The Increase Of Competition And Market Instability Of Luxury Fashion Brands

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The increase of competition and market instability in luxury fashion brands involves firm flexibility and adaptation to ever changing wants and needs of consumers. As consumers become more sophisticated, they want more than a product; they want a luxury product with a beautiful story behind it. Fendi was launched in 1925 as a fur and leather shop in Rome, it has since expanded into a multinational luxury goods brand owned by Louis Vuitton Moet Hennessy (LVMH). The current target market for Fendi is upper class women and men aged twenty-five and over with the disposable income to spend on exclusive and prestigious luxury goods. The target market has evolved since Fendi was first opened, to include men and women under the age of forty, which has resulted in a splash of colour in their product range for a more modern, pop-art look.

Porter’s value chain model explains the interactive and cross-functional value created between activities within a production line, and the value-adding activities within an entire industry sector, that come together to create a specific competency for a company. Fendi’s competency is having a deep cultural heritage within the brand that differs from competitors, while producing high quality goods that are specifically harder to imitate.
Value chain activities are tasks completed by the company to produce products and then sell, distribute and service those products in a way that creates value for customers. The key primary activities for Fendi are

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