A recent investigation by an Italian agency exposed the luxury brand #DIOR for producing its bags for only $57 and selling them in stores for an exorbitant $2,780.
My question here is what compels these luxury brands to keep a retail multiplier of 50 times the cost price?
What is the difference between a #Brand and a #Private#Label?
Is it only the aspirational value, positioning, exclusivity of these High end brands Or much more?
#retailplans#retailmultiplier#luxuryproducts#highendbrands#brandpositioning#brandmarketingFirstpost
Snr Financial Professional -helping individual & business owner make, keep & protect money! Experienced in designing Tax-Free Retirement, College funding, index annuities, and estate preservation.
It was a pleasure to speak with Madeleine Schulz at Vogue Business yesterday about potential impact of the creation of Authentic Luxury Group (ALG), a joint venture of Authentic Brands Group (ABG), which owns brands including Barneys New York, Vince and Hervé Léger and Saks Global.
The impact of this deal in a slowing market for premium and accessible luxury goods is an open question.
But ABG is involved in a wide range of retail verticals and this does represent an opportunity to deepen its footprint in luxury.
It's always been a fascination that how luxury brands get people to buy their overpriced products. Recently I saw a video explaining it nice and clear which I suggest you watch as well.
https://lnkd.in/dvzcG3yd
But in case you don't have the time, here is a summary that takes much less time to read than watching 37 minutes of video.
#luxury#productdesign#behaviordesign#branding
The essence of luxury isn't just high prices but exclusivity, status, and symbolism. Historically, luxury has been about elevating the upper class above common people, a trend dating back to ancient societies where luxury items were legal markers of social class. Modern brands maintain this exclusivity by creating scarcity, such as Ferrari, which limits vehicle production and requires customers to prove their loyalty before being allowed to purchase high-end models.
Luxury brands sell experiences, not just products. Whether it's visiting Ferrari factories or the intricate process of unboxing a high-end item, luxury thrives on anticipation and emotional connection. This careful attention to detail and the anticipation of acquiring a rare item are key drivers behind the desire for luxury goods.
They also manipulate advertising to enhance the desirability of their products. Models in luxury ads often appear aloof and judgmental, creating a gatekeeper effect that reinforces exclusivity. The brands also embrace polarizing designs and limited customer bases, furthering the idea that not everyone is worthy of owning their products.
Of course they take years to perfect their products, like high-end watches or bespoke cars. These items are designed to last for generations, with imperfections adding to their mystique and increasing their value over time. This sense of timelessness contrasts with fast fashion and mass-produced items, which prioritize convenience and disposability.
One common approach is to craft the spaces where their products are sold, using architecture and interior design to elevate the perceived value of the items.
Luxury is often a balance between elitism, wastefulness, and genuine craftsmanship. Consider that luxury can be worth the investment when it reflects personal meaning, creativity, and passion. And maybe supporting individual creators and artisans helps preserve the original spirit of luxury, as opposed to mass-produced goods that are disconnected from their origins.
Luxury is intrinsically tied to purpose and experiences, illustrating the industry’s evolution from a product and service orientation toward an approach centered on human experiences and emotional engagement Carlota Rodben
@daxoretail #luxury#lucurybrand#luxuryretail#engagement#retail
How many brands that you patron are actually doing something interesting?
With so many generic brands out there, one remains steadfast in leading the way to a new day. One filled with bold colors, expression, luxury, uniqueness, and premium quality.
www.ExtraAve.com#topbrands#designerbrands#mensbrands#luxurybrands#designerfashion
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
🎩 Embracing Quiet Luxury: Redefining Elegance in a Shouting World 🎩
In today's bustling marketplace, luxury brands are undergoing a subtle yet profound transformation: the emergence of quiet luxury. 💍 🤫
Contrary to the belief that flashy logos signify prestige, recent research suggests that understated sophistication is the new hallmark of luxury.
Gone are the days when conspicuous branding ruled supreme. Instead, discerning consumers, particularly #millennials and #GenZ, are gravitating towards authenticity, quality, and sustainability.
This shift is epitomized by brands like Hermès and Bottega Veneta, which favor muted elegance over ostentatious displays.
But what impact does logo prominence truly have?
Surprisingly, prominently displayed logos may deter consumers, making brands appear inauthentic and less desirable. Across diverse cultural contexts, consumers express a preference for understated elegance over flashy branding.
However, not all consumers share the same sentiment towards brand prominence. While some embrace discreet luxury, others view prominent logos as a means of signaling social status or aspirations. 🤑
For luxury brands navigating this delicate balance, authenticity is paramount.
By prioritizing quality and embracing the ethos of quiet luxury, brands can forge deeper connections with consumers and stand out in a crowded marketplace. 📈 😎
As the adage goes, sometimes, the most powerful statements are made in silence. ✨ 😉
#QuietLuxury#Elegance#Branding#Trending#Marketing#Advertising#Forecast#Brands#Luxury#Insights#DigitalCulture#WhatsHot#ContentTesting#Research
Unlike mass-market brands that respond to consumer demands and market shifts, luxury brands establish their identity based on uncompromising principles, often dictated by heritage, craftsmanship, exclusivity, and tradition.
The vision of a luxury brand is about creating a myth, a dream, or an aspirational, timeless, and symbolic ideal. This vision should be rooted in an unshakeable sense of purpose and a clear, unwavering belief in the brand’s value and position.
This vision that sets luxury brands stand out:
- Luxury brands are less concerned with the latest trends or technologies and instead prioritize their vision as a beacon of timelessness and exclusivity. They don’t chase customer preferences but rather set a standard that the audience aspires to reach.
- A luxury brand vision often reflects something that consumers can't easily obtain—a sense of history, status, or mystique. This draws in customers not just for the product but for what it represents, creating a deep emotional appeal that resonates across generations.
- The vision of a luxury brand includes a commitment to quality and craftsmanship, often manifested through rare materials, traditional methods, or artisanal skills. These elements reinforce the brand’s timeless appeal and help create a product that transcends mere utility.
- Luxury brands often position themselves as custodians of a cultural or artisanal heritage. This deep-rooted connection to tradition and history creates a sense of continuity and cultural significance that consumers value.
Brain <> Brand | https://lnkd.in/duFJCyCi#BrandManagement#LuxuryBrandManagement#LuxuryBrands#B2B#BrandStrategy#BrandPurpose#BrandDevelopment#DesignThinking
Luxury and premium brands both aim for excellence, but their approaches differ significantly.
Luxury whispers exclusivity. Think Hermès handbags or Rolls-Royce cars: limited availability and top-notch craftsmanship create a status symbol. Rich heritage and bespoke service solidify their timeless prestige.
Premium shouts innovation for the achiever. Apple and Tesla exemplify this. They offer superior quality and cutting-edge features, making them a step above the ordinary. Their focus is accessibility, not exclusivity.
At ADSTRAT BMC we understand the nuances of both luxury and premium branding. We craft targeted strategies that resonate with your audience, whether you aspire to embody the exclusivity of a luxury brand or the innovation and quality of a premium brand.
Send us a DM today and discover how we can help elevate your brand to the next level.
#ADSTRATBMC#BrandManagement#BrandMangementAgency#BrandMangementInNigeria#BrandIdentity#Premiumbranding#Luxurybranding#Premiumvsluxurybranding
