Retail Performance Management in the Luxury Industry

Status-quo and Future Outlook

Bachelor Thesis , 2010 , 79 Pages , Grade: A

Business economics - Controlling

In order to supply customers with the growing demand of luxury, luxury retail is
gaining importance on a global scale. More and more new luxury companies and retailers enter the global market and thus render it more competitive. Additionally, the financial crisis has struck many luxury companies and retailers that thought themselves safe from market and demand fluctuation very hard – pushing some to the verge of bankruptcy.
This increases the necessity to make use of resources as wisely as possible and to control costs and investments. But how does this affect luxury businesses?

Inhaltsverzeichnis (Table of Contents)

• Table of Contents
• List of abbreviations
• List of figures and tables.
• 1 Introduction
  • 1.1 Problem Definition and Objective
  • 1.2 Course of the Investigation....
• 2 Theoretical Foundations.
  • 2.1 Conceptualizing Retail Performance Management ……...
    • 2.1.1 Two Main Guidelines of Enhancing Performance
    • 2.1.2 Target Values and Key Figures
    • 2.1.3 Performance Pyramid
    • 2.1.4 Balanced Scorecard - A Management Instrument .
  • 2.2 Concepts of Luxury
    • 2.2.1 Definition of Luxury ..
    • 2.2.2 Features of Luxury brands...
• 3 Changes in the Luxury Retail Industry.
  • 3.1 Recent Economic Developments in the Luxury Industry..
  • 3.2 Changes on the Demand Side...........
    • 3.2.1 Purchasing Power's Impact on the Luxury Industry .
    • 3.2.2 Customer Needs .....
    • 3.2.3 Shopping Behaviour.
    • 3.2.4 The Neo-Wilde Consumer.
  • 3.3 Changes on the Supply Side
    • 3.3.1 Flagship Stores.......
    • 3.3.2 Multi-brand Stores.
    • 3.3.3 Online Shops...
• 4 Transferability of Retail Performance Management into Luxury Fashion .
  • 4.1 Product Quality & Availability
    • 4.1.1 Sustainability
    • 4.1.2 Logistics: Supply Chain Management…...
    • 4.1.3 Logistics: Ordering.
    • 4.1.4 Distribution Channels & Target Group .
  • 4.2 Sales Personnel & Service…........
  • 4.3 Shopping Experience & Store Policy.
  • 4.4 Practical Application of Retail Performance Management
• 5 Conclusion............
• Reference List
• Appendix A - Graphs....
• Appendix B - Interviews

Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)

This thesis aims to analyze the current state and future prospects of retail performance management in the luxury industry. It examines the specific challenges and opportunities that luxury brands face in managing their retail operations effectively. The thesis explores the application of established retail performance management concepts and tools within the unique context of the luxury market.

• The impact of economic developments on the luxury industry
• Evolving customer needs and shopping behaviors in the luxury segment
• The role of flagship stores, multi-brand stores, and online channels in luxury retail
• The application of retail performance management principles to product quality, sales personnel, and the shopping experience
• The future outlook for retail performance management in the luxury industry

Zusammenfassung der Kapitel (Chapter Summaries)

The introduction defines the problem and objective of the thesis, outlining the research question and the scope of the investigation. It highlights the importance of understanding retail performance management in the context of the luxury industry, emphasizing the unique challenges and opportunities presented by this market.

Chapter 2 provides a theoretical foundation for the thesis, exploring key concepts related to retail performance management and luxury. It examines established frameworks and tools for enhancing performance, including target values, key figures, the performance pyramid, and the balanced scorecard. The chapter also delves into the definition and characteristics of luxury brands, highlighting their unique value propositions and customer expectations.

Chapter 3 analyzes the changing landscape of the luxury retail industry, focusing on recent economic developments, shifts in consumer demand, and evolving supply-side strategies. It examines the impact of purchasing power on the luxury market, explores evolving customer needs and shopping behaviors, and discusses the rise of the "neo-wilde" consumer. The chapter also analyzes the role of flagship stores, multi-brand stores, and online channels in the luxury retail landscape.

Chapter 4 explores the transferability of retail performance management principles to the luxury fashion industry. It examines the application of these principles to various aspects of retail operations, including product quality and availability, sales personnel and service, and the shopping experience. The chapter discusses the importance of sustainability, logistics, distribution channels, and target group considerations in the luxury context. It also explores the practical application of retail performance management tools and techniques within the luxury industry.

Schlüsselwörter (Keywords)

The keywords and focus themes of the text include retail performance management, luxury industry, customer needs, shopping behavior, flagship stores, multi-brand stores, online shops, product quality, sales personnel, shopping experience, and sustainability. The thesis examines the application of retail performance management principles within the unique context of the luxury market, exploring the challenges and opportunities presented by this dynamic industry.

• College: European Business School - International University Schloß Reichartshausen Oestrich-Winkel (Marketing & Luxury Strategy)
• Grade: A
• Author: Janna Schubert (Author)
• Publication Year: 2010
• Pages: 79
• Catalog Number: V294170
• ISBN (eBook): 9783656917779
• ISBN (Book): 9783656917786
• Language: English
• Tags: luxury, luxury strategy, luxe, fashion, premium, consumer goods, emerging markets, retail, retail performance, performance, strategy, management, gestion de luxe, gestion, European Business School