FIELD LEVEL STRATEGIZING IN TURBULENCE: THE CASE OF SWISS WATCHMAKING

Jonas Hoffmann,Laurent Lecamp,Carl F. Bucherer 글로벌지식마케팅경영학회 2017 Global Fashion Management Conference Vol.2017 No.07

This paper explores how socio-ecological strategy applies to the Swiss watchmaking field in its current turbulent causal texture given novel regulatory changes, the emergence of connected devices, volatile consumer behaviour and un-planned for currency changes. We explore how Fligstein and McAdam’s (2012) theory of fields extends the socio-ecological strategy approach, explain how turbulence is manifested in Swiss watchmaking and empirically investigate how the three strategic stances of socio-ecological strategy (preparation, relocating and reinventing collaboration) fare in the Swiss watchmaking field.

INNOVATION STRATEGIES OF INDEPENDENT LUXURY BRANDS

Jonas Hoffmann,Laurent Lecamp,Carl F. Bucherer 글로벌지식마케팅경영학회 2015 Global Fashion Management Conference Vol.2015 No.06

The world of luxury is harboring an endangered species: that of the independent companies! In an increasingly-challenging and globalized luxury environment, companies are fighting to escape from the ever-growing clout of luxury “conglomerates” - Swatch Group, LVMH, Kering, and Richemont. As of 2015, these “big four” own more than 100 brands and are maintaining a constant pace of acquisitions , relying on vertical integration to secure supplies (and deprive competitors of them) which has particularly insidious consequences for independents. Most independents are struggling to survive and end up being acquired or going out of business. Interestingly, this same movement towards consolidation is rendering brands more and more uniform, thus creating opportunities for players able to craft unique offerings for niche luxury clientele. Innovation is the path to follow in this challenging journey. Based on a multiple case study analysis of innovative independent luxury companies, we have identified four innovation strategies (Hoffmann & Lecamp, 2015). “Back to the roots” include independent companies innovating in the essence of luxury: extreme quality and extraordinary craftsmanship to create the ultimate sensorial and emotional experience. For companies like Vignes, Thomas Mercer, Mirazur by Mauro Collagreco, Norlha and Brunello Cucinelli, luxury is rooted in a terroir and a sense of purpose permeates this endeavor. “Code breakers” are playing with product and societal codes to culturally innovate and build the icons of today and tomorrow. Examples include Martin Margiela and Miuccia Prada in fashion, Fernando & Humberto Campana in furniture design, and HYT in watchmaking. “Eagle in the aquarium” companies are disrupting the way luxury companies create, deliver and capture value. Globalization and digitization are powerful enablers to reconfigure resources at the levels of funding (e.g. crowdfunding), design (e.g. 3D design), manufacturing (e.g. 3D printing), distribution (e.g. online platforms), marketing and communication (e.g. online social networks). “Game changers” are building breakthrough innovations at the product and business model levels. Comme des Garçons, Etudes Studio, Iris Van Herpen, MB&F, and W Motors are independents taking bold initiatives in a fascinating and inspiring journey. Managerial implications and venues for future research will be highlighted during the conference.

THE MASSTIGE PARADOX IN CHINA: A BUSINESS MODEL INNOVATION OPPORTUNITY FOR INDEPENDENT LUXURY COMPANIES?

Philippe Chereau,Jonas Hoffmann,Isabella Soscia 글로벌지식마케팅경영학회 2015 Global Fashion Management Conference Vol.2015 No.06

Over the years, luxury has built-up a reputation as recession proof industry. Even though the industry growth has slowed down in the mid 2000s, luxury firms have managed to cope with economic contingencies and shortening traditional demand by widening their clientele base to prestige mass consumption ― the “masstige clientele”. Doing so, luxury firms have been pursuing a dual strategy by wooing aspirational consumers as well as their traditional elite customers, thus managing the challenge of handling both a differentiation strategy based on scarcity and uniqueness, and increased volumes of sales. This has been a trend in mature markets such as Europe, the United States and Japan, but was significantly fostered by expanding into emerging markets. Sector specialists thus expect China to remain a major structural growth area in the medium term, where the number of both high-end clients as well as new aspirational consumers will substantially increase and influence firms strategy.

Five-fold Gastrointestinal Electrical Stimulation With Electromyography-based Activity Analysis: Towards Multilocular Theranostic Intestinal Implants

Jonas F Schiemer,Axel Heimann,Karin H Somerlik-Fuchs,Roman Ruff,Klaus-Peter Hoffmann,Jan Baumgart,Manfred Berres,Hauke Lang,Werner Kneist 대한소화기 기능성질환∙운동학회 2019 Journal of Neurogastroenterology and Motility (JNM Vol.25 No.3

Background/AimsMotility disorders are common and may affect the entire gastrointestinal (GI) tract but current treatment is limited. Multilocularsensing of GI electrical activity and variable electrical stimulation (ES) is a promising option. The aim of our study is to investigate theeffects of adjustable ES on poststimulatory spike activities in 5 GI segments. MethodsSix acute porcine experiments were performed with direct ES by 4 ES parameter sets (30 seconds, 25 mA, 500 microseconds or1000 microseconds, 30 Hz or 130 Hz) applied through subserosal electrodes in the stomach, duodenum, ileum, jejunum, and colon. Multi-channel electromyography of baseline and post-stimulatory GI electrical activity were recorded for 3 minutes with hook needleand hook-wire electrodes. Spike activities were algorithmically calculated, visualized in a heat map, and tested for significance byPoisson analysis. ResultsPost-stimulatory spike activities were markedly increased in the stomach (7 of 24 test results), duodenum (8 of 24), jejunum (23 of24), ileum (18 of 24), and colon (5 of 24). ES parameter analysis revealed that 80.0% of the GI parts (all but duodenum) required apulse width of 1000 microseconds, and 60.0% (all but jejunum and colon) required 130 Hz frequency for maximum spike activity. Fivereaction patterns were distinguished, with 30.0% earlier responses (type I), 42.5% later or mixed type responses (type II, III, and X),and 27.5% non-significant responses (type 0). ConclusionsMultilocular ES with variable ES parameters is feasible and may significantly modulate GI electrical activity. Automatedelectromyography analysis revealed complex reaction patterns in the 5 examined GI segments.

The concept of creative collaboration applied to the fashion industry

Margaux Rollet,Jonas Hoffmann,Ivan Coste-Manie`re,Katrina Panchout 한국마케팅과학회 2013 Journal of Global Fashion Marketing Vol.4 No.1

Co-branding is an interesting approach to building differentiation and reputation. In thefashion industry, one well-known example of co-branding is the creative collaborationbetween fashion designers and mass-market retailers. This paper aims to explore thisspecific example of co-branding. It first introduces the concept of co-branding andpresents its application by the Swedish retailer H&M. An exploratory study with aconvenience sample confirms the interest of the approach. Further analysis of thecontrasting results of H&M’s collaborations with Lanvin and Sonia Rykiel shows thatif a co-branding strategy is well managed by integrating compatible elements betweentwo brands – visions, values and wills, to create real synergies – it presents aninteresting path towards creating sustainable brand differentiation.

The Impact of Brand Extension on The Parent Luxury Fashion Brand

Rasa Stankeviciute,Jonas Hoffmann 한국마케팅과학회 2010 Journal of Global Fashion Marketing Vol.1 No.2

Brand extensions are an interesting brand strategy alternative, as they may attract new segments of customers that may have not considered the brand before because of different reasons. Therefore, the brand extensions are seen as a perfect way to boost the revenues of the company. However, though the brand extensions may work quite well for consumer (value) brands, they might have quite opposite effect on the luxury ones. While the brand extensions, especially the downward ones attract attention and make the brands more accessible and familiar among new segments of consumers, at the same time they may weaken the status of the luxury brand among its existing clientele and so dilute the luxury brand. And as the luxury brands emphasize their long-term value, once the image of the luxury brand is diluted, it has to take a very difficult and long way to gain its luxury status back in the eyes of consumers, and sadly not every brand manages to get back the respect it once had. Nevertheless, there is little research done on luxury brands and especially luxury brand extensions. What is more, previous research gave more attention to consumers’ evaluations of and attitudes to the extensions themselves than the parent brands. This study explores the evaluations of and attitudes to the parent luxury brands after different extensions are introduced. The study firstly introduces previous findings on value brand extensions and luxury brand extensions. Secondly, the cases of three chosen brands, representing a question mark, a failure and a current success practice of luxury brand extensions are analyzed in-depth: Giorgio Armani, Calvin Klein and Jimmy Choo. Armani is chosen as it is one of the most diversified brands in fashion. Despite the fashion brand varying from haute couture line Armani Privé to fast fashion brand Armani Exchange, Armani today offers everything that is needed for one’s luxury lifestyle from sweets and flowers to restaurants and hotels. The study analyses Armani’s brand extensions, and reactions to them. Armani represents a successful diversification of the luxury brand, but at the same time it questions the risk of over-extension and its consequences on the brand portfolio. Calvin Klein is chosen because it illustrates an example of the brand that once lost its luxury status mainly because of licensing and in the face of such experience the brand is now digging its way back to the luxury industry with its high-end sub-brand Calvin Klein Collection. Jimmy Choo is a world famous women’s shoes brand whose creations are appreciated by a large public including red carpet stars and First Ladies. After starting as a luxury shoes maker in 1996, the brand has expanded into handbags, sunglasses, accessories and even fragrance. But it was the luxury brand’s collaborations with non-luxury brands Hunters (iconic British company producing wellington boots) and H&M (Swedish fast fashion giant) that attracted our attention. Jimmy Choo represents a current success practice of the collaborations between the luxury and non-luxury brands and shows that such brand extensions, when carefully thought through, not only makes no damage to the luxury brand, but also enhances its image and desirability instead. The study analyses these two collaborations, which are viewed as downward brand extensions, and the impact of those collaborations on the Jimmy Choo brand. Each brand approach to brand extension is presented and discussed to underline reasons for success or failure. Desk research on the brands’ annual reports, reviews, articles and interviews from fashion, marketing, lifestyle, financial, and other magazines and newspapers, as well as visual material are used for the analysis of the chosen cases. An analysis of the cases of Giorgio Armani, Calvin Klein and Jimmy Choo leads us to four conclusions:

The impact of brand extension on the parent luxury fashion brand: The cases of Giorgio Armani, Calvin Klein and Jimmy Choo. A retrospective commentary

Rasa Stankeviciute,Jonas Hoffmann 한국마케팅과학회 2020 Journal of Global Fashion Marketing Vol.11 No.1

A retrospective commentary provides a look at valuable and unique findings that caused the article’s high impact in the literature. At the time of the study, the majority of brand extension research focused on non-luxury brands, and the existing luxury brand extension research gave more attention to the extensions rather than the parent brands. Meanwhile, our study focused on evaluations of and attitudes to the parent brand. The significant distinction between our study and other available studies at the time – our investigation was based on practice of the chosen luxury brands rather than theory. The impact of brand extensions on the parent luxury brands was analysed and the following was evaluated: ● the danger of parent brand dilution; ● the factors leading to brand extension success; ● the factors leading to revitalization rather than weakening of the parent brand. In this commentary we also briefly cover two new topics that could have been included in our study or could become a continuation of the previous study today: ● upward brand extensions; ● avoiding brand extensions and using other strategies to remain appealing. Additionally, we interpret the use of our findings and insights in the literature by researchers citing the article.

A Case Study on the Business Model of Chloe

( Kristi Storemark ),( Jonas Hoffmann ) 한국마케팅과학회 2012 Journal of Global Fashion Marketing Vol.3 No.1

Luxury fashion companies are today part of a dynamic and fast growing industry. The competition of international market shares is tough, and only the fittest survive. There are three large luxury groups in the world: LVMH, PPR and Richemont. Chloe is a French luxury fashion company belonging to Richemont, since being acquired by the group in 1985. Chloe was founded in 1952 by a Parisian claiming that the contemporary fashion was too stiff and formal. Her name was Gaby Aghion and she opted for changes and started to design garments which she called "luxury ready-to-wear". This became a huge success in the market and other fashion houses followed her. The house reached its first peak in the 1970s with Karl Lagerfeld at the designer helm and later on in the 2000s with Phoebe Philo as the chief designer. A business model is defined by three basic components; value creation, value architecture and revenue model. Osterwalder and Pigneur (2009) extend these three components into a nine point business model canvas. The value creation deals with the value proposition as well as the customer segments of the company. The value architecture explains customer relationships, distribution channels, key activities, key resources and key partners. Finally, the revenue model is based on the cost structure and the revenue streams of the company. For a company, it is highly important to detect its own business model in order to know where improvements are needed to improve growth and profitability. The methodology conducted to detect the business model of Chloe in this study is characterized by a qualitative research strategy. Both primary and secondary sources were utilized in the search for information. Regarding primary sources, the first author of the paper conducted in-depth interviews with sales staff and was able to observe the daily routine first-hand while working as an intern in one of Chloe`s boutiques. This article is therefore built on an interactive case study. The value proposition Chloe offers its clients over and above the actual products of ready-to-wear, bags, shoes and accessories, is a lifestyle recognized by elegance, comfort and luxury in a clean and simple manner. The customer of Chloe is the same worldwide: very feminine, well-traveled, central, iconoclastic and adventurous. The age group is different from country to country, but the customer usually belongs to an economically wealthy group of its society. Chloe also counts a number of celebrities among its clients. Key resources are divided into physical, intellectual, human and financial resources. Physical resources include materials utilized to manufacture the products, alongside design studios, showrooms, stores and equipment. Intellectual resources are the company`s brand patents and copyrights. Human resources are the individuals who make up the work force of the company. There is an important emphasis on sales staff training. Financial resources revolve around the support given by parent company Richemont. The study also comments on the turnover of creative directors at Chloe, and the importance of choosing the right person for the job. Finally, pioneer clients who become company ambassadors, for example, Kirsten Dunst, are mentioned as a resource in the company value constellation. Regarding distribution channels, Chloe has one main channel; retail. This include Chloe`s own boutiques, as well as multi-brand stores such as department stores, shop-in-shop and point-of-sale counters. Chloe is represented in around one hundred and twenty stores worldwide, forty of which are company owned and twenty are franchise units. The stores are mostly represented in Asia where Japan, South-Korea, China and the Middle-East are strong markets. The US and Europe are also large markets. There are in total seven online stores which offer Chloe products. Chloe puts a lot of effort in winning market shares in China, and has opened a Chinese blog/webpage (jesuischloe.com.) for its Chinese clients. The key activities Chloe performs are design, manufacturing, marketing, distribution and sales. Export and import are also part of the activities, given the company`s global presence. Key partners are Lamy, who provides the company`s sunglasses, Iris who provides the shoes and Coty Prestige who has bought the beauty license of the company and is responsible for providing the Chloe perfumes. The customer relationship is naturally strongest between the sales staff and the clients. Returning clients are registered in a client database and they receive benefits such as invitations for events, discounts, pre-sales and so on. The company also holds a list of VIP-customers, who receive significant discounts on products. Regarding the revenue model, Chloe has two main streams of income; retail and wholesale. The retail is divided into direct retail, in other words online sales, which count for forty percent of the retail, and the normal retail in stores which counts for sixty percent of the retail. It is uncertain how much revenue the wholesale counts for percent wise compared to retail, but it is estimated to be a figure around three hundred million dollars. Main cost sources are manufacture, branding and retail. As a conclusion, this study has indicated that the business model of Chloe is highly efficient. There is evidence for its integration from corporate to local level with a strong communication between the various departments of the company. Yet new challenges lie ahead for Chloe. Massive growth markets such as Brazil and India are yet to be captured, and with a new creative director, Claire Waight Keller, time will show how well new collections and competition of market shares succeed. However, as Chloe testifies with a great resilience in its brand equity, any new challenges are expected to be met with carefully planed strategies.

Can fashion blogs function as a marketing tool to influence consumer behavior? Evidence from Norway

Katarina Halvorsen,Jonas Hoffmann,Ivan Coste-Manie`re,Rasa Stankeviciute 한국마케팅과학회 2013 Journal of Global Fashion Marketing Vol.4 No.3

Through the introduction of Web 2.0, the blogging phenomenon has become animportant marketing channel, as it has enabled a new way of communicating andsharing information through its user-generated content. Today the largest segment ofthe blogosphere consists of fashion blogs, i.e. blogs that focus on fashion brands,fashion products, street style, and personal style. In recent years companies have begunto realize the benefits of using blogs as a marketing tool, as they are a targeted andinexpensive way to get publicity and reach potential consumers. This research aims tostudy whether fashion blogs can function as a marketing tool to influence consumerbehavior, limited to the Norwegian fashion blog arena. The study is based on anexploitative research design as there is little existing research on the subject. We havechosen to explore the subject from three different perspectives: those of the readers, thefashion blogs, and the companies involved in fashion blog marketing. In detail, thestudy looks at the influential power of fashion blogs in context with their strength as acommunication tool for marketing products and brands. The results of the study clearlyindicate that blog advertisements provide companies with a unique opportunity formarket communication, whereby aspects related to credibility and influence can beviewed as incomparable to those involved in traditional advertisement. Through thestudy one can conclude that fashion blogs can indeed affect consumer behavior, as theyhave a unique ability to create a strong relationship between the blog and its readers,resulting in the advertisement being viewed in a personal and non-intrusive way.

品牌建設: 奢侈皮具品牌解析

( Tinne Van Gorp ),( Jonas Hoffmann ),( Ivan Coste Maniere ) 한국마케팅과학회 2012 Journal of Global Fashion Marketing Vol.3 No.3

在大多數經濟領域中, 品牌建設是實現差異化的核心。消費者購買奢侈品最重要的是盡可能的象征其身빈。對于奢侈品公司而言, 品牌和品牌形象是其競爭優勢的兩個關鍵点, 品牌建設則是其核心能力。建立一個品牌, 首先需要了解타的維度。Fionda and Moore(2009)提出時尙奢侈品牌包括9個維度, 依次是淸석的品牌標識、營銷傳播、産品的完整性、品牌標志、昻貴的价格、專營性、傳承、服務環境、文化。本硏究基于Fionda and Moore (2009)的成果, 擴展到了一個特定的奢侈品行業--奢侈皮具品牌。品牌在奢侈品行業是最寶貴的。根据2010國際品牌排名, Louis Vuitton价値218億美元, Hermes价値47億美元。本硏究主要涉及四個傳統的奢侈皮具品牌, Delvaux, Bottega Veneta, Hermes and Loewe。四個品牌都來自于毆洲, 比利時(Delvaux), 意大利(Bottega Veneta), 法國(Hermes)和西班牙(Loewe); Delvaux和Hermes是獨立的企業, 然后Loewe (LVMH)和Bottega Veneta (PPR) 則分別이屬于兩大奢侈品企業集團。結果表明, 九個維度被認定适用于品牌建設過程: 1.淸석的品牌標識--次維度包括全球市場策略、品牌价値、情感和激情吸引力; 2.營銷傳播--相似于先前的硏究, 此維度包含直銷、時裝秀和公共關系。我們突出了網站和全球數字媒體的重要性。3.産品的完整性--質量, 功能性和工藝保證了奢侈品牌的地位。Fionda and Moore (2009)定義了次維度“創新和季節性産品”和“質量, 功能性和工藝”。然而, 季節性産品與傳統奢侈皮具産品相比不受重視, 因爲傳統奢侈皮具擁有許多永久收藏品。一個叫做“遺傳商品”的子維度被列入了永久商品。4.品牌標志--所有公司都擁有標志性商品, 一個著名的創意方向, 一個公認的産品風格和品牌元素。此項硏究中的公司也爲其他公司設計産品或者服務環境。通過品牌名字的融合, 各家公司間互惠互利。此外, 這些公司在精品店展示藝術品和商品, 也會同時邀請設計這些商品的藝術家一起參加。5.昻貴的价格--타們的相關性被廣泛討論。此案例中的公司都价格昻貴, 沒有給出흔高的折구。6.專營權--限量版與專營范圍都是專營權的子維度, 涉及産品的可得性和可用性。7.品牌的歷史和傳統有助于樹立品牌的可고性。例如, Hermes和Delvaux都積極利用타們的歷史和傳統。8.環境與服務--優質的服務和旗艦店擴展了品牌體驗。案例中的公司, 타們在全球的店鋪幷不是裝修的一樣, 因此不支持Degoutte (2007)的理論, 但是타們支持Keller (2009)的理論, 完全控制着大量的商鋪。這些店鋪地處重要地段幷提供一流的服務。網上商店可被列入此維度。9.文化--根据Fionda和Moore (2009), 文化是指品牌背后的文化知識。專業知識需要在組織內一致的貫穿所有等級, 以確保品牌的成功。此硏究展示了少量的關于此維度的證据。盡管是探索性的, 此硏究有助于學習目前文獻中的奢侈品維度。當建立一個奢侈皮具品牌, 修改后的奢侈品牌광架提供了一個有价値的相關于維度的槪述。此外, 發現了五個子維度, 分別爲網站, 網上商店, 藝術련接, 高級定制和工坊。品牌建設的過程要求所有維度與子維度具有一致性與管理同步性, 因此, 當品牌建設處于如此富有挑戰與多變的産業之中時, 此修訂本爲企業提供其所需顧及要素的更新情況。未來對于此類主題的硏究可以使用不同的硏究方法, 幷選用更多的公司作爲案例。縱向比較品牌在加入奢侈品集團后如何适應, 將會是흔有趣的硏究方向。例如, Loewe和BottegaVeneta被LVMH和PPR收購后, 品牌戰略會不會改變?這一問題可以爲獨立公司提供線索, 在一個行業連續整合狀態下如何區分和生存, 近期LVMH收購Bulgari就是一個흔好的例子。령外, 此項硏究主要關注毆洲奢侈皮具品牌。硏究結果是否也适用于遵循不同商業模式的美國公司?同樣的, 나些維度具有新的特征。Hermes創建了中國制造的品牌--Shang-Xia。나些品牌建設适用于這類品牌?原産地將會有什요影響? Brand building is central to achieving differentiation in most economic sectors. This is paramount for luxury goods where customers buy a symbol as much as a product. The brand and its image are key factors for competitive advantage and brand building is a central competence for luxury goods companies. This study aims to explore brand building of traditional luxury leather goods brands. A multiple case study of Delvaux, Bottega Veneta, Hermes and Loewe allows us to replicate and extend Fionda and Moore`s (2009) findings about luxury fashion brands. Results show that the nine dimensions identified by these authors also apply to these brands. Moreover, five additional sub-dimensions are uncovered-website, e-shop, link with art, customization and workshop-and these should be taken into account in the brand building process. These exploratory results provide insights to managers for their on-going efforts to keep their brands competitive.