Managing Luxury Brands: Strategies in Brand Management

The definition of luxury is in a state of constant flux, evolving from a realm of opulence and exclusivity to an industry increasingly characterized by a process of ‘democratization’ and the use of innovative marketing and branding strategies. This ongoing evolution in the meanings commonly attributed to luxury has sparked ongoing debates in the field, demanding a reevaluation of what constitutes a luxury brand and its associated branding strategy. Thus, the aim of this chapter is to delve into the domain of luxury brand management, examining its evolving definition, distinctive branding strategy, and current and future challenges. In the first part of the chapter, we define the modern concept of luxury and examine what constitutes a luxury brand in today’s market. This section encompasses an analysis of luxury’s multifaceted values – including the functional, experiential, and symbolic dimensions. We conclude this section by discussing the blurring lines between the luxury, premium, and fashion branding strategies, examining their converging and diverging elements. Moving to the second part, we introduce a strategic framework that categorizes luxury brands along two key dimensions: traditionalism vs. modernism and conspicuousness vs. inconspicuousness. This framework provides a comprehensive analysis of the diverse hybrid strategies employed by luxury brands today, offering practical examples of how they balance the traditional elements of the luxury branding strategy with more innovative approaches. Looking toward the future, the third part of the chapter addresses the challenges that lie ahead in luxury brand management. Specifically, this section explores how innovative technologies and the rise of sustainability and circular economy discourses are further reshaping luxury branding. Overall, this chapter not only contributes to the academic literature by dissecting the intricacies of luxury brand management but also offers practical insights for industry practitioners navigating this fascinating yet highly evolving industry.