Absolute'i’s Post

Is the luxury brand scarcity strategy sustainable? ⏱️ I recently accompanied my friend to his appointment with a Rolex boutique. This personal experience highlighted the difference between perceived scarcity of a luxury brand and the reality behind its allocation process. While the scarcity strategy is built to control Rolex’s reputation, I found the experience misleading and even disingenuous. This lead me to take a deep dive into this popular strategy and how luxury brands must balance exclusivity with transparency to maintain loyalty and relevance. You can read the full blog below 👇 https://bit.ly/3WCDtfG Let us know your thoughts on the luxury brand experience in the comments. #BrandStrategy #Rolex #LuxuryBrand #LuxuryBrands #MarketingStrategy #Brands #CustomerExperience #ConsumerTrends

Quiet Luxury is rarefied - Think of you dressed up = BMW Gran Coupe 228i👇 ▶️ As luxury brands come under flak with low numbers, as China's luxury march slows, and as key luxury houses miss their targets in H1 2024, it seems all doom and gloom. ▶️ if you follow enough, you will know - Quarter 1 last year was breaking the revenue targets, and luxury brands knew their customers, and H1 this year is all about how they can regain their balance. ▶️ The only way to stabilize the ship would be shareholder expectations, stable revenues, curated investment, curbing over-production, and mitigating unsold inventory - short term. Long Term will be a good journey. ▶️ We have articles and writes ups on: 1. Stalled market and how luxury brands can navigate 2. Turbulence in China and Consumer Preferences and shifts 3. We have Kering & LVMH with dips as two major Luxury Brand Houses ▶️ Amongst all that we have Loro Piana. 1. 200-year-old brand 2. 6th Generation business, which is now part of the LVMH group 3. Sells to rarefied uber-rich 4. Products that are seeped in craftsmanship 5. Experiences where you get to hobnob with like-minded people 6. Production that does not seek scale but more likeforlike 7. What the brand builds is legacy. ▶️ 'Excellence' section of Loro Piana has one of the most exotic wools - Vicuña ▶️ The Carousel takes you through - What is special about the wool - Where it comes from - Why is it deemed exotic - History of Loro Piana - Vicuña in it's range Thought you would like to know the brand better and amongst the doom and gloom, get to see what makes Quiet Luxury - roar. #management #luxury

Navigating the Luxury Market Downturn: The Pitfalls of Massification and the Resilience of Quiet Luxury The recent downturn in the luxury market, with disappointing Q3 results for LVMH and Kering, has only confirmed what I’ve been predicting for some time. Too many brands ventured too far into the massification of luxury, diluting the exclusivity that defines the sector. This strategy might have delivered short-term wins, but it has led to long-term vulnerabilities. Interestingly, the quiet luxury segment, represented by brands like Hermès, has remained largely unaffected by the crisis, reaffirming the importance of maintaining a clear and authentic positioning. This serves as a wake-up call: luxury cannot thrive on mass-market appeal. Brands need to refocus on their essence—heritage, craftsmanship, and exclusivity—to navigate through these uncertain times. Now more than ever, it's crucial for luxury brands to avoid strategic missteps that could damage their long-term value. I invite luxury brands looking to rethink their strategies to reach out to me. With my expertise in luxury strategy and market trends, I can help guide your brand through this challenging period and beyond. #LuxuryStrategy #QuietLuxury #BrandPositioning #LuxuryMarketing #LuxuryRebound

"Luxury is the ability to create desire" 👉 This quote is attributed to Mr. Bernard Arnault - founder, chairman and CEO of LVMH, the world´s largest luxury group, spanning fashion giants Louis Vuitton, Christian Dior Couture, watches & jewellery Bvlgari, Tiffany & Co., wines & spirits Ruinart, Moët & Chandon to hotels Belmond, Cheval Blanc and much more. 👉 What makes a luxury brand "desirable"? The Brand Desirability Framework proposed by Accenture, published in a recent research report, is an interesting breakdown of the 7 key components of Desirability - highlighted in the image below. 👉 "Brand desirability is no longer just a question of quality and exclusivity. It’s also about delivering fluid, consistent experiences both in store and online. And it’s about supporting this with foundational digitized operations and a renewed commitment to brand DNA with sustainability by design." Full report: https://lnkd.in/d_MVA65D 👉 Luxury strategy is all about creating desire - consistently over time, no short cuts. In a challenging year for most of the #luxury industry, the most desirable brands are thriving...

🌟"Luxury goods are the only area in which it is possible to make luxury margins."🌟 This is a statement made by Bernard Arnault, the CEO of LVMH and one of the three richest people in the world. Luxury brands have an unparalleled ability to transform a $50 product into a $1,000 or $2,000 masterpiece. This isn't just about the tangible item—it's about what the brand represents. When people buy luxury, they invest in prestige, status, and exclusivity. They're acquiring a piece of heritage, like Louis Vuitton, a storied French brand since 1854, Or Rolex, where owning a watch means being part of an exclusive club. In the world of luxury, it's not just a product—it's a statement and a legacy. #LuxuryMarket #Fashion #ExclusiveBrands #LVMH #LouisVuitton #Rolex #LuxuryLifestyle #BernardArnault #MarketingInsights

Hermès In A Market Of One For six years Hermès has outperformed the luxury market and continuously reported double digit growth. In the first half of this year the brand reported double digit growth in all regions in a declining market. #luxurymarket Hermès is not like any other luxury brand. For me it has no direct competitors. I don't think in our life time any luxury brand will or can replicate Hermes success. How do you replicate their heritage and that level of excellence? #heritage Hermès results suggest that there is increasingly a 'great luxury divide' of high performing luxury brands breaking away from the rest of the market. Scientia est Potentia - Knowledge is Power #hermes #luxuryheritagebrand #thefreshkid

"“Until 30 years ago, luxury had no adjectives attached to it,” says Brunello Cucinelli, who runs the luxury brand that carries his name. The industry now talks of “aspirational” or “accessible” luxury. According to BCG, another consultancy, shoppers who spend €2,000 ($2,100) or less a year on luxury goods and services—a trifling sum by industry standards—account for nearly two-thirds of total sales."

If market share leader LVMH is a bellwether for the greater luxury market -- I'd argue it is -- then the luxury market is headed for a fall. I dug into the data and here's what it said to me in my latest Forbes.com article with Alessandro Balossini Volpe Cowen Inc. #louisvuitton #luxurymarket #luxuryrecession #luxurychina #luxuryfashionmarket #luxuryleathergoodsmarket #businesscycles

Luxury at a Crossroads The recent financial results from some of the world's most iconic luxury brands are sounding alarms in the industry. While a few standouts, like Hermès and Prada Group’s Miu Miu, continue to thrive, other major players face declining sales and profits. As brands become more dependent on price hikes and hyper-focused on Asia, they may be neglecting a need for innovation and differentiation in their approach. Is it time for a reset in the luxury industry’s strategy? 💬 How should luxury brands adapt to regain momentum in an evolving market? #LuxuryMarket #StrategicInnovation #ConsumerTrends #Hermès #LuxuryBrands #themoove

There is good news for Swiss giant Richemont: the luxury group, which owns Cartier, Van Cleef & Arpels, and the high-end watch brands Piaget, IWC Schaffhausen, and Jaeger-LeCoultre, among others , has released its results for the third quarter of its 2024/2025 financial year, and the figures are very positive. #luxury #watches #jewelry #results #growth