Luxury Brand Exclusivity Strategies – An Illustration of a Cultural Collaboration

Abstract

This paper examines how luxury fashion brands renew themselves in order to balance the exclusivity that is associated with luxury goods and with profit maximization. Using consumers’ demand theory it is shown how luxury fashion brands go through different phases to renew the perception of exclusivity. A proposed model for the stages a luxury brand goes through to keep up the perception of exclusivity is provided. The focus is on identifying how luxury fashion brands renew themselves in order to create a perception of exclusivity and scarcity. The limitations of the study is that research has yet to be done on how consumers of luxury fashion goods perceive these efforts put forward by luxury fashion brands. Problems associated with luxury fashion brands, theoretically as well as on a practical level, and the crucial need for a perception of exclusivity and how this perception can be maintained are addressed.