...Recommendations: Luxury consumers have high expectations when they are shopping in luxury boutiques. Luxury brands have set the bar high and these standards have to be translated to their digital platforms especially as consumers evolve and become more digitally savvy. “Whether browsing via a mobile app, an in-store tablet or simply just on-line, customers expect to receive exactly the same premium experience that looks and feels like their favorite brands”- luxury brands must be consistent in their marketing message and keep the image of the brand strong across all platforms from offline to online media. Chanel for example, has a beautiful website, it is an overall sensory experience as music plays and stunning images convey the brands opulence. However, despite the look of the site, the user experience lacks logical progression. Navigating the site is challenging and soon becomes disappointing when the...
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...THE LUXURY CONSUMER IN THE NEW DIGITAL WORLD: THEN & NOW 201 Four Seasons Luxury T 2 rend Report Luxury Trend Report | 1 The global luxury landscape and the luxury customer have evolved dramatically over the last tumultuous and transformative three years. The advent of unprecedented new technological innovations, coupled with the increased skepticism left over from the global financial crisis, mean that today’s consumers are demanding honest, accurate, timely and engaging information. They are looking for intrinsic value and a deeper relationship with the brands with whom they choose to support and interact. According to The Affluence Collaborative1, a research powerhouse that dives deep into the habits of high-income consumers, the affluent2 seek out companies and brands that can simplify and improve their lives. In the travel sector, this translates into increased expectations around personalization cutting across all touch points – including digital media platforms – as luxury travellers research, purchase, engage in and reflect upon their travel experiences. The Luxury Traveller Technology Survey3, commissioned by Four Seasons, coupled with leading luxury market research and brand insight, sets out to uncover how consumers want technology to blend seamlessly into their experience, and how those preferences have changed in recent years. strong performance in China and Latin America, are driving growth in the sector. All combined, the global luxury market is expected...
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...Positioning of Louis Vuitton Company on the Digital World Students Name Institute Affiliation Date ABSTRACT 1. The study utilizes an investigative approach to finding out the positioning of the luxury brand in the digital world; a case of Louis Vuitton Company. Louis Vuitton is one of the best luxury brands in the market with a worth estimate of $24.7 billion. Many luxury brands have not bought the idea of going online and utilizing the digital platform in marketing their products. Nowadays it is very crucial and as well relevant for any luxury brand to go digital. With the world’s economic changes, people have revised their spending and diverted to a rather more relevant daily survival practices. In such a scenario, Luxury brands need to do an aggressive marketing and making their presence be felt all over the world. The technological advancements in the business sector are playing a bigger role rather. The digital platform has been in use for decades now with many business sectors going online. It is noted that as many business sectors would like to venture in the e-commerce, many luxury brands haven’t bought the same idea. Luxury brand companies have the notion that the digital marketing is made for small and middle-level range of commodities. In the year 2014, only three luxury brands gained their strength in the market with Louis Vuitton taking the lead. Therefore, we ask this question, what makes Louis Vuitton take the lead in the market in this transforming technological...
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...-luxury stores are becoming hybrid institutions, embodying elements of both art galleries and museums, within a context of exclusivity emblematic of luxury - Participants take note of the company’s sleekly elegant architecture, interior design, and adroit use of lighting that are modelled after those of museums housing world-class exhibits. The store’s merchandize is artisanal, often produced in collaboration with artists. Objects for sale are displayed alongside actual art, rendering both products equivalent. Employees function as curators, offering guidance and knowledge, as well as goods for sale. We analyze how luxury consumers experience and evaluate the ways in which luxury stores operate as contemporary art institutions, and extrapolate those insights into managerial implications for other retail venues. - According to Kapferer and Bastien (2009), art is the aesthetic and social guarantor of luxury: truly a marriage of culture and luxury. - primary research site, the LV Hong Kong flagship store. focus on consumer perceptions of LV’s strategy of casting art as vital to its success—the first such research to demonstrate how consumers decode and experience a luxury brand’s positioning. We selected two LV stores in Hong Kong as our focus. We collected data over a period of two years (2006–2007) in Hong Kong using an ethnographic approach. interviewed twenty-five people in total, whose ages ranged fromyoung adulthood to middle age. - study limited to participants who regularly...
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...examines why the luxury online shopping industry has not been more successful in today’s highly digital age. A literature review as well as, a self-conducted study will be used to address this question. First, literature is presented on what luxury goods are and what factors motivate people to consume luxury brands. Next, research is used to describe the consumers of luxury shopping online. Following this, the literature review covers three dilemmas when using the Internet to sell luxury brands. The first describes whether or not brand integrity is diluted on the Internet because of the ability for everyone to have access to these luxury products. The second dilemma concerns whether or not the sensory nature of the luxury shopping experience can be translated onto the Internet. And the third deals with the Internet’s inherent ubiquity and whether that compromises the exclusivity of what luxury brands stand for. Finally, existing literature is used to demonstrate how to measure service quality on the Internet as well as propose web site design issues faced by online retailers. The following section, Section V, describes the research method used in this study to explore how well the design of luxury e-stores meets customer expectations, while conveying the luxury consumption factors without the sensory aspects of a traditional store. The results of this study show that luxury e-stores have a long way to go in terms of replicating the sensory luxury shopping experience onto the Internet...
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...debt is high and tax revenues are falling. Burberry faces intense competition from developing countries due to cheap copies of his brand where no copyright law exist. Political conditions like civil unrest, unstable governments historically and have been subject to political instability and restrictions on the ability to transfer capital across borders.Ability to penetrate developing and emerging countries, which also depends on economic and political conditions, and how well they are able to acquire or form strategic business alliances with local fashion trends and make necessary changes which also affects the luxury brand of Burberry The Burberry has strong luxury brand, which is only feasible in some geographic environments and demographics. Economical: (Griffin, 2006) The global economic downturn affected the level of consumer spending on discretionary luxury items.Increased regional competition by other international as well as local brands.Customers (in particular Middle Eastern, Russian, Japanese, Chinese and other Asian customers) who purchase products while travelling either overseas or domestically generate a significant proportion of the Group’s sales. As a result, shifts in travel patterns or...
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...Prada, a well-known Italian luxury brand, which own retail stores all over the world for decades. As a famous brand with 100 years history, founded by Mario Prada in 1913, Started from a small leather handbag workshop, with absolutely superior quality of design for its competitive strength of marketing. Prada dedicated on producing life style of elegance and sophisticated products and demonstrated its brand identity as “Contemporary classic, culturally elegant”. Today, Prada became a fashion empire with huge asset and related to numbers of people, which is including the sales, workers, managers and so on. In recent years, economic crisis crush the whole world’s economy, Prada is suffering as well. So, developing a strong marketing strategy for Prada is imperative. Though Prada has developed approximately 100 years and gained rich experience of traditional marketing and new marketing, there are still some drawbacks on new types of marketing. To choose an appropriate marketing trend, which need to adapt to nowadays society. Therefore, to exploring more opportunities in the twenty-first century, new type of marking methods should be introduced to cater to this network era. Evaluate the marketing trend Marketing trend: From traditional marketing to digital marketing With the popularization of network and smartphone, E-commerce and E-business has become more popular and more people discovered the advantages of online shopping. Compared digital marketing with traditional...
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...an online presence for luxury brands By Florian Risch Introduction Not all that long ago online retailing was a very uncommon distribution channel for the luxury industry. To many luxury managers, there was no space for luxury products on the world wide web and therefore have been hesitant to move online. Notable international brands such as Versace and Prada did not have corporate websites until 2005 and 2007, respectively1. They mainly feared that selling online and luxury contrasted strongly with each other. However, the changing shopping habits of consumers imply that even luxury product companies have no alternative but to adapt. Today's world is intensely led by the internet. People communicate over the net, they play games with their friends online, they carry out their work and most coherent in this context, they shop online. Research in the last decade proved that online retailing became very popular and still grows in its extent. Affluent consumers are particularly heavy users of the internet. They go online to search for information as well as purchasing there. Up to 90 % of high-income internet users regularly shop online2 and make the internet their number one source of information for luxury products. And countries like China and India, prognosed as the current emerging markets to be the future leading luxury markets, already started to favor the option of online shopping with increasing use. The trend towards online retailing of luxury products cannot be denied...
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...IM MAPPING CONSUMER DIGITAL JOURNEY Name of Student Course title Date of Submission Introduction Mercedes Benz is a subsidiary company that manufactures automobiles with its headquarters based in Germany. Its main manufacturer is the Daimler AG located in Germany while other sales/assemblage divisions are in various parts of the world. The firm manufactures vehicles that go by the same name, “Mercedes-Benz.” They are mainly luxury vehicles and they include: “Sedans, Coupes, SUVs & Wagons, Convertibles & Roadsters, Hybrid & Electric cars, trucks, coaches and buses”[1]. Mercedes-Benz has a strong presence in the motor industry based on its diversity of production. Its vehicles have state-of-the-art luxury gear with impeccable customer service. The targeted customer base for this brand includes the middle and the high class due to the vehicles’ luxurious nature. 1. Purchase Process: The following are the steps for purchasing a new Mercedes Benz type of vehicle a. Research on model Mercedes-Benz always encourages its customers to research about the car models before they make the purchase. This can be done in person, by visiting the car outlets or doing it online. In order to purchase a Mercedes-Benz car model, a customer is required to select the model of choice from a preferred dealer-outlet after agreeing on the qualities. Dealers are found in various collision centers that are certified by the brand. Alternatively...
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...LVMH Submission: Public consu lt at ion on t he Gre en Pap er f rom the Commission on policy options for progress towards a European Contract Law for consumers and businesses January 2011 EU Registration number: 16094042309-21 2 LVMH Submission Public consultation on the Green Paper from the Commission on policy options for progress towards a European Contract Law for consumers and businesses Executive Summary The LVMH Group welcomes the opportunity general contract law are creating obstacles to to respond to the European Commission’s cross-border transactions as businesses face public consultation on “policy options for a considerable administrative burden to comply progress towards a European Contract Law for with diverging national legal systems. Moreover, consumers and businesses”. LVMH supports despite international private law rules regarding the Commission’s work in the area of contract choice of law and national mandatory rules in law and supports its aim of developing cross- consumer contracts, consumers are not familiar border commerce by increasing legal certainty with their rights when shopping online and for businesses and consumers. We believe hence lack trust in online transactions. further work on an optional 28th regime is an opportunity to enable businesses to operate with legal certainty across the 27 EU Member States while ensuring a high level of consumer protection across the...
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...Spa Trade Top 10 Consumer Trends for 2011 May 9, 2011 Accounting to American spa in this 2011 arrange consumer spa trade trend into 10 trends. In addition, Consumers are concern more higher-end products, greener consumption if the price is proper suit to experience-based consumption they will purchase more. Brands need to tap into the on and offline cultural zeitgeist to best connect with their existing and potential customers. 1. DOLPHINS, YOUNG VALUE-SEEKERS AND OTHER FRESH TAKES ON THRIFT For consumers worldwide, thriftier lifestyles and considered purchasing, even when buying luxury, are the patterns that always do, fuelled by the online value checking. This is impacting on the entire consumption landscape from group buying to counterfeit markets. 2. EXPERIENCE IS THE THING 2011 consumers seek an extension of experience which is taking in everything from cultural breaks to the joys of unwrapping an iPhone. A good retail experience which means good customer care, and which for many consumers is part of the value equation are more interested by consumer. 3. GLOCAL Today's consumer is comfortable with shrinking the radius of their lifestyle. There is a tangible virtual-to real world spill over with advocates of things local making effective use of technology. At the same time, the idea of glocal – a hybrid of global and local - recognizes that global influences continue to flavour outlooks and so consumption. 4. STAYING AHEAD AND WELL Consumer interests in sustained...
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...challenges of the current times. Burberry still revolves around its values and identity of keeping the brand unified, strengthening its origin and history, emphasizing on its british legacy by creating a strong focus on its core product which is the trench coat in which Burberry is famous for, building a stable structure amongst its internals and employees which provided a venue for employees both recent and veteran to grow and maximize their potentials and capabilities, and to become a forward thinking brand by adapting and even innovating to the growing changes of modernity and digital technology. As Burberry now grows with operation for more than 200 stores, hitting its revenue more than double from 2006 and obtaining a growing number of more than 11,000 employees, through its new leadership under Bailey, Burberry is not pacing down as the brand strengthens its core to provide a complete customer experience. Burberry’s products are divided into Accessories, Women’s, Men’s and Children’s in which these products go through a strict standards of design, product development, as well as merchandising and planning. Architecture was also one of the main focus of the constant improvement and innovation under the current Burberry wherein the advancement of technology was heavily adapted to the new concept of their new flagship store in London. By using...
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...Engaging customers today requires commitment from the entire company—and a redefined marketing organization. JULY 2011 • Tom French, Laura LaBerge, and Paul Magill Source: Marketing & Sales Practice For the past decade, marketers have been adjusting to a new era of deep customer engagement. They’ve tacked on new functions, such as social-media management; altered processes to better integrate advertising campaigns online, on television, and in print; and added staff with Web expertise to manage the explosion of digital customer data. Yet in our experience, that’s not enough. But it not enough… To truly engage customers for whom “push” advertising is increasingly irrelevant, companies must do more outside the confines of the traditional marketing organization. At the end of the day, customers no longer separate marketing from the product—it is the product. They don’t separate marketing from their in-store or online experience—it is the experience. In the era of engagement, marketing is the company. “Oh, shoot,” Sperlich thought. “We are in for it now.”1 eedAs that transformation happens, Marketing’s cutting edge is being redefined every day. While there’s no definitive map showing how companies can successfully navigate the era of engagement, we hope to help senior executives—not just marketers—start to draw one. The evolution of engagement More than two years ago, our colleagues David Court, Dave Elzinga, Susan Mulder, and Ole Jørgen Vetvik unveiled...
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...Burberry In Beirut Souks “One Brand, One Company” “The brand is not this kind of cold, static name outside a shop or outside a building or on a piece of clothing. There are values and a culture behind it." Brand equity is a very valuable term to the British luxury brand Burberry: it lies in the famous checker pattern which is now Burberry’s trademark. Christopher Bailey’s wise words reflect the enterprise’s global strategy. But what did Burberry do to double its net income in just five years? Well, the secret is Britain’s most paid CEO, Angela Ahrendts. The hire of Angela in 2006 turned things around dramatically at Burberry’s headquarters: she understood Burberry’s core competences and its history; she understood the brand and the recent trends in the luxury sector. About Burberry Mission: To maintain the integrity and vitality of Burberry, while continuing to remain relevant to ever-changing markets and consumer tastes. (World Press, 2012) Vision: To be the first digital end to end company. "Our vision is that a customer has total access to Burberry, across any device, anywhere," says Angela Ahrendts. "They get exactly the same feeling of the brand and a feeling of the culture. Everyone can come to Burberry World and understand the journey that Burberry is on.” [ (SalesForce) ] Core Values: Protect, Explore and Inspire. The Business Strategy: It consists of the following steps; starting with “Leveraging the franchise”: market innovation and product excellence;...
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...STRATEGY Brand and Business From its founding in 1856 when Thomas Burberry constructed his first outerwear garments for the sportsmen of Basingstoke, England, Burberry has become a leading luxury brand with a global business. The Burberry brand is defined by its: • • • • Authentic British heritage Unique democratic positioning within the luxury arena Founding principles of quality, function and modern classic style, rooted in the integrity of its outerwear Globally recognised icon portfolio: the trench coat, trademark check and Prorsum horse logo The Group management and their teams are challenged with the responsibility of maintaining the integrity and vitality of this extraordinary brand while continuing to develop a business which remains relevant to ever-evolving markets and consumer tastes. The following pages outline Burberry’s strategy under each of its five key strategic themes. Our strategic themes Leveraging the franchise Intensifying non-apparel development Accelerating retail-led growth Investing in under-penetrated markets Pursuing operational excellence Today, the business built upon this brand is distinguished by: • Multi-category competency: womenswear, menswear, non-apparel and childrenswear – with innovative outerwear as the foundation Channel expertise in retail (including e-commerce), wholesale and licensing Global reach: operations in markets throughout the world, with a balance across major geographic regions A unified, passionate and seasoned...
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