Elisabetta Savelli

Role of Brand Management of the Luxury Fashion Brand in the Global Economic Crisis: A Case Study of Aeffe Group

Abstract In the last two decades, the luxury fashion industry has generated much interest and discussions among academicians and managers since it has became a consolidated economic sector in the late 1990s (Truong, McColl & Kitchen, 2009). Despite the significance of luxury fashion sector both in terms of market value and rate of growth, there are few empirical studies concerning luxury brand management (Kapferer, 2008; Okonkwo, 2007) mainly focused on specific topics such as: brand protection (Clarke & Owens, 2000; Elsemore, 2000), brand extension (Dias & Ryab, 2002; Sjodin, 2008; Stankeviciute & Hoffmann, 2010), counterfeiting (Gistri, Romani, Pace, Gabrielli & Grappi, 2009; Nia & Zaichkowsky, 2000) or luxury brand personality (Fionda & Moore, 2009; Phau & Prendergast, 2000). The same definition of luxury brand is still open for debate in the literature (Atwal & Williams, 2009). From a product perspective, luxury brands can be distinguished from non-luxury brands by product-related associations. Therefore, the essential characteristics of luxury products correspond largely to those of luxury brands. These attributes can be identified in high price, distinctiveness, exclusivity, rarity, craftsmanship and excellent quality (Kapferer, 2008; Nueno & Quelch, 1998; Phau & Prendergast, 2000). All these symbolic characteristics are covered by the emotional brand identity component which corresponds largely to the luxury brand personality (Aaker, 1997; Phau & Prendergast, 2000; Sweeney & Brandon, 2006). In any case, the strategic importance of brand as an intangible asset on which strategic development and competitiveness of luxury fashion firms is based is widely recognized (Okonkwo, 2007; Vickers & Renand, 2003). Firstly, because luxury fashion goods differs from necessary or ordinary goods by some essential attributes (price, quality, rarity, etc.) that can be well expressed by the brand identity and its symbolic personality (Aaker, 1997; Kapferer, 2008; Kemp, 1998; Mason, 1992; Sweeney & Brandon, 2006). Secondly, the functional benefits of many luxury fashion goods are becoming increasingly equivalent, exchangeable and simply to imitate. This strengthens the brand’s power of identification and highlights the importance to invest substantially in brand building in order to maintain a stronger competitive position (Okonkwo, 2009). Today the luxury fashion sector has been hit seriously by the global economic crisis (Kapferer & Bastien, 2009; Yeoman, 2011). This last one, together with other structural changes involving the sector in the last years (both in the supply and demand side), leads to a very uncertain environment that improves the importance of some competitive factors such as innovation, time to market and customer service. With reference to luxury-brand management, despite the lack of studies and empirical researches, we observe two parallel (and partially opposite) trends. In the demand side, changes in consumer behavior together with the new austerity attitude spreading over the last three years tend to decrease the brands customers’ attention and interest. Consumers are rethinking their spending priorities putting less attention to the aspirational values of luxury brands and more attention to the exclusive features of the luxury products (Kapferer & Bastien, 2009; Yeoman, 2011). In the supply side, there is a growing competitiveness and a decreasing availability of financial resources that limits the R&D investments so strengthening the strategic relevance of brand that becomes one of the main intangible assets on which the competitive advantage and the value creation of a luxury fashion firm can be based (Degen, 2009; Kapferer & Bastien, 2009; Yeoman, 2011). Starting from these assertions, the aim of the paper is that to analyze what luxury fashion firms can do in order to increase the effectiveness of the brand investment (as it is fundamental for their economic survival and long term competitive advantage) and regain the customers’ brand attention. The study firstly proposes a literature background which discusses the potential effects of world economic crisis on luxury brand management assuming a wide perspective of analysis that considers the crisis-phenomenon among the main changes interesting the luxury sector both in the demand side and the supply side during the last years. Secondly, the case of a famous Italian luxury fashion firm is analyzed in-depth: Aeffe Group. The empirical study is based on the qualitative case-study approach. It has been carried out by face-to-face interviews to the Aeffe Marketing Managers and a review of the Group’s archival documentations and publications. It highlights some managerial implication that could interest other firms operating in similar contexts. In particular, we put attention on three interrelated brand management’s critical dimensions that could assist luxury fashion firms in order to increase the effectiveness of brand investment and regain the customers’ brand attention. –Focusing on core brands, putting more attention to products and processes’ quality in order to strenghten the main values of the brand identity. – Managing the composition of brand-portfolio in order to face the emerging customers needs and values. This requires continuous innovation and new product development. – Developing a more managerial approach in brand management, less influenced by the mere creativity of the stylists. This involves the implementation of an organizing model based on commitment and wide sharing of firms’ values strategies and objectives aimed at supporting the creative process; a more careful management of the communication activity and of the retail (because of its strategic role in brand identity’s communication) and a very careful management of the license agreements, largely widespread in the luxury fashion market.

Food habits and attitudes towards food quality among young students

Purpose The food consumption has always received a lot of attention in the marketing literature, as it tends to reflect and determine the overall consumer behaviour, expression of the individual lifestyle. Nevertheless, less attention has been devoted to the young. This paper aims at analysing how university students, a segment of young people, perceive and evaluate the quality of food and which attributes most influence their food choice and consumption. Design/methodology/approach An online questionnaire was carried out from March to December 2015 among Italian university students. A sample of 1,138 people took part in the survey. Data were elaborated through SPSS 21.0 statistical software package. Findings Findings suggest a number of interesting points. First, a high attention of university students towards price and sales promotion was observed. Nevertheless, they are well informed in food products they buy and pay high attention to ingredients, origin and healthiness of food products. Finally, performing a principal component analysis three different components on food store selection were found, namely, “Price saving”, “Convenience” and “Food assortment and quality”. Practical implications A more comprehensive understanding of the food behaviour of the young could be useful for marketing researchers and practitioners to define marketing programs aimed at satisfying the food demand of a growing segment of the market. Originality/value The food behaviour of young people as a whole has been little addressed in the marketing literature. Existing studies have explored specific topics such as the consumption of organic food, fast-food buying habits or alcohol abuse.

Consumer attitude and behaviour towards food quality among the young ones: empirical evidences from a survey

This study investigates how university students perceive food quality and attempts to demonstrate how the individual lifestyle is a useful variable for segmentation purposes. Using data from an online questionnaire on a sample of 1138 Italian university students, the study reveals that there are two dominant factors influencing the food choice behaviour of young students, that is, food convenience and food certifications, and two main factors affecting the food store selection, that is, food disposability and store convenience. These variables make considerable contributions in characterising four clusters of young consumers, namely healthy and certified food consumers, comfortable consumers, saver consumers and innovative consumers. The findings provide a more comprehensive understanding of why young consumers buy foods, what they believe food quality is and how their perception of food quality affects their buying behaviour. This is critical for marketing researchers and practitioners to define marketing programmes fitting the food demand of a growing fast segment of the market.

Experience Economy and the Management of Shopping Centers: The Role of Entertainment

This chapter applies the experience logic perspective to the retail industry by analyzing the role and the management of entertainment strategies in the shopping center format. The purpose is twofold: (i) proposing a conceptual classification of entertainment based on the existing literature; (ii) examining the influences of entertainment strategies on shopping centers’ market performances to provide suggestions in regards to the effectiveness of such strategies. After a short description of the shopping center industry, the study analyzes the changing role of the format occurring over the last decades and proposes a classification of entertainment that includes recreational services (food and leisure) and special events. Changes occurring in these areas of entertainment, alongside those concerning the market performance indicators of shopping centers (i.e., number of receipts, average amount of receipts, number of visitors who buy, visitors frequency), are explored by discussing the results of a qualitative study focused on 16 Italian shopping centers over a three-year period. Practical implications for shopping center managers are provided via empirical findings, while limitations of the study are underlined for suggesting future research directions.

Web atmospherics as drivers of shopping centres’ customer loyalty

Purpose The purpose of this paper is to analyse whether and how the website atmosphere (WA) of a shopping centre affects the behavioural loyalty of customers towards physical shopping centres. A mediating variable – individual shopper motivation – is considered in assessing this relationship. Design/methodology/approach The research hypotheses were tested using a partial least squares – path modelling approach to structural equation modelling on a sample population of 438 individuals. Findings Online atmospherics, particularly concerning the social/relational attributes of the WA, positively affect the behavioural loyalty of customers towards physical shopping centres. Moreover, recreational motivations strengthen this relationship more than functional motivations do. Research limitations/implications The sample investigated is limited with regard to diversity, age and gender. Future research can use a more representative sample to improve the findings’ relevance and generalisation. Also the development of a scale of measures for the shopping centre customers’ motivations is worthy of interest in future studies. Practical implications Recognising the importance of web atmospherics’ significant impact on customer loyalty should encourage shopping centre managers to develop effective website and online communication programmes. Originality/value Extant studies have paid little attention to the relationship between WA and customer loyalty to the physical shopping centre. This study investigates this relationship, combining the online and offline perspective into an overall research approach. Moreover, it contributes to the research on website management in the shopping centre context by providing a comprehensive analysis of WA, whereas previous studies have mainly focussed on one or a few atmospherics.