Executive Summary
This study examines a Japanese luxury brand called Issey Miyake. The paper’s purpose is to review the effectiveness of a brand’s marketing and communication strategy on online platforms. In addition, the study covers the approaches the company uses to stand out in the luxury market.
The first part of the paper is devoted to luxury and its changes over time. Moreover, the chapters contain the history of the discovery and development of the luxury brand Issey Miyake. The actions by which the company conveys the brand’s mission and communicates with consumers in the luxury sector are identified. As a result, it was noted that the brand’s primary audience would learn about new products and collections through social networks, which need constant development.
In the second part of the work, an analysis was made of the strengths and weaknesses of the brand. In addition, this included the opportunities that the company can apply for successful development and the difficulties that may arise in the near future. Among the strengths are the brand’s image and the quality of its products, while the weaknesses are due to the high price, a small size range, and the lack of a children’s collection. However, to overcome these difficulties, Issey Miyake can expand the market to include more diverse items. Otherwise, the company will not be able to compete effectively with brands that offer clothing for teenagers.
Introduction
Luxury goods represent a wide range of goods that affect almost all areas of life. First, luxury brands allow customers to feel their uniqueness and status when buying things. This increases their self-confidence and imparts a sense of shaping their personality through outward appearance. Accordingly, to maintain the individual image of customers, luxury brands use various strategies to stand out from the competition. This includes the investment of permanent funds and the development of different campaigns.
The research paper focuses on brand sector development tactics and applying critical aspects to strategic management and marketing. For example, the author took a luxury brand called Issey Miyake, founded by a Japanese designer in 1971 as a wholesale and retail company. Issey Miyake is known for various products that cover clothing, perfumes, and accessories, known for their original colors and combinations. The paper discusses how a brand can communicate its value to actual and potential customers and what methods are applicable to improve them.
Concept of Luxury
Finding a universal definition of luxury is difficult, as it depends on many factors. The determining factor in this is the individual’s income and implementation in various areas. Moreover, the definition is situational and relies on human experience rather than numbers and meaning.
First of all, to fully understand the concept, it is essential to refer to the sources of the term. The word luxury comes from the Latin prototype ‘luxuria,’ which at that time was equated with extravagance (Gurzki, 2020). In addition, for the ancient Romans, this word referred to the sinfulness of life and rebelliousness. Over time, the term moved into French, where it took on the form of ‘luxure’ in the sense of lust (Gurzki, 2020). Thus, the concept has always been fragmented and meant pretentious and excessive initially.
In English, the word luxury was initially defined by the French. However, later, with the development of the language, closer to the 17th century, the word began to be attributed to the definition of wealth. Thus, the modern understanding of the word at that time partly returned to the origins of Latin origin, having a shade of extravagance in the definition. The negative connotation began to be forgotten, and the meaning has come down to the present day as something expensive and exclusive (Turunen, 2018).
Overall, societal changes can be noted if one considers the concept in the time and cultural framework. Forces of luxury have changed over the epochs and often depended not only on time but on geographical location. However, the very essence of the concept has remained unchanged over the centuries. Luxurious items reflect the owner’s inner convictions, status, and uniqueness they convey to others.
Nevertheless, the concept did not always have an exclusive connection with wealth, and for the aristocracy and royal families, luxurious items represented a sacred meaning. Noble people used their money to uplift society and improve its life. At the same time, they showed their luxury items as their unique connection with the higher forces and power given to them to help those in need.
For example, the English society of the 16th century differed in that it considered the moral changes in the concept of luxury (Cantista & Sádaba, 2019). Queen Elizabeth I staged theatrical performances of luxury to show others how great her power was (Cantista & Sádaba, 2019). At the same time, the aristocracy that surrounded her fought at the expense of becoming part of the kingdom. As a rule, this significantly improved the lives of their subjects, increasing their status and opening up a new social position. Thus, they contributed to the improvement of society’s material condition, which came primarily from their luxury goods.
However, over the centuries, not all famous personalities have noted the positive impact of luxury. Plato concluded that the constant desire for wealth and the search for bodily satisfaction can destroy society. Society came to a standard agreement and fixed wealth limits, and any excesses can cause social inequality, wars, political instability, and envy. The philosopher argued that selfish motives destroy various virtues, which leads to a decline in morality. Accordingly, public order must be preserved by introducing tax measures and legal controls. Thus, a society can exist on the same income line without hating each other (Dubois et al., 2021).
Nevertheless, there were philosophers whose opinions were opposite to Plato’s. Aristotle argued that money and luxury goods are a means and an opportunity to achieve a decent life (Turunen, 2018). He spoke only against pursuing money as the ultimate goal since, in this case, a person is not a person. Therefore, Aristotle understood the importance of luxury goods in a stratified society.
Other significant figures supported the view that luxury matters for the life of society. Thinkers such as Seneca and Cicero agreed with the meaning of luxury in the political dimension (Turunen, 2018). They understood human needs as something governed by self-control, and this control can be lost due to excess luxury and wealth.
However, they argued that the constant pursuit of luxury could deprive a person of freedom as the obsession becomes stronger than their will. Nevertheless, they argued that the continuous quest for luxury could deprive a person of liberty since obsession becomes stronger than their will. Thus, the human personality is reduced to animal aspirations and character, and such a selfless pursuit can begin the collapse of society.
Subsequently, industrialization made it possible to make luxury more accessible to the inhabitants. People who do not belong to the aristocracy or high society can afford to buy an expensive item if they have the means. This contributed to the emergence of many brands, as luxury still carries the concept of uniqueness and aesthetics, but now more people can afford it.
In modern society, luxury acquires a shade of lifestyle that a person broadcasts to others. Fashion intertwines with other eras, creating unique pieces of clothing and accessories. Accordingly, the sacred meaning fades into the background, and consumer needs are ahead. People tend to buy high-quality products and have a pleasant experience after shopping (Cabigiosu, 2020). Thus, luxury brands face the challenge of how to meet people’s different taste preferences and lies. Companies personalize their products and use strategies that allow them to compete successfully against other brands.
Brand History
ISSEY MIYAKE is a brand that originated in Tokyo in 1970 when designer Issey Miyake decided to set up his Design Studio. He continued working in Japan’s capital until one of his acquaintances took images of Miyake’s work to Vogue magazine and the main store Bloomingdale. Bloomingdale expressed interest in the designer’s work, and the latter received a small department in the store. As a result, in 1971, the designer had his first fashion show in New York (Corporate Information, n.d.).
In 1973, Issey Miyake was invited to Paris for a group exhibition with many young designers. He gained fame, and in 1974, the first Issey Miyake store opened in Tokyo (Corporate Information, n.d.). First of all, the designer’s works were liked by customers due to the combination of avant-garde Japanese style and modern clothing. The result was a transition to the European market and the opening of a second boutique, this time in the French capital, Paris. Thus, Issey Miyake became recognizable among other brands and began the path to further development.
The Issey Miyake brand is part of the Shiseido Company holding, which includes Dolce & Gabbana, Clé de Peau Beauté, and others. However, luxury clothing continues to maintain its independence and develop its style. Issey Miyake has been a creative director all his life and has given the brand many impetuses to grow. He invested heavily in developing synthetic technologies in production and constantly improved in this matter.
In addition, Miyake sought to bring traditional Japanese elements to the rapidly changing and moving into new directions of fashion (Issakidis & Fenelon, 2019). Its main idea was an attempt to combine the modern fashion agenda, manufacturing techniques, and traditional methods of clothing patterns. This gave luxury items not only individual features but also functionality. Due to this, Miyake has become a world-famous designer with a unique outlook on things. However, the designer continued to search for new and sensational approaches to fashion.
Brand Development
Miyake’s breakthrough was his search for the movement and form of the human body. One of the significant peaks of his work and brand collections was clothes that did not use traditional fabric materials. The brand presented a group that included clothing items made of plastic, paper, and wire. The designer titled his creations “Body Works,” giving rise to a new trend and an understanding of high fashion. In addition, the peak of the formation of the name and position of the brand in the luxury segment falls in the 1980s (Issakidis & Fenelon, 2019).
ISSEY MIYAKE’s mission was to provide potential buyers with a new type of clothing that could fit and fulfill the increasingly modern and informal lifestyle of new generations. The designer proposed a line of unisex clothing that suited any age and physique. In addition, the main features of the project were the materials’ convenience and naturalness, combined with a complimentary design. The fabrics were easy to care for and are still popular today.
Brand Heritage
Another critical stage in the development of the brand was its advertising campaign. In 1986, the designer proposed a collaboration with the famous photographer Irving Penn, which became the hallmark of the company for ten long years. The combination of unique Japanese motifs in avant-garde clothing and the photographer’s interpretation has made the brand even more famous through visual accompaniment. All this has left a great legacy in the modern understanding of luxury brands.
Miyake retired in 2018 and was replaced by a new creative director. Satoshi Kondo continues to embody the fusion of contemporary fashion with Japanese motifs given by the brand. He continues the idea that clothes can suit anyone, regardless of age, nationality, and physique. The new show, held in Paris in 2022, shows a variety of models, which are connected by pulling threads of fabrics, creating a connected chain (Corporate Information, n.d.). This is an attempt by the brand to draw attention to the modern agenda and show equality among all population segments.
Brand Sector
This section reveals the assessment of the luxury market within the haute couture and fashion industry. The modern fashion industry can be represented as a pyramid, where each segment takes its place. All these levels can be divided into five parts: haute couture, ready-to-wear (RTW), diffusion, bridge, and mass market. Haute couture is at the top of the pyramid and is characterized by its exclusivity and tailor-made work, not intended for a broad audience.
Ready-to-wear or Prêt-à-Porter are highly creative yet focus on more standardized sizes. Ready-made clothing involves selling to a more comprehensive range of customers. Diffusion takes inspiration from RTW and releases items at a lower price but still composes them at a high level.
Bridge brands are bridging the gap between luxury and affordability by offering good quality at affordable prices (Yu et al., 2020). Finally, the mass market is at the very bottom of the pyramid and covers much of the population, focusing on low prices for medium-quality items. Issey Miyake can be placed in the second segment from the top of the pyramid, as the brand offers ready-to-wear items and accessories that not only upper-class people can afford.
However, in modern society, globalization and the introduction of innovations in production processes are rapidly going on. This leads brands to compete more fiercely by making products easier to manufacture and improving product quality. Factories and factories producing ready-to-wear luxury goods appear in developing countries and those states where cheap labor can be provided. Thus, globalization promotes production in China, Bangladesh, Vietnam, and many other Asian countries. Accordingly, luxury brands are increasingly opening stores in the Asian region as consumer demand for luxury items is growing (Athwal et al., 2019).
In addition, the primary consumers of luxury brands are women who buy clothes, jewelry, and cosmetics. In Asia, the number of working women who can afford to buy luxury brands is increasing every year. Therefore, there is a clear benefit for brands in increasing regional supplies.
Besides, a luxury brand must focus on the age category of the primary consumers. An increasing number of millennials are becoming the primary audience of brands. According to a luxury market report, approximately 64% of all buyers are between the ages of 25 and 44 (Luxury Goods Worldwide, n.d.). They account for the significant purchases of branded items in the European territory and the USA.
In China, millennials make up approximately 80% of consumers of luxury brands (Luxury Goods Worldwide, n.d.). However, it should be noted that the younger Generation Z will gradually replace them. They earn and spend most of their lives on the Internet. Luxury brands are moving their products to digital platforms to meet the demands of a generation. These brands may face tough and tough competition in the future.
The continuous improvement of technology in the Asian region and the location of luxury brand factories have led to an increase in luxury markets. China is one of the largest countries in this region, and it has demonstrated high economic growth in recent decades. This shows the brand management believes that the state will become the leading sector leader.
Over time, this generation of consumers will grow, and brands must look for ways to stand out. Thus, the essential task of luxury brands is to adapt to the age group of buyers focused on the trust of social networks. Issey Miyake must understand the difference in the new generation’s tastes and how buyers’ geography will affect it. This is because traditions determine fashion, and some countries’ cultures do not coincide with others (Turunen, 2018).
In addition, the brand should use more marketing strategies on online platforms, as the age of innovative technologies implies an online business vision. Finally, targeting an audience that may belong to someone other than the upper class but can buy branded clothing is vital. Thus, Issey Miyake should focus on new trends, which will be discussed below.
Luxury Brand Management Strategies
In the age of digital innovations and various technologies, luxury brands always show their customers their importance to the company. As mentioned above, thanks to expensive and high-quality brands, people want to express their individuality through the outer shell. Accordingly, when buying luxury goods, consumers rely on their exclusivity. At the same time, they want to feel a particular attitude towards themselves, which does not exist in mass market stores.
Thus, one of the main strategies lies in the individuality and exclusivity of the brand’s luxury products (Arrigo, 2018). Examples of such a strategy would be different brand relationships with customers. Providing exclusive jewelry or accessories, membership in special clubs, or facilitating the purchase process gives the client a sense of privilege.
Issey Miyake aims to provide luxury consumers with a unique experience. Since the clothes in their collections are limited, they notify regular and vital customers about the availability of things. In addition, the company uses unique codes for its items, which allows it to approve their uniqueness and exclusivity for each customer.
At the same time, buyers can always contact the brand’s representatives if they are concerned about some issue. For privileged customers, the brand’s gourds are available in jewelry or perfumes (Corporate Information, n.d.). Thus, the marketing strategy is tied to the fact that it expresses respect to people who value the brand and maintains a close relationship with them.
Another important strategy in luxury brands is to combine the best price as an affordability factor and the desirability of owning a branded item. Even though brands prioritize exclusivity, the middle class occupies the most prominent niche in the consumer market. Accordingly, they develop several segments of things and collections within the company.
One focuses on high-end consumers and provides unique, high-quality items at high prices. The other line offers more casual wear that costs less than haute couture. Such a strategy is used to show that every person can afford a decent lifestyle. To maintain interest among buyers, Issey Miyake has developed several lines (Corporate Information, n.d.).
One of them is a limited number of items of clothing, which wealthy clients highly value. The other collection is fewer designer pieces that meet the needs of a larger audience. In addition, the company develops accessories and perfumes that are accessible to middle-class buyers.
An equally important strategy for luxury brands is to achieve relevance and recognition in different markets following geographical location. This will allow them to expand sales and the number of physical stores in other countries. Since people worldwide value big-name brands and their exclusivity, companies are trying to meet the needs of specific cultures (Arrigo, 2018).
Since the Issey Miyake brand was initially located in the Asian region, which is now experiencing the most significant growth in brand locations, their task in this area is simplified. They are developed by the traditions of the indigenous population and offer European buyers the convenience and elegance of Japanese motifs. At the same time, they must follow the trends of new generations. Otherwise, the brand will lose its relevance.
Case of Managerial and Marketing Strategies
Designer Issey Miyake initially developed clothes that would meet the geographic and demographic needs of the primary audience. First of all, the brand created unique items of high quality, combined with new tailoring technologies and the popular avant-garde style. Subsequently, the brand has evolved, focusing on changing the understanding of fashion and the needs of a generation increasingly focused on convenience. The designer called his projects “pieces of clothes” that would be comfortable for any consumer (Corporate Information, n.d.). Thus, the brand remains relevant for buyers from different countries.
In addition, the brand quickly and effectively responds to various crises. The COVID-19 pandemic has become a dangerous phenomenon for the economy and the development of many brands in different segments. However, after the closure of physical stores, the brand turned its attention to developing online platforms.
The official website has updated videos on making and combining clothes from their collections (Corporate Information, n.d.). Due to this, buyers could observe the development of the brand and new ideas in luxury lines. The strategy was designed for buyers worldwide, as the commercials had only visual accompaniment. Furthermore, the brand has made booking a trip to the store easier after restrictions are eased. They created a separate website where clients could choose the most convenient date.
However, the brand did not develop any additional entertainment and customer attraction. On average, their content stayed the same as the pandemic progressed online servers. Nevertheless, they have made it convenient to use when visiting physical stores to prevent the spread of the virus (Corporate Information, n.d.). Thus, on the official website, the company made a statement about the restrictions and limited acceptance of customers who can be in the store simultaneously.
Brand Communication Strategies and Target Audience
Communication strategies in the modern world are increasingly moving to the digital plane and online platforms. From there, people learn about new products, the relevance of the brand, its exclusivity, and other equally essential points (Voorveld, 2019). Issey Miyake keeps up with the times and devotes considerable attention and resources to developing social networks and attracting more online shoppers.
One way to implement it is to use contextual advertising, which allows one to offer buyers things online following their geographic location and early requests. In this way, the company can provide the client with an advertisement for the appropriate line, which would meet their price, cultural, and actual needs. At the same time, the brand cooperates with Internet celebrities, using it as a way of communication with a large number of users. Celebrities advertise a brand that barters clothes and accessories for them.
Potential customers see brand relevance as the current generation is used to targeting ads from the people they follow on social media. The current generation tends to learn about most things through the Internet, where most of their daily communication occurs. Issey Miyake is gradually moving away from television advertising and other aging brand communications. The company’s management is aimed at direct contact with the client through social networks and possible mailings about the appearance of new collections (Voorveld, 2019). To attract more attention, the brand uses its historical posters on the site as part of the entertainment and exclusivity of the brand, which is a marketing strategy on the online platform. Issey Miyake has a separate category on the official website where consumers can explore the brand’s development periods, enhancing their perception of its uniqueness.
Social media is mainly geared towards Millennials and Generation Z. Issey Miyake advertises on the most popular platforms to keep the audience engaged. This number includes the most popular social networks, such as Facebook and Instagram.There, the brand’s marketing team posts content that meets the trends of maintaining official pages. For example, they use beautiful visual content that they retain in a unified style (Issey Miyake, n.d.).
It is important to avoid visual noise that can turn the presentation of one content into disjointed pieces. At the moment, Bren’s Instagram has 284 thousand followers and constantly continues to develop and publish posts (Issey Miyake, n.d.). An equally important part of maintaining Instagram content is the stories window, which, according to statistics, is viewed by more people.
As a result, the brand duplicates its publications there so that potential consumers get all the information. Moreover, the brand has a Facebook page, mainly publishing video content about the company’s work (Issey Miyake Europe, n.d.). This helps maintain customer interest and attract customers in areas with no physical stores. Video content allows users to follow the creation of luxury goods from start to finish. In addition, it gives an understanding of the quality of materials and their durability in the process of extended wear. The brand shows the technologies that must be used in production, reinforcing consumers’ opinions regarding the brand’s focus on providing exclusive items.
Brand Analysis
When segmenting the consumer market for luxury brands, it is essential to distinguish the following groups. The main buyers of expensive things in modern society are the generation of millennials (Yu et al., 2020). In addition, it is important to note that they can be divided into two sections. The first includes people belonging to high society who are ready to buy exclusive models of things. The other category focuses on people above average who can afford some of the brand’s collections. Finally, one can single out Generation Z, which is growing up and becoming a luxury consumer.
Targeting
As mentioned above, the main consumers of luxury are millennials from 25 to 45 years old. As a result, the primary targeting of the brand should be focused on them, offering quality and exclusive clothing (Luxury Goods Worldwide, n.d.). However, the children of wealthy Generation Z parents may soon replace millennials in the luxury market. Accordingly, the brand’s task is to focus on both older and younger customers.
Positioning
Issey Miyake stands out from the competition with high-quality Japanese and Indian fabrics. In addition, the brand’s lines are diverse, which helps customers find their image and show a bit of extravagance. For the younger generation, unusual forms of clothing are offered to emphasize uniqueness. Despite fashion trends, the brand continues to incorporate traditional Japanese motifs into clothing (Corporate Information, n.d.). All this makes the company unique and meets the target audience’s requirements.
SWOT Analysis
Below is a SWOT analysis of the Issey Miyake brand, aimed at the relevance of the company’s marketing strategies and its competitiveness.
Table 1 – SWOT Analysis
Strengths
Among the brand’s current strengths, one can single out its well-established image as a manufacturer of quality designer items. In addition, the company is famous for quality Japanese and Indian fabrics, which are designed in an avant-garde and modern style, combined with the indigenous traditions of the country (Corporate Information, n.d.). At the same time, the brand retains its relevance in many territories, as clothing with Japanese motifs meets European society’s needs, allowing for global expansion.
The ability to complete the look with a line of accessories is an undeniable advantage for clients who want to show their individuality. Finally, the extensive development of social media is a catalyst for attracting potential consumers (Voorveld, 2019). As Generation Z increasingly consumes luxury brands, digital communication with this audience keeps the brand relevant in today’s environment. Even though the brand does not have accounts on some popular social networks, it cooperates with ambassadors and representatives. As a result, people post photos of themselves wearing Issey Miyake clothes, tag the brand, and give positive feedback about the quality and design of the items. Thus, the brand continues to occupy places on popular Internet platforms and remains recognizable for the current generation.
Weaknesses
However, the successful development of the brand and its strengths does not mean the absence of visible and actual weaknesses. First, Issey Miyake is distinguished by its high product prices. Accordingly, a limited audience may allow the purchase, which can cause stagnation (Cantista & Sádaba, 2019). An attempt to solve this problem is to produce cheaper lines, including accessories and perfumes. The price concerning each segment remains above average, which does not meet the needs of most of the middle class.
In addition, the new generation’s emphasis is aimed at body positivity. Though the clothes in the brand’s lines are universal and fit many sizes, many items are not designed for overweight people. The lack of a line for obese people can be an ethical and economic problem for the company. Moreover, many modern luxury brands are launching a line of children’s clothing, as parents want to provide children with quality clothing. Issey Miyake has never produced a children’s collection in history, which may significantly reduce future profit.
Opportunities
The brand can meet the younger generation’s needs by introducing more modern teenage collections. As a result, children of wealthy families can rely on their parents when buying luxury items. Additionally, contemporary society aims to improve the world’s ecological situation. Reducing the use of plastic and working with only natural fabrics will allow customers to see the brand’s modernity and desire to make the world a better place (Athwal et al., 2019).
Moreover, diversity in collections and forms of clothing is relevant for buyers who want to express their exclusivity and unique views (Thomsen et al., 2020). Thus, consumers can combine their purchases and create unique looks for themselves. Among other things, it is essential to meet the needs of a higher class since they are the brand’s primary audience. As a rule, people of this social stratum wear everyday things and attend social events. Accordingly, Issey Miyake can contribute a collection of evening dresses and suits to meet the needs of the wealthy.
At the same time, the leaders of each brand should think about global expansion. Currently, Issey Miyake is more widely represented in the Asian region, and it is becoming more active in the consumption of luxury goods. However, the number of brand stores on the European and North American continents is inferior to Japanese (Corporate Information, n.d.). Accordingly, Issey Miyake can develop their markets in other countries. The advantage to this is its active social media presence and brand reputation as a quality and avant-garde design store.
Threats
The main danger for Issey Miyake may be the constant growth of competition in the Asian market. Although the brand established itself in this territory 50 years ago, Asian residents are confident in the quality of foreign brands. In this regard, the number of stores of various luxury brands in China and Japan has increased (Chi-Hsien & Nagasawa, 2019). Issey Miyake’s mission is to offer more proactive marketing strategies to attract and retain consumers.
Furthermore, the Chinese market has been actively imitating brands in various fields over the past decades and offering its analogs. Although the wealthy still value the quality and image of the company, a large part of the middle class is focused on saving money combined with the average rate. Therefore, Chinese counterparts can replace original luxury goods for many people (Chi-Hsien & Nagasawa, 2019).
At the same time, brands with children’s clothing in their lines can become more successful in wealthy families. Since parents want to provide their children with a high and proven level of comfort, they can buy things in the same stores where they dress. In this case, Issey Miyake faces the risk of customer churn.
Conclusion and Recommendations
Based on the SWOT analysis, the following recommendations can be made to strengthen the brand’s position as a competitive company. These pieces of advice can help Issey Miyake reach a new audience for luxury consumption, including the younger generation. Compliance with the measures can be an impetus for developing the brand and improving its position on online platforms and social networks.
- Expand clothing sizing to meet a tolerant body positivity agenda to provide consumers with equal treatment of body shapes.
- Release a line of children’s clothing so wealthy parents can buy clothes and accessories from the same brand they wear.
- Increase investment in marketing strategies on online platforms to reach a new generation of luxury consumers.
- Diversify the collection of clothes with spring dresses and suits to maintain the brand’s exclusivity in the everyday spectrum.
- Invest resources in developing stores in the European and North American continents.
- Use natural and fast-degrading fabrics to meet the environmental trends of modern society.
- Increase the number of ambassadors representing the reputation and image of the brand on various online platforms.
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