Old and New Distribution Channels in the Luxury Sector

The focus of this chapter is to provide scientific evidence to luxury businesses for competing in a competitive global market, providing for further research opportunities of old and new distribution channels. Thanks to a qualitative method, it emerged that distribution strategies implemented by firms operating in luxury markets are typical and specific with respect to firms in other markets and represent a source of competitive advantage. Four phenomena have characterized distribution in this area in recent years: a growing investment by luxury brands in direct distribution activities; the integration between distribution and communication activities; the development of the digital channel in luxury markets; and lastly, the growing integration between User Generated Content and distribution channels. As the distribution variable influences the constitution of brand identity, old and new distribution channels have to be differently articulated according to the exclusivity of the brand.

The Relative Importance of the Different Relationship Platforms (Physical and Virtual) in the Consumer Experience of Luxury Brands

Managing luxury brands nowadays is complex (Wiedmann & Hennigs, 2012). On the one hand, luxury brands built their development through a strategic use of physical relationship platforms, making the customer experience inside points of sale an indispensable element for their growth. On the other hand, over the past 10 years, we have seen leading global luxury brands embrace virtual platforms in various ways to re-imagining consumer experiences. Blending these new elements can present challenges. The purpose of this chapter is to understand the relative importance of the different relationship platforms (physical and virtual) in the consumer experience of luxury brands and how has it changed. Results are able on the one hand to expand the theory of luxury branding and on the other hand to highlight some key implications for luxury brand managers.

Conceptualizing and Measuring Content Marketing in Luxury Firms

Luxury marketing has gone through some major changes over the past couple of decades. The power is moving away from luxury firms to luxury consumers, who are playing a more significant role than ever before. These challenges in global markets have sparked a growing interest by practitioners and academics in the content marketing and in the metrics to measure its impact on luxury firm performance. However, the literature is still fragmented. Trying to fill this gap, this chapter has two main objectives. Firstly, it reviews the existing literature on content marketing and the main metrics used. Secondly, it analyses the degree of use and effectiveness of content marketing strategies, tools and metrics on a sample of 218 luxury firms. The results of the study revealed that content marketing is seen by luxury firms as marketing communications strategy that provides valuable and helpful information to a clearly defined target audience with the aim to increase sales.

A Study of the Impact of Social Networking Communities on the Consumption of Beauty Luxury Products

The advances in internet technology over the past decade have irrevocably altered the ways in which people communicate – this, in turn, has had an undeniable impact on consumer behaviour. The following chapter set out to explore the phenomenon of blogging and social media communities, and the impact these communities have had on reference group culture, social identity and the buying behaviour of a target group of consumers – women, aged 18-30, who participate in the online beauty community. This research has examined the impact participation in this community has had on the amount of money these consumers spend on beauty and skincare products, and the extent to which it has influenced their attitude towards luxury products. The study confirmed findings from existing literature, in that a connection between purchasing habits and the desire to be considered a member of the community was established. The data collected revealed that participation in the beauty community has an impact not only on the amount of money consumers spend on beauty and skincare items, but that this frequent online communication makes them increasingly more willing to purchase a wider variety of products, both at a high end/luxury and High Street/drugstore level. The study also revealed that regular participation in the community increases consumer knowledge of products, and can eventually lead to their expertise surpassing that of sales staff. The study concludes by outlining recommendations for marketers working with beauty brands, highlighting key considerations to make when approaching the marketing of products via the online community, based on the findings on this study.

Managing Integrated Brand Communication Strategies in the Online Era

Since the spread of digital environments has certainly helped to broaden the spectrum of possibilities for managing channels, while opening new areas of competitive confrontation, is to assume that new technologies have contributed to the definition of a hybrid environment in which pre- and post-digital-revolution habits coexist. The aim of the present chapter is to show how this kind of hybrid channels, want to meet the two requirements to communicate and sell - through the use of media platforms that appeal to each other, meet and complement each other – is nowadays managed and how it can be used in the future to reach business and awareness goals in luxury markets. The analysis has been based on ways through which global luxury goods firms integrate their communication and selling tools each other, by focusing the attention on web and social strategies.

Global Consumer Behaviour in Luxury Goods Markets

In this chapter, the author presents an overview on global consumer behaviour in luxury goods markets. The discussion is based on the classic theories of consumer decision-making process and the important factors affecting the decision-making process. As global consumer behaviour in luxury goods markets is greatly affected by cultural differences, Hofstede's cultural dimensions theory is used to explain the various consumption behaviours displayed by consumers from different parts of the world. Past research findings are summarised, examples of consumer behaviours and appropriate marketing strategies implemented by luxury brands are also presented to assist readers for a better understanding of the topic.

The Relationship between Fast Fashion and Luxury Brands

This chapter explores how the luxury sector has been affected by the fast fashion brands in the UK market. In particular, this chapter examines the effects of fast fashion activity on luxury brands and more specifically on how the marketing strategies of luxury brands have been drawn to the fast fashion model. Moreover, it analyzes how co-branding collaborations between luxury and fast fashion brands have positively affected consumer' perception of the luxury brands. The chapter is based on a theoretical review and two studies. Results provide insights for the international fashion business, showing how luxury fashion brands lean towards the fast fashion model and how co-branding collaborations between luxury and fast fashion brands are positive for luxury brands in terms of customer perception.

Strategies for Luxury Fashion Brands' Targeting the Young Audience

The purpose of this chapter is to analyse luxury fashion brands' interactions with consumers, especially on social media. In this sense, we firstly propose a hypothesis relative to how luxury fashion brands can use celebrities (in general, and particularly music and TV idols) and social media to influence on young consumer behaviour. Lately, we try to response this question through a case study based on one of the most South Korean luxury fashion brands. Using members of social media has been a constant in brand strategy. Especially when targeting the young audience. They big consumers and fans of music and audio-visual entertainment products, show a high level of loyalty. This leads them to copy the behaviour and consumption of the same products and brands of their idols. They are big users of social media and the Internet, where they express their feelings, experiences and opinions about their music idols as well as the brands and products they use. This being the case, technology offers empowerment to young people. This allows them not only access to more information but allows the possibility to create their own new content. Thus both roles are important regarding branding. We can use the example of how Korean luxury fashion brands and how they use young music idols to establish a strong emotional relationship with their consumers. They do this by increasing their participation and involvement with their brands in social networks.

Analyzing Countries for Their Luxury Potentials

This study attempts to fill in the gaps in the international marketing literature about international marketing entry decisions for luxury products. With this in mind, a macromarketing approach is used to segment countries according to the basic luxury consumption criteria based on the literature review. These criteria include population, GDP, GINI coefficient, total female labor force, and cultural dimensions. These indicators are listed for a total of 60 countries and multidimensional scaling analysis (MDS) is conducted to see whether some countries form groups. Finally, five groups are determined and are discussed for their luxury potentials.

Consumer Behavior Regarding Luxury Perfumes

Due to the importance of the fragrances segment within the luxury market and the limited academic and professional literature available regarding the same, this chapter offers a detailed description of the basic characteristics of this segment. Therefore, based on the analysis of primary and secondary information (quantitative and qualitative) regarding the Spanish market, the key elements of luxury fragrance consumer behavior have been described, examining the principle explanatory factors leading to decision making processes for their purchase and use; in other words, the motivations to purchase and consume these products. This knowledge is decisive to permit luxury fragrance brands to appropriately design their global marketing strategies and formulate the appropriate marketing-mix.