Internationalization of Luxury Fashion Companies: a penetration project in Poland for Salvatore Ferragamo

1 Introduction The lowering of trade and investment barriers, the supraterritoriality of companies and the technological development achieved in the last decades thanks to the globalization process, have drastically changed the world‘s economical scenario (Frankel, 2000). Firms cannot anymore isolate themselves from the global market; conversely they have to engage an international challenge where the final premium is survival. What for several firms is a possibility of expanding their horizons worldwide, for others has suddenly become a necessity. However, while some companies need to adapt themselves to fit new environments, adjusting products‘ characteristics and prices, other firms do not. Luxury fashion firms do not conform to the market; they shape it. Since the purchase of luxury goods is mostly driven by emotional factors (Kapferer, May 2011) and only slightly rely on rational indicators, firms operating in this sector are entrusted with a great deal of power by their consumers. A power they can use to charge on them prices far above the market average (Vigneron F., 1999). The aim of the present thesis is to target the best environment in which an Italian fashion company, Salvatore Ferragamo, should expand its business –mainly for what concern the tie market-. A precise analysis of the overall environment (CEE countries) and of the specific marketplace will be fundamental to formulate the best penetration strategy for the Florentine company. The role that brand name plays in this scenario, the link between luxury and status and the consumers‘ reaction to high price policies are only some of the aspects that will be taken into consideration in the first chapter. Subsequently the main changes, relevant for the luxury fashion companies, brought by the globalization process will be highlighted. Particularly, there will be displayed all those critical factors that determine the success or the failure of an internationalization project.