Jonas Hoffmann

Can fashion blogs function as a marketing tool to influence consumer behavior? Evidence from Norway

Through the introduction of Web 2.0, the blogging phenomenon has become an important marketing channel, as it has enabled a new way of communicating and sharing information through its user-generated content. Today the largest segment of the blogosphere consists of fashion blogs, i.e. blogs that focus on fashion brands, fashion products, street style, and personal style. In recent years companies have begun to realize the benefits of using blogs as a marketing tool, as they are a targeted and inexpensive way to get publicity and reach potential consumers. This research aims to study whether fashion blogs can function as a marketing tool to influence consumer behavior, limited to the Norwegian fashion blog arena. The study is based on an exploitative research design as there is little existing research on the subject. We have chosen to explore the subject from three different perspectives: those of the readers, the fashion blogs, and the companies involved in fashion blog marketing. In detail, the study looks at the influential power of fashion blogs in context with their strength as a communication tool for marketing products and brands. The results of the study clearly indicate that blog advertisements provide companies with a unique opportunity for market communication, whereby aspects related to credibility and influence can be viewed as incomparable to those involved in traditional advertisement. Through the study one can conclude that fashion blogs can indeed affect consumer behavior, as they have a unique ability to create a strong relationship between the blog and its readers, resulting in the advertisement being viewed in a personal and non-intrusive way.

Luxury strategy in action

The evolution of the luxury market: stairway to heaven? Luxury Business: Multinational Organizations and Global Specializations Finance Survival Guide: Value Creation and Pina Coladas The PIER framework of Luxury Innovation Retailing in the luxury industry Internet, Social Media and Luxury Strategy Branding Principles in the Luxury Industry Brand Extensions in the Luxury Industry Sustainable Development in the Luxury Industry: Beyond the Apparent Oxymoron

The Impact of Brand Extension on the Parent Luxury Fashion Brand: The Cases of Giorgio Armani, Calvin Klein and Jimmy Choo

Abstract Brand extensions are an interesting brand strategy alternative, as they may attract new segments of customers that may have not considered the brand before because of different reasons. Therefore, the brand extensions are seen as a perfect way to boost the revenues of the company. However, though the brand extensions may work quite well for consumer (value) brands, they might have quite opposite effect on the luxury ones. While the brand extensions, especially the downward ones attract attention and make the brands more accessible and familiar among new segments of consumers, at the same time they may weaken the status of the luxury brand among its existing clientele and so dilute the luxury brand. And as the luxury brands emphasize their long-term value, once the image of the luxury brand is diluted, it has to take a very difficult and long way to gain its luxury status back in the eyes of consumers, and sadly not every brand manages to get back the respect it once had. Nevertheless, there is little research done on luxury brands and especially luxury brand extensions. What is more, previous research gave more attention to consumers’ evaluations of and attitudes to the extensions themselves than the parent brands. This study explores the evaluations of and attitudes to the parent luxury brands after different extensions are introduced. The study firstly introduces previous findings on value brand extensions and luxury brand extensions. Secondly, the cases of three chosen brands, representing a question mark, a failure and a current success practice of luxury brand extensions are analyzed in-depth: Giorgio Armani, Calvin Klein and Jimmy Choo. Armani is chosen as it is one of the most diversified brands in fashion. Despite the fashion brand varying from haute couture line Armani Privé to fast fashion brand Armani Exchange, Armani today offers everything that is needed for one’s luxury lifestyle from sweets and flowers to restaurants and hotels. The study analyses Armani’s brand extensions, and reactions to them. Armani represents a successful diversification of the luxury brand, but at the same time it questions the risk of over-extension and its consequences on the brand portfolio. Calvin Klein is chosen because it illustrates an example of the brand that once lost its luxury status mainly because of licensing and in the face of such experience the brand is now digging its way back to the luxury industry with its high-end sub-brand Calvin Klein Collection. Jimmy Choo is a world famous women’s shoes brand whose creations are appreciated by a large public including red carpet stars and First Ladies. After starting as a luxury shoes maker in 1996, the brand has expanded into handbags, sunglasses, accessories and even fragrance. But it was the luxury brand’s collaborations with non-luxury brands Hunters (iconic British company producing wellington boots) and H&M (Swedish fast fashion giant) that attracted our attention. Jimmy Choo represents a current success practice of the collaborations between the luxury and non-luxury brands and shows that such brand extensions, when carefully thought through, not only makes no damage to the luxury brand, but also enhances its image and desirability instead. The study analyses these two collaborations, which are viewed as downward brand extensions, and the impact of those collaborations on the Jimmy Choo brand. Each brand approach to brand extension is presented and discussed to underline reasons for success or failure. Desk research on the brands’ annual reports, reviews, articles and interviews from fashion, marketing, lifestyle, financial, and other magazines and newspapers, as well as visual material are used for the analysis of the chosen cases. An analysis of the cases of Giorgio Armani, Calvin Klein and Jimmy Choo leads us to four conclusions: 1) Luxury fashion brand’s collaboration with a non-luxury brand can have positive impact on the parent luxury brand if the extension keeps the luxury criteria, and the non-luxury collaborator has a good reputation; 2) Downward brand extension enhances the parent luxury brand if the extension keeps the luxury criteria and parent luxury brand’s quality, qualities and values; 3) Usually licensing, unless strictly controlled, dilutes the luxury brand; 4) Notwithstanding how diversified the luxury brand is, the luxury brand’s core business has to be constantly enhanced in order for the brand portfolio to be successful instead of diluted. This study is going to be the key and starting point for the further studies of the impact of brand extensions on the parent luxury brands.

The international dimension of drug policy reform in Uruguay

BACKGROUND In 2013, Uruguay became the first country in the world to legally regulate cannabis from seed to smoke. A growing body of research addresses drug policy reform in Uruguay. However, existing studies have almost completely elided its international dimension, treating the process as exclusively domestic phenomenon. METHODS To consider the international dimension of drug policy reform in Uruguay, the paper draws on primary and secondary sources such as existing studies, media reports, official documents, parliamentary debates and interviews with stakeholders and policy analysts from Uruguay and elsewhere. RESULTS The paper shows that, when, and, how international factors and actors contributed to Uruguays drug policy reform process. Two ways in which the international dimension manifested itself are identified. First, as drug policy debate around the world changed, the context for reforms in Uruguay evolved. This resulted in a rather mixed international reaction to Uruguays reform proposal. Second, international actors became directly involved in the process. Drug policy experts informed and legitimated cannabis reform and transnational advocates supported campaigning and mobilisation in Uruguay. CONCLUSION By unearthing the international dimension of Uruguays drug policy reform, the paper adds a novel perspective to the study of drug policy reform in the Uruguay.

Brand Building: Luxury Leather Goods Brands Anatomized

Abstract Brand building is central to achieving differentiation in most economic sectors. This is paramount for luxury goods where customers buy a symbol as much as a product. The brand and its image are key factors for competitive advantage and brand building is a central competence for luxury goods companies. This study aims to explore brand building of traditional luxury leather goods brands. A multiple case study of Delvaux, Bottega Veneta, Hermès and Loewe allows us to replicate and extend Fionda and Moore’s (2009) findings about luxury fashion brands. Results show that the nine dimensions identified by these authors also apply to these brands. Moreover, five additional sub-dimensions are uncovered-website, e-shop, link with art, customization and workshop-and these should be taken into account in the brand building process. These exploratory results provide insights to managers for their on-going efforts to keep their brands competitive.

A Case Study on the Business Model of Chloé

Abstract Luxury fashion companies are today part of a dynamic and fast growing industry. The competition of international market shares is tough, and only the fittest survive. There are three large luxury groups in the world: LVMH, PPR and Richemont. Chloé is a French luxury fashion company belonging to Richemont, since being acquired by the group in 1985. Chloe was founded in 1952 by a Parisian claiming that the contemporary fashion was too stiff and formal. Her name was Gaby Aghion and she opted for changes and started to design garments which she called “luxury ready-to-wear”. This became a huge success in the market and other fashion houses followed her. The house reached its first peak in the 1970s with Karl Lagerfeld at the designer helm and later on in the 2000s with Phoebe Philo as the chief designer. A business model is defined by three basic components; value creation, value architecture and revenue model. Osterwalder and Pigneur (2009) extend these three components into a nine point business model canvas. The value creation deals with the value proposition as well as the customer segments of the company. The value architecture explains customer relationships, distribution channels, key activities, key resources and key partners. Finally, the revenue model is based on the cost structure and the revenue streams of the company. For a company, it is highly important to detect its own business model in order to know where improvements are needed to improve growth and profitability. The methodology conducted to detect the business model of Chloé in this study is characterized by a qualitative research strategy. Both primary and secondary sources were utilized in the search for information. Regarding primary sources, the first author of the paper conducted in-depth interviews with sales staff and was able to observe the daily routine first-hand while working as an intern in one of Chloé’s boutiques. This article is therefore built on an interactive case study. The value proposition Chloé offers its clients over and above the actual products of ready-to-wear, bags, shoes and accessories, is a lifestyle recognized by elegance, comfort and luxury in a clean and simple manner. The customer of Chloé is the same worldwide: very feminine, well-traveled, central, iconoclastic and adventurous. The age group is different from country to country, but the customer usually belongs to an economically wealthy group of its society. Chloé also counts a number of celebrities among its clients. Key resources are divided into physical, intellectual, human and financial resources. Physical resources include materials utilized to manufacture the products, alongside design studios, showrooms, stores and equipment. Intellectual resources are the company’s brand patents and copyrights. Human resources are the individuals who make up the work force of the company. There is an important emphasis on sales staff training. Financial resources revolve around the support given by parent company Richemont. The study also comments on the turnover of creative directors at Chloé, and the importance of choosing the right person for the job. Finally, pioneer clients who become company ambassadors, for example, Kirsten Dunst, are mentioned as a resource in the company value constellation. Regarding distribution channels, Chloé has one main channel; retail. This include Chloé’s own boutiques, as well as multi-brand stores such as department stores, shop-in-shop and point-of-sale counters. Chloé is represented in around one hundred and twenty stores worldwide, forty of which are company owned and twenty are franchise units. The stores are mostly represented in Asia where Japan, South-Korea, China and the Middle-East are strong markets. The US and Europe are also large markets. There are in total seven online stores which offer Chloé products. Chloé puts a lot of effort in winning market shares in China, and has opened a Chinese blog/webpage (jesuischloe.com.) for its Chinese clients. The key activities Chloé performs are design, manufacturing, marketing, distribution and sales. Export and import are also part of the activities, given the company’s global presence. Key partners are Lamy, who provides the company’s sunglasses, Iris who provides the shoes and Coty Prestige who has bought the beauty license of the company and is responsible for providing the Chloé perfumes. The customer relationship is naturally strongest between the sales staff and the clients. Returning clients are registered in a client database and they receive benefits such as invitations for events, discounts, pre-sales and so on. The company also holds a list of VIP-customers, who receive significant discounts on products. Regarding the revenue model, Chloé has two main streams of income; retail and wholesale. The retail is divided into direct retail, in other words online sales, which count for forty percent of the retail, and the normal retail in stores which counts for sixty percent of the retail. It is uncertain how much revenue the wholesale counts for percent wise compared to retail, but it is estimated to be a figure around three hundred million dollars. Main cost sources are manufacture, branding and retail. As a conclusion, this study has indicated that the business model of Chloé is highly efficient. There is evidence for its integration from corporate to local level with a strong communication between the various departments of the company. Yet new challenges lie ahead for Chloé. Massive growth markets such as Brazil and India are yet to be captured, and with a new creative director, Claire Waight Keller, time will show how well new collections and competition of market shares succeed. However, as Chloé testifies with a great resilience in its brand equity, any new challenges are expected to be met with carefully planed strategies.

The concept of creative collaboration applied to the fashion industry

Co-branding is an interesting approach to building differentiation and reputation. In the fashion industry, one well-known example of co-branding is the creative collaboration between fashion designers and mass-market retailers. This paper aims to explore this specific example of co-branding. It first introduces the concept of co-branding and presents its application by the Swedish retailer H&M. An exploratory study with a convenience sample confirms the interest of the approach. Further analysis of the contrasting results of H&Ms collaborations with Lanvin and Sonia Rykiel shows that if a co-branding strategy is well managed by integrating compatible elements between two brands – visions, values and wills, to create real synergies – it presents an interesting path towards creating sustainable brand differentiation.

Turbulence in the Watchmaking Field: A Socioecological Approach to Strategizing

The Swiss Watchmaking Field is again entering a period of turbulence (Emery and Trist 1965) due to regulatory changes, the emergence of connected devices, volatile consumer behavior, currency changes, and relations among these factors that may challenge the capabilities for adaptation of key firms. Ramirez and Selsky (2014) suggested that in turbulent environments, a socio-ecological strategy approach emphasizing collaboration at a field level rather than competition is advisable. Based on multiple case study research, we empirically examine the application of contrasting strategic stances and principles comparing competitive strategy with the socio-ecological approach. We assess the presence of the transition, heterogeneity and subjectivity principles and how a coopetition strategic stance fares in the context of the Swiss Watchmaking Industry. We conclude by exploring new research venues.

Back to the Roots

Vignes, Sheme, Mirazur, Thomas Mercer, Louis Moinet, Slyde, 1.618 Sus tainable Luxury, Norlha and Brunello Cucinelli are independent companies innovating in the essence of luxury: extreme quality and extraordinary craftsmanship to create the ultimate sensorial and emotional experience. These are companies rooted in a terroir, which we associate with the horse, a classical symbol of elegance and nobility.1 We present these companies at length and illustrate how they followed the stages in the BA2RE® luxury strategy approach in their innovation strategy.

Luxury Landscape: Challenges and Opportunities for Independents

This chapter analyzes the luxury landscape and how it affects independent luxury companies. We start by looking at one of the mainstays of the luxury business, the Swiss watchmaking industry, to reveal a stormy outlook for independent watchmakers. We then widen the context to examine the luxury industry as a whole, to get a better picture of the major forces shaping current challenges and opportunities, namely: 1) the leading role of Chinese consumers; 2) the digital revolution; 3) the high concentration of wealth; 4) sustainable luxury; 5) luxury lifestyle; 6) the growth of travel retail; 7) the turbulent geo-economic and geopolitical environment.