Luxury Brands and Art Collaborations as a Leverage on Brand Equity and Art(Ist) Equity

Abstract

In 2020, a year of turbulence, seismic in scale and rapid in impact, luxury brands strengthen their relationship with art. While the world is still processing the effects of the last decades (digitalization, sustain- ability, diversity), luxury brands and art collaborations are used as a strategic tool in luxury brand management to create value. As the pandemic1 and broader social outrage exposed fault lines in society, even more luxury brands open flagship stores de- signed in collaboration with archistars (famous architects). Luxury brands establish foundations where art is exhibited and promoted. Culture funds become the new patrons of art. Limited art editions of iconic luxury products turn to revenue boosts. This research focuses on a case study of luxury brand and art collaborations. The ten most valuable luxury brands are used to analyze luxury brand and art collaborations as a leverage on brand equity and art(ist) equity. The bleeding of personal luxury good brands as well as contemporary visual arts are focused. The study identifies particularly positive effects de- riving from art in the creation of equity value. The core issue discussed is whether contemporary art may represent a possible strategic tool for competing and differentiating in the global luxury industry up to 2030. The research investigates two main concepts that rep- resents the theoretical framework: art and luxury. Literature research deductively links this case study with appropriate theories on brand equity and art(ist) equity. During this, a time horizon between 2019 and 2021 is chosen to address the latest insights in luxury brands and art collaborations. The topic is investigated explorative and qualitative with expert interviews. To tackle the research topic all-encompassing, the following groups of recognized stakeholders have been inter- viewed: (1) luxury brands, (2) artists, (3) art galleries, (4) trend- and market researchers, (5) luxury customers and (6) city. Finally, managerial insights on the implementation of artistic collaborations are derived and suitable strategies for luxury brands who plan to be involved in such collaboration agreements are suggested. The sticking point in former academic research has always been concrete proof that luxury brands and art collaborations lead to an increase in equity beyond a short-term social media buzz or press coverage. This is the reason why this paper develops an S-O-R equity model to show the causality effects of such collaborations.