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Luxury Brands and Art Collaborations as a Leverage on Brand Equity and Art(Ist) Equity

April 2023
International Journal of Applied Research in Business and Management 4(1):105-127

April 2023
4(1):105-127

DOI:10.51137/ijarbm.2023.4.1.6

Authors:

Trier University of Applied Sciences

In 2020, a year of turbulence, seismic in scale and rapid in impact, luxury brands strengthen their relationship with art. While the world is still processing the effects of the last decades (digitalization, sustainability , diversity), luxury brands and art collaborations are used as a strategic tool in luxury brand management to create value. As the pandemic1 and broader social outrage exposed fault lines in society, even more luxury brands open flagship stores designed in collaboration with archistars (famous architects). Luxury brands establish foundations where art is exhibited and promoted. Culture funds become the new patrons of art. Limited art editions of iconic luxury products turn to revenue boosts. This research focuses on a case study of luxury brand and art collaborations. The ten most valuable luxury brands are used to analyze luxury brand and art collaborations as a leverage on brand equity and art(ist) equity. The bleeding of personal luxury good brands as well as contemporary visual arts are focused. The study identifies particularly positive effects deriving from art in the creation of equity value. The core issue discussed is whether contemporary art may represent a possible strategic tool for competing and differentiating in the global luxury industry up to 2030. The research investigates two main concepts that represents the theoretical framework: art and luxury. Literature research deductively links this case study with appropriate theories on brand equity and art(ist) equity. During this, a time horizon between 2019 and 2021 is chosen to address the latest insights in luxury brands and art collaborations. The topic is investigated explorative and qualitative with expert interviews. To tackle the research topic all-encompassing, the following groups of recognized stakeholders have been interviewed: (1) luxury brands, (2) artists, (3) art galleries, (4) trend-and market researchers, (5) luxury customers and (6) city. Finally, managerial insights on the implementation of artistic collaborations are derived and suitable strategies for luxury brands who plan to be involved in such collaboration agreements are suggested. The sticking point in former academic research has always been concrete proof that luxury brands and art collaborations lead to an increase in equity beyond a short-term social media buzz or press coverage. This is the reason why this paper

Equity model of luxury brands and art collaborations

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Luxury Brands and Art Collaborations as a Leverage on Brand Equity and Art(Ist) Equity

IJARBM – International Journal of Applied Research in Business and Management

Vol. 04 / Issue 01, pp. 105-127, April 2023

ISSN: 2700-8983 | an Open Access Journal by Wohllebe & Ross Publishing

This paper is available online

www.ijarbm.org

Luxury Brands and Art Collaborations as a

Leverage on Brand Equity and Art(Ist) Equity

Franziska Scheuerle

f-_scheuerle@web.de

ISM International School of Management, Munich, Germany

Ramona Thomas

ramona.thomas@ism.de

ISM International School of Management, Munich, Germany

Patrick Siegfried

p.siegfried@hochschule-trier.de

University of Applied Science, Trier, Germany, Guest Professorship Entre-

preneurship MATE University/Hungary

https://doi.org/10.51137/ijarbm.2023.4.1.6

Abstract – In 2020, a year of turbulence, seismic in scale and rapid

in impact, luxury brands strengthen their relationship with art. While the

world is still processing the effects of the last decades (digitalization,

sustain- ability, diversity), luxury brands and art collaborations are used

as a strategic tool in luxury brand management to create value. As the

pandemic1 and broader social outrage exposed fault lines in society,

even more luxury brands open flagship stores de- signed in collabora-

tion with archistars (famous architects). Luxury brands establish founda-

tions where art is exhibited and promoted. Culture funds become the

new patrons of art. Limited art editions of iconic luxury products turn to

revenue boosts. This research focuses on a case study of luxury brand

and art collaborations. The ten most valuable luxury brands are used to

analyze luxury brand and art collaborations as a leverage on brand eq-

uity and art(ist) equity. The bleeding of personal luxury good brands as

well as contemporary visual arts are focused. The study identifies par-

ticularly positive effects de- riving from art in the creation of equity value.

The core issue discussed is whether contemporary art may represent a

possible strategic tool for competing and differentiating in the global lux-

ury industry up to 2030. The research investigates two main concepts

that rep- resents the theoretical framework: art and luxury. Literature re-

search deductively links this case study with appropriate theories on

brand equity and art(ist) equity. During this, a time horizon between 2019

and 2021 is chosen to address the latest insights in luxury brands and

art collaborations. The topic is investigated explorative and qualitative

with expert interviews. To tackle the research topic all-encompassing,

the following groups of recognized stakeholders have been inter-

viewed: (1) luxury brands, (2) artists, (3) art galleries, (4) trend- and mar-

ket researchers, (5) luxury customers and (6) city. Finally, managerial

insights on the implementation of artistic collaborations are derived and

suitable strategies for luxury brands who plan to be involved in such col-

laboration agreements are suggested. The sticking point in former aca-

demic research has always been concrete proof that luxury brands and

art collaborations lead to an increase in equity beyond a short-term so-

cial media buzz or press coverage. This is the reason why this paper

Luxury Brands and Art Collaborations as a Leverage on Brand Equity and Art(Ist) Equity

IJARBM – International Journal of Applied Research in Business and Management

Vol. 04 / Issue 01, pp. 105-127, April 2023

ISSN: 2700-8983 | an Open Access Journal by Wohllebe & Ross Publishing

This paper is available online

www.ijarbm.org

develops an S-O-R equity model to show the causality effects of such

collaborations.

Keywords – Art Equity, Brand Equity, Luxury Brand Management,

Equity Value, Brand Strategy

1 Introduction: Luxury brands and art(ist) collaborations

as a strategic tool for luxury brands

The collaboration between art and luxury is not an entirely new phenome-

non (cf. Chailan, 2018, pp. 414-423). Luxury brands and art collaborations

yields strong emotional and symbolic values for consumers such as aesthetic

pleasure, feelings of being an art connoisseur and being part of a global cul-

ture elite (cf. Ochkovskaya, 2018, p. 241-243). Art can enhance the perceived

value of a luxury brand by evoking positive emotions, creativity and imagina-

tion in consumers who are sensitive to art (cf. Estes, 2018, p. 296- 405). Since

centuries, art represents emotions, high quality, exclusivity, and individuality.

Art and culture conclude the strength to take their time in creativity, because,

unlike the luxury industry, they do not have to operate under such a high eco-

nomic torque. For this reason, art is a leverage factor to bring back to luxury

brands what has been lost: Novelty. Luxury goods and artworks are both sold

at extraordinarily high prices. Both industries cater to the wealth of the world s

richest customers to fuel profits at the top end of the market. As a result, both

concepts serve as powerful means of distinction and strong social markers

that bestow upon their consumer status, prestige, and high levels of attention

within their reference groups (cf. Lasslop, 2005, p. 475).

2022, a year of turbulence and crisis has reshuffled the cards of the luxury

economy. As rising expectations dissolve into anxiety, people are demanding

more of the businesses they buy into. There is a growing sense of human

disempowerment, a growing awareness of the power of brands, and consum-

ers are beginning to see their consumption choices as votes of confidence. At

a time of deep reflection, the deepest form of relevance is increasingly being

driven by an uncompromising approach to fundamental human issues. Busi-

nesses that do not yet know which constituents they are systematically disad-

vantaging are at risk because in this hyper transparent world, the truth will out,

and customers will cancel. Luxury businesses that cannot serve value for their

prestige clients and luxury brands that fail to gain the consent of customers

will not stay ahead of their constantly renewing expectations (cf. Interbrand,

2022).

World changing artistic, scientific, and technological achievements created

immense opportunities. But equally, shattered structures, ignited divisions,

and upended social order. From these extreme tensions, a new world

emerged. History does not repeat itself, but often rhymes. If we step back from

the immediacy of the current crisis and place it in a broader context, we may

find that we are navigating the storms of renaissance, where once again hu-

man creativity, resilience and achievements can create a new decade of pos-

sibility. Over the next hundred years, we may be experiencing twenty

Luxury Brands and Art Collaborations as a Leverage on Brand Equity and Art(Ist) Equity

IJARBM – International Journal of Applied Research in Business and Management

Vol. 04 / Issue 01, pp. 105-127, April 2023

ISSN: 2700-8983 | an Open Access Journal by Wohllebe & Ross Publishing

This paper is available online

www.ijarbm.org

thousand years of technological advancement, changing substantially the way

we live. Accelerated by exponential transformation and immediate propaga-

tion, radical change, ideas, movements, technologies, growth, habits are

simply happening at a speed and scale never seen before (cf. Interbrand,

2022).

In those times luxury brands are struggling to remain their USP. Online plat-

forms lead to a decrease of exclusivity, craftmanship and scarcity. Global

growth has led to luxury brands now producing in large- scale factories rather

than in small manufactories. As a result, the high quality that luxury brands

once stood for is suffering and reason for existence. Faster is a word that has

no raison d'être or acceptance for craftsmanship. High-quality things need

time in their creation process. This is contrary to the rapidly increasing digital-

ization. The customer wants his product preferably within twenty-four hours

(cf. Interbrand, 2022).

Luxury brands must assess significant changes in consumer behaviors and

a new challenging land- scape. New phenomena have devalued the notion of

luxury. The development of emerging markets, the con- fusion over the defi-

nition of luxury, digital transparency as well as the transformation of consumer

needs. In developing countries urbanization creates fierce competitive envi-

ronments. Individuals become aware of the need to better define their identi-

ties in terms of how they want to perceive themselves and be perceived by

others (cf. Kapferer, 2014, p. 371-380).

Globalization reshapes the luxury market in different ways. The primary in-

tangible asset of this market, exclusivity, is no longer sufficient to add value to

the luxury brand or to make it grow. Today s luxury consumers are not inclined

to accept high prices as the sole symbol of luxury and may be attracted to a

brand for other reasons. Moreover, they are searching for truly experiential,

meaningful, genuine, and intangible luxury. In order to meet these new chal-

lenges, luxury brands are able to find strategic opportunities in art (cf.

Codignola, 2016, p. 51).

2 Literature review and hypothesis development

The research question is descriptive. It addresses the Digital Age and there-

fore needs further academic attention.

The relevant literature is reviewed. With the help of this literature review,

the respective equity drivers are identified. On these insights a luxury brand

and art collaboration equity model framework is conceptual developed. More-

over, the following hypothesis are generated that are examined during the

qualitative research study.

(1) The better the match/fit of image between the artist and the luxury brand,

the higher the increase in value on BE and AE through a collaboration.

(2) The higher the creativity of the luxury brand and art collaboration, the

higher the increase in perception of luxury value on BE and AE.

(3) The higher the innovative performance of luxury brand and art collabora-

tions, the more positive the image (spill over) on BE and AE.

Luxury Brands and Art Collaborations as a Leverage on Brand Equity and Art(Ist) Equity

IJARBM – International Journal of Applied Research in Business and Management

Vol. 04 / Issue 01, pp. 105-127, April 2023

ISSN: 2700-8983 | an Open Access Journal by Wohllebe & Ross Publishing

This paper is available online

www.ijarbm.org

(4) The higher the innovative seeking mindset of the luxury customers, the

higher the acceptance of luxury brand and art collaborations.

The period of the qualitative research is 10/2020 until 03/2020. The re-

search design contains primary research (expert interviews) and secondary

research (study of the ten most valuable luxury brands).

The secondary research involves an in-depth analysis of the ten most val-

uable luxury brands. The luxury brands are defined by the yearly published

brand equity rankings of the most prominent global trend- and market re-

search institutes Interbrand and BrandZ®. In total ten luxury brand and art

collaborations with- in the years 2019 and 2020 are analyzed. These insights

are related to an increase or decrease in brand equity within the same period.

This methodology is chosen to analyze the impact of luxury brands and art

collabo- rations on the financial-oriented brand equity (€) as well as to draw

conclusions about which form of collab- oration shows the biggest leverage

on brand equity. The artist equity is not published, so there is no statement on

this for the time being. If, and if so how, are luxury brand and art collaborations

a leverage on brand equity and art(ist) equity?

3 Research Methodology

Regarding the problem of the Digital Age for luxury brands, the following

research question arise: If, and if so, how much luxury brands and art collab-

orations serve as a leverage on brand equity and art(ist) equity?

To discuss the issue in an even more contemporary way, the research

question has been placed in the overarching context of the trend re-localiza-

tion. The research thus provides a practical solution approach for luxury

brands as well as metropolitan cities.

The objective is to analyze the impact of luxury brands and art collabora-

tions towards a value creation for luxury brands and visual artists. Thereby,

the increase in brand equity and art(ist) equity is verified through a self-devel-

oped equity model that is qualitatively validated through explorative expert in-

terviews. In addition to evaluating the equity model, experience values, pitfalls,

success factors and possible tracking and measurement methodologies are

elaborated based on expert interviews.

Secondary research is conducted to look at the top ten luxury brands 2020

to draw in-depth conclusions on possible success factors of the art collabora-

tions carried out in this period based on an increase or decrease in brand

equity.

The research is carried out in the metropolitan city of Munich as the con-

sumption of luxury brands in Germany is mainly concentrated in this city. As

part of a current case study on fashion makes art, a Munich artist is being

virtually accompanied for six months to generate deeper insights into how

global luxury brands approach local artists for metropolitan cities.

The research topic luxury brands and art collaborations is still little investi-

gated in academic literature. Thus, an analytical and comprehensive literature

review provides insights into the current state of scientific research. On the

one hand, the characteristics, forms, and advantages of those art

Luxury Brands and Art Collaborations as a Leverage on Brand Equity and Art(Ist) Equity

IJARBM – International Journal of Applied Research in Business and Management

Vol. 04 / Issue 01, pp. 105-127, April 2023

ISSN: 2700-8983 | an Open Access Journal by Wohllebe & Ross Publishing

This paper is available online

www.ijarbm.org

collaborations are elaborated. On the other hand, those are linked to the rele-

vance of the trend re-localization.

Further, an investigation of this is aimed at based on contemporary problem

areas. Finally, relevant levers and variables for the value creation on brand

equity and art(ist) equity is elaborated. The study contains both, a secondary

and primary research.

First off, the core research topic is explored on a scientific literature review.

To dive deeper into the concepts, characteristics and benefits, interviews and

reports of renown luxury brands are considered. Since there is a lack in aca-

demic research according to the available sources of data on those art collab-

orations, theoretical references and documentations based on articles, reports

and books are used. Meaningful scien- tific journals, papers and newspapers

are reviewed. Besides, other context related literature, monographs, manuals,

and Internet sources are used to explore the impact of the research topic from

various angles.

Based on the carefully reflection and gained Insights an adequate behav-

ioral-oriented, qualitative equity approach for luxury brands and art collabora-

tions, considering the trend of re-localization, is designed.

3.1 Research Design

Due to the differentiation according to Yin (2013), there is a holistic ap-

proach. Suitable cases through academic research papers are selected in ad-

vance by means of a theoretical sampling, which is car- ried out according to

concrete content criteria.

The primary research involves 30 expert interviews. With the help of those

interviews the data for later evaluation is obtained. This methodology is cho-

sen to analyze the impact of luxury brands and art collaborations on customer-

oriented brand equity. The expert inter- view partners are attracted online

through LinkedIn and professional networks. The artists are attracted offline

at the art fair ARTMUC on 10/2020 and contacted afterwards via E-Mail to

make an appointment. Due to the explorative orientation of the study this pro-

cedure is regarded as an acceptable form of sample selection as the disclo-

sure of the selection criteria makes it possible for third parties to understand

the data.

The expert interviews are conducted within one month from 11/2020 until

12/2020. To identify the mechanisms behind the identified influencing factors

(variables) in academic literature of brand equity and art(ist) equity, it is nec-

essary to give experts room for their individual and differentiating point of view

than quantitative surveys usually allow. A qualitative, explorative study pro-

vides information about the correlations in terms of cause and effect and en-

able a holistic view on the research topic. There is the potential to draw con-

clusions from overlapping points and areas of conflict. A pre-test is conducted

to double- check the comprehensibility. Following stakeholder groups are in-

terviewed online via Zoom. The expert interview guide was sent beforehand.

Each interview takes 45-60 minutes and comprises 25-30 questions.

It must be noted that the artist perspective is currently still completely ne-

glected in the available empirical academic literature research. Consequently,

Luxury Brands and Art Collaborations as a Leverage on Brand Equity and Art(Ist) Equity

IJARBM – International Journal of Applied Research in Business and Management

Vol. 04 / Issue 01, pp. 105-127, April 2023

ISSN: 2700-8983 | an Open Access Journal by Wohllebe & Ross Publishing

This paper is available online

www.ijarbm.org

the present study for the first time, brings this group of participants to the fore-

front of the collaboration's effectiveness research. To capture the perception

in the context of conducted luxury brands and art collaborations, the success

factors and learnings are of particular interest. Commonalities and differences

are reflected in the causal attributions of luxury brands and artists. It important

to identify similarities and areas of conflict. In the sense of the participatory

approach of the re- search, the present work explicitly asks for approaches

towards improvement potential from the perspective of those affected.

The first set of questions is concerned to experiences and learnings as well

as with approaches to suggest improvements for luxury brands and art collab-

orations on an individual level.

(1) Luxury brand (L)

(2) Artist (A)

(3) Gallery (G)

(4) Trend and market research (T)

(5) Luxury customers (C)

(6) Munich city (M)

The second set of questions refers to the trend re-localization and deals

with approaches to improve cooperation with local artists, the responsibilities

of metropolitan cities, and possible advantages around strengthening the fac-

tor of arts and culture. In the sense to evaluate the conceptual framework of a

future eq- uity model for luxury brands and art collaborations, the third set of

questions analyzes its comprehensibility, value, and possible areas of appli-

cation.

3.2 Sampling

The sample conducts following stakeholders to give a fully perspective to

enhance the quality of the research. In general, 30 expert interviews are con-

ducted. 24 participants are female, 6 participants are male. The interviewees

are between 35 to 65 years old. The average experience in profession are 11

years. 21 participants are experienced with luxury brand and art collabora-

tions, 9 participants show no experience. 5 participants already implemented

a luxury brand and art collaboration, 18 participants have not implemented art

collaborations before.

The acquisition of the top ten most valuable luxury brands (Louis Vuitton,

Chanel, Hermès, Gucci, Rolex, Cartier, Dior, Yves Saint Laurent, Burberry,

Prada) take place by direct messaging on LinkedIn, he social media platform

for jobs and career. A total of 20 positions are contacted and informed about

the topic of research study. As incentive the study results are offered. The

participants require a position in brand strategy, brand- or event management.

The result of LinkedIn is sobering, therefore the number of originally planned

interviews with the top ten most valuable luxury brands are reduced to three

(Louis Vuitton, Chanel, Cartier). To increase representation, five more luxury

brands (Porsche, Tesla, Eres Group Chanel, Renesim and Richemont) are

acquired on personal network. In general, seven luxury brands participate.

Luxury Brands and Art Collaborations as a Leverage on Brand Equity and Art(Ist) Equity

IJARBM – International Journal of Applied Research in Business and Management

Vol. 04 / Issue 01, pp. 105-127, April 2023

ISSN: 2700-8983 | an Open Access Journal by Wohllebe & Ross Publishing

This paper is available online

www.ijarbm.org

The acquisition of the artists and (3) gallery takes place in person at the art

fair ArtMUC on 10/2020 in Munich. In general, 40 artists are informed about

the aim of the study. To reflect the megatrend re-localization, a cross-section

of local and internationally artists is formed. All artists are contacted after-

wards by E-Mail. All artists met the quality criteria for admission at the ArtMUC

and therefore represent at least five years of experience in profession. Further

selection criteria are novelty and a unique method of artistic practice. The art

direction includes visual arts. In general, 10 artists participate the interview.

The acquisition of trend and market research experts take place by direct

messaging on the social media platform for jobs and career, LinkedIn, as well

as on personal networks. A total of 7 positions (Inter- brand, Batten&Com-

pany, McKinsey, Bain&Company, Boston Consulting Group, Accenture, Uni-

versity of Cambridge) are contacted and informed about the study. The par-

ticipation requires at least 2-5 years of experience in the field of market re-

search with luxury brands. In general, 4 market and trend research experts

participate the interview.

The acquisition of luxury brand customers, high net worth individuals

(HNWI), is carried out as a sales associate at the boutique Eres Group Chanel

in Munich. 15 customers are asked in person after the official sales talk,

whether they would like to take part in the interview privately. Due to Corona

and the Munich lock-down the Eres boutique is closed temporary. This is the

reason, why only 7 luxury customers participate. An online survey is not car-

ried, as it would not have done justice to the exclusive customer approach of

Eres Group Chanel.

All Interviews are conducted and recorded online via the video conferencing

software app Zoom. All participants receive the expert interview guidance in

advance by E-Mail. In general, 88 experts in the field of luxury and art are

acquired to participate. 30 expert interviews are conducted.

4 Summary and Discussion

After the individual variables are edited on an intensive literature research

and readjustments based on the expert interviews, overlaps between the var-

iables are identified. Because artists are brand personalities, brand models

are transferable 1:1 to the artist (cf. Batten&Company, 2010).

Finally, metropolitan cities have an important role to play in this equity

model. They act as an enabler and bridge builder, moderating between the

two stakeholders, luxury brand and artist, by creating mutual understanding in

the collaboration. This is accompanied by the trend re-localization and thus

the aspect of increased cooperation with local artists.

The analysis shows that both awareness and quality are the two common

drivers of brand and art(ist) equity. Accordingly, these two parameters are

added on the refined equity model. Furthermore, the qualitative expert survey

also revealed that awareness and quality are both decisive factors for a

match/fit to be made between the luxury brand and the artist. Accordingly,

quality and awareness are chosen as the core valuables in the revised equity

model to enable as a fit between the luxury brand and the artist. Further, the

Luxury Brands and Art Collaborations as a Leverage on Brand Equity and Art(Ist) Equity

IJARBM – International Journal of Applied Research in Business and Management

Vol. 04 / Issue 01, pp. 105-127, April 2023

ISSN: 2700-8983 | an Open Access Journal by Wohllebe & Ross Publishing

This paper is available online

www.ijarbm.org

insights of which variables are increased because of a luxury brand and art

collaboration show that aware- ness and image are mentioned most.

Brand and art(ist) image are measured according to quality and awareness.

The better the match/fit of quality and awareness between the luxury brand

and the artist, the better the image. The better the image, the more successful

the art collaboration. This means as conclusion, the better the match/fit of

quality and awareness, the higher the impact on brand- and art(ist) equity.

Accordingly, Image is chosen as response (R) in the S-O-R principle of re-

vised equity model. A response (R) can be either a behavior or an attitude.

The co-branding of brand and artist influences the organism. The organism

(O) is processing the information and an attitude (Image) is developed. The

customer is the most important stakeholder because he decides finally

whether the luxury brand and art(ist) collaborations are successful or not. The

Fischbein and Eisen model states that the relationship between attitude and

behavior is only 5 to 10%. Despite this, the organism (O) shows a behavior

response, by expecting further luxury brand and art collaborations according

to the Psychology of Novelty Seeking, Creativity and Innovation according to

Schweizer, 2006.

This phenomenon can be seen, for example, at Louis Vuitton, which already

shows artist collaborations in almost every collection they launch, to meet the

novelty seeking behavior of their luxury customers. This aspect can be used

to turn your luxury customers to loyal fans by educating them to become col-

lectors of i.e., limited art editions due to their low-price sensitiveness. In order

not to risk becoming an ordinary behavior, a luxury brand should make sure

that it maintains a corresponding rarity and do not overstretch collaborations

with artists.

Based on the gained insights of the literature research, secondary research

and primary research, the following equity model is developed as a core out-

put of this research. This incorporates all the thematic approaches for improv-

ing the equity model based on the experts' opinions.

The experts' estimates are an increase of 11.4 (11%) for brand equity and

22.9 (23%) for art(ist) equity. The higher the equity, the higher the sales price.

The higher the sales price, the higher the revenue while keeping the same

amount of sold items.

Luxury represents wealth, sophistication, desirability, and influence. It leads

by attraction. It makes people want to imitate those who possess it. For this

reason, luxury is a powerful social and cultural force (cf. Pinkhasov and Nair,

2014, pp. 8-15).

Luxury Brands and Art Collaborations as a Leverage on Brand Equity and Art(Ist) Equity

IJARBM – International Journal of Applied Research in Business and Management

Vol. 04 / Issue 01, pp. 105-127, April 2023

ISSN: 2700-8983 | an Open Access Journal by Wohllebe & Ross Publishing

This paper is available online

www.ijarbm.org

Figure 1: Equity model of luxury brands and art collaborations

From an economical perspective, in 1990 the luxury retail sector begins to

transform towards mass marketing based on an intensification in (1) distribu-

tion methods. The reason is an increased number of store openings, develop-

ment of online businesses and openings of shop-in-shops in duty-free areas.

A changeover from craft production to mass production leads to an evolution

in (2) production methods. A modification in the structure of (3) inventory turn-

over, depending financially on the marketing of personal luxury accessories

such as handbags, perfumes and cosmetics targeting a wider public. While

the art is free from any re- strictions, the luxury industry and especially the

sector of fashion is bound to the demands of a fast-paced industry. The luxury

sector has become industrialized to the extent that global brands emerged

and developed sizeable retail networks to provide the necessary support. It is

a microeconomic sector that has grown over the past twenty years, slowly

extending its customer base beyond the few to the many, the so-called middle

class. This is the reason why this sector is growing fast and captures so much

corporate and media attention.

Thus, luxury brands must educate consumers to regain their undisputed

symbolic authority, the basis of price premium. To do so, luxury brands are

forced to remind consumers of their legendary roots, the mythical history that

sets them apart. In the past, luxury companies are family businesses, mostly

local, with a central focus on the core product. Today, luxury is managed by

groups, fully global, with a focus on retail and a commitment to expand the

Luxury Brands and Art Collaborations as a Leverage on Brand Equity and Art(Ist) Equity

IJARBM – International Journal of Applied Research in Business and Management

Vol. 04 / Issue 01, pp. 105-127, April 2023

ISSN: 2700-8983 | an Open Access Journal by Wohllebe & Ross Publishing

This paper is available online

www.ijarbm.org

brand’s range and diversify, thus abandoning rarity and some-times even re-

locating (cf. Karpik and Scott, 2010, pp. 175-243).

The problem of growth for luxury brands is that supply should always be

below demand. According to Benjamin (2002) those effects of mass reproduc-

tion reduce perceptions of exclusivity, aesthetics, technical superiority, distinc-

tion, and singularity. Thereby mass marketing strategies threatening the lux-

ury brand legitimacy (cf. Dion and Arnould, 2011, pp. 501-520).

From a managerial perspective, in recent years, the proliferation of the

number of luxury brands and the intensification of competition worldwide

makes it rather difficult for marketers to differentiate their luxury brands only

based on functional attributes such as quality and performance. Consumers

are thought to pre- fer luxury brands with personalities that are consistent with

their self-concepts. The consumer purchases luxury brands not only to ex-

press their actual selves, but also to display a variety of social identities such

as ide- al-, possible-, desired- and social selves (cf. Sung et al., 2015, pp. 121-

132).

At the FT Business of Luxury Summit, the experts agree that luxury is be-

coming even more about doing and being and less about having. One speaker

refers that true luxury is about creating a compel-ling, authentic, and unique

experience, provoking emotions which remain in our memories and are hard

to replicate (cf. Petermann and Kent, pp. 146-215). The luxury industry enters

a new phase, called new luxury, shifting from conspicuous consumption to-

wards meaningful luxury experiences and lifestyle branding to offer cognitive,

sensory, rational, and emotional values for consumers (cf. Atwal and Williams,

2009, pp. 337-346). Re- tail establishments which provide access to the luxury

brand s world are crucial (cf. Wilson and Yilka, 2018, pp. 195-225). To create

a strong and lasting USP, luxury brands need to utilize emotional communi-

cation through experimental marketing (em) and experimental branding (eb).

It is the creation of multi-sensual, astonishing experiences and luxury products

that are designed to allow consumers to explore something unique and en-

thralling, rather than just using visuals to encourage sales. Luxury brands

adopt the use of art in such experiences to gain the maximum amount of emo-

tional communication (cf. Di-on and Arnould, 2018, pp. 212-222).

To capture mounting demands, not only from extraordinary people, but also

from ordinary individuals, luxury brands enact virtual rarity tactics, construct

themselves as art, and adopt a new business model while de-emphasizing

exceptional quality and country of origin. Rarity of ingredients or craft has been

re- placed by qualitative rarity (cf. Kapferer, 2012, pp. 453-462).

Luxury is engaging in a subtle process of artification, the transformation of

non-art into art. The luxury industry aims to be perceived as a creative indus-

try. The artification process thus is timely for a sector that is becoming increas-

ing less artisanal. Artification helps this sector downplay the social stratifica-

tion motivation of consumer demands. It fosters more humanistic motivations,

such as the elevation by objects that condenses highly talented artists’ work,

tradition, and culture. Art reinforces the symbolic authority of luxury. In addi-

tion, being associated with conspicuous consumption alienates the creative

elite, the influential consumers, and the people designing the future. It is im-

portant to demonstrate that the luxury brand does not segment only based on

Luxury Brands and Art Collaborations as a Leverage on Brand Equity and Art(Ist) Equity

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money, but also considers culture, intelligence, and the ability to value art (cf.

Kapferer, 2014, pp. 371- 380).

Luxury becomes a reference to which future generations look for inspiration

and knowledge. It is always at the forefront of creativity and innovation in pur-

suing the highest standards for knowledge and behavior as much as for prod-

uct quality and refinement. Haute Couture seems to be correlated and often

regarded as art; however, it is produced within the luxury fashion system and

not within the art world (cf. Jelinek, 2018, pp. 294- 307).

One of the main benefits of art is to gain brand distinction in terms of enno-

blement. According to

Kapferer (2015), art takes people to a higher level of meaning (cf. Kapferer,

2015, p. 74). The disruptive creativity and originality of art collections show

aesthetics of cutting-edge, avant-garde and ingenuity. According to Berghaus

(2014) art moves the exclusivity associated with luxury to a higher, more in-

accessible level.

Etymologically, the word art derives from the Latin term ars, the latter being

equivalent to the Greek word techne, and is translated with skill, craft, or

craftsmanship (cf. Morhart, 2020, pp. 171-190). The fundament of art is crea-

tivity. It is the ability to create something new out of something non existing. It

is the ability of humans to discover potential solutions during problem solving

processes and to flexibly produce unusual but meaningful ideas in different

areas of life (cf. Kastner, 2014, pp. 76-78). In the art industry, the term of art

genius is used. This means, an outstanding creative talent for unforeseen

ideas in a way of an extremely creative person. This person shows originality

in a way to create something that has been never there before. To establish

art collaborations with an art genius is the overarching aim of a luxury brand.

The reason is an underlying halo or spill-over-effect. In this matter, the privi-

leged artsy image of an art genius is transferred on the luxury value perception

and image of the luxury brand (cf. Chailan and Valek, 2014, p. 34).

The enabler of any creative work is inspiration. That means a creative idea,

thought or sudden realization. Creative artwork in return allows invention that

leads in further course to innovations. This indicates one of the reasons, why

in recent years, luxury brands intensified their collaboration with different

forms of art and culture (cf. Codignola, 2016, pp. 247-248). Art inspires luxury

brands. Conversely, luxury brands are making a splash in the art world. The

art, artists and artistic techniques gain customer insights and a deep under-

standing of the past, present and future. Art represents a broader conceptual-

ization of aesthetic proper- ties that focuses on trans-historical and pan-cul-

tural features (cf. Codignola, 2016, p. 76).

Contemporary art is today’s art, produced by artists who are living in the

twenty-first century. It helps to observe and understand the contemporary so-

ciety, which is globally influenced, technologically su- perior, and culturally

varied. For example, kinetic art is a disruptive art form that places the specta-

tor s perception at the center of the piece to question the purpose and status

of the artwork (cf. Haute Horlogerie, 2020). Intensive, knowledgeable, and

continuous monitoring of the seismographic trends in con-temporary art pro-

vide luxury brands with valuable information on trends and value changes. For

example, the observation of street art supply brand strategists with many

Luxury Brands and Art Collaborations as a Leverage on Brand Equity and Art(Ist) Equity

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critical works on brands and consumer society (cf. Baum- garth and Kastern,

2017, pp. 357-379). Similarly, concrete collaborations between luxury brands

and artists can help in developing forecasts, vision, and positioning. Another

focus is on the impact of arts on the fundamental element of the luxury brand,

its identity. That is not an isolated, controlled out-put of management decision-

making, but rather an aspect of interactive corporate culture. The integration

of arts into change management and corporate culture is a relevant issue to

establish towards a successful luxury brand management (cf. Baumgarth,

2018, pp. 237-248).

Luxury brands are usually associated with rather conservative values such

as tradition, heritage, and timelessness and thus, fight even harder to be per-

ceived as bold and original brand personalities (cf. Kapferer and Bastien,

2012, p. 34). Joining forces with the arts offers various opportunities. Art col-

laborations encourage luxury brands to regain their lost distance towards com-

peting (masstige) brands and non-targeted middle market customers by build-

ing on the strong demarcation function of art (cf. Ehrensperger, 2017, pp. 12-

24). The art world is commonly not readily accessible for the average con-

sumer. Luxury brands affirm a distinctive connoisseurship and emphasize

their belonging to elitist networks (cf. Meffert and Lasslop, 2004,

p. 940). In this way the exclusive image and scarcity character for luxury

brands re-increase (cf. Catry, 2003, p. 13).

Through the arts, luxury brands can strengthen their engagement with con-

sumers without undermining the exclusivity of their luxury products. Numerous

attempts of engagement in the luxury fashion domain, online and offline, are

authorized. Online through dedicated platforms for content co-creation and

offline through alternative brand experiences. Luxury brands have built a new

art-related paradigm, detached from the mechanical execution of mere prod-

uct performances (cf. Chailan, 2018, pp. 414-423).

In 2005, it took twenty to thirty craftspeople eight days to produce a Louis

Vuitton bag. The high price for the item could perhaps have been justified

based on its skilled craft production, and consumers undoubtedly bought into

the concept of the value, aura, and singularity of artisan production (cf. As-

pers, 2010, pp. 196-201; Karpik, 2010, pp. 175-243). This valorization of com-

modities and consumers’ visuality become altogether more problematic when

the luxury brand shifts towards mass production. This is accompanied by

front-page headlines such as Louis Vuitton tries modern methods on factory

lines (cf. Wall Street Journal, 2006). As one means to justify the high price of

mass-produced luxury goods, Louis Vuitton’s collaborations with a range of

renown artists is undoubtedly an aesthetic investment in the immaterial and

symbolic definition of the luxury brand. Many of these collaborations have

themselves become iconic and are consumed by some as investment pieces

that will accrue value through their lifetime and become collect-able luxury

pieces (cf. Crewe, 2016, pp. 511-529).

The most active sector in luxury brands and art collaborations is fashion,

followed by financial ser- vices, watches and jewelry, automotive and distilled

spirits. Many luxury designers look for fresh inspiration from the arts. They

often use visual art to make their fashion shows memorable events or to influ-

ence their collections. It is an aim of theirs to transform luxury goods into art.

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The re-appropriation of an artwork into a wearable luxury product is nothing

new. What is innovative is the power that luxury brands associate the luxury

item with an art gallery or a museum experience (cf. Codignola, 2016, pp. 66-

67).

In the literature, luxury and art is ascribed to a structural proximity between

both concepts (cf. Kapferer and Bastien, 2012, p. 107). Kapferer (2012) states

the usage of art, artification, as a key strategy for luxury brands and speaks

about the conscious artification as a strategy, integrating art in every act of the

val- ue chain. According to Kapferer (2014), the concept of artification is:

“[...] a process of transformation of non-art into art, to circumvent the volume

problem. It requires the active collaboration of art authorities and renowned

artists. The goal is to change the status of the luxury brand, of its founder and

luxury products, and in so doing, to reinforce the idea of a better-than ordinary

lux- ury brands whose price and symbolic power are undisputed (Kapferer,

2014, p. 371).”

Until now, no uniform terminology emerges that would cover all empirically

observable forms of luxury brands and art collaborations and simultaneously

refer to a specified underlying strategy or clear-cut concept. The only initiative

in this regard represents the approach by the French brand strategist Boche,

who coins the term Marketing to address the collaborations between luxury

brands and the art.

These increasingly symbiotic relationships are fed by an enduring appetite

for artfully erudite luxury couture. Louis Vuitton collaborates with Jeff Koons,

Dior with young artists, Stella McCartney with Ed Ruscha, Calvin Klein with

Andy Warhol foundation and Coach with Keith Haring. One of the earliest

examples of the artistic cross-pollination is Elsa Schiaparelli and Salvador

Dali, the Italian couturier s exquisite surrealist evening gown featured a large

Daliesque lobster painted across the crotch area as an exploration of sexual-

ity. Yves Saint-Laurent inspired in 1965 by the work of Dutch painter Piet Mon-

drian presented a dress at the Georges Pompidou Art Gallery in Paris. Andy

Warhol s is the lux-ury fashion s favorite artist. Beyond Warhol s enduring in-

fluence, other luxury brands have continued to call upon lesser-known artists

to enhance their creative process Louis Vuitton is leading the charge in artist

collaborations (cf. Business of Fashion, 2021).

During his time as creative director at Louis Vuitton, Marc Jacobs helps to

establish a tradition of partnerships between the French house and global ar-

tistic talents. He commissioned Stephen Sprouse to reimagine its monogram

print in graffiti form in 2001 and went on to forge a thirteen-year relationship

with Takashi Murakami. The Japanese artist introduces the multicolor mono-

gram bag. Marc Jacobs works with provocateur Richard Prince in 2008. Nico-

las Ghesquiére, the current creative director continued to build on this heritage

giving Jeff Koons unprecedented freedom to play with the house s signature

canvas. The former Louis Vuitton menswear designer Kim Jones begins to

establish a similar culture of artistic collaboration at Dior Men when teaming

up with New York based contemporary artist KAWS for his debut collection.

When creative designers directly work with artists, truly extraordinary and orig-

inal work is created (cf. Business of Fashion, 2021).

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Yet, also in non-fashion luxury areas art takes hold. Ruinart, the cham-

pagne brand, is known for its consistent long-standing relationship with art,

patronizing contemporary art and design perfectly matching the luxury brand s

image. Veuve Clicquot introduced its Veuve Clicquot window series as a con-

tribution to the art world partnering with the creative and arts communities.

Dom Pérignon pursuits its annual art projects launching its limited-edition

champagnes in collaboration with artists such as David Lynch, Jeff Koons, Iris

van Herpen and most recently Michael Riedel creating display boxes, pack-

aging, la-belling and artistic events (cf. Berlin Art Link, 2016). Both industries,

luxury, and art, continue to collaborate to forge deeper creative conversations.

Thus, painters, illustrators and photographers become important contributors

to the luxury industry (cf. Fast Company, 2021).

According to academic literature, a significant shift taking place is the scar-

ification of creative designers. Unlike artisans, who are famous for their crafts,

designers now beg for recognition as creative beings. Some, such as Karl

Lagerfeld, demonstrate that they have even other talents such as photog-

raphy. John Galliano presents himself as a piece of art, staging the typical

figure of the romantic artist. Gradually, art is pervading commerce, especially

in the luxury sector. Luxury appreciates to be associated as intemporal art. To

position luxury products as authentic pieces of contemporary art, each one is

blessed by the hand of the designer. By doing so, luxury brands de-emphasize

craftsmanship that requires time and effort and is not compatible with high

volumes (cf. Catry, 2007, pp. 49-63).

The association with art enhances a luxury brand’s extensibility beyond its

core products. Thus, the transformation of luxury fashion designers as art

icons is a consequence of the search for growth through democratization. De-

signers who succeed in the luxury sector are those who have personality and

can create followers and emotional bonds among larger audiences. Such de-

signers are avant-garde, per-haps even polarizing, and they purposefully do

not appeal to everyone, creating a cultural elite of followers (cf. Hagtvedt and

Patrick, 2008, pp. 212-222).

The creative directors John Galliano (Maison Martin Margiela), Marc Ja-

cobs (Louis Vuitton, Marc Jacobs) and Karl Lagerfeld (Chanel, Fendi) are pre-

sented as art lovers or artists underscoring their links to the world of art and

an aesthetic vision. Marc Jacobs is described as a friend of many contempo-

rary artists. He is an art collector who knows how to persuade the sharpest

talents to work with him. By others he is recognized as an artist itself. Chanel

directly asserts Karl Lagerfeld s artistic status by presenting his fine art on the

website of Chanel. They are no longer titled couturier but artistic director. The

artist creates new things. In the quest for novelty seeking the artist moves

towards the unknown. An artist transgresses prevailing aesthetic norms and

regenerates them. Louis Vuitton collaborates a lot with the art world be-cause

art is at their origin of creation. What is interesting in art, is its experimental

universe and the artistic way it is created. Together with art, luxury creates the

unforeseen (cf. Dion and Arnould, 2011, pp. 501- 520). The values con- tem-

porary art transfers to luxury brands are experimentation, uniqueness, and

radical difference (cf. Dion and Arnould, 2011, pp. 501-520). Galliano is a ref-

erence for the characteristics of contemporary art: eccentricity, inventiveness,

Luxury Brands and Art Collaborations as a Leverage on Brand Equity and Art(Ist) Equity

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questioning, explosion, the evocation of the renaissance, highpoint of artistic

innovation. Those values the consumers seek to associate with the world of

luxury. Also, TAG Heuer introduces Alex Monopoly in the role of art provoca-

teur.

With an art provocateur there is the chance to connect a luxury brand with

younger buyers, i.e., Millennials. It opens new areas of expression from luxury

products to marketing, communication, and sales (cf. Bastani, 2020, pp. 185-

201).

After high-profile co-creations with Moncler, Ladurée, Louis Vuitton and

Chanel, the singer song- writer producer Richard Mille and Pharrell Williams

provide innovation for the RM 52-05 luxury watch (cf. HauteHorlogerie, 2020).

Murakami introduces new techniques that are incorporated into the production

system of Louis Vuitton. A more playful store atmosphere and a broader prod-

uct range are further developments through art (cf. Ozuem, 2020, pp. 107-

129).

In emerging and new economies, the purchase of contemporary artwork

acquires a cultural lifestyle and economic significance. Buying art is fashiona-

ble. The new high net worth individuals (HNWI), hopping from galleries, auc-

tion sales and art fairs. The world over, transforms the contemporary art mar-

ket into an increasingly high-end market. As one of the main economic pecu-

liarities of this market is basically the sup- ply-drive. Increasing demand can-

not automatically augment supply, and thus raises prices of con-temporary

artworks. As a result, only the wealthiest segment of buyers or investors (i.e.,

corporate collectors) are able to afford purchasing works of contemporary art.

In this framework, luxury brands are real profitable investors and play a crucial

role in the sustainment of the present contemporary art world (cf. Codignola,

2016, p. 64). The Art market has become a luxury goods business, being cited

in luxury indexes such as the Knight Frank Wealth report quotes high numbers

of HNWI seeking to invest in artworks (cf. Featherstone, 2017, pp. 108-127).

To crack the secret to attract Millennials who tend for novelty and are driven

by emotions and personal connections, luxury brands embrace art and digital

technologies to sell excitement and form a creative identity (cf. Medium,

2019).

Limited editions capture media attention and uphold desirability of the brand

through ephemeral rarity. A lever for creating an aura of privilege is selective.

If luxury brands become too mass-marketed through a democratization of lux-

ury, they lose their cachet. Western Millennials adopt luxury brands by mixing

and matching luxury accessories with casual clothing. Only consumption re-

mains in its highest form through hedonistic luxury goods. Against this back-

ground of the democratization of luxury, Rodrigues and Borges (2021) demon-

strate that the elite are ready and willing to pay even more to reduce the num-

ber of followers. Hence, collaborations with contemporary artists help to repo-

sition a luxury brand s im-age and attract even wealthier and younger con-

sumers which are often drawn to contemporary art (cf. Codignola, 2016, p.

66).

At the same time, the limited availability of the product line continues to

draw luxury brand loyalist. Effective-ly, luxury brands which are associated

with contemporary art and artists, bridge gaps in generations by

Luxury Brands and Art Collaborations as a Leverage on Brand Equity and Art(Ist) Equity

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simultaneously appealing to a wider audience without diminishing the brand s

aura (cf. Codignola, 2016, p. 66).

5 Conclusion

A central finding of the research is that art market segment of contemporary

art may be fruitfully used to increase a luxury brand s value and improve con-

sumer s luxury value perception. This vision has significant implications re-

garding the employment of contemporary art to gain a luxurious brand s image

and a more exclusive brand. With art, luxury brands can move their brand

image from that of the ephemeral to a one that is defining culture. Alliances

and collaborations with contemporary art should be considered by luxury man-

agers and marketers as strategic tools to reinforce and increase the cultural

value of the brand. Today a luxury brand s value cannot be generated only in

relation to high traditional standards of excellent manufacturing quality, but it

must be created mainly in relation to the intangible features of the luxury prod-

uct. Contemporary art conveys innovative intangible features. Luxury brands

and art collaborations with contemporary art must be considered by managers

as a modern future-oriented strategy through which to create and increase

brand value whilst transmitting an aura of exclusivity, quality, rarity, aesthetics,

and extraordinaries.

In addition, the public nowadays raise high importance for art. For instance,

Brian Donelly, known as

KAWS, started out as a graffiti artist, today is riding the increasingly blurry

line between commercial and fine art (cf. New York Times, 2021). With 3.2

Mio Instagram followers he is a reference that the public is more than im-

portant to reach international success. Luxury and art represent a new strate-

gic player that can re- shape markets. Contemporary art stimulates creativity

and imagination (cf. Barone and Eisner, 2012, pp. 187-198). Artists can pro-

vide input and guidance at all states of value creation (cf. Codignola, 2016, p.

67). Qualitative art always shows a highly conceptual component.

Equity value is created through contemporary art driven strategies as:

• by perpetuating of the luxury brand as innovative cultural representative.

• by creating perpetually challenging and stimulating fresh brand image.

• by keeping the brands linked to cultural values and traditions.

• by differentiating from competitors.

• by addressing the expectation of rarity.

Overall, it can be observed that luxury brands are gaining more and more

shares in the art market and have the financial means to promote art. There

are many talented young artists who have not yet been discovered by galleries

and show huge potential. The success lies in distinguishing a flash in the pan

from a talent. The task of the art world is to shield itself from functional and

commercial use. In contrast, the art market is highly capitalistic. The brands

who understand this will emerge as the winner from a mass of upcoming new

digital competitors. There is the opportunity that the balance of power is shift-

ing in the future about who is deciding about what is art and what is no art.

Prada and Louis Vuitton already build own art foundations as a kind of the

modern Medici family.

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They carry the names of the luxury houses but are fully-fledged art galleries.

Besides investing in art and holding exhibitions of established artists, both

foundations are commissioning new work. The two luxury houses clearly un-

derstand the enormous power that art, and culture in general can wield in a

commercial and even political context (cf. Thailandtatler, 2020). Against this

background, completely new business cases arise:

BM (1): Replacement of curators and galleries through luxury brands.

Luxury brands have the financial opportunities to screen upcoming talents

on the art market. Through art mentoring programs the talents receive the

opportunity for seeking global awareness and attention. As newcomer, the

promotion can be run through the luxury brand s marketing channels to

achieve a positive spill-over. The result is on the one hand the rejuvenation of

the luxury brand through modern con-temporary art (see artist Leon Löwen-

traut). On the other hand, there is a novelty value and innovative spirit of young

talented artists that can have an impact on the luxury brand value.

BM (2): Complementary instance to art experts as the new as art critics

Luxury brands are gaining increasing power as the new intermediaries and

art critics on the art market. With their power in equity, they can shape, de-

stroy, or promote art careers. They are able to turn to an authority and deci-

sion-making power of art and culture.

Luxury brands can take the role of disruptors and innovators, using their

commercial brand power to bring more people to art. There is the chance to

transform through luxury brand and art collaborations the very old-fashioned,

traditional luxury brands as well as many museums and galleries to a more

modern lev-el. By trying new things to engage the public, art collaborations

rejuvenate luxury brands to win the game of the future. To gain in-depth

knowledge and understanding to develop and program new art partnerships

and collaborations the thesis provides an overall conglomerate of valuable

insights.

Further research seeks to examine in depth multiple cases and data sets

related to specific equity models. Additional investigation must analyze how

luxury brands conversely influence the art market and its components will offer

additional insights. Even if luxury goods and artworks have constantly been

entangled, recent times have shown that current features of luxury and con-

temporary artworks such as rarity, quality, symbolism, aesthetics, are merging

with the intangible features of experience, emotions, senses, and aura.

Therefore, since they comprise compatible features and resources, to add

value, luxury brands may strategically use contemporary art to avoid the com-

mercialization of luxury and turning back to genuine-ness.

The findings provide insights into the Digital Age and thus the returning to

the research question. Digitalization is the essential jumping-off points for suc-

cessful luxury brands and art collaborations and are therefore at the core of

the developed future equity model.

Regarding the potential for improvement of luxury brands and metropolitan

cities, 28.57% of the brands surveyed like to see a digital state-of-the-art

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platform. Time is a scarce factor. A LinkedIn for art collaborations with the

possibility to quick and simply get insights on hard facts of local artists includ-

ing vitae and artworks. Experience and know-how about art collaborations are

exchangeable at the platform as well. A visual aesthetique appeal, intuitive

and innovative handling is necessary.

The registration process must be free of charge and undergo a quality fun-

nel gate to ensure the counteracting of hobby artists. A pre-selection by art

historians, galleries or art advisors has to be considered. Metropolitan cities

serve as enabler in terms of promotion. The pandemic shows the relevance

of online plat- forms. This is evident to the Art Basel Hong Kong s online view-

ing rooms, where at Zoom rooms six galleries set up walk clients through their

booths.

Yet, artists predict a danger of objectification and thus limitation of the ar-

tistic position through digitalization. Emotions connect luxury brands and art-

ists. The economic mindset and actions differ from each other to some extent

- depending on vitae and international market maturity. The vision of expert is

that after the pandemic, galleries, museums, and art fairs reopen and art lov-

ers show an immense pent-up desire to observe art. So, the art world estab-

lishes a new modus and new migratory patterns (cf. Sanderson, 2020, p. 19).

A physical meet-up with the artist is considered as important by 71.42%.

The idea of luxury brand days with one-to-one private appointments between

the luxury brand and the artist is approved. Getting to know the personality of

the artist (soft facts. i.e., sympathy) is an important decision criterion for coop-

eration. The work of an artist is only fully grasped in real life. Variables such

as materiality, brushstroke and artistic practice play a key role. In general, the

luxury brands like to see greater proactivity on the part of local artists. A pos-

sible first contact can be made in the boutiques, which is followed by a recom-

mendation to the headquarters. In return, artists would like to have more fi-

nancial support for optional prototype developments. Personal contacts, net-

working, cultivation, and anchoring of luxury brands in the international art

scene is an important component.

Luxury companies are encouraged to engage proactively with the arts. This

can be done online through platforms such as Artsy or offline through consult-

ing by art advisors, art historians, curators, or galleries. The art market resem-

bles a non-transparent stock market business, but it is nevertheless important

not to drift into solely product management. Long threatened by a consolidat-

ing market, young and mid-level galleries are highly active online and thereby

extend their base, among the next generation of collectors. Deploying a new

toolbox of digital skills, galleries and museums are best positioned (cf. Sander-

son, 2013, p. 19).

The Amazon art world is a world with no power to move our souls. The

Financial Times (2020) mentioned that is not the Amazon art world. It’s a hy-

brid landscape, where digital and physical are inter- meshed rather than dis-

connected, creating a broader ecosystem of people all over the world engag-

ing as artists, gallerists, and patrons of culture.

Yet, regarding the opinion of futurists, the locked-down art market is not

dead. In many cases, galleries surprise at the sort of sales they make via

Zoom rooms, FaceTime, and Social Media campaigns. Finally, art world

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events have an important function for the market, since the players use them

as venues for rap- idly discovering new artists, tracking the evolution of prices

in real time, trading in the information that underpins the market and forging

new alliances. None of which means that once the crisis passes it will return

to the traditional art market. The skills that gallerists developed under duress

are not unlearned, nor their in- vestments in online operations is abandoned.

Through Corona the art world rapidly innovates (cf. Sanderson, 2013, p. 19).

The current lock-down offers the cultural sector a positive push to bring

digitalization forward. True to the motto the good things take them with you,

the culture and art scenery has to establish digitalization in their daily doings.

This is the reason why especially for luxury brands and art collaborations the

omni- channel approach takes relevance.

(1) How does digital versions of art collaborations could look like?

(2) Am I able to match them with the latest state-of-the art technology?

At the same time, luxury brands must remain true to their origins. Luxury as

well as art stand for high quality, craftsmanship, heritage, exclusivity, emo-

tions, scarcity, and dreams.

Analogue art collaborations are becoming increasingly important to create

meeting points and a shopping experience for customers, retailers, and artists

that they cannot experience online. To combine the offline with the online

world will become an indispensable hygiene factor. Hybrid formats of luxury

brands and art collaborations are state-of-the-art.

In his latest book Dirk Boll, experienced art dealer and broker mention that

seeing, hearing, and feeling art is one side of the coin; knowing how art is

distributed, traded, and appreciated is the other. For whether on the stock ex-

change or the museum floor, both share a closely interwoven history. Every

ten years, the art and business markets undergo a profound shock or trans-

formation. Whether it's the economic crises of 1990 or 2010, the bursting of

the first internet bubble in 2000 or the Corona crisis, each decade finds its own

way of assessing art. This is especially true in the context of digital develop-

ment, from the virtual viewing room to new distribution possibilities, through

which the art world is currently experiencing its most lasting changes. High

time, then, to take stock and see art with new eyes.

Driven to drastically rethink how to engage with their audiences, some cul-

tural institutions resorted to acts of care. In the spring of 2020, for instance,

Officine Grandi Riparazioni (OGR) in Turin offered its monumental industrial

spaces to the city to build a Covid-19 hospital, which was set up in record time

and operated on site for 100 days. When the venue was reopened as an ex-

hibition space in autumn 2020, OGR changed its ticketing policy to grant free

access to all visitors and expand safe public space. Carolyn- Christov Bakar-

giev, launched Digital PTSD’, an online program of talks and artworks that,

over the coming months, will explore the traumatic consequences of the sud-

den increase in virtual activities. Others realized to cross-pollinate their art

worlds with others and expand the areas where different communities could

inter- sect. During the summer, the museum’s courtyard hosted open-air

events, conversations, plays, concerts, which were broadcast live. By

Luxury Brands and Art Collaborations as a Leverage on Brand Equity and Art(Ist) Equity

IJARBM – International Journal of Applied Research in Business and Management

Vol. 04 / Issue 01, pp. 105-127, April 2023

ISSN: 2700-8983 | an Open Access Journal by Wohllebe & Ross Publishing

This paper is available online

www.ijarbm.org

adopting this hybrid form of information dissemination and entertainment, the

museum has reached new audiences (cf. Frieze, 2021). The aspect of sus-

tainability is also becoming increasingly important in art. An example for such

a working mechanism is shown in the smart approach of the Brooklyn-based

collective MSCHF that is presenting the Birkenstock sandals made from de-

stroyed Hermès Birkin bags.

Acknowledgement

We chose to rely on the expertise of several luxury brands. Our thank is

owed to the luxury brands Richemont, Cartier, Louis Vuitton, CHANEL, Por-

sche, Tesla and Renesim. For the area of trend and market research we would

like to thank Interbrand, Batten&Company, Accenture, and the University of

Cambridge for their valuable insights. A big thanks goes to the state capital

Munich, the artists in the fields of visual arts from the ARTMUC art exhibition

and the excellent art advisor Anja Kaehny. They contribute largely to a high-

quality foundation of my academic work. The luxury brand ERES Groupe

CHANEL, Paris, and the International School of Management (ISM), Munich,

kindly supported this work. I wish to thank my professors at my university as

well as the management of ERES Groupe CHANEL for being very supportive.

We would also like to thank Benjamin Boubert, Anne Laure Sacquet and Lissia

Bernaras from ERES Groupe CHANEL, for their support and openness. Along

with them, we would like to thank the whole team of the headquarter Eres

Groupe Chanel in Paris answering all my questions in terms of strategy and

future initiative within the field of luxury, fashion and art. Many thanks to Su-

zana Herrmann, boutique manager Munich and area manager Germany of

ERES Groupe CHANEL, for advising us with her long-term expertise in lead-

ership, luxury fashion and retail sales management.

Authors

Franziska Scheuerle (b. January 16, 1991), Bachelor of Arts in Business

Administrations (2013), Master of Arts in Luxury, Fashion & Sales Manage-

ment (2021). She has professional experience as Marketing and Brand man-

ager in the Premium and Luxury sector and as a CEO and founder of the

contemporary art business LOREMO. She also holds guest lectures in Inno-

vation Entrepreneurship, Strategy methods and Change management. Her

research focus is on Luxury Brand Management and Innovation Management.

ORCID: https://orcid.org/0000-0003-4743-8770

Dr. Ramona THOMAS (b. November 17, 1976) received her Master of

Science in International Marketing (2006), PhD in Philosophy (2012). She is

lecturer for Luxury, Fashion & Sales Management at the International School

of Management in Munich/Germany. She also holds a Guest Professorship in

Marketing, Business Culture and Organizational Theories at the University of

Nottingham Ningbo, the FOM and the Nord University. She has professional

experience as Director Retail Development at Escada and as a Int. Consultant

Luxury Brands and Art Collaborations as a Leverage on Brand Equity and Art(Ist) Equity

IJARBM – International Journal of Applied Research in Business and Management

Vol. 04 / Issue 01, pp. 105-127, April 2023

ISSN: 2700-8983 | an Open Access Journal by Wohllebe & Ross Publishing

This paper is available online

www.ijarbm.org

in Training, Learning and Development. ORCID: https://orcid.org/0000-0001-

6024-737X

Prof. Dr. Dr. Patrick SIEGFRIED MBA (b. February 18, 1967) is Profes-

sor at the University of Applied Science in Trier. He also holds a Guest Pro-

fessorship for Entrepreneurship at the MATE University in Gödöllö/Hungary.

He has professional experience as a CEO of various home textile companies

and as a commercial manager for an international distribution center. His re-

search focus is on Strategic Management and Innovation Management in

Startups. ORCID: https://orcid.org/0000-0001-6783-4518

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Collaboration with art in the luxury industry as a marketing tool for value creation

Article

Full-text available

Dec 2018

Marina Ochkovskaya

The paper examines the role of art in value creation in luxury brands and the insights for consumption of luxury items made in cooperation with artists or under inspiration by art heritage. The paper concentrates on artistic collaborations and on collaborations with art heritage in cases where an artist has passed away but their paintings inspire designers and become interpreted and implemented into a luxury brand. These collaborations bring strong emotional and symbolic values for consumers as e.g. aesthetic pleasure, as well as feelings of being an art connoisseur and a part of global cultural elite. Moreover, luxury items with visual artistic elements (LIVAE) can provoke an interest in the arts and create educational value for people. The study was carried out in Moscow and the primary data was collected during March-April 2018 using online in-depth interviews with members of Facebook and Instagram communities devoted to luxury brands. The conducted research allowed the author to find out about the awareness of LIVAE and reveal the motives for their consumption among Muscovites such as 1) expressing individuality and demonstrating understanding and proximity to art and 2) getting an aesthetic pleasure for self. These motives form the two following segments of LIVAE consumers: 1) attention and differentiation seeking individualities and 2) aesthetic connoisseurs.

Building Consumer-Brand Relationship in Luxury Brand Management

Book

Jun 2022

Valuing the Unique: The Economics of Singularities

Book

Dec 2010

Lucien Karpik

Online Brand Communities, Customer Participation and Loyalty in the Luxury Fashion Industry: Strategic Insights

Chapter

Jul 2021

Despite the proliferation of studies on the emerging computer-mediated marketing environments, particularly on the burgeoning role of online brand communities (OBCs) in the luxury fashion industry, there is a paucity of knowledge of the ways in which the level of customer participation in OBCs affects customer loyalty. While previous research on OBCs mainly examined the role of customer satisfaction and retention, it has neglected the role and level of customer participation in complex OBCs, particularly in the luxury fashion industry. By drawing on existing studies, this chapter presents a customers’ participation filter model for OBCs’ participation. The proposed model opens up interesting avenues for future research on the level of customer participation in OBCs and suggests practical lessons for the development of marketing strategies.

Guccification: Redefining Luxury Through Art—The Gucci Revolution

Chapter

Jun 2020

This chapter focuses on Gucci, a successful luxury company that has managed to renew its brand and revolutionize its business model by employing artification strategies based on contamination. Guccification is a term first used by the company itself to its intent to make all its clothes and accessories express a Gucci style. Today, after the launch of this complex, visionary strategy, Guccification represents a successful marriage of fashion, art, and ethical issues driven by new leadership under chief executive officer (CEO) Marco Bizzarri and creative director Alessandro Michele. The chapter explores how Gucci is evolving into an art-oriented company due to the revolutionary vision of its creative leadership. Indeed, the brand is being transformed from a simple fashion company into a cultural icon. Accordingly, its commitment to artification can be analyzed from three different perspectives: art within fashion, an artistic business vision, and a culture of purpose. This chapter examines how the Gucci brand has been able to redefine luxury by bringing together art and fashion, leading a new, emerging movement.

When Fashion Meets Art: The Artification of Luxury Fashion Brands

Chapter

Jun 2020

This introductory chapter provides the theoretical foundation for the phenomenon of artification—that is, the transformation of nonart into art—which has been increasingly strategically employed by luxury fashion brands in recent times. The chapter provides context and background to position the case studies analyzed in the following chapters of the book. First, it reviews the literature on artification, tracing the origins of the concept and illustrating its transdisciplinary nature. Second, it lays the groundwork for the identification of the benefits of artification for luxury fashion brands and art institutions. In particular, it illustrates how two apparently far-removed sectors, such as art and luxury fashion, are increasingly interacting and collaborating to achieve mutual benefits. Finally, the chapter proposes a classification of artification processes based on different degrees of interaction between the luxury fashion and art sectors. Notably, the authors identify synergies, contaminations, and hybridizations as incremental stages of the artification of luxury fashion brands.

Orderly Fashion, A Sociology of Markets

Book

Mar 2010

Patrik Aspers

For any market to work properly, certain key elements are necessary: competition, pricing, rules, clearly defined offers, and easy access to information. Without these components, there would be chaos. Orderly Fashion examines how order is maintained in the different interconnected consumer, producer, and credit markets of the global fashion industry. From retailers in Sweden and the United Kingdom to producers in India and Turkey, Patrik Aspers focuses on branded garment retailers--chains such as Gap, H&M, Old Navy, Topshop, and Zara. Aspers investigates these retailers' interactions and competition in the consumer market for fashion garments, traces connections between producer and consumer markets, and demonstrates why market order is best understood through an analysis of its different forms of social construction. Emphasizing consumption rather than production, Aspers considers the larger retailers' roles as buyers in the production market of garments, and as potential objects of investment in financial markets. He shows how markets overlap and intertwine and he defines two types of markets--status markets and standard markets. In status markets, market order is related to the identities of the participating actors more than the quality of the goods, whereas in standard markets the opposite holds true. Looking at how identities, products, and values create the ordered economic markets of the global fashion business, Orderly Fashion has wide implications for all modern markets, regardless of industry

Research Handbook on Luxury Branding

Book

Apr 2020

Art as strategic branding tool for luxury brands

Article

Apr 2018

Julia-Sophie Jelinek

Purpose The study aims to understand the lasting relationship between luxury fashion and art. The purpose of the paper is to explore whether the application of art, the cooperation with artists, the implementation of experiential strategies focusing on retail spaces and shows embedded in the strategic concept of a luxury brand leads to a competitive advantage, and to a sustained value creation for luxury brands. Design/methodology/approach Based on the literature, the strategic role of art and the importance of experiential marketing for the value creation of European luxury fashion brands was explored through empirical data collection, consisting of 26 semi-structured in-depth interviews. The gained data have been analysed through a thematic analysis approach and triangulated to avoid bias. Findings The exploratory study revealed that when art is applied as a strategic tool, it is of relevance to achieve an authentic fit to the brand. When integrating art consistently and authentically within the whole value chain system, it leads to a higher brand equity. Practical implications The paper provides a guide for both academics and marketers as theoretical frameworks are examined, analysed and future recommendations given, which are suited to be applied within the brand management principles. Originality/value The outcome contributes to a wider delineation regarding the future of luxury brands. The study reveals novel viewpoints concerning the integration of arts in luxury brand marketing and adds to existing literature.

The value of art in marketing: An emotion-based model of how artworks in ads improve product evaluations

Article

Oct 2017
J BUS RES

Arts-based initiatives provide many benefits for organisations, managers, and employees, but little is known of how marketing can incorporate art to add value for consumers. The present research situates marketing tools within broader organisational theory to develop and empirically test an emotion-based model of how artworks in advertisements can increase the perceived value of a product (art infusion effect). Across three experiments (N = 516) using three different artworks (by Vermeer, van Gogh, and da Vinci), three different products (mineral water, toilet paper, and chocolate), and three different measures of product value (product evaluation, willingness to buy, and willingness to pay), brand affect strongly mediated the art infusion effect. Furthermore, this affect-mediation was stronger for utilitarian products (water) than for hedonic products (chocolate). Thus, in support of general theories of arts-based methods in management, emotion appears to be a fundamental mechanism through which art affects product and price evaluations.

Luxury Brands and Art Collaborations as a Leverage on Brand Equity and Art(Ist) Equity

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