Digitalization in the Luxury Fashion Industry: Strategic Branding for Millennial Consumers

252 Pages·2020·3.435 MB·English

by  Anna Cabigiosu

PALGRAVE ADVANCES IN LUXURY
alization in the Luxury
on Industry
Digitalization in the Luxury
Fashion Industry
Strategic Branding for Millennial Consumers
Anna Cabigiosu
Palgrave Advances in Luxury
Series Editors
Paurav Shukla
Southampton Business School
University of Southampton
Southampton, UK
Jaywant Singh
Kingston Business School
Kingston University
Kingston Upon Thames, UK
Thefieldofluxurystudiesincreasinglyencompassesavarietyofperspec-
tives not just limited to marketing and brand management. In recent
times, a host of novel and topical issues on luxury such as sustainability,
counterfeiting, emulation and consumption trends have gained promi-
nence which draw on the fields of entrepreneurship, sociology, psychol-
ogy and operations.
Examining international trends from China, Asia, Europe, North
America and the MENA region, Palgrave Advances in Luxury is the first
series dedicated to this complex issue. Including multiple perspectives
whilst being very much grounded in business, its aim is to offer an inte-
gratedpictureofthemanagementenvironmentinwhichluxuryoperates.
Itexploresthenewer debatesrelatingtoluxuryconsumptionsuchasthe
signalsusedinexpressingluxury,thesociallydivisivenatureofluxuryand
the socio-economic segmentation that it brings. Filling a significant gap
in our knowledge of this field, the series will help readers comprehend
the significant management challenges unique to this construct.
All submissions are single blind peer reviewed. For more informa-
tion on our peer review process please visit our website: https://www.
palgrave.com/gp/book-authors/your-career/early-career-researcher-hub/
peer-review-process.
For information on how to submit a book proposal for inclusion in
this series please contact Liz Barlow: [email protected]. For fur-
ther information on the book proposal process please visit our web-
site: https://www.palgrave.com/gp/book-authors/publishing-guidelines/
submit-a-proposal.
More information about this series at
http://www.palgrave.com/gp/series/15396
Anna Cabigiosu
Digitalization
in the Luxury
Fashion Industry
Strategic Branding for Millennial
Consumers
Anna Cabigiosu
Department of Management
Ca’ Foscari University
Venice, Italy
ISSN 2662-1061 ISSN 2662-107X (electronic)
Palgrave Advances in Luxury
ISBN 978-3-030-48809-3 ISBN 978-3-030-48810-9 (eBook)
https://doi.org/10.1007/978-3-030-48810-9
©The Editor(s) (if applicable) andThe Author(s), under exclusive license to Springer Nature
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Contents
1 Introduction 1
1.1 Book Structure and Aim 1
1.2 Conclusions 5
Part I The Luxury Fashion Industry
2 An Overview of the Luxury Fashion Industry 9
2.1 The Concept of Luxury and Its Attributes 9
2.1.1 The Concept of Luxury 9
2.1.2 The New Luxury 11
2.1.3 The Attributes of Luxury Goods 18
2.1.4 Brand Heritage 20
2.2 The Luxury Fashion Industry: Global and Regional
Dynamics 21
2.2.1 CompetitivenessandMergersandAcquisitions 25
2.3 Conclusions 27
References 28
v
vi Contents
3 The New Consumers of Luxury 33
3.1 The New Consumers:The Millennials 33
3.1.1 Millennial Generation 33
3.1.2 The MainTraits of Millennials 34
3.1.3 The Importance of Millennials for the Luxury
Sector 38
3.1.4 The Behavior of the Millennial Consumer 42
3.1.5 Sustainability 45
3.2 The Growing Importance of Social Media 47
3.2.1 Storytelling 51
3.2.2 Blogs and Influencers 54
3.3 The Renewed Relevance of Culture and Arts: Capsules
and Co-branding 57
3.4 Conclusions 61
References 64
Part II Opportunities andThreats for the Luxury Fashion
Industry
4 The Omnichannel Strategy in the Fashion Industry 71
4.1 The Omnichannel Strategy: A New Business Model 71
4.1.1 Managing Omnichannel Logistics 76
4.1.2 Omnichannel and Big
Data Usage and Protection 79
4.1.3 Human Resource Management 81
4.2 Reinventing the In-Store Experience 83
4.3 The Omnichannel Strategy in the Italian Luxury
Fashion Industry 88
4.4 The Omnichannel Strategy in Italian Small-Medium
Enterprises:The Siloe Case 91
4.5 Conclusions 96
References 98
Contents vii
5 “See Now Buy Now” 103
5.1 The “See Now Buy Now” Business Model 103
5.2 TheFastFashionLuxury:MultipleManagerialThreats 106
5.2.1 Creativity Under Pressure 107
5.2.2 Order and Supply Chain Management 110
5.2.3 Desire 112
5.3 Comparing the “See Now Buy Now” in Burberry,
Ralph Lauren andTom Ford 113
5.3.1 Burberry 113
5.3.2 SNBN in Burberry 114
5.3.3 SNBN in Ralph Lauren 119
5.3.4 Tom Ford 121
5.3.5 SNBN inTom Ford 122
5.4 Comparison of the Analyzed Cases 123
5.5 Conclusions 126
References 129
6 Additive Manufacturing and SmartTextiles 133
6.1 The Potentials of Additive Manufacturing
in the Fashion Industry 133
6.2 The Application of 3D Printing for the Design and
Production of Luxury Shoes 138
6.2.1 The Artisan and Industrial Production of
Shoes 138
6.2.2 The Digital Craftsman 142
6.2.3 The Intelligent Shoe Factory 145
6.3 3D Printing: Opportunities andThreats 150
6.4 The Opportunity of Smart Textiles: Technologies
and Performance, Applications and Diffusion 153
6.4.1 Performance in SmartTextiles 156
6.4.2 Nanotechnologies, E- and SmartTextiles 161
6.5 Conclusions 165
References 166
viii Contents
Part III The Business Model of the Most Growing Brand:
Gucci and the Kering Group
7 The Kering Group and Gucci’s Success 175
7.1 The Kering Group 175
7.1.1 Holding Structure 177
7.1.2 Group Performance 182
7.2 Gucci: History and Growth 183
7.2.1 Breaking the Rules: The Creative Direction
of Alessandro Michele 185
7.2.2 The Heritage, Artistical and Digital
Contaminations 186
7.2.3 The ArtLab 189
7.2.4 Social Networks 190
7.2.5 The Omnichannel Strategy in Gucci 193
7.3 Conclusions 197
References 199
8 A Comparative Analysis: Gucci, Saint Laurent, Balenciaga
and BottegaVeneta 203
8.1 Saint Laurent 203
8.2 Balenciaga 207
8.3 BottegaVeneta 212
8.4 Business Models’ Comparison 216
8.4.1 The Strategy Canvas 217
8.4.2 Old and New Luxury 220
8.4.3 Comparing Kering’sTop Brands 223
8.5 Discussion and Conclusions 230
References 234
9 Concluding Considerations and Directions for Future
Research 237
9.1 Concluding Considerations 237
9.2 Directions for Future Research 242
Index 245
List of Figures
Fig. 8.1 Strategy canvas representing traditional and new fashion
luxury firms’ strategy (Source Personal elaboration) 221
Fig. 8.2 Comparison of Kering’s main brands strategy (Source
Personal elaboration) 223
ix