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Reasonable Luxury

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As a counterpoint to these two examples, the Zara case can bring further light to the luxury concept. From an original business model, this brand of mainly ready-to-wear is the only one to propose, in a continuous, fast, and efficient way, the latest fashion products. Zara founded its difference on the service (new products every other week) and psychological comfort (a guarantee to be in fashion) that it provides to its clients through a logistical mastery, superior to that of its competitors. Its time-to-market (between 2D designs to product in the store) is less than two weeks.

The approach is innovative, and it is the most successful business model in that industry. This success is based on logic of volume supported by logistical excellence, which position the brand outside of the perimeter that we have qualified as true luxury. This is confirmed by Zara's positioning on the square of consumption values. The constant renewal of its products is both strength and weakness: the ever-fluctuating universe of the brand cannot offer strong representations, the possible world that consumers would dream about. Zara is weak on the utopian/mythical vertex. However, it is anchored in hedonism—pleasure and fun to be in fashion—which gives competitiveness to its offering. Moreover, the brand cultivates the research for minimum costs in order to be able to offer products at the lowest possible prices, which is the antithesis of the strategies of true luxury (see Figure 1.5).

Zara is therefore a brand of affordable (or mass) consumption, selling to the highest possible number of customers. Of course, Zara offers a distinctive feature, fashion at a reasonable price, but this distinction is a fugitive one. It is a very relevant business positioning and no doubt still promised to a rich future; however, it cannot be confused with that of real luxury.

Luxury Brand Management in Digital and Sustainable Times

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