“The internet dilemma” was the concept used to describe luxury brand companies' initial reluctance to integrate online technologies into their business model. However, over time, luxury brand companies have understood that moving towards digital transformation is the only way to survive on the market and appeal to the new luxury brand consumers. In a few years, digitalisation has become a priority for all luxury brand companies that started to integrate digital and physical platforms to engage consumers through all touchpoints of their shopping journey. In light of the topic's relevance and considering the primary focus of research on consumers, this chapter aims to deepen the digitalisation phenomenon in the luxury market involving the little-explored luxury brand managers' perspective. The authors conducted a longitudinal study to compare the main changes in integrating digital and physical platforms from the managers' perspective between 2014 and 2020. In this endeavour, they also considered how the COVID-19 pandemic had affected luxury brand companies' digitalisation.
Building customer relationships and customer equity is the prime concern in today’s business decisions. The emergence of internet, especially social media like Facebook and Twitter, changed traditional marketing thought to a great extent. The importance of customer orientation is reflected in the axiom, “The customer is the king”. A good number of organizations are engaging customers in their new product development activities via social media platforms. Co-creation, a new perspective in which customers are active co-creators of the products they buy and use, is currently challenging the traditional paradigm. The concept of co-creation involving the customer’s knowledge, creativity and judgment to generate value is considered not only an upcoming trend that introduces new products or services but also fitting their need and increasing value for money. Knowledge and innovation are inseparable. Knowledge management competencies and capacities are essential to any organization that aspires to be distinguished and innovative. The present work is an attempt to identify the change in value creation procedure along with one area of business, where co-creation can return significant dividends. It is on extending the brand or brand category through brand extension or line extension. This article, through an in depth literature review analysis, identifies the changes in every perspective of this paradigm shift and it presents a conceptual model of company-customer-brand-based co-creation activity via social media. The main objective is offering an agenda for future research of this emerging trend and ensuring the way to move from theory to practice. The paper acts as a proposal; it allows the organization to go for this change in a large scale and obtain early feedback on the idea presented.
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.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.