The backbone of any customer experience management is the ability to understand customers’ needs, wants and lifestyles (Schmidt, 2003). In a post Covid era where consumer behaviours have changed forever, luxury brands need to step up to woe consumers back to their brick-and-mortar stores. For example, the Dior historical and global store at the Avenue Montaigne reopened after two years of renovations to offer a unique customer experience. This iconic store now offers not only the full range of products one can buy, but also an art gallery, a café, a 3-Michelin stars restaurant and an exclusive suite at the price of 25,000 Euros per night. The centrepiece of this new store is the huge glass staircase overlooked by a wall of mannequins dressed in various Dior dresses. It is meant to be “instagramable” for those who need to show off their visit to their virtual followers. The key question one may ask is whether all these innovations and investments in building an exceptional flagship store provide a better customer experience?

Although pricing strategies have significant effects on brand performance and have been growth drivers of the luxury industry for decades, there is only little research on luxury pricing strategies. Most academics and managers believe that there is a ‘democratization of luxury’ since the 1980’s. Today, luxury is regarded as accessible for almost anyone. On the other hand, researchers and consumers still consider ‘high prices’ as one of the most important luxury characteristics. To resolve this paradox, this paper analyzes ‘expensiveness’ as a key feature of luxury products: Is luxury expensive or has it really democratized? It outlines the different types of luxury with reference to their ‘expensiveness’. Based on a literature analysis about research on pricing in luxury marketing, the paper presents eight indicators of ‘expensiveness’. After discussing how the Veblen, Snob and Bandwagon effects break the law of demand, analyses of real data follow with some case studies about the price development of luxury products in different countries and product categories. They show that the method of price comparison by Fourastié can provide brand managers a more realistic picture about the ‘expensiveness’ of their products for their target customers. The paper concludes with some major lessons learned.

The luxury industry worldwide, and in China in particular, has been going through some major shake-ups in the last few years, such as the impact of anti-corruption campaign in China since 2012, massive increase of Chinese out-bound tourists travelling abroad for shopping due to price advantages as compared to mainland China prices, changing customer preferences and low loyalty towards luxury brands, and heightened customer knowledge of luxury, to name a few. These changes have a direct impact on customers’ behavior and experience in luxury retail stores and ultimately the level of expectation and satisfaction they have with luxury brands. This paper aims to shed some light on this topic by focusing specially on Chinese luxury customers’ perspectives. Companies have considered customer experience as one of important ways to obtain and sustain competitive advantages. Zomerdijk and Voss (2009) maintained that customer experience is a holistic concept that encompasses every aspect of a company’s offering. However, it is unclear which service elements offered by company create the most compelling contexts. Chinese luxury customers represent one-third of the total personal luxury goods market by the end of 2016 according to Bain & Co (2016). Therefore, no luxury brand can afford to ignore Chinese customers and their level of satisfaction with their brands. Paradoxically, from 2012 to 2015, the luxury personal goods market in China has decreased by 1% or 2% each year as compared to the previous years. This was due to many factors, and one of them was “poor customer experience in retail stores” according to our study. This deceleration of the market in China has prompted many luxury brands to create new customer experiences that could increase satisfaction (such as made-to-order services) in order to retain existing customers and to gain new ones. The research questions of this paper are: what type of services do Chinese customers expect from luxury brands? What are the levels of satisfaction Chinese customers have with luxury brands abroad and in China? How can luxury bands improve their service experience offers to satisfy Chinese customers? In order to answer these questions, we carried out a longitudinal study over 4 years, from 2012 to 2015 with Chinese luxury customers. A Chinese luxury customer is defined as someone who has bought a genuine luxury product over the last 6 months, whether in China or abroad, for themselves or for someone else. Each year we interviewed 120 customers who were chosen randomly in the streets of Shanghai, nearby luxury malls. The interviews were carried out either in English (if they are comfortable of speaking in English) or in Mandarin (by a native speaker). The interviews lasted on average 30 minutes each. The questions are mostly open-ended questions such as: “Could you please tell us your best or worst experience in a luxury retail store, in China or abroad? And why is it the best or worst?”. The interviews were manually recorded by a second interviewer present at that time. The data were then compiled and analyzed for this paper. The findings of the study were somehow unexpected such as: 1- Chinese luxury customers expect very simple and basic services in luxury retail stores, such as a sincere smile and a warm welcome, or sales employees do not judge them based on their looks and appearances. 2- Retail staff should have a better and up-to-date product knowledge so they can answer simple questions about the products when asked. 3- Retail staff should be able to give good advice to customer when they are undecided, and not try push only sales. Managerial implications for luxury brands are many. However, the most important one by far is “to go back to the basics of retail customer experience” by selecting and training the right employees for the job.

There has been a global growth of luxury business start-ups, which has accelerated especially since the late 1990s along with the upswing of the global luxury market. Start-ups in the high-end cultural and creative industries reflect the various new types of luxury from green or sustainable luxury and slow luxury to value luxury, and from digital and high-tech luxury to experience luxury. However, there exist only a few studies about luxury brand-building, the related area of luxury marketing success factors (Fionda and Moore, 2008) and the new research domain of luxury entrepreneurship (Fonrouge and Lipovetsky, 2013). Therefore, the objective of this paper is to identify critical success factors of luxury brand-building. In the high-end and generally in the lifestyle segment, the generation of a business model must go hand in hand with brand-building. Even more, setting-up a luxury or lifestyle business is hardly possible without emphasizing on brand-building. Consequently, we suggest combing business model generation with brand-building as this is naturally an interrelated process, especially in the high-end and creative industries. Based on the Business Model Canvass by Osterwalder and Pigneur (2014), we develop the Brand-Building Canvas and then use it as a framework to analyze the success factors of luxury brand-building. As success criteria of luxury marketing depend on a brand’s stage of development, we employ the concept of brand lifecycles to differentiate success factors. Due to its explanatory power for real-life organisational phenomena, our study relies on Grounded Theory, combined with a multiple case study methodology according to Fionda and Moore (2008). We analyzed ten luxury start-ups in different development stages and from various luxury industry segments and countries. The empirical database was obtained from multiple sources including also documentary material such as company presentations, brochures, homepages, and media articles. Moreover, expert interviews were conducted with representatives of the luxury start-ups and other relevant industry experts. Based on a content-analysis of the empirical database, we outline an overview of success factors of luxury brand-building, organized by brand lifecycle stages and the categories of the Brand-Building Canvas.

With a staggering 35% of the total French population using Facebook representing 23.4 Million users (1), of which 72% using on their mobile phones or tablets (2), and with at least half of them daily (3), it is no brainer to understand the increasingly important role of social media in the daily life of French consumers. It is foreseeable that French consumers are influenced by, and can influence other consumers, on their fashion purchase decisions. Using published sources of information; this paper aims to highlight the four main trends of social media that have an impact on fashion marketing in France. The first trend is about instant messaging from consumers to consumers. It is how consumers frequently and easily talk one to another about brands, products, opinions, likes and dislikes, etc. hence influencing any potential purchase decision of self or others. The second trend is about interactions between consumers and brands via social media such as Facebook or Twitter. Brands can communicate directly to consumers and consumers directly to brands, hence it is very time efficient for brands to know what consumers think, like or dislike about their products or marketing communications. For consumers, it is also satisfying to be able to voice one’s opinion and may contribute to the future success, or failure, of new products. The third trend is about brands collaborating with online communities to co-create new products. In this instant, brands will let online consumers express their desires, for example through mood boards, and then create a few samples of new products based on those desires. Online consumers can then vote for their preferred ones that will later be produced and sold online to the consumers. Such example can be found from a partnership between “La Boutonniere” website (which collects information from online communities) and “Anne Studio” (a woman fashion brand) (4). This technique can ensure a higher successful rate of new product launches. The fourth trend is about disguised advertising campaigns on social media platforms such as Instagram, Twitter or YouTube. These platforms are offering to conceive and design online marketing communication campaigns for brands that fit with their target consumers’ environments on those same platforms. The aim is to communicate to the right audience without being intrusive and to blend in. These campaigns often mention the words “sponsored by…” to reveal their sources. In summary, these four social media trends illustrate the increasing important of social media in brand communications and brand building, not only from brand-to-consumer-to-brand, but also from consumer-to-consumer-to-consumer.