Posts Tagged ‘LVMH’

Keeping Up With The Millennials

Friday, March 5th, 2010

Luxury brands aspire to engage a younger generation by adapting and innovating their delivery of fashion.

  • A recent study conducted by the Pew Research Center showed that millennials, people between the ages of 18 and 28, are both turned off by more conventional and blatant marketing approaches and have a sophisticated understanding of social media and entertainment.
  • Nowness.com, launched by Moet Hennessy Louis Vuitton, exemplifies the new trend of companies utilizing artistic videos and images, implying exclusivity and offering cultural commentary.
  • Traditionally, magazines fulfilled the primary role of communicating fashion news to consumers; now many of the brands connect directly with their consumers.

Key Stats

  • 75 percent of Millennials regularly use social networking sites.
  • Burberry opted to make Harry Potter icon Emma Watson the new face of its brand.
  • Last month Armani gained 268,000 new “friends” on Facebook after Lady Gaga wore a space age Armani creation.

Best Quote

“Our goal is always to create a seamless brand experience, especially with our younger lines, communicating the brand wherever the customer wants to touch it – on their mobile devices, via a social network, on blogs, in store, in print and outdoor media.” – John Hooks, Deputy Chairman of Armani

Designers Refuse To Bargain

Monday, April 20th, 2009

How far are designers willing to go to make sure you pay full price?

  • Clothing designers and department stores are facing a growing conflict as the economy continues to suffer: Who controls pricing?
  • Luxury brands are unhappy that department stores have the power to slash prices on their products, undercutting their luxury images and raising questions about how much a $1200 Piazza Sempione dress is really worth.
  • Some designers are following the strategy adopted by major airlines when low-cost websites began buying tickets in bulk and slashing their prices – limiting inventory.

Facts & Figures

  • More than 40 designers requested that their products be left out of a recent Saks “Friends & Family” sale.
  • In a step away from department store control of her product, Eileen Fisher is building 6 new stand-alone stores this year.
  • LVMH, which maintains tight control of its brand and pricing by renting boutique space inside department stores, posted a 10% profit in the fourth quarter of 2008.

Best Quote

“Even wealthy people don’t want to be ripped off.”  – Eileen Fisher, Designer

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