Global Luxury: Organizational Change and Emerging Markets in the Luxury Industry since The 1970s

This book explores the luxury industry and how it has undoubtedly been one of the fastest-growing sectors since the 1970s, and one in which Europe has managed to strengthen its competitiveness in the world market. While many aspects of globalization remain abstract and intangible, the luxury industry has created markets where previously there were none, by educating Japanese about the history of French handbags, Chinese about the finest wines, and setting global standards for an elite, inspirational lifestyle. In this edited volume, a wide range of scholars comes together to analyze the history of the business and the innovations in management and marketing that have emerged from it. Invaluable for scholars, industry figures, and dilettantes alike, it will define the field of study for years to come. Preface and Acknowledgements 5 Contents 6 Notes on Contributors 9 List of Figures 14 List of Tables 16 Chapter 1: Introduction 17 1 Understanding the Dynamics of the Luxury Industry 21 2 The Turning Point of the 1970s-1990s 25 3 Content of the Book 27 References 29 Part I: Organizational Change 32 Chapter 2: The Birth of Luxury Big Business: LVMH, Richemont and Kering 33 1 Introduction 33 2 Louis Vuitton Moët Hennessy 35 3 Compagnie Financière Richemont 40 4 Kering 44 5 The Competitive Advantages of Luxury Conglomerates 48 6 Conclusion 50 References 51 Chapter 3: Italian Luxury Goods Industry on the Move: SMEs and Global Value Chains 53 1 Introduction 53 2 From Clothing Industry to Luxury Goods Industry 56 2.1 The Industrial Foundations of the Italian Clothing Industry, 1950s-1960s 56 2.2 From Clothing Industry to Fashion Industry (1970s) 57 2.3 From Fashion Industry to Luxury Industry, 1980s-1990s 58 3 Italian SMEs and Global Value Chains 61 4 Italian Luxury Goods Industry Today 64 5 Conclusion 73 References 76 Chapter 4: Luxury Brand Outsiders: Understanding the Success of British and American Luxury Brands 78 1 Introduction 78 2 Starting First from Paris 79 3 The Transatlantic Bond 84 4 An American and British Luxury Fashion and Accessory Brand Database 85 4.1 The Five Dimensions of American/British Luxury 87 Entrepreneurial Luxury 87 Tech Transfer 90 Multi-Channel, Digitally Advanced 92 Casual Luxury: Athleisure, Sport and Country 93 Product Specialization and Accessible Luxury 95 5 Final Thoughts 97 References 98 Chapter 5: Champagne, Between Terroir and Luxury, 1945-2014 100 1 Introduction 100 2 The Constraints of the AOC: Local Consequences of Supply Competition in Response to Global Demand Growth 101 3 The Birth of Groups and the Ongoing International Development of Champagne Houses 108 4 The 1990s and 2000s: When Champagne Became a Wine Again 112 5 Conclusion 117 References 120 Part II: Markets 121 Chapter 6: Christian Dior-New York: French Fashion in the Luxury US Market 122 1 Introduction: Was There No Luxury in the US? 122 2 French Luxury and US Fashion Before the 1970s 123 2.1 From Copycat to Originator? 123 2.2 The Birth of the US Fashion Industry 124 2.3 Dior ́s Implementation in the USA 125 3 Dior in the USA from the 1970s Onwards 127 3.1 Licensing and the Luxury Market 127 3.2 The Legal Side of Christian Dior-New York ́s Business 129 3.3 The Control Over Licenses 130 4 Catering to the American Middle Classes 131 4.1 The Importance of Men ́s Wear 131 4.2 The Challenge of Women ́s Wear 132 4.3 A Global Production Map 133 5 A Balance Between Product and Image 135 5.1 Advertising Dior in the USA 135 5.2 Dior ́s Public Relations 136 5.3 Dior ́s New Retail Outlets 137 6 Conclusion 137 References 141 Chapter 7: The Democratisation of Luxury and the Expansion of the Japanese Market, 1960-2010 143 1 Introduction 143 2 The Germination of the Luxury Market in Japan After the Second World War 146 3 The Democratisation of Luxury Goods Through Licensing Agreements 148 4 Affordable Luxury Goods and the Growth of Japanese Luxury Market in the Late 1980s 152 5 Statistical Analysis of the Trends in the 1990s 156 6 Conclusion 162 Acknowledgement 164 References 164 Chapter 8: How Duty-Free Shops and Department Stores Expanded the Luxury Market in South Korea, 1980-2010 167 1 Introduction 167 2 The Expanding South Korean Luxury Market in a Socioeconomic Context 170 2.1 Market Liberalisation and the Launch of Duty-Free Shops Since 1980 170 2.2 The Entry of Department Stores into the Luxury Market Since the 1990s 172 3 Changing Channel Strategies 176 4 Diversifying Sales Channels and Changing Trends in Luxury Consumption 178 4.1 The Current Diversification of the Sales Channel 178 4.2 Changes in Consumer Preferences for Luxury Brands and Expanding Product Categories 179 5 Conclusion 182 Acknowledgement 184 References 184 Chapter 9: How to Enter the Chinese Luxury Market? The Example of Swatch Group 186 1 Introduction 186 2 Evolution of the Trade of Swiss Watches to China 188 3 Market Entry Before the 1990s: A Historical Overview 192 4 The Changes of the 1990s-2000s 195 4.1 The Partnership with Xinyu Hengdeli 196 4.2 A Key Challenge: Accessing Shopping Spaces 197 5 Conclusion 200 References 202 Part III: New Strategies 204 Chapter 10: Crafting Time, Making Luxury: The Heritage System and Artisan Revival in the Swiss Watch Industry, 1975-2015 205 1 An Anthropology of Luxury, Heritage, and Craft 205 2 Aim and Structure of the Chapter 207 2.1 The Case of the Swiss Watch Industry 207 2.2 Research Questions 208 3 Heritage as a Key Tool Within the Luxury Market 208 3.1 Swiss Mechanical Watches as High-Added-Value Products 208 3.2 The Launch of Uses of Heritage in the Watchmaking World 211 3.3 The Luxury Turn: The New System of Heritage as a Way to Move Swiss Watches Upmarket 212 4 The Artisan Revival 215 4.1 The Watchmaker ́s Craft and the Turn to Patrimonial Luxury 215 4.2 Artisans as Creators and Independent Brand Names 217 5 Conclusion 221 Acknowledgement 223 References 224 Chapter 11: Luxury Brands and Public Museums: From Anniversary Exhibitions to Co-branding 227 1 Introduction 227 2 Enthusiasm for Industrial Art 228 3 The `Big Show Era ́ and the Rise of Corporate Sponsorship 229 4 Luxury Groups and Corporate Sponsorship in France 231 5 Government Support for Luxury Industries 233 6 The `Democratisation ́ of Luxury Goods and the Export of Brand Exhibitions Worldwide 234 7 The Rise of Corporate Museums and Co-branded Exhibitions 236 8 Conclusion 239 References 243 Chapter 12: ``Exclusively for the Happy Few ́ ́: Luxury Hotels and Globalisation: The Emergence of a New Sector (1980-2010)? 246 1 Introduction 246 2 The Definition of `Luxury ́ in the Hotel Sector 247 3 Statistic Overview of Luxury Hotels 251 4 The Segmentation of ``Luxury ́ ́ Hotels 255 Box 12.1: Classification of Luxury Hotels Based on the Forbes Travel Guide 256 5 Conclusion 259 References 260 Chapter 13: The Survival Strategy of the Japanese Kimono Industry 264 1 Introduction 264 2 The Japanese Kimono Market During the Years of Rapid Growth 266 2.1 The Rapid Change from Kimono to Western Clothes 266 2.2 Changes in the Consumption and Production of Kimono 267 3 Focus on the Luxury Market: The Case of Nishijin 272 3.1 A Brief History of Japan ́s Most Advanced Silk-Weaving District 272 3.2 Changing Production: From Popular Goods to Luxury Goods 273 3.3 New Challenges in New Markets 276 4 Conclusion 277 Acknowledgements 279 References 279 Chapter 14: Conclusions 282 Index 287 Front Matter ....Pages i-xix Introduction (Pierre-Yves Donzé, Rika Fujioka)....Pages 1-15 Front Matter ....Pages 17-17 The Birth of Luxury Big Business: LVMH, Richemont and Kering (Pierre-Yves Donzé)....Pages 19-38 Italian Luxury Goods Industry on the Move: SMEs and Global Value Chains (Elisabetta Merlo)....Pages 39-63 Luxury Brand Outsiders: Understanding the Success of British and American Luxury Brands (Stephen A. Doyle, Christopher M. Moore)....Pages 65-86 Champagne, Between Terroir and Luxury, 1945–2014 (Yves Tesson)....Pages 87-107 Front Matter ....Pages 109-109 Christian Dior-New York: French Fashion in the Luxury US Market (Véronique Pouillard)....Pages 111-131 The Democratisation of Luxury and the Expansion of the Japanese Market, 1960–2010 (Rika Fujioka, Zhen Li, Yuta Kaneko)....Pages 133-156 How Duty-Free Shops and Department Stores Expanded the Luxury Market in South Korea, 1980–2010 (Insoo Baek, Rika Fujioka)....Pages 157-175 How to Enter the Chinese Luxury Market? The Example of Swatch Group (Pierre-Yves Donzé)....Pages 177-194 Front Matter ....Pages 195-195 Crafting Time, Making Luxury: The Heritage System and Artisan Revival in the Swiss Watch Industry, 1975–2015 (Hervé Munz)....Pages 197-218 Luxury Brands and Public Museums: From Anniversary Exhibitions to Co-branding (Karina Pronitcheva)....Pages 219-237 “Exclusively for the Happy Few”: Luxury Hotels and Globalisation: The Emergence of a New Sector (1980–2010)? (Laurent Tissot)....Pages 239-256 The Survival Strategy of the Japanese Kimono Industry (Tomoko Hashino)....Pages 257-274 Conclusions (Rika Fujioka, Pierre-Yves Donzé)....Pages 275-279 Back Matter ....Pages 281-287 This work explores the luxury industry and how it has undoubtedly been one of the fastest-growing sectors since the 1970s, and one in which Europe has managed to strengthen its competitiveness in the world market