketing aspects and to use various marketing methods of attracting new customers.
The purpose of this course paper is to explore which methods of winning customers attention are more effective. Accordingly, the main objective is to study the major methods of attracting clients on the examples of the leading luxury fashion companies and to analyze their sales volume.
The course paper is divided into two parts. The first part is called “Fashion industry and the place of marketing in it” and it tells about what is called luxury in general, about the global market of luxury goods and methods of attracting more and more customers. The second part of the course paper is called “The analysis of marketing methods of major luxury fashion brands”, where the analysis of the major luxury brands has been made – Burberry group, Gucci group and LVMH, including the statistics, the methods of customer attraction, some key steps to success of each.
1. Fashion industry and the place of marketing in it
1.1. Getting to know luxury
Although the term "luxury products" is broadly defined and therefore basically comprehensible, it still needs to be operationalized because it is not yet clear which products are actually "more than...
References: 1. “Luxury Brand Management: A world of privilege”, Michel Chevalier, Gerald Mazzalovo
2. “Let Them Eat Cake: Marketing Luxury to the Masses – as well as the classes”, Pamela Danziger
3. “The Luxury Strategy”, Jean-Noel Kapferer and Vincent Bastien
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