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In this interview, Jean-Noël Kapferer, Professor Emeritus at HEC Paris and a specialist in marketing, brand management and luxury, discusses the different models of luxury around the world. Kapferer explains that there are distinct luxury models, notably French, American and Italian, each with its own characteristics and value-creation strategies.
Kapferer begins by defining the French luxury model. According to him, the French seek to create a price monopoly by drawing on three main sources: terroir, history and “sang” (the creator's blood). The monopoly of terroir is exemplified by products such as champagne and cognac, whose very names are protected luxury brands. The monopoly of history is exploited by groups like LVMH, which buy up historic brands to revitalize their heritage and create lasting value. Finally, the monopoly of blood (of the “creator”) is manifested in the artistic directors, often from the founding families, who embody the brands' vision and creativity.
Kapferer also emphasizes the importance of “Made in France” in the French luxury model, which values French culture and know-how. This strategy creates a barrier to entry for competitors, particularly Chinese brands, who struggle to export luxury goods without a comparable cultural heritage.
By comparison, the American luxury model focuses on affordability. American brands, such as Michael Kors, TORY BURCH and Coach, aim to make luxury accessible to a wide audience, often by producing abroad to cut costs. Kapferer notes that this model reflects American values of openness and equality.
The Italian model, on the other hand, emphasizes the quality of raw materials and craftsmanship. Italians are less obsessed with history and focus more on product quality and fashion innovation.
Kapferer concludes by stressing that incomparability is the key to the French luxury model. Unique elements such as terroir, history and the blood of the designer enable French brands to differentiate themselves and justify higher prices. He observes that French luxury houses, unlike some technology companies, look to the future with confidence, asserting that they will still be around in 100 years' time.
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Assistant Professor (tenured) in Digital Transformation
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