All branches focusing on the aspect of fashion, displaying a trend-based orientation of the company. Usually, these industries (e.g., cosmetics, leather goods, clothing) are highly influenced by current trends and developments on the market.
Published in Chapter:
The Luxury Market in the Fashion Industry: A Conceptual Segmentation
Sonja Christina Sperber (University of Bamberg, Germany)
Copyright: © 2016
|Pages: 30
DOI: 10.4018/978-1-5225-0110-7.ch007
Abstract
As competition accelerates due to the increasing pace of new developments and the continually growing number of competitors, the delimitation and unique positioning is of essential importance for fashion companies. Therefore, it is this chapter's purpose to develop a segmentation frame aligned for the luxury fashion industry, which categorizes it into distinct segments according to determined criteria. Hereby, the author emphasizes established criteria (e.g. brand loyalty, exclusivity) and current industry trends (e.g. fast fashion) in order to develop a ‘luxury fashion segmentation cube', dividing the industry into four specific segments (premium, high-end, prêt-à-porter, haute couture). The objective of this chapter is twofold: With the segmentation cube, a tool for analyzing the competitive situation within the respective segments is developed. Further, it is applied to provide insights on the required actions for obtaining a holistically oriented organizational positioning strategy within the desired segment. Concluding, theoretical and practical implications are highlighted.