ABSTRACT
This chapter introduces the reader to the theories on corporate parenting and the BCG Matrix. The term “parenting advantage” used by Goold et al., value creation and the expectations of stakeholders and parent responsibility are covered in detail. In this context, four important luxury fashion conglomerates are introduced as case studies: LVMH, Richemont, Kering and OTB, with detailed analysis of their segments, parenting style and individual “virtuous cycle". Furthermore, the idea of bad parents is explored with the case example of private equity firm Permira that had once taken over Valentino. Sustainability Note 4 reflects on what sustainable and responsible brand parenting entails and what it should avoid. The chapter concludes with expert insights from global brand expert Angela Farrugia.
