Abstract

In today’s rapidly evolving retail landscape, heritage luxury companies face a unique challenge: maintaining their artisanal craftsmanship and tradition while adapting to digitalization and sustainability demands. These firms, renowned for their exceptional and personalized goods, must reconcile their time-honored production methods with modern consumer expectations for both bespoke experiences and digital accessibility. This paper explores this dynamic through case studies of three fashion Italian brands: E. Marinella, Brunello Cucinelli, and Manteco, all exemplifying the intricate balance between heritage luxury and contemporary commerce, while embodying the essence of Made in Italy. The research question investigates how companies rooted in heritage and tradition can sustain their handcrafted production methods while meeting the increasing demand driven by digital channels and e-commerce. Modern consumers seek engaging, customized experiences that blend physical and digital environments without compromising on sustainability, placing heritage luxury firms in a delicate position. These must preserve their traditional manufacturing techniques while being agile enough to respond to the digital era’s demands. This research provides a nuanced understanding of how heritage luxury brands balance tradition and innovation, offering insights for businesses aiming to thrive in the ever-evolving retail environment. Through a multi-case study, including in-depth interviews with managers, the study contributes to an advancement of knowledge about current challenges in managing the «luxury paradox». Findings highlight the multifaceted strategies that luxury heritage brands employ to become able to maintain artisanal production while meeting rising e-commerce demands, with the support of a coopetitive approach. Ultimately, this paper sheds light on the factors that both empower and challenge heritage luxury firms as they navigate the complexities of modern retail and distribution landscapes.