Luxury branding: the case of Chanel

Abstract

Purpose

This study answers the research question “How can businesses apply a luxury brand strategy to achieve innovation in their businesses or brands?” It aims to investigate the possibility of applying a luxury brand strategy to a wide range of business areas.

Design/methodology/approach

This study presents a literature review and case studies, analyzing 16 products from a selection of 8 iconic luxury brands. A survey conducted in Japan and Europe identified which of the 8 selected luxury brands had established the strongest brand image. Principal component analysis and SPSS were used to analyze the results. Scatter diagrams are used to depict the relationship between factors and product positioning. Brands and products were selected for case study analysis, and the features were generalized to show how companies in business segments other than luxury goods could apply this model.

Findings

The results showed that most of the strategy’s features apply to companies in different business areas. While luxury brand strategies are unique, their features can be generalized to stimulate innovation in other businesses or brands.

Research limitations/implications

This study analyzed only two products under one luxury brand. Thus, the number of products is limited.

Originality/value

This study is unique because it examines how different business areas can apply the advantages of business strategy models. It illustrates the advantages of successful business strategies of luxury companies and how different companies can harness that success for future development.

Citation

Sugimoto, K. and Nagasawa, S. (2017), "Luxury branding: the case of Chanel", International Journal of Quality and Service Sciences, Vol. 9 No. 3/4, pp. 292-301. https://doi.org/10.1108/IJQSS-04-2017-0039