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

Donzé, Pierre-Yves

doi:10.1007/978-981-10-5236-1_2

Cited by 16 publications

(8 citation statements)

References 7 publications

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“…It owns 75 fashion houses and has a highly diversified production, covering different sectors of the luxury world (LVMH 2021a ). Kering ranks second in terms of annual turnover and controls world-renowned brands, such as Gucci, Balenciaga and Bottega Veneta (Donzé 2017 ). Richemont, the third largest group in the industry, particularly focuses on jewels, watches and other fashion accessories.…”

Section: Literature Reviewmentioning

confidence: 99%

The relationship between upstream vertical integration and environmental sustainability in the luxury fashion industry

Arcuri¹,

Giolli²

2022

SN Bus Econ

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Luxury fashion firms increasingly incorporate the principles of environmental sustainability into their supply chain strategies in response to a growing demand for sustainable products. Starting from this premise, the present study explores the relationship between upstream vertical integration and environmental sustainability in the luxury fashion industry. Based on data from a survey and a set of interviews, this paper examines the link between firm size and the importance of environmental sustainability as a driver of upstream integration. In addition, it investigates the connection between the degree of upstream integration and manufacturers’ environmental sustainability performance. According to the research results, large corporations attach greater importance than SMEs to environmental sustainability when considering an upstream integration process. Also, higher levels of vertical integration are positively associated with better sustainability performances.

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Section: Literature Reviewmentioning

confidence: 99%

The relationship between upstream vertical integration and environmental sustainability in the luxury fashion industry

Arcuri¹,

Giolli²

2022

SN Bus Econ

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“…Today, the foreign luxury industry occupies a dominant position in the luxury industry [20]. Whether it be a family business or a new brand, joining the stock exchange generally helps the company become more profitable.…”

Section: Foreign Luxury Brand: Moët Hennessy-louis Vuitton (Lvmh)mentioning

confidence: 99%

The Future of Marketing Chinese Luxury Brands

Li¹,

Li²,

Wang³

et al. 2021

Proceedings of the 2021 International Conference on Enterprise Management and Economic Development (ICEMED 2021)

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Mainland China has seen significant expansion in its luxury goods market over the past decade and is on track to become the world's largest luxury consumer by 2025. Understanding the most current consumption patterns of Chinese luxury consumers is pertinent to brand success in China. The purpose of this paper is to examine how domestic luxury brands can optimize their marketing strategies to better adapt to the Chinese luxury market, which foreign brands now dominate. This study analyses the market's consumer behaviour and business strategy through three research designs: (1) The literature research approach is used to analyse Chinese consumer behaviours. The result shows a growing trend of digitalization and preference for domestic brands in recent years. Furthermore, the digitalization trend also reveals the bandwagon effect, where consumers purchase a certain brand to establish their sense of belonging to a designated group.(2) The case study approach analyses luxury brands Shanghai Tang and Louis Vuitton to gain insights on business strategies. Shanghai Tang succeeded from its focus on customer experience but suffered from ambiguous brand positioning. Meanwhile, LV could take advantage of social media platforms such as Xiaohongshu to align with current trends. (3) Using summary and induction, three strategies are suggested for domestic luxury brands: introducing dailylife products, brand-specific customer demand assessments, and digitalization. This study's findings fill the gap for the lack of understanding in regards to luxury Chinese fashion brands. The result provides insight into the current Chinese luxury market and marketing strategies, which can be adapted by both domestic and foreign brands.

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“…The birth and rapid growth of luxury fashion groups since the 1980s have changed the landscape and structure of the international luxury fashion market (Bai et al, 2018). Indeed, during the past decades, increasing numbers of private luxury fashion brands have been merged and acquired by these conglomerates, including LVMH, Kering, Richemont, as well as numerous medium sized groups such as Prada, PVH and Tod's (Donze, 2018). All of these well-established luxury fashion groups originate from developed economies, or are owned by the families who originate from France, Italy and the US (Doyle and Moore, 2018).…”

Section: Introductionmentioning

confidence: 99%

Parenting advantages of emerging market multinationals (EMNCs) in luxury fashion retailing

Bai

Shi

et al. 2021

IJRDM

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PurposeThis empirical research, adopting an international retailing perspective, aims to examine the parenting advantages offered by emerging market multinationals (EMNCs) in luxury fashion retail sector.Design/methodology/approachThe researchers adopted a qualitative case study, and the qualitative data were collected through ten semi-structured interviews with senior managers.FindingsIt is a win–win situation for the EMNCs as parent groups of Western luxury fashion brands, as the EMNCs can access critical assets including advanced brand management expertise, retailing know-how, and the services skills needed for higher income consumers. Meanwhile, the subsidiary brands benefit from a high degree of autonomy, intra-group resource utilisation, a competitive brand portfolio and most importantly economies of scales in the value chain, particularly in production. The perceived risks of EMNCs ownership include potentially restricted autonomy and the uncertainty over corporate development activities in the future, as well as the risks of diluting brand image caused by the inconsistency between country of origin and country of ownership.Research limitations/implicationsVery few EMNCs have moved into luxury fashion retailing to date, which means that the sampling frame was small. The findings were generated from China, which is perceived to be of considerable psychic distance in terms of culture and policies compared to other emerging markets that have been heavily influenced by colonialism.Practical implicationsThis paper suggests that practitioners, particularly EMNCs, support their subsidiary luxury fashion brands through parenting advantages and develop their own high-end fashion brands through internationalisation.Originality/valueThis empirical study contributes to the current international retailing literature by offering in depth insights of parenting advantages offered by EMNCs in luxury fashion retailing. It also enriches the EMNC literature, which has mainly adopted an international business scope, by extending this understanding into luxury fashion retailing.

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

Cited by 16 publications

References 7 publications

The relationship between upstream vertical integration and environmental sustainability in the luxury fashion industry

The relationship between upstream vertical integration and environmental sustainability in the luxury fashion industry

The Future of Marketing Chinese Luxury Brands

Parenting advantages of emerging market multinationals (EMNCs) in luxury fashion retailing

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