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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