luxury brand management

What is the definition of luxury in the context of branding?

Luxury refers to a state or quality associated with exclusivity, superior experience, and attention to detail, often linked to high-quality materials and craftsmanship.

What market value did the global luxury market reach in 2019?

The market reached a value of around €1.4 trillion USD.

How much did the luxury market decline in 2020 due to the COVID-19 pandemic?

The luxury market faced a decline of 23% compared to the previous year.

What characterized the luxury market's rebound in 2022?

Luxury sales rose by 22 percent.

What is one major factor that defines luxury brands and their market positioning?

Scarcity, which creates a heightened perception of value and urgency among consumers.

What are the three main components of sustainability as described in luxury fashion?

Environmental sustainability, economic sustainability, and social sustainability.

What is the role of personalization in luxury brands?

Luxury offerings often provide opportunities for customization, creating an emotional connection between the consumer and the brand.

What key effect does overproduction have on luxury brands?

Overproduction risks damaging the brand’s exclusive image and can lead to financial strain due to excess inventory.

What principles are reflected in luxury brand management?

Luxury brand management focuses on full control of the value chain, selective distribution, and high levels of personalized service.

How is the evolving consumer behavior affecting luxury brands?

Younger generations prioritize inclusivity, affordability, and sustainability, driving demand for resale and rental platforms.

What unique characteristic does the Hermès 'Himalaya' Birkin handbag possess?

It is known as one of the rarest and most expensive handbags, often fetching over $300,000 at auctions.

In what way does scarcity serve as a strategy for luxury brands?

Luxury brands control supply to cultivate exclusivity, enhancing desirability, and maintaining high-status appeal.

How are companies like The RealReal and Rent the Runway significant in the luxury market?

They have become major players in the resale and rental markets, focusing on authenticated luxury goods.

What is a bespoke strategy in luxury branding?

Bespoke luxury represents the highest level of exclusivity, where every product detail is tailored to the client's specifications.

What is an essential attitude identified among fashion executives for 2025?

Many executives cite 'uncertainty' about consumer sentiment and economic conditions as a significant risk.

What qualifies a brand as. aluxury

• craftsmanship, sophistication, heritage, and creativity expression

• Exclusivity and uniqueness

• Innovation

• Superior performance

Luxury brands implement various strategies to create and maintain scarcity such as

• made to order service

• limited editions-capsule collection

• high prices as a barrier to entry

• artificial scarcity

Challenges

• 70% of executives cite declining consumer confidence as the top risk for 2025.

• Success will depend on balancing affordability, sustainability, and consumer-centric

• experiences, while leveraging technology and adapting to dynamic global trends.

Key challenges (economic landscape)

• Value Consciousness. Consumers are increasingly prioritizing value over brand loyalty, a trend reflected in the growing popularity of affordable alternatives and cost-conscious shopping behaviors.

• The Dupe Trend

• Dupes, or affordable imitations of luxury items, are growing supported by social media platforms. They represent a shift in consumer priorities, were functionality and aesthetics outweigh exclusivity.

The five Rs of circularity

reduce, repair, resell, rental and recycle