Hermès: Defining Characteristics As A Product

Internet fashion retail is a highly competitive market, the trends in the industry and company’s success relies on customer’s needs, which change constantly. “Competitive advantage is the delivering of superior value to customers and, in doing so, earning an above average return for the company and its stakeholders” (McGee, Thomas & Wilson, 2005, p.207). In order for ASOS to stay on top of its competitors, the trends in the industry have to be monitored, so that further they can be strategically translated in developing new products, to gain customer satisfaction.

This expansion demonstrates how the luxury industry is now run by massive corporations whose focus is only on growth, visibility, brand awareness, advertising, and most importantly, PROFITS! With growth and expansion, has come a decrease in quality and rarity. The luxury garments produced are mostly not handmade but are even outsourced to large factories in places such as China and Turkey. Also, to meet quarterly turnover projections, “designers churn(ed) out increasingly trendy collections of clothes, handbags, and shoes.” (Thomas, Pg. 246) With hundreds of new stores around the globe the surplus of designer labeled merchandise is immense hence, the proliferation of outlet malls.

Social media has become an influential ground for consumers to share their opinions about a company’s brand and products. In addition, it helps in having a strong brand that produces positive relations and distinguish the brand from competitors, is a critical component for effective marketing. According to Dahlén and Lange (2009) “the quality of the product is not the evident factor when it comes to purchasing a product, the deciding factor depends on how the brand is perceived” (Para. 1). This demonstrates the importance of incorporating social media as a tool to promote brands, allow for interactions, and customer satisfaction by engaging with customers more frequently for feedbacks or reviews. Thus create an opportunity for the company to show its devotion to their customers, and initiate good reputation, which can increase sales. In other words, social media has the ability to upsurge the awareness for businesses as well as the brand.

According to the mission statement of Anthropologie: “Lifestyle merchandising is our business and our passion. The goal for our brands is to build a strong emotional bond with the customer. To do this we must build lifestyle environments that appeal emotionally, and offer fashion correct products on a timely basis. Our customers are the reason and the inspiration for everything we do.” UO considers the relationship it has with its customers before making decisions that affect them. Therefore, UO has kept in touch with customers continuously by utilizing various platforms such as SNS messages, connections with its online store, campaigns, events, and social media. In 2016, the growth rate of the company of retail segment is 1.6%, $47.4 million (URBN FY 2016 Annual report, 35). The basic concept of gaining inspiration from customers forms a diverse and progressive corporate culture; this is the driving force behind the development of the

With the rapid development of social economy, the public tends to focus on the social responsibility of the company, as well as feedback to the society, rather than pay close attention to how to create interest in the company. Especially, environmental protection and human rights has became the most pressing social phenomenon. Under this

Price is an important factor in Burberry as price affects the value that costumers perceive they get from buying a product (Jobber & Ellis-Chadwick, 2012). Burberry uses competitive pricing similar to its competitors which produces a psychological effect on Burberry customers (Jacobson, n.d). If Burberry for example lowered its price dramatically then customers may believe the quality has decreased and may presume it’s not worthy to be named a luxury brand. However by being expensive it suggest better quality and desire to sustain its customers as well as making there products seem exclusive.

Luxury is uniqueness, attitude and ethnicity. Internet is purely a medium of communication for Luxury brands. The industry has been showing less dedication towards integrating complex technologies and its associated interactive and digital tools in marketing and overall commerce strategies. There is also a push to be present on the internet to evolve consumer needs and expectations. The initiation of internet as a universal supply channel provided an unparalleled medium by which to boost brand awareness and recover market share. This proposal provides an outline for exploratory research in sustaining the luxury brands online. The study overlaps research findings on internet marketing and consumer behavior for luxury brands.

It is hard to imagine that after the financial crisis swept across Europe, many great transitional enterprises had to face collapse and bankrupt while the luxury goods industry become more prosperous. Recently, the French luxury goods group LVMH announced their recent business condition. The volume of the first week in October had incredibly increased by 12% the previous week. The Hermes Corporation also said that in order to meet the increasing number of market demand, it would open 15 branch stores in the latter half of the year. These aroused some fierce debates, the public held a skeptical opinion towards the questions: How can the luxury companies maintain their positions? Why didn’t they strike down by financial crisis?

“Quality items that stand the test of time – it is this concept of sustainability, symbolized by a timeless handbag that you wear again and again, and can pass on, that I am always thinking of when I design.” Says Frida Gianni

Gucci utilizes the differentiation business strategy, as the brand itself promotes premium quality. They are known for their high end leather products and the red and green striped webbing with the GG logo. The company is in no way price-sensitive and caters to the affluent through customization, genuine leather, premium quality, and exceptional customer service. Gucci’s customer base is more than willing

Since social media is so easily accessible to everyone nowadays people don't care to go and grab the latest vogue for inspiration, they will go on their phones and check their instagram, twitter, Facebook or any social media account to see whats trending. In L2's Advanced IQ List, which positions form brands as per their site offerings, online business, computerized advertising and web-based social networking mindfulness, US ladies' dress planner Tory Burch beats understood worldwide extravagance brands, for example, Gucci, Hermes and Chanel. This shows the huge impact the influence of social media can have on the Fashion industry, the world is moving and progressing through social media and those who chose not to utilize this part of technology so widely used, are going to fall behind those who do. People who are very high up in social media have a very big platform to promote and influence others. Nowadays if you have a huge amount of followers you are practically famous with all eyes watching you. Fashion corporations want people who have this huge platform on social media to promote their styles due to the fact people are going to be strongly persuaded to want or to want to look like something if someone they keep up with on social media looks a certain way or wears a certain piece. Fashion trends from all over the world come to meet each other, merge, change and evolve through social media. The concept of the see

Maintenance of the brand image is always the fore most important factor for the luxury brands in order to sustain in the market. is very critical. Therefore, of all the criteria mentioned above, we have determined the brand image is the most important criterion on which we will base our recommendation.

Coach has a very strong brand image. They continue to gain new customers and because of devotion and loyalty they are able to keep repeat customers. Brand image can be considered everything to customers when searching for a handbag. Industries that manufacture handbags must be able to provide what is considered a “chic service”, while continuing a “thriving business” (Foster, 2006). Due to the brand image that Coach has they are able to introduce new and more risky handbags with the confidence that most current consumers will continue to purchase their

According to Gucci Official Site United States (2016), Gucci is a progressive, innovative, and influential brand aimed at reinventing fashion in the 21st century. Their products are romantic, contemporary, and eccentric that portray the finest Italian dexterity. Gucci’s products are known for their premium looks along with their best quality. Hoang (2016) mentioned that, Gucci reflects its premium brand value by maintaining a ‘perfect balance’ between the brand’s status as a leading fashion company and its Italian heritage. Gucci’s values and brand identity can be described in three phrases: Italian craftsmanship, creativity, and quality. According to Wendlandt (2016), the brand has been

The benefit of social media is that H&M can get out its message and promote its brand by content marketing, while at the same time it can gather, store and interpret huge amounts of data. ‘’Content marketing’s purpose is to attract and retain customers by consistently creating and curating relevant and valuable content with the intention of changing or enhancing consumer behavior.’’ (Content Marketing Institute,