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added by Matthew Giampetroni and · updated 1y ago
added by Matthew Giampetroni and · updated 1y ago
The exceptional (sometimes criticized) margins at Louis Vuitton did not arise from excessively high prices, but from the removal of all costs and damages due to intermediaries. Louis Vuitton’s competitiveness
was therefore structural”
Matthew Giampetroni added 1y ago
Bernard himself continuously expresses that ‘creating desire’ is the most important part of what they are doing at LVMH
Matthew Giampetroni added 1y ago
People buying premium or even super-premium like to justify every dollar by a return on investment. Premium means pay more, get more in functional benefits. Luxury is elsewhere: it signals the capacity of the buyer to transcend needs, functions, or objective benefits.
Matthew Giampetroni added 1y ago
According to Kapferer, “luxury is superlative, not comparative”. The beauty of luxury is that no one can definitively say whether a Louis Vuitton bag is better than an Hermes bag because that concept doesn’t even make sense
Matthew Giampetroni added 1y ago