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The Road to Luxury

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Table of Contents

Acknowledgments xi About the Authors xiii Prologue: The Pink Bag 1 Chapter 1: Introduction: Definition and Crisis of Luxury 5 Issues of Defining Luxury 6 Crisis 8 The Luxury Industry 10 Reaction to the Crisis of Global Markets 12 Effect of Crisis on the Luxury Industry 18 Strategic Response to Crisis 20 Conclusion 25 Chapter 2: Evolution of the Global Luxury Market 29 Evolution 32 How Has It Changed? 38 Luxury Industry Trends 40 Conclusion 44 Chapter 3: Who?s Who of Luxury 47 The Consumers 48 The Actors 50 Conclusion 88 Chapter 4: Branding 89 Luxury Marketing: Highly Creative and Selective 92 Cobranding: Does It Enhance Branding or Selling? 107 Brand Extensions 109 Pricing 112 Storytelling: Culture, Event, and Communication 115 Digital Marketing 119 Discussion 129 Conclusion 130 Chapter 5: Brand Identity, Clients, and Ethos 133 Brand Identity 134 Ethos 140 Clients 144 Discussion 149 Conclusion 153 Chapter 6: Family Houses, Corporatization, and New Entrants 155 What Is a Family Business? 158 Family Business during Crisis 177 Family Businesses of the Future: Corporatization 178 Changes during Transition from Family Business to Corporation 182 Entrepreneurs and New Entrants 186 Trends and Discussion 190 Conclusion 193 Chapter 7: Management Styles in the Luxury Industry 195 Path Dependency: Management Styles 197 Managing Paradoxes 202 Examples of Styles 210 Analysis 227 Conclusion 230 Chapter 8: Skills 235 Historical Craftsmanship 238 Entrepreneurial Designers 240 The Sales Team 243 The Professional Managers 244 Skills Required 245 Managing Talent 248 Conclusion 261 Chapter 9: Services: The Point of Sale 265 Issues in Point-of-Sale 268 The Customer Dimension 269 The Service Dimension 277 Conclusion 280 Chapter 10: Systems and Operations in the Luxury Business 285 The Challenge 286 Global Supply Chain 290 Customer Relationship Management 295 Information Technology 301 Conclusion 302 Chapter 11: Retail, Distribution, and E-Commerce 307 Channels of Distribution 309 Travel Retail and Duty-Free Stores 324 Strategic Decisions in Geographic Expansion 328 Online Distribution and E-Commerce 331 Conclusion 335 Chapter 12: Intellectual Property Rights and Counterfeiting 337 Counterfeiting: Issues for Luxury Brands 340 The Issue of Legality 344 Is It an Emerging Market Phenomenon? 346 Effect on a Brand 347 Examples of Responses to Counterfeiting 350 What to Do to Prevent Counterfeiting? 353 Gray Market 362 Conclusion 364 Chapter 13: Emerging Markets and Emerging Market Luxury Brands 367 Brazil 369 Russia 381 India 386 China 395 Strategic Actions 404 Conclusion 409 Chapter 14: The Future and Questions to Ponder 411 Research Design, Methodology, and Data Collection 421 Bibliography 427 Index 433

About the Author

ASHOK SOM is Professor of Global Strategy in the Management Department at ESSEC Business School, Paris-Singapore. He is the founder of the India Research Center, was the Founding Associate Dean of the Global MBA program, and the founder of the Global Management Programs on Luxury and Retail Management (in partnership with Indian Institute of Management (IIM) Ahmedabad, India. CHRISTIAN BLANCKAERT is the Chairman of Petit-Bateau. He is also the Senior Advisor of Eurazeo and a board member of Moncler and Champagne Piper-Heidseick. He has previously served as Executive Vice President of Hermes International from 1996 to 2009.

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