The Luxury Strategy has established itself as the definitive work that sets the record straight on the essence of a luxury strategy. It puts an end to the prevailing conceptual and managerial confusion, and explains the fundamental differences between "premium", "fashion", and "luxury" strategies. Based on an analysis of the social functions of luxury, worldwide best practices (beyond the traditional sectors of luxury) and first hand direct experience, it sets out the constraining and often paradoxical rules for success, such as turning marketing rules upside down. The second, completely revised and updated edition of this classic text explores the diversity of meanings of "luxury" across different markets as well as the impact of social networks and digital developments on the luxury strategy. Written by two world experts on the subject, it provides the first rigorous blueprint for the effective management of luxury brands and companies at the highest level, including human resources and financial management. It rationalizes those business models that have achieved profitability and unveils the original methods that were used to transform small family businesses such as Ferrari, Louis Vuitton, Cartier, Chanel, Armani, Gucci, and Ralph Lauren into profitable global brands. The Luxury Strategy will help you to gain a thorough understanding of the unique rules for successful luxury brand management. But more than this, it describes how any organization, from any sector, can learn from luxury and differentiate itself in the long term, even in the business-to-business environment.