Fashion Branding and Communication: Core Strategies of European Luxury Brands

199 Pages·2017·10.39 MB·English

by  Byoungho Jin

Palgrave Studies in Practice: Global
Fashion Brand Management
Series Editors
Byoungho Jin
Department of Consumer, Apparel and Retail Studies
Bryan School of Business and Economics
The University of North Carolina
Greensboro, NC, USA
Elena Cedrola
Department of Economics and Law
University of Macerata
Macerata, Italy
Branding and internationalization are critical aspects of any business, and
the fashion industry is especially global in nature. Very few apparel items
are entirely produced within one country, and it is relatively easier for
fashionbrandstoenterinternationalmarketsbecauselittlefinancialinvest-
mentisrequired,small-scaleretailspaceispossible,andeconomiesofscale
can be maximized. Accordingly, there are more successful internationali-
zationcasesinthefashionindustrythananyothersector,yetnoonetext
handlesthesecriticaltopics(i.e.,brandingandinternationalization)inone
book, particularly in case study format. This series will focus on fashion
brandcasesthathavebeensuccessfulinglobalmarketplaces.Byexamining
their strategies in diverse aspects such as internationalization, innovation,
branding and communication, and retail management, these books will
help students, scholars, and practitioners grasp lesser-known yet effective
internationalmarketing strategies.
More information aboutthisseries at
http://www.springer.com/series/14598
ByounghoJin(cid:129)ElenaCedrola
Editors
Fashion Branding
and Communication
Core Strategies of European Luxury Brands
Editors
ByounghoJin ElenaCedrola
DepartmentofConsumer,Apparel DepartmentofEconomicsandLaw
andRetailStudies UniversityofMacerata
BryanSchoolofBusiness Macerata,Italy
andEconomics
TheUniversityofNorthCarolina
Greensboro,NC,USA
PalgraveStudiesinPractice:GlobalFashionBrandManagement
ISBN978-1-137-52342-6 ISBN978-1-137-52343-3(eBook)
DOI10.1057/978-1-137-52343-3
LibraryofCongressControlNumber:2017930191
©TheEditor(s)(ifapplicable)andTheAuthor(s)2017
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To myparents whotaught me thevirtues ofdiligence,justice,
and sincerity
BJ
To the greatwomen in my life:Rosalba, Elena,Elena,
andCaterina.
EC
M P F B
ORE RAISE FOR ASHION RANDING
C
AND OMMUNICATION
“This book exposes best-practices in luxury and fashion industries that have
expanded globally whilst remaining true to their DNA. It illustrates the impor-
tanceofstrategicconsistencyintimeandacrosscountries.Itisaninspirationfor
marketersintheluxuryandfashionindustries.”
–Dr.Marie-CécileCervellon,ProfessorofMarketing,
EDHECBusinessSchool,France
“A well-balanced content and a set-up that feels modern and up to date on the
subject.Thebook’swayofallowingthereadertofollowcorporatethoughtscreate
abroadunderstandingofhowthefashionindustryworks.Itisalsoaveryeduca-
tionaltoolforunderstandingthecomplexityofthefashionindustry.”
–Dr.HåkanPreiholt,StockholmBusinessSchool,
StockholmUniversity,Sweden
“An interesting volume that points out challenges and trends in branding and
communicationinthefashionindustry.Allthecasestudiesselectedarerealmile-
stonesforpractitionersand,ofcourse,Master’sandMBAstudents.”
–Dr.CarloArlotta,Partner,ConsiliaBusinessManagement,
Milan,Italy
P
REFACE
Every firm dreams of creating a well-established brand. Especially for
fashion companies, brand name is a paramount concern, often serving as
a deciding factor for consumer purchase decisions. Consumers do not
necessarily seek functionality in fashion. Instead, they purchase styles,
dreams, and symbolic images—aspects of their identity that brands can
help them project. Therefore, in the fashion industry, brand is a critical
asset many firms strive to establish, maintain, and grow. The study of
branding is complex because no single factor plays a decisive role in its
development.Toelucidatethisintricatesubject,wechosetostructurethis
book around case studies, building on previous works on branding. In
particular, we focus on European luxury and premium brands because of
its massive influence on branding and communication. Luxury strategies
have their roots in Europe, primarily pioneered by French and Italian
companies. This book specifically focuses on four Italian companies
(Harmont & Blaine, Salvatore Ferragamo, Tod’s, and Prada) and one
French company (Louis Vuitton). Each case was written by author(s)
who have either come from the region, provided marketing consultation
for the brands, or conducted in-depth studies of the brands. Their con-
nections provided us with invaluable access to interviews with executives
andreviewsofarchiveswouldhavebeenotherwiselimited.Theseexperi-
ences have allowed us to write this text, compiled from information not
easilyobtainableelsewhere.
Thisbookbeginswithanoverviewchapter,creatingabackdroptohelp
facilitateaholisticunderstandingofthefivecases.Thechapterintroduces
majorbrandsandcommunication-relatedconceptswithaparticularfocus
ix
x PREFACE
onprominentfashionbrandsinEuropeandAmerica.Theobjectiveofthe
first chapter is not to summarize the concepts of branding and commu-
nication. On the contrary, the chapter has two specific aims. First, it
addresses aspects of branding and communication that have often been
overlooked in previous studies. In particular, we highlight fashion indus-
triesinWesterncontinents,discussingspecificexamplesandpracticesfrom
companies inthisregion. Second,thischapter describes majorchallenges
and changes in the industry. This will create a foundation for readers to
understand the five subsequent chapters, as these challenges and trends
willreappear throughout the casesinthistext.
Thefivecasesinthisbookarediverseintheirbrandportfoliomanagement
andtheirfocusonbrandcommunication.Thoughtheywerenotchosenfor
their similarities, they nonetheless strikingly resemble each other. First, all
five cases hold a tight control over the quality of their products through
various measures and continuous innovation within the company.
Ferragamo’spatentonshoesisanexampleofthis.Tocontroltheirquality,
Harmont&BlaineandFerragamomanufacturemainlyinItaly,employing
smallworkshopsandin-housefacilities.Infact,amajorityofthesecompa-
niesstartedinworkshopsinsmalltowns.Theseexperienceshavecultivated
inthecompaniesaspiritofcraftsmanshipthatwillremainforgenerationsto
come.Second,allfivecaseswereforerunnersinthefashionindustryintheir
decisiontoexpandinternationallyandextendtheirbrands.Onlyalittlemore
than two decades after its establishment, Harmont & Blaine (Chapter 2)
currently exports to 50 countries with approximately 20% of their sales
revenue coming from exports. Ferragamo (Chapter 3) and Tod’s
(Chapter 4) earn 80% and 70% of their sales revenue, respectively, from
exports.InthecaseofPrada(Chapter5)andofLouisVuitton(Chapter6),
about90%and86%oftheirsalesrevenue,respectively,stemfromexports.
Ferragamo has expanded to 99 countries, and Tod’s has extended to 37.
Third,allfivebrandshavetheirrootsinafamily,andtheirdescendantsstill
operatethebrands,passingdownthecompanyfromgenerationtogenera-
tion. This form of ownership has been instrumental in keeping family
philosophy and brand heritage alive. Fourth, these companies value long-
termpartnershipswithsubcontractors,leadershipincorporatesocialrespon-
sibilities,anddedicationtothecommunity.Collectively,thesemoralshave
helped shape their corporate image and commitment to product quality.
Fifth, these companies have developed innovative de-commodization
strategiesthougheachbrand’sstrategyisunique—Ferragamothroughcor-
poratemuseumsandexhibitions(Chapter3),Tod’sstorytellingviaPrincess
PREFACE xi
DianaandJacquelineKennedy(Chapter4),Prada’scutting-edgeEpicenters
through a collaboration with renowned architect (Chapter 5), and Louis
Vuitton’s artification strategies via collaborations with leading Japanese
artists(Chapter6).
These cases demonstrate how a family workshop from a small town can
growintoagloballuxuryorpremiumbrandwithinarelativelyshortamount
of time. Their ability to do so was not a consequence of marketing and
brandingeffortalone.Rather,thecombinationoftheirbrandstrategiesand
their enthusiasm for their products pushed these companies to this level of
success.Thesefirmsdemonstratethatbrandingismosteffectivewhenitisfirst
rootedinacommitmenttoquality.Manysmallfirmsemergeanddisappear
everyday.Brandingandcommunicationarekeyforcompaniestocontinueto
grow.Assuch,wehopethatthestrategiesinthisbookprovideinspirationand
practicalinsightforfirmsstrivingtoreachtheirpotential.
In that sense, this book is a useful read not only to undergraduate and
graduatestudentsbutalsopractitionersintheindustriesoffashion,retailing,
branding,andinternationalbusiness.Scholarswhoconductresearchbrand-
ingandcommunicationinthefashionindustrywillalsobenefitfromthistext
aswereviewliteratureandexploreexamplesacrossEuropeandAmerica.
Thisbookwouldnotbepossiblewithoutthesupportofmanypeople.We
extend our deepest gratitude to executives and marketing communication
directors of the five companies in this text who took time from their busy
schedules to share their stories with us and to review earlier drafts. Their
insightand vision will inspiremany morebusinessexecutivestocome. We
express special thanks to authors of each chapter who conducted multiple
interviews with key informants, traveled to headquarters, museums, and
associations to collect visual images and archives, and consolidated the
insightful information with great dedication. Their contribution was even
more meaningful as the information was in multiple languages: French,
Italian,andEnglish.Wewerefortunatetohavethesupport offormerand
current research assistants. A particular thanks toNaeun (Lauren) Kim for
findinginformationforthebookandcheckingformatsandreferencesacross
the cases. We also thank Anna Chiappelli for obtaining information and
assistingwiththebibliometricanalysis.
Greensboro, NC,USA Byoungho Jin
Macerata, Italy Elena Cedrola