The present course is designed in collaboration with Altagamma to illustrate the fundamental of the sector and create a link between theory and practice in the key processes along the value chain of high-end and luxury goods companies. Several case studies will be discussed, with particular emphasis on Italian leading companies, to understand the most relevant perspectives. The course approach will be Hands-On and based on real cases discussion, to allow participants to see the key principles of High-End and Luxury Management applied in practice.

A note on Altagamma:

Since 1992, Altagamma Foundation gathers High-End Italian Cultural and Creative Companies, recognized globally as authentic ambassadors of Italian style. The mission of the Foundation is to increase the competitiveness of the High-End industry, contributing to Italy’s economic growth. Altagamma members operate in multiple sectors among which fashion, design, jewellery, food, hospitality, automotive, yachts and wellness.

Find out more on www.altagamma.it

Specifically, by the end of the course, participants are expected to have reached the following learning objectives:

• To know the fundamentals of premium and luxury market today and luxury Critical Success Factors and to be familiar with recent market trends in high-end and luxury consumption;
• To understand the key theoretical principles behind sound luxury strategy and execution and to see how these principles work in real cases;
• To evaluate the strategy of a brand, identifying strengths and weaknesses, and be able of clearly communicate to different audiences the points of parity and points of difference of a specific brand in a given market;
• To acquire basic definitions (e.g. Manufacturing, Production Process, Supply Chain) as well as an overview of the paramount actors and processes along SCM for Luxury firms;
• To understand the link between (product-related) Luxury Critical Success Factors and the way customer requests are handled and to be able to design a customer-oriented strategy in a luxury company;
• To be able to apply the contents of the course to a real problem and deliver an effective presentation to company representatives.

The luxury sector fundamentals:

• The origins of the concept of luxury
• Facts & Figures: 20 years of Altagamma Monitor
• Academic definitions and national approaches (Altagamma, Comité Colbert, Meisterkreis, the Walpole Society)
• Where and how is “value” created? Critical Success Factors of a luxury brand; symbolic vs technical brands; from the Veblen effect (never scientifically demonstrated) to Bandwagon and Snob effect; different customer profiles for luxury and high-end products and services.

Anatomy of the luxury value chain:

New Product Development:

• Focus on Personal Luxury Goods – Apparel/Footwear/Accessories: New Collection Development; timing and critical aspects
• Focus on complex products (cars, yacths, design/furniture): co-design and other collaborations with supplier

Supply Chain Management (SCM):

• Luxury SCM: do consolidated SCM models and theories apply?
• Make or Buy; sourcing strategies; manufacturing: craftsmanship at the origin of true luxury.
• Luxury and Sustainable Supply Chain Management

Distribution:

• Distribution channels and retail formats; distribution agreements; selecting the most appropriate format.

Retail:

• Managing Directly Operated Stores (DOS); managing the eCommerce channel and developing an omnichannel strategy.

Production and Distribution Planning:

• Choice of number of echelons and Order Penetration Point positioning; optimal management of trade-off between stock-out and over-stock (application of Newsvendor model to the case of Personal Luxury Goods distribution).

Innovation and digital solutions

• Digital solutions for the luxury supply chain: case histories and Software Demonstrations:
• Design / New Product Development: CAD/CAM and Product Lifecycle Management (PLM);
• Production Planning: Stealth;
• Digital solutions to support the analysis of environmental impact along the product lifespan – Product Lifecycle Assessment (LCA).

• Case 1: digital technologies to support optimal customer experience in retail – from the fist failures to a necessity in the post-Covid new scenario;
• Case 2: traceability and transparency, efficiency and effectiveness along the supply chain –RFID solutions and blockchain projects;
• Case 3: prototyping virtualization, online fashion shows and virtual showrooms – less costs, less travels, shorter time-to-market, without impacting on quality.

No significant preliminary competences and knowledge are required.

Some of the case studies will be taught with a “flipped classroom” approach. It means that students will have to study the relevant materials before the class, and to attend the class well prepared for maximum training effectiveness.

Two groupworks (on cases or assignments addressed during the semester): 50%

Final written exam (a case study, to be discussed from a qualitative and quantitative point of view, open book): 50%