Illum - det nye luksus stormagasin: En analyse af Illums transformation på luksus markedet

Kristine Holm Raahauge Kristensen

Student thesis: Master thesis


We live in a globalized world, which means that we live more international across countries and therefor the markets, including the retail industry, are becoming similar to each other. The globalization has had an impact on the worldly demand and consumers are expecting to find he same things wherever they are, or at least the possibility to get it regarding the costs. Illum has commenced the inevitable opportunity to encounter the consumer’s demands and thereby follow the globalizations impact. This following report is the result of a Masters thesis written to determine and explore the culture of luxury in regard to the department store Illum located in Copenhagen. Illum has been undergoing a huge business change, which has impacted the consumption and the reflection towards Illum. The thesis explores Illums brand as it is, after the reformation and the purpose of why Illum has to repositioning itself in the first place. The theories applied in this report focuses on the aspect of branding, including the identity, image and culture of Illum and their overall brand equity. Furthermore the report focuses on their digital branding and the contents thereby and the aspects of storytelling, with the purpose of determine the experience economy in this matter. In addition, the thesis explores the consumer behaviour, with focus on the luxury aspect, as well as the consumer culture, which enhances these purchases as well as the considerations behind. The theory of Gilles Lipovetsky (2005), Bærenholdt & Sundbo (2009), Pine & Gilmore (2009) supports each other in the exploration of the consumerism, storytelling and experience economy which determines what kind of culture we have today, as well as how Illum is embracing that in regards to their repositioning. The theory of Keller (2013), Kapferer and Bastien (2013 and 2012) and Aaker (1996) supports each other in the main exploration about Illums branding strategies in regard to the perception of Illums current brand after the change of the department storeby using the CBBE-model. In regards to these Hatch & Schultz (2011) was used to determine if the change of Illum had caused any gaps between the vision, image and culture, as the findings stated it had. Even so, my findings concludes that the perception of Illums current brand is relatively strong, even after their change from a regularly department store to a much more luxury defined department store. Furthermore, my findings concludes that the new consumer culture based on the hypermodern culture is the right consumer for this type of business, as the need for self-image and realizations is in a much larger scale as it ever were before and also that the need for pleasure defined products is also based on the hypermodern consumerism as shown in Maslow benefit pyramid. Adding to this, the experience economy is much more appreciated than ever before, which has generated the aspect of storytelling to a business-marketing tool, which Illum has embraced through their marketing channels and their social media, including Facebook and Instagram. The thesis also states that Illum has changed almost everything about the department store, so it could meet the criteria of luxury in the design and the aesthetics in the visual appearance. Finally, the thesis suggests that the change of Illum has uplifted Copenhagen as a fashionmetropol and thereby has put Denmark and Scandinavia on the big European map.

EducationsMSc in Business Administration and Organizational Communication, (Graduate Programme) Final Thesis
Publication date2018
Number of pages79