Innovation and product management – The direction of the 21st century luxury market

• Main Authors: Grigorescu Adriana, Ion Amalia Elena
• Format: Article
• Language: English
• Published: Sciendo 2020-07-01
• Series: Proceedings of the International Conference on Business Excellence
• Subjects: innovation management; sustainability; luxury market; technology; brand management; consumer psychology
• Online Access: https://doi.org/10.2478/picbe-2020-0098

Today, most of the so-called luxury streets are covered with advertisements and stores of the mass fashion brands. On Champs Elysées, next to Louis Vuitton and Cartier are brands like Zara and Naf-Naf. The implication of such a picture triggers much needed changes in the general strategy of the luxury brands in product management and innovation management. Constructing their whole core marketing and branding strategy on appealing to human emotions and psychology, the luxury market focuses on symbolism, rarity, extraordinariness, and, of course, aesthetics. Nevertheless, trying to opt out for the same textbook management is not an option for these businesses. Stepping up the pace in the innovation sector, starting with technology, and going all the way to the rapidly evolving consumer profile, the 21st century luxury market can truly support a long history by giving back to the community, with strong brand equity and long-term strategic and financial business innovation and product management. The paper represents a theoretical research aiming at identifying the main strategic direction of the luxury market in terms scientifically proved innovation and product management, with the scope of understanding the new trends in management, and the impact of the latter on bettering the market results of the businesses involved under the form of a model. The results of the research are consistent for both the practical and theoretical sphere of the subject, as they underline the extent to which the influence of consumer psychology and brand management affects the innovation process within the luxury goods market. The limitations of the paper are consistent with the lack of primary data, although the results were condensed in a model that could represent the basis for further research on the topic.