Fashion Business Context Fashion Business Context_Claudia Ferraretto | Page 17

In the modern time Luxury Designer is the second highest market level in the
segmentation of the fashion market and includes famous and prestigious fashion
brands that have their own designer label, thanks to whom, in addition to clothing,
they could sell luxury goods, such as: automobilie, manufacturers and other personal accessory items.
Luxury fashion conglomerates allow brands to benefit from
parental advantage by exploiting the expertise, resource and
cost synergies of conglomeration. Bonetti (2014) asserts that the
world’s largest and most powerful are: the French LVMH (Louis
Vuitton Moet Hennessey), leader in both in sales and product
sector and geographical coverage, Richemont (Switzerland), Kering (France) and Prada (Italy).

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In this fashion sector designs are not unique: garments are not handmade but are still produced in
limited numbers with a very strict quality control
to guarantee exclusivity (Easey, 2009); prices are
also very varied, most items will be between US
£150 – £4500 (Create a Fashion Brand, 2015). This
factors allow designers to offer their stylish designs
and high quality to a wider audience respect haute
couture collections, for this reason many couturiers
have their pret-a-porter line.

Luxury fashion conglomerates allow brands to benefit from parental advantage by exploiting the expertise, resource and cost synergies
of conglomeration. Bonetti (2014) asserts that the world’s largest and
most powerful are: the French LVMH (Louis Vuitton Moet Hennessey),
leader in both in sales and product sector and geographical coverage,
Richemont (Switzerland), Kering (France) and Prada (Italy).

Usually the consumers of luxury brands are high earners, with incomes of
£100,000 and 76% of the market is aged 35-54 (Banton, 2014). Nowadays China
has become the biggest buyer of luxury fashion, since that Chinese people are
from emerging economies with large amounts of disposable income.

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