Analysis the successful strategies to manage luxury brand
Luxury product is going though its flourishing market stages, regardless of current world economy slowing down. Hermes, which is one of the leading luxury brands in the world, reached its highest operating margins of £1,119 million in 2012（http://finance.hermes.com/en/Releases/All-releases）. So what is luxury? What are the key strategies in managing a luxury brand? The following article will discuss the current marketing environment of luxury brand, and give an in depth analysis of the successful strategies which have been adopted by luxury companies, this article will mainly discuss four strategies, which are expanding a luxury brand, choosing a distribution channel, advertising by celebrities and outsourcing manufacture, the following paragraphs will evaluate the positive and negative effects of each strategy, and ultimately illustrate the most effective strategies in managing a luxury brand. The field of luxury goods generally refers to products that are handmade by skilled craftsmen and designed by famous artists, such as Marc Jacob (ichel Chevalier 1943-Gerald Mazzalovo, 2008). Moreover, “A luxury brand must satisfy three criteria: it must have a strong artistic content; it must be the result of craftsmanship; and it must be international.” (Michel Chevaller and Gerald Mazzalovo, 2008). For example, Hermes Birkin bag is one of the famous it-bags in the world, it is named after the singer Jane Birkin, and it is made from a variety of rare materials such as calf leather, ostrich, crocodile, and lizard. All the Birkin bags are handmade by expert artisans in France, it takes 48 hours to produce one ordinary Birkin bag. What’s more, it is widely known by people all over the world; it had a long purchase waiting list due to its appealing and classic features (Uche Okonkwo, 2007). So how do people become familiar with luxury brand? At the moment, information, communication and mobile...
Please join StudyMode to read the full document