Luxury Brands Case Study

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According to the Oxford American Dictionary, “luxury is the state of great comfort and extravagant living”. The concept of “luxury” is commonly used with different and often contradicting meanings; According to the Journal of Fashion Marketing and Management, luxury goods have been defined as “goods for which the mere use or display of a particular branded product brings prestige to the owner, apart from any functional utility” (Grossman and Sharpiro, 1988). Phau and Prendergast’s (2001) definition of luxury brands identified four factors characterizing luxury brands. Therefore luxury brands provoke exclusivity, have a strong brand identity, high level of brand awareness and perceived quality, loyal customers and high volume of sales. “Luxury brands have a heightened status that affords an opportunity for their owners to charge premium prices” (Jackson and Haid, 2002). “In addition to high price, luxury brands feature excellent quality and specialized distribution channels” (Kapferer 2001). In accordance with the International Journal of Retail and Distribution Management (2013), “from a subjective point-of-view, the term luxury refers to things you have that I think you…show more content…
According to the professors Alessandro Brun and Cecilia Casteli, in the Journal of Retail & Distribution Management there some critical success factors of luxury: • Consistently delivering premium quality in all the products in the line and along the whole supply chain. • A heritage of craftsmanship. • Exclusivity obtained through the use of naturally scarce materials, limited editions, limited production runs, selective distribution and the creation of waiting lists. • A marketing strategy, providing product supremacy with emotional aspect. • The global reputation of the brand. • A recognizable style and design, which means that consumers do not need to see the label to recognize the

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