MODULE: MKT3057
Luxury Brand Management
Topic 1: Luxury Brands
Characteristics and Markets
GROUP 2
Our team members:
TẤ N PHÁT MỸ DUNG HẠ VY ĐẠI DƯƠNG PHƯƠNG ANH
(LEADER) (MEMBER) (MEMBER) (MEMBER) (MEMBER)
ID: 24833312 ID: 24833322 ID: 24833240 ID: 24833388 ID: 24833276
OUTLINE
I. Introduction to Luxury Brands (Phát)
II. Key Characteristics of Luxury Brands (Dung)
III. Luxury Markets: (Vy)
Overview and Segmentation
IV. Challenges and Trends in Luxury Markets
(Dương)
V. Case Study: (Phương Anh)
Success Factors of a Luxury Brand
VI. Conclusion (Phát)
Tấn Phát
HOW MANY OF YOU
OWN OR ASPIRE TO
OWN A LUXURY ITEM?
Tấn Phát
I. INTRODUCTION TO
LUXURY BRANDS
1. Definition of Luxury
Brands:
*Key Points:
Represents exclusivity,
premium quality, and
heritage.
Offers more than just
products—embodies art,
status, and prestige.
Tấn Phát
I. INTRODUCTION TO
LUXURY BRANDS
1. Definition of Luxury
Brands:
*Key Points:
Represents exclusivity,
premium quality, and
heritage.
Offers more than just
products—embodies art,
status, and prestige.
Tấn Phát
I. INTRODUCTION TO LUXURY BRANDS
What comes to mind when you think of "luxury”?
Tấn Phát
I. INTRODUCTION TO LUXURY BRANDS
What comes to mind when you think of "luxury”?
Evolution of Luxury brands Tấn Phát
→ →
ANCIENT 19TH-20TH
MODERN ERA
CIVILIZATIONS CENTURY
Tấn Phát
1-minute clip showing craftsmanship behind the process of making a luxury item.
Source: Louis Vuitton and Nike "Air Force 1" by Virgil Abloh | Savoir-Faire | LOUIS VUITTON
Tấn Phát
1-minute clip showing craftsmanship behind the process of making a luxury item.
Source: Louis Vuitton and Nike "Air Force 1" by Virgil Abloh | Savoir-Faire | LOUIS VUITTON
Why are Luxury Brands significant in the Global Market? Tấn Phát
Key Points:
Contribution to global
economy: $474 billion in
2024.
Statista (2024)
Why are Luxury Brands significant in the Global Market? Tấn Phát
Key Points:
Contribution to global
economy: $474 billion in
2024.
Cultural impact: Symbols
of aspiration and identity.
Drives innovation:
Pioneering sustainability
and craftsmanship.
Statista (2024)
Tấn Phát
WHAT MAKES A BRAND TRULY LUXURY?
Dung
II Key Characteristics of
Luxury Brands
Dung
KEY CHARACTERISTICS OF
LUXURY BRANDS
“Exploring the DNA of Exclusivity,
Quality, and Emotion.”
Dung
THE ESSENCE OF
EXCLUSIVITY
Limited production ensures uniqueness.
High prices create a sense of privilege and
unattainability.
Waiting lists for iconic items
Dung
Unparalleled Craftsmanship
Handmade or limited-machine
production ensures perfection.
Use of premium materials (e.g., 24-
karat gold, Italian leather).
Longevity: Products often become
heirlooms.
Dung
The Power of Legacy
Many luxury brands have histories spanning over a century.
Emotional connections through storytelling (e.g., Cartier as "The
Jeweler of Kings").
Heritage marketing as a key strategy (e.g., Burberry reviving its
archives).
Dung
BEYOND PRODUCTS:
SELLING EXPERIENCES
Luxury is about the lifestyle, not just the
product.
Exclusive customer experiences (e.g.,
private fashion shows, VIP lounges).
Emotional appeal: owning luxury as a
personal achievement or statement.
Dung
Dung
From Characteristics to Markets
KEY POINT
How do these unique traits shape luxury markets globally?
HẠ VY
III Overview and Segmentation
In Luxury Markets
HẠ VY
Understanding the unique dynamics of luxury consumers worldwide
Scale of Luxury Markets HẠ VY
Global luxury market value: €350 billion
(2023).
Scale of Luxury Markets HẠ VY
Others
5%
Global luxury market value: €350 billion
(2023). North America
20%
Europe
40%
Leading regions: Europe (heritage brands),
Asia-Pacific (fastest growth), North
America (high purchasing power).
Asia-Pacific
35%
Scale of Luxury Markets HẠ VY
Global luxury market value: €350 billion
(2023).
Leading regions: Europe (heritage brands),
Asia-Pacific (fastest growth), North
America (high purchasing power).
Emerging markets: Middle East, Africa.
Who buys Luxury? HẠ VY
ULTRA-HIGH-NET-WORTH MILLENNIALS AND GEN Z
CULTURAL INFLUENCES
INDIVIDUALS (UHNWI) (ASPIRATIONAL CONSUMERS)
Who buys Luxury? HẠ VY
ULTRA-HIGH-NET-WORTH MILLENNIALS AND GEN Z
CULTURAL INFLUENCES
INDIVIDUALS (UHNWI) (ASPIRATIONAL CONSUMERS)
Regional Insights
Europe: Strong heritage brands, high
tourist spending.
Asia-Pacific: Growth driven by
Chinese consumers (over 45% of
global luxury spending).
HẠ VY
Regional Insights
North America: Focus on experiential luxury.
Latin America: Emerging market with
potential for growth.
HẠ VY
Regional Insights
Map with icons:
Chanel in Paris,
Gucci in Shanghai,
Tiffany in New York
HẠ VY
Future of
Luxury Markets
Rising demand for sustainability
and eco-friendly luxury.
Digital transformation: E-
commerce and virtual stores.
Risks: Counterfeiting, economic
instability in emerging markets.
HẠ VY
Gucci's Metaverse Store HẠ VY
Adapting to Change HẠ VY
HOW DO LUXURY BRANDS TACKLE THESE CHALLENGES AND TRENDS?
ĐẠI DƯƠNG
IV Challenges and Trends
In Luxury Markets
Adapting to a rapidly evolving world of luxury
Embracing the Digital Age ĐẠI DƯƠNG
KEY POINT
Rise of e-commerce: 23% of luxury sales in 2023 occurred online
Virtual try-ons and AR experiences (e.g., Dior’s AR shopping)
Digital-first strategies targeting Millennials and Gen Z.
ĐẠI DƯƠNG
Gucci’s presence Louis Vuitton enters
in the Metaverse and NFTs NFT market with $42K phygital trunk
The Green Revolution in Luxury ĐẠI DƯƠNG
KEY POINT
Growing demand for sustainable products
(e.g., Stella McCartney’s eco-friendly collections)
Circular economy: Resale platforms like The RealReal and Vestiaire Collective.
Ethical sourcing: Luxury brands investing in fair trade and eco-friendly materials.
The Rise of Gen Z and Millennials ĐẠI DƯƠNG
KEY POINT
Younger consumers value inclusivity, transparency, and experiences over status.
Preference for brand storytelling and personalization.
Social media’s influence: Instagram, TikTok, and influencers driving sales.
The Battle Against Fakes ĐẠI DƯƠNG
KEY POINT
Global counterfeit market costs luxury brands billions annually.
Blockchain solutions for authenticity verification.
Examples of brand dilution through overproduction or
inappropriate collaborations.
ORIGINAL VS. COUNTERFEIT LUXURY PRODUCTS ĐẠI DƯƠNG
Real Fake
5,400$ 45$
ĐẠI DƯƠNG
Adapting to the Future
What can luxury brands learn from
these challenges and trends to stay competitive?
Phương Anh
CASE STUDY
Success Factors of a Luxury Brand
Phương Anh
Louis Vuitton
A Luxury Leader
Phương Anh
1854 HISTORY
of Louis Vuitton
Louis Vuitton
founded his brand
in Paris, France 1930
Louis Vuitton
launched its first
soft-sided bag, the
Keepall
1987 Louis Vuitton's
brand value reached
$50 billion
Louis Vuitton
merged with Moët
Hennessy to form
LVMH
2023
WHAT MAKES LOUIS VUITT ON A LE ADE R
OF THE LUXURY BRAND?
Phương Anh
Heritage and Craftsmanship
- Over 150 years of history rooted
- Products are handmade with high quality materials
WHAT MAKES LOUIS VUITT ON A LE ADE R
OF THE LUXURY BRAND?
Phương Anh
Iconic Branding and Exclusivity
Timeless Monogram Limited Editions
WHAT MAKES LOUIS VUITT ON A LE ADE R
OF THE LUXURY BRAND?
Phương Anh
Innovation
Collaborations with artists like Yayoi Integrate traditional stores,
Kusama and brands like Supreme e-commerce and social
media
WHAT MAKES LOUIS VUITT ON A LE ADE R
OF THE LUXURY BRAND? Phương Anh
Global Reach and Appeal
HOW LOUI S VUITTON STAYS AHE AD?
Phương Anh
Artistic Collaborations:
Partnering with renowned
artists like Yayoi Kusama
and Jeff Koons to create
limited-edition collections
Innovative Designs:
Constantly reinventing its
iconic products, such as the
Monogram Canvas
Phương Anh
HOW LOUI S VUITTON STAYS AHE AD?
Leveraging Celebrity and Cultural Influence: Collaborations
with celebrities like Zendaya, BTS
LESSONS FROM LOUIS VUI TTON Phương Anh
Adaptability: Embrace digital transformation without
compromising heritage.
Strategic Partnerships: Collaborate with artists, influencers,
or brands that align with your values to expand your reach.
Phương Anh
LESSONS FROM LOUIS VUI TTON
Consumer Engagement: storytelling to create memorable
experiences
Sustainability: Innovate with eco-friendly materials to meet
future demands.
Phương Anh
THE ENDURI NG LEGACY OF LOUI S V UI TTON
Louis Vuitton remains a global icon of luxury. Its success offers
valuable lessons for any brand aspiring to lead in the luxury market.
Tấn Phát
VI. CONCLUSION
Tấn Phát
RECAP
Part I: Introduction to the essence of luxury brands,
their history, and significance.
Part II: Core characteristics such as exclusivity,
craftsmanship, and emotional value.
Part III: Overview of global luxury markets and
segmentation trends.
Part IV: Challenges like sustainability and digital
transformation in luxury.
Part V: Case study on Louis Vuitton, illustrating
success factors and lessons.
Tấn Phát
The Future of Luxury Brands Key Points:
Luxury brands must balance
tradition with innovation to
remain relevant.
Sustainability and digital
transformation will be critical
for the next decade.
Building emotional
connections with younger
consumers is vital.
Sentient by Elysian (2024)
Q&A
Contact
E-mail k60bf.2245519099@gmail.com
Phone 0852.580.807 (Leader: Tấ n Phát)
Thank You
FOR YOUR ATTENTION!
