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[...] Strategic groups - Luxury Summary 1. Identifying strategic groups in the luxury industry a. Grouping criteria: Key Characteristics b. Main market segments and strategic groups and main strategic groups: Categorizing 2. Driving forces common to all strategic groups 3. Some differences in strategic group approaches The strategic group1. is defined as a set of competing companies with similar strategic characteristics and comparable market positions. These competitors work on the same competitive factors 1. Identifying strategic groups in the luxury industry a. [...]
[...] The group announced in November 2021, tread a three-way partnership with Chinese e-commerce giant Alibaba and Farfetch6 L'Oréal group7, founded in 1909 by Eugène Schueller, the world leader in cosmetics innovation, specializing in consumer, luxury, demartological beauty and professional products, and which has announced 2023 as year of profitable and sustainable growth" according to the previous year's annual report8. Chanel9 created by Gabrielle Chanel, commonly known as "Coco", specializing in haute couture, ready-to-wear, perfumes, cosmetics, eyewear, make-up . began with a hat boutique in 1910. "Chanel has delivered another solid financial performance in 2022, with double-digit growth in all categories" according to Philippe Blondiaux, CFO of CHANEL10 2. Driving forces common to all strategic groups11 We have already mentioned the forces that shape the decisions of the luxury industry's major players. [...]
[...] The aim is to attract a high-end customers. In addition, with the increasing globalization of the luxury goods industry, these strategic groups are seeking to expand their presence worldwide through strategic acquisitions and partnerships, as in the case of Richemont's tripartite agreement (with Farfetch and Alibaba). The aim is to capture a growing share of the market in regions such as Asia-Pacific and the Middle East. In addition, keeping abreast of emerging trends and the slightest changes in consumer preferences represents one of the biggest common challenges. [...]
[...] Firstly, increased competitive pressure drives these groups to innovate in their own way, investing in diversifications they consider promising for them. To this end, they invest in research and development. Then, with the rise of e-commerce and digital platforms, we are seeing opportunities to change distribution channels. On top of this, as we've said, consumer preferences are evolving rapidly. As a result, there is a growing demand for sustainable, ethical and personalized products. Strategic groups are taking these trends into account by developing environmentally-friendly collections and implementing responsible production practices. [...]
[...] The strategic group is used to study and decide whether a company can move into a strategic position: this is often referred to as a position occupied by one group, acquired through expansion by companies in another group. b. Main market segments and strategic groups and main strategic groups: Categorizing The main segments are high fashion, perfumery and jewelry. They involve creation and design. What they have in common and what sets them apart is the use of high-quality materials. However, leather goods, hotels, watches, gastronomy, travel, real estate, etc. are also among the most sought-after market segments. [...]
