The profit potential that exist in the luxury goods industry could be better understood through an analysis of Porter’s five forces model. Starting with the threat of entry, the industry is unlikely to have new entrants because of the sustained competitive advantages of the existing successfully luxury brands. Leading companies such as Coach, Michael Kors, Salvatore Ferragamo, Prada, and etc. all have brand name recognition due to their success and popularity. According to the article, “To be unique and exclusive you cannot be ubiquitous.” (Gamble, 2015, C-81) For instance, Coach, Inc. strengthened their brand by becoming a leader in their accessible luxury segment by focusing on being unique in this market. Coach, Inc. and the other popular brands, have strong personal identifications because of the strategies they put in place. For this reason, new entrants to the market will have trouble attracting consumers who stand strong with the popular brand because of their loyalty. The power of suppliers within the industry for the luxury good market is low as the industry is not very concentrated. Materials to produce luxury goods, such as leather, are supplied in various countries throughout the world. For Coach, Inc. the case states, “All of the company’s leather products were manufactured by third-party suppliers in Asia.” (Gamble, 2015, C-71) Since Coach and the other…
Founded in Florence in 1921, Gucci is among the world's leading luxury fashion brands, famous worldwide because of its quality, Italian craftsmanship and fashion authority. Developing a unique vision that fuses past and offer, background and modernity, Gucci explores the wealthy heritage in the heart of their archive and also the brand key symbols having a modern vitality. Gucci's eyeglasses is really a fundamental addition for a Gucci total look. The eyeglasses collection offers an array of models in line with the brand's symbols, perfectly designed to satisfy various different tastes. Shades and optical frames are inspired by a mix of distinctive design and greatest contemporary materials, verifying the brand's…
On May 30, 2000 The Calvin Klein family filed a lawsuit against Warnaco Group Inc for eighteen counts of trademark infringement, trademark dilution and intentional misrepresentation. Nearly a month later Warnaco answered with a counter suit, denying the major allegations and justifying the dilution to falling within the scope of the two parities licensing agreement. The case study brings forth information regarding fashion retailing, distribution practices and even the licensing practices expected within the marketplace, however as a reader one should keep in mind that during the millennium “licensing was a staple in the fashion business.” (pg.8) Many companies looked to licensing to help brand extension and most, in fact, built a steady revenue from licensing out their brands. These brands include brands like Ralph Lauren, Nine West and Liz Clairborne, but also venture into the luxury market targeting brands such as Gucci and Fendi as well. It is safe to say that licensing, in the millennium, was a prominent and successful trend within the fashion industry. It was this trending success that emerged licensing groups, such as the Warnaco Group.…
A luxury brand may have profound influence on an overall product strategy since its position may determine how the company is going to make its next step. A luxury brand like Coach epitomizes elegance and combines classic beauty with modern design. According to John E. Gamble, not only has Coach become one of the most respected and known brand names in the ladies’ handbags and leather accessories luxury brand industry, it is also one of the most best-selling luxury brand companies in the world, with net sales reaching 2.1 billion in 2006 (Gamble). When a company like Coach decides to set up a product strategy for the next season, the manager will need to take the brand’s established style into account, since their incoming products must fit with the existing brand. When a manager, such as Lew Frankfort, chairman and CEO of Coach, Inc., aims to build a luxury brand like Coach, he invests millions of dollars in setting up a series of business strategies, including advertising on television, organizing fashion shows, and gaining the approval of fashion designers. These actions are decided based on how a luxury brand is built; essentially, the brand will guide the future steps of the company to a certain degree. Coach, Inc. is different from other more expensive luxury brands, such as Hermes, Prada, Fendi, and Louis Vuitton in the sense that Coach focuses more on middle-income consumers who want to purchase their hand bags from a price range of $200 to $500. Coach is the alternative to these competing companies, matching their key luxury products on quality and styling, while beating them on price by 50% or more (Gamble).…
The fashion industry is one of the most competitive industries in the world: sought after products and coveted brand-name garments can be “in” one season and just as quickly “out” the next. It is one of the most difficult industries for a new brand to successfully penetrate, as the top tier of respected and recognized designers have built their brand equity through many seasons of impeccable looks and styles that consumers have come to demand. Tory Burch LLC, however, made the feat seem easy in 2004 when the start-up brand stormed the women’s ready-to-wear apparel scene and introduced their luxurious, yet affordable, line of clothing. Selling out its first shipment in a matter of weeks, Tory Burch LLC set the tone for its furious rise in the fashion industry.…
2. Louis Vuitton is LVMH flagship brand. Much of Louis Vuitton’s appeal is that it bestows exclusivity on its owners. In the last few years, however, the Louis Vuitton logo has been applied to handbags and accessories at an unprecedented rate. Discuss the challenges to the value of the brand as LVMH responds by introducing more luxury handbags and accessories without displaying the logo.…
The company has also gained a strong brand image, because of its uniqueness as a “casual luxury” brand and thanks to its stores design, which are…
Nagasawa, Shin’ya (2008), Luxury Brand Strategy of Louis Vuitton: Graduate school of Commerce, Waseda University Tokyo, Japan.…
Mr. Rubel, a director of SUPERVALU since 2010, serves as a Senior Advisor with TPG Capital, a leading global private investment firm with $49 billion of capital under management. Until 2011 Mr. Rubel was the Chairman, President and Chief Executive Officer of Collective Brands, Inc., the holding company for Payless ShoeSource, Collective Brands Performance Lifestyle Group and Collective Licensing International and a leader in lifestyle, fashion and performance brands for footwear and related accessories. Mr. Rubel joined Collective Brands in 2005 as Chief Executive Officer and President. Among many qualifications, Mr. Rubel brings significant retail and branding experience and experience as a chief executive officer of a large public company, including managing a significant business transformation. Mr. Rubel is a Director and serves as Chairman of the Governance Committee for The Hudson Bay Company. From 2005 until 2011, Mr. Rubel was a director of Collective Brands, Inc., and from 2006 to 2008, Mr. Rubel was a director of Furniture Brands International, Inc., a company that designs, manufactures, sources and sells home furnishings.…
This move by the management to replace Nicolas Ghesquiere, has been seen as a major milestone in the Balenciaga history considering Alexander Wang’s…
According to Exhibit 13, the respective market shares for Polo, Armani, Gucci, and Burberry are 9.1%, 3.5%, 4.4%, and 5.2%. Coach was not included among the Top 10 Global Luxury Goods Players in general, but specific to accessories, they have an estimated 6% market share compared to Burberry’s 4%. This data illustrates that Burberry is doing quite well. They are one of the Top 5 Global Luxury Goods Players and it appears that they have plenty of room for growth. Unlike many of its other competitors, as mentioned by Rosie Bravo, Burberry has positioned itself as brand that is not only aspirational, but also functional. This best of both worlds quality differentiates Burberry from many of the other players. Under Bravo’s guidance, Burberry now appeals to a wide demographic in terms of age, income, and fashion preferences. However, this might actually be an area of concern because now every firm is a competitor. In essence, Burberry does have a very sustainable competitive position, though it might be wise to shift towards one spectrum (i.e. lifestyle or fashion) instead of straddling between the two.…
In this paper, I mainly analyses Burberry’s performance and describing some of the companies’ background. Besides that, I also did some research on the structure and the competitiveness of the luxury fashion industry.…
As the economy began to deteriorate near the end of 2008, luxury brands like Gucci, Prada, and Louis Vuitton all began to feel the effects. Consumers were beginning to spend less and save money through the times of economic uncertainty. One of the hardest hit industries what that of luxury goods. Robert Polet was faced with an extremely daunting challenge of determining how to leverage the Gucci Group brands to remain profitable during the economic downturn.…
What problems might arise in trying to build Burberry into a global brand? What are the dangers inherent in Burberry’s strategy since 1997? What are the challenges in marketing luxury brands?…
The Gucci Groupe in now a muiti- brand conglomerate ,with a collection of high fashion brands ,like :…