Managing Luxury Brands in Emerging Markets

Becoming an International Star: A Careful Look at Loewe's Spanish Heritage in Brazil

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Acknowledgement

I would take this opportunity to thank my research supervisor, family and friends for their support and guidance without which this research would not have been possible.

DECLARATION

I, [type your full first names and surname here], declare that the contents of this dissertation/thesis represent my own unaided work, and that the dissertation/thesis has not previously been submitted for academic examination towards any qualification. Furthermore, it represents my own opinions and not necessarily those of the University.

Signed __________________ Date _________________

EXECUTIVE SUMMARY

Forced by the repercussions of the global economic crisis, many brands are finding new arenas or new potential markets which tend to prove fruitful. In this regard, the economy my or the demographic makeup of the BRIC countries serve as a lucrative market for the brands. Among the BRIC countries, Brazil due to its strong economy is being rendered as the most lucrative or fruitful market of them all. With the growing economy the purchasing power and the credit facility among the Brazilians are also on the rise. Since the purchasing powers of the Brazilians are much more than it ever was this notion has encouraged many brands around the world to enter into the Brazilian market. Irrespective of the how situation is rendered on paper, doing business in the nomenclature of Brazilian make up is not that easy. The reason why doing business is difficult in Brazil is due to the policies and modus operandi of the bureaucracy, and the taxation system. The taxes are so high in Brazil that the product tends to become twice or thrice of the product as available in the European markets. However, this has forced the international brands to be in an uneasy situation.

Moreover, every market has its own norms and places a demand from every incoming player to adopt these norms into its modus operandi in order to survive in the market. Thus, this report highlights the steps which should be taken by the Loewe in order to succeed in the Brazilian market and to differentiate itself from its competitors. As highlighted that every culture is different from the other, therefore, it is not necessary that the steps taken to operate in one culture might also prove fruitful in the other market. In short, the global crisis is not only proving to be a threat for the brands operating in Europe, the Brazilian economy is this regard presents the complete opposite picture and is now rendered among the most favourable economies.

ACKNOWLEDGEMENTII

DECLARATIONIII

EXECUTIVE SUMMARYIV

CHAPTER 1: INTRODUCTION1

Research Background1

Context of the Research2

Problem Definition3

Research Setting4

Research Objectives4

Research Scope5

Rationale for the Choice7

CHAPTER 2: LITERATURE REVIEW8

Global Luxury Market8

CASE STUDY: LUXURY BRAND LOEWE11

Business Description11

International Presence11

Corporate Strategy12

International Expansion13

Overview of Brazilian Market13

Economy13

Brazil's Luxury Market14

Brazil's Luxury Consumers15

Promising Factors (AAAs and the Aspirationals)15

The Fashion Trail in the Brazilian Luxury Market17

Unravelling Fashion and luxury consumer17

Loewe and its Spanish Heritage18

Importance of the National Culture19

Spanish Business Culture19

Brazilian Business Culture20

CHAPTER 3: RESEARCH DESIGN AND METHODOLOGY23

Research Design23

Research Methodology23

Unit of Analysis23

Population23

Sampling Size24

Sampling Strategy24

Random Sampling25

Judgmental sampling25

Data Collection26

Research ...