Coopetition in the French Luxury Industry: Five Cases of Brand-Building by Suppliers of Luxury Brands

11 Pages Posted: 17 Sep 2018

See all articles by Colette Depeyre

Colette Depeyre

Université Paris Dauphine - PSL Research University

Emmanuelle Rigaud

Neoma Business School

Fabien Seraidarian

Université Paris X Nanterre - Mazars Actuariat Paris

Date Written: January 2018

Abstract

The growth and globalization of the luxury market has led to a profound rethinking of business models. In traditional luxury markets such as France, it has become harder for suppliers to have full discretion of their strategies alongside large conglomerates. To deal with this challenge, some suppliers have decided to move to coopetition, that is, to develop their own brand (competition) and continue to work as a supplier for other luxury brands (cooperation). The objective of this paper is twofold. First, a preliminary analysis aims to present a panorama of various coopetitive situations in the luxury industry and identify five triggers: the first three involve situations where cooperation is added to a competitive situation (horizontal cooperation, internal cooperation, and cooperation through a third-party actor); the second two occur when competition is added to a cooperative situation (through upstream or downstream integration). The second part of the paper focuses on this latter type of coopetition, that is, when suppliers decide to move down the value chain. Five cases on the French market are compared, based on the separation, mediation, and integration strategies used to design relevant value architectures and propositions. These strategies respond to two main challenges raised by the move to coopetition: suppliers need to master the necessary capabilities to promote their own brand (capabilities challenge), and they need to make sure that this new activity does not threaten their existing business as a supplier (balance challenge). Coopetitive business models need to be carefully designed in order for value to be created and appropriated at different levels of the ecosystem.

Keywords: Coopetition, Business model, Brand-building, Suppliers, Luxury, Third-party actors

Suggested Citation

Depeyre, Colette and Rigaud, Emmanuelle and Seraidarian, Fabien, Coopetition in the French Luxury Industry: Five Cases of Brand-Building by Suppliers of Luxury Brands (January 2018). Journal of Brand Management, Vol. 25, Issue 5, 2018. Available at SSRN: https://ssrn.com/abstract=3245116 or http://dx.doi.org/10.1057/s41262-018-0088-2

Colette Depeyre (Contact Author)

Université Paris Dauphine - PSL Research University ( email )

Place du Maréchal de Lattre de Tassigny
Paris, 75016
France

Emmanuelle Rigaud

Neoma Business School ( email )

1 Rue du Maréchal Juin
Mont Saint Aignan Cedex, 76825
France

Fabien Seraidarian

Université Paris X Nanterre - Mazars Actuariat Paris ( email )

La Défense
Paris
France

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