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Murakami on the bag: Louis Vuitton's decommoditization strategy
[Murakami sur le sac]

Author

Listed:
  • Elen Riot

    (HEC Paris - Recherche - Hors Laboratoire - HEC Paris - Ecole des Hautes Etudes Commerciales)

  • Cécile Chamaret

    (CRG - Centre de recherche en gestion - X - École polytechnique - IP Paris - Institut Polytechnique de Paris - CNRS - Centre National de la Recherche Scientifique)

  • Emmanuelle Rigaud

    (RMS - Reims Management School)

Abstract

Purpose-As some areas of the luxury market have been industrializing because of their expanding scale and scope, the commoditization trend is threatening luxury brands along the value chain. Too many products might flood the market. Because the commodity trap has not so far been commonly referred to as the source of the problem, the efforts of firms to decommoditize have seldom been described. The purpose of this paper is to describe and interpret one type of successful reaction to this problem: the exclusive partnership made by Louis Vuitton with artist Takashi Murakami. The paper identifies the strategy along the value chain and its step by step implementation and influence on commoditization. Design/methodology/approach-The paper identifies the strategy behind this partnership and its step by step implementation. It uses a qualitative method because it would like to understand complex phenomenon and explore in depth, some strategic operations and decisions. More precisely, it is a case study research because it works on a contemporary situation and allows to retain the meaningful characteristics of real-life events as organizational, managerial and social processes Findings-LV strategy raises the difficulty for competitors to imitate or to propose same value products as the value added to LV product is almost unique with Murakami's touch. With this strategy they impact commoditization as defined by Reimann et al. Also, we formulate a few recommendations and insist on the integration of all the parts of the upstream value chain-especially operations-to achieve a successful long-term retail strategy. Research limitations/implications-There are no research on partnerships between art and luxury. Our extensive analysis of the partnership between LV and Murakami gives a comprehensive view of how this kind of collaboration helps to fight back commoditization. However, more case studies should be studied to know if the strategy is replicable. Practical implications-This research gives a comprehensive analysis of the adaptation of the value chain to make the partnership a success. It also underlines the need to conduct and to adapt the whole value chain to the specifities of the artist. Originality/value-There are few research investigating the links and partnerships between artists and luxury brands. The originality is to describe a particular partnership concerning all the parts of the upstream value chain-especially operations-it also makes recommendations concerning potential partnerships between art and luxury to fight back against commoditization.

Suggested Citation

  • Elen Riot & Cécile Chamaret & Emmanuelle Rigaud, 2013. "Murakami on the bag: Louis Vuitton's decommoditization strategy [Murakami sur le sac]," Post-Print hal-02883097, HAL.
    • Handle: RePEc:hal:journl:hal-02883097
    DOI: 10.1108/IJRDM-01-2013-0010
    Note: View the original document on HAL open archive server: https://hal.science/hal-02883097
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    References listed on IDEAS

    as
    1. Stoneman, Paul, 2011. "Soft Innovation: Economics, Product Aesthetics, and the Creative Industries," OUP Catalogue, Oxford University Press, number 9780199697021.
    2. Dion, Delphine & Arnould, Eric, 2011. "Retail Luxury Strategy: Assembling Charisma through Art and Magic," Journal of Retailing, Elsevier, vol. 87(4), pages 502-520.
    3. Reimann, Martin & Schilke, Oliver & Thomas, Jacquelyn S., 2010. "Toward an understanding of industry commoditization: Its nature and role in evolving marketing competition," International Journal of Research in Marketing, Elsevier, vol. 27(2), pages 188-197.
    4. Jean-Noël Kapferer & Vincent Bastien, 2009. "The Luxury Strategy: Break the Rules of Marketing to Build Luxury Brands," Post-Print hal-00786813, HAL.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Jeongah Kim & Wookjae Heo, 2021. "Interior Design with Consumers’ Perception about Art, Brand Image, and Sustainability," Sustainability, MDPI, vol. 13(8), pages 1-20, April.
    2. Sandra Krim, 2022. "Conceptualizing the media of artification: a contribution to the theory of artification of luxury brands," Post-Print hal-03675162, HAL.
    3. Debenedetti, Alain, 2021. "Luxury stores as home-like places: How domestic meanings are staged and mobilized in luxury retail," Journal of Business Research, Elsevier, vol. 129(C), pages 304-313.
    4. Guillet de Monthoux, Pierre, 2015. "Art, Philosophy, and Business: turns to speculative realism in European management scholarship," European Management Journal, Elsevier, vol. 33(3), pages 161-167.
    5. Alain Debenedetti, 2021. "Luxury stores as home-like places: How domestic meanings are staged and mobilized in luxury retail," Post-Print hal-03171771, HAL.

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