Arts Meet Luxury Brands
Carsten Baugarth , Nicole Lohrisch and Olga Louisa Kastner analyze the practical relevance of art for the luxury goods market in general and present a theoretically based and empirically derived typology of collaborations between luxury brands and the arts.
The following is an abstract of the 'Arts meet luxury brands' chapter of The Management of Luxury.
Since ever more luxury brands are joining forces with the arts today, we investigate collaborations between luxury brands and the arts. The empirical study we reported on in The Management of Luxury shows that around 16 per cent of all luxury brands worldwide are using visible co-operations with the arts. To our knowledge, our study is the first empirically based research on this interesting and powerful branding option. It analyses the practical relevance of art for the luxury goods market in general and presents a theoretically based and empirically derived typology of such collaborations. The three deducted types – limited editions, philanthropic and experimental collaborations – illustrate the broad spectrum of potential options for luxury brands. Our research includes three short case studies that further illustrate the concrete realization of arts-luxury brands collaborations and could inspire both the luxury brand manager and the artist to think about this option. Explore the opportunities that arts-luxury brands collaborations can offer. The large number of luxury brands that are currently collaborating with the arts provides evidence for the practical relevance that such collaborations have for the international luxury goods market – act before these interdisciplinary collaborations begin to wear out.
- Consider the three types of arts-luxury brands collaborations when making your implementation plans: the arty limited edition, the philanthropic ALBC and the experimental ALBC.
- Look at your brand’s competitive situation and positioning through the eyes of your target clientele. The different types of arts-luxury brands collaborations are undertaken for divergent reasons: the re-emphasis on exclusivity and scarcity for the arty limited edition, the attainment of social legitimization and recognition for the philanthropic collaboration, and the generation of creativity, newness and additional brand content for the experimental collaboration.
- Bear in mind the lifecycle stage of your luxury brand and the importance of a systematic lifecycle management when weighing and prioritizing the different management options of arts-luxury brands collaborations. The different forms seem to be strongly interrelated with the luxury brand’s distinct lifecycle patterns and the specific challenges that a luxury brand faces at each phase. The three types of collaboration present effective strategies to deal with these challenges.
- Consider the best practice examples for orientation and use the three distinct types of arts-luxury brands collaborations as a checklist. The derived attributes do not only describe the underlying characteristics of each type, but also give hints about their strategic orientation and operational implementation.
- Engage in an authentic dialogue with the arts to support the best possible impact of your arts-luxury brands collaboration. These collaborations offer luxury goods companies valuable opportunities to respond to organizational challenges, management problems and marketing performance issues. Try to absorb, at least partially, the artistic mindset and to integrate new ways of creative thinking into your management practice.