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This book explores the luxury industry and how it has undoubtedly been one of the fastest-growing sectors since the 1970s, and one in which Europe has managed to strengthen its competitiveness in the world market. While many aspects of globalization remain abstract and intangible, the luxury industry has created markets where previously there were none, by educating Japanese about the history of French handbags, Chinese about the finest wines, and setting global standards for an elite, inspirational lifestyle. In this edited volume, a wide range of scholars comes together to analyze the history of the business and the innovations in management and marketing that have emerged from it. Invaluable for scholars, industry figures, and dilettantes alike, it will define the field of study for years to come.

Inhaltsverzeichnis

Frontmatter

Chapter 1. Introduction

This chapter is the introduction to the book Global Luxury. It offers a literature review of works in management studies and history on luxury business, stressing the necessity to focus on the major changes that occurred in this industry during the 1970s–1980s (organizational change, new markets and new marketing strategies).
Pierre-Yves Donzé, Rika Fujioka

Organizational Change

Frontmatter

Chapter 2. The Birth of Luxury Big Business: LVMH, Richemont and Kering

Today, large enterprises exercise domination of the luxury industry. According to a survey published by the consulting company Deloitte in 2015, 27 companies in this business had luxury goods sales of over two billion USD in 2013, the largest being LVMH with 21.8 billion USD (Deloitte, Global power of luxury goods 2015. Deloitte Touche Tohmatsu Ltd, 2015). In addition, although many brands owned and managed by these firms have a long history, some of them going back to the early nineteenth century, the dominance of big business in the luxury industry is a relatively recent phenomenon.
Pierre-Yves Donzé

Chapter 3. Italian Luxury Goods Industry on the Move: SMEs and Global Value Chains

Since the end of the twentieth century, dramatic changes in global markets have affected the luxury goods industry on a worldwide scale. They have included the growing influence of emerging economies on trade, the concentration of retailing in the hands of few transnational companies, and an increasing number of mergers and acquisitions associated with the emergence of global value chains. They all called into question the traditional resources of the Italian competitiveness in fashion business and specifically in the field of personal luxury goods. This chapter analyses the specific organizational features of the Italian luxury goods industry, in order to explain how the Italian firms adapted to the new globalization and to understand whether the Italian model is still competitive at the beginning of the twenty-first century.
Elisabetta Merlo

Chapter 4. Luxury Brand Outsiders: Understanding the Success of British and American Luxury Brands

British and, to a lesser extent, American luxury brands have played an important, if somewhat marginal, role in the international luxury fashion and accessories sector for some considerable time. Often these brands are long-established leaders in their field and their excellence readily acknowledged, for example Burberry was established in 1856, while Tiffany & Co. was founded even earlier, in 1837. Despite the long history of luxury brands such as these, it is certainly the case that consideration of the trading features and characteristics of British and American brands has largely been absent from the literature. In considering the specific nature of British and American fashion luxury companies, this chapter identifies five particular characteristics. These may be described as (1) entrepreneurial luxury, (2) technology transfer, (3) multi-channel, digitally advanced, (4) casual luxury, and (5) product specialization and accessible luxury. Each of these is discussed in detail.
Stephen A. Doyle, Christopher M. Moore

Chapter 5. Champagne, Between Terroir and Luxury, 1945–2014

Whether or not champagne belongs to the luxury category is a matter of debate, with some preferring the use of the term ‘prestige product’. Generally, luxury products are those that give producers high profit margins. This is not the case with champagne, however, as its cost price can be very high due to the locations of vines in northern regions, the fact that the grapes are picked by hand, multiple cellar operations, and long storage periods.
Yves Tesson

Markets

Frontmatter

Chapter 6. Christian Dior-New York: French Fashion in the Luxury US Market

Today the US dominates all other markets as far as luxury expenditures are concerned. As shown in the 2015 results published by specialized consultancy firm Bain, the USA is the largest market for the purchase of personal luxury goods, reaching 78.6 billion euros for that year. This sum is higher than the sum of the next four (Japan 20.1, China 17.9, Italy 17.3, and France 17.1). One of the explanations for this state of affairs is the status of New York as a fashion capital. New York is the city where most personal luxury goods are sold in the world, with a sum of 27 billion euros sold in 2015. The USA has become in recent years the largest luxury market in the world, and is still ahead of the Asian countries (D’Arpizio et al. 2015, pp. 2, 9–10, 11).
Véronique Pouillard

Chapter 7. The Democratisation of Luxury and the Expansion of the Japanese Market, 1960–2010

This chapter discusses how the Japanese luxury market has developed in a climate of rapid economic change in the 1960s, 1970s, and thereafter. The department stores made important contributions to expand the Japanese luxury market through the introduction of affordable luxury products. In order to provide a comprehensive view of the democratisation of luxury in Japan, we examine the role of department stores, which have been the largest outlet for luxury goods in Japan, and the responses and behaviour of Japanese consumers since the 1980s. Finally, we use a quantitative approach to analyse the economic impact on the Japanese luxury market with data on luxury goods sales and disposable income from the ‘Family Income and Expenditure Survey’.
Rika Fujioka, Zhen Li, Yuta Kaneko

Chapter 8. How Duty-Free Shops and Department Stores Expanded the Luxury Market in South Korea, 1980–2010

The purpose of this chapter is to investigate the development of the luxury market in South Korea over the past 30 years, emphasising how duty-free shops and department stores became the main outlets accompanying socioeconomic changes. This chapter comprises three parts and sheds light on the development of South Korean luxury market, a context that involved not only domestic customers but also tourists from Japan, China, and other Asian nations. First, we focus on the historical process of the emergence of South Korean luxury market, mainly focusing on duty-free shops for foreign tourists and department stores for domestic consumers. Second, we explore the luxury brands’ successful changes in local distribution strategies through the establishment of subsidiaries in South Korea. Third, we examine the current situation, which demonstrates a variety of sales channels and changing consumer trends, and look at signs of the democratisation of luxury in South Korea.
Insoo Baek, Rika Fujioka

Chapter 9. How to Enter the Chinese Luxury Market? The Example of Swatch Group

This chapter considers the case of Swiss luxury watch companies in China, with a particular focus on Omega and Longines. The Chinese market played a major role in the transformation of the watch industry in Switzerland. The access to this market was not only a driving force behind the growth of companies, but also an opportunity for rebranding and moving up to the luxury end of the market. Therefore, the choice of local partners was a major challenge for Swiss watch companies.
Pierre-Yves Donzé

New Strategies

Frontmatter

Chapter 10. Crafting Time, Making Luxury: The Heritage System and Artisan Revival in the Swiss Watch Industry, 1975–2015

This chapter examines the connections between the luxury industry and heritage paradigms, with an anthropological focus on craftwork and techniques. In this regard, the current organization and recent history of Swiss watchmaking offer a useful case study. Indeed, the current dominance of the Swiss watch industry in the market of high-added-value timepieces and the unprecedented success that the concept of heritage enjoys in the Swiss watch world may best be understood, jointly, by going back forty years. At that moment, the Swiss mechanical timepiece industry was under extreme pressure from a structural crisis, which began in 1974. Since the beginning of the 1980s, the category of heritage has been used as a means for industry leaders to progressively update the value of their mechanical products and reposition them into the luxury market. An exploration of the Swiss watch industry also reveals that, in the 1980s and 1990s, many Swiss brands went upmarket by selling products in their traditional styles but incorporating high-end mechanisms created and developed by skilled independent craftspeople, who were experienced in repair and restoration. This shift of heritage products into the luxury market has, in turn, reshaped the notion of the craftsperson or artisan and led to the emergence of a new category of watchmakers called ‘independent creators’.
Hervé Munz

Chapter 11. Luxury Brands and Public Museums: From Anniversary Exhibitions to Co-branding

Chanel in Moscow, Valentino in Paris, Cartier in New York, and Bulgari in Tokyo: Whatever metropolis one makes a stop in nowadays, one may be sure to discover, at a metropolitan art museum, another splendid exhibition dedicated to a world-famous luxury brand. Why so? Why have brand exhibitions, which were quite rare until the 2000s, suddenly become a must for every more-or-less important art museum’s programming?
Karina Pronitcheva

Chapter 12. “Exclusively for the Happy Few”: Luxury Hotels and Globalisation: The Emergence of a New Sector (1980–2010)?

According to many studies it seems obvious that, from the 1980s onwards, there has been a profound evolution in the concept of the luxury hotel. New clienteles have been recruited from emerging countries and have been thought to have given a new impulse to the sector disrupting, in certain ways, the rules and standards that used to be directed by the old Western elites. They have given birth to new expectations and imposed new practices. Simultaneously, new hotels were built and old ones were refurbished on the terms of types of accommodation, styles, and so on. The aim of this chapter is to question these transformations. Is it necessary to frame a new definition of luxury hotels to understand this supposed transformation? If so, what change has taken place since the 1980s?
Laurent Tissot

Chapter 13. The Survival Strategy of the Japanese Kimono Industry

This chapter investigates changes in the market for traditional dress in Japan in the second half of the twentieth century. The textile industry has been regarded as ‘declining’ or mature industry in Japan since around the 1970s, and imports from developing countries with lower wages have increased rapidly. Although domestic production of textiles has decreased, increasing imports have not destroyed all subsectors. Instead, the market for Japanese kimono has expanded with the increase in disposable income accompanying Japan’s economic growth. While the scale of the kimono market has shrunk in favour of Western clothes for everyday wear, the market for high-quality kimonos as luxury goods for special and formal occasions has survived. Production changes in Nishijin, the most advanced weaving district in Japan, provide a good example of this transition from low- to high-quality kimono.
Tomoko Hashino

Chapter 14. Conclusions

The various chapters in this volume have offered a multi-angled perspective over the evolution of the luxury business during the last decades, with a common objective: shedding light on the dynamics of this industry in order to understand its present-day organization. It has focused on three major topics; the evolution of the organizational structure, the global expansion and the diversification of markets, and the new marketing strategies.
Rika Fujioka, Pierre-Yves Donzé

Backmatter

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