Whither industry leaders? Lessons from haute couture

Why do industry incumbents cede mass-market leadership and target shrinking niches? Examples from the luxury fashion industry show that incumbents in craft industries are particularly susceptible to losing leadership due to an inability to appeal to new networks of stakeholders in order to ensure legitimacy with new groups of consumers. Some firms facing this scenario have managed to marry their creative spirits with the needs of the market. As craft industries begin to attract mass-market interest, incumbents must become more strategically focused, either on a mass-market niche or on a small, up-market one.