Journal of Marketing Management

Blending New and Old Frontiers in Luxury Branding: Managing Trends, Heritage, Tradition, and Hype

While the notion of luxury primarily represents the ideas of tradition, heritage, and conservatism (Dion & Borraz, 2015), the luxury industry is not immune to social, economic, environmental, technological, or competitive changes and dynamics (Davari et al., 2022; Eckhardt & Bardhi, 2020). Among other things, this means that luxury brands must adapt to increasing customer demands for changes and societal pressures (Dubois et al., 2021). The focus on sustainability, for example, has forced luxury brands to rethink many aspects of their standard business practices, such as manufacturing processes which create toxic waste (Carrigan et al., 2013) and burning overstock (Lee Park et al., 2021). In particular, questions surrounding the use of raw materials of animal origin (i.e., leather or fur) have been growing, with the expansion of the vegan movement raising important questions about the ethicality of the manufacturing practices of luxury brands (Carrigan et al., 2013; Lee Park & Fracarolli Nunes, 2024). In response to these challenging situations, many established names, such as Hermès and Gucci, have been innovating their business models, with initiatives ranging from the simple inclusion of vegan options in their product lines (Klerk, 2023) to the creation of parallel brands based on the reuse of unused raw materials and production waste (e.g., Petit H by Hermès; Hermès, 2024).

Moreover, rapidly emerging new technologies, including artificial intelligence (AI), immersive technologies (e.g., augmented reality, virtual reality, metaverse, 3D technology), blockchain technology, and non-fungible tokens (NFTs), have reshaped the commercial and cultural landscapes and offered many opportunities and challenges for luxury brands (Klaus & Tynan, 2022). For instance, luxury brands proactively leverage AI to enrich customer experiences of their offerings. Even if AI can enhance the operational efficiency of luxury brand management, however, initial evidence suggests that its application in communication can undermine the core brand perception in terms of high brand status due to what is expected of luxury brands in the minds of luxury consumers (Li & Shin, 2023). In terms of product design, utilising AI in the design of luxury products can undermine the emotional value of the products due to the reduced perception of brand essence, which engenders negative consumer responses, while it can enhance the functional value of the product (Xu & Mehta, 2022). However, if consumers are unaware of AI’s involvement in luxury product design, AI-assisted product design can reinforce the consumer’s emotional bond with the brand (Pantano et al., 2024). As the transition to advanced technologies continues to expand, it is increasingly important for luxury brands to adapt and utilise sophisticated technologies to excel in extremely competitive environments by offering exceptional luxury experiences (Klaus & Tynan, 2022).

In light of these recent developments, one can naturally expect the growing tension between luxury brands’ structural resistance to change (i.e., conservatism) and the growing need to adopt new practices, even those that are common in the realm of non-luxury brands, such as brand extension  (Dall’Olmo Riley et al., 2015), collaborations with other brands (Diaz Ruiz & Cruz, 2023), celebrity endorsement (Carrillat et al., 2019), and expansion into international markets (Liu et al, 2016), among others. This special issue focuses on the contradictions and challenges faced by luxury brands in managing their brands in a world of constant transition. More specifically, we will address the dilemmas luxury brands face in keepsaking their brand’s heritage while responding to consumer demands for changes in business practices in light of the increased pressure for profit maximisation.

Seeking to offer new horizons on the management of luxury brands in the context of various pressures for change, this special issue will welcome papers with a wide range of contributions, including new theoretical insights, concepts, or models, both empirical and conceptual, that will offer insights to luxury firms, managers, customers, and other stakeholders. We also welcome various methodological approaches, such as experimental studies, survey research, field studies, data mining, and qualitative research.

Topics of interest include but are not limited to:

• Benefits and risks of making structural changes in conventional luxury business practices
• Strategies for managing luxury brand crises and building brand resilience
• Unexpected outcomes of violating customer expectations in managing luxury brands
• Integration of AI into luxury brand management
• Leveraging luxury service experience through augmented reality and metaverse
• The impact of technology-driven innovation on luxury brands
• Implications of digital disruption on luxury brands
• The impact of luxury product innovations
• Customer adoption of and resistance to alternative (e.g., vegan leather), recycled, or next-generation materials (e.g., biomaterials) in luxury product design
• Establishing new metrics to capture the performance of luxury innovation
• The challenges and opportunities for luxury innovation

The full Call for Papers including references can be found at the JMM blog site: https://www.jmmnews.com/luxury-branding/