The nature of parenting advantage in luxury fashion retailing – the case of Gucci group NV

Abstract

PurposeExamines the application and nature of parenting advantage within the context of luxury fashion conglomerates principally as a means of understanding the synergistic benefits that accrue as a result of brand consolidation within the sector.Design/methodology/approachDerived from company annual accounts, market analysts' reports and other secondary sources, the paper delineates and evaluates the ten‐year renaissance of Gucci brand from a company on the verge of bankruptcy to its emergence as the world's second largest luxury group.FindingsThrough the identification of intra‐business group synergies, it is clear that the transference of brand management expertise and competence is the principal dimension of parenting advantage in the Gucci Group.Originality/valueFrom an examination of the Gucci Group's brand management strategy, resource investments and business development activities, the paper proposes a model of the luxury fashion brand. This multi‐dimensional model identifies the components of the luxury fashion brand, locates their inter‐connections and illustrates how these collectively can provide and sustain advantage within this highly competitive sector.