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LVMH and the Luxury Strategy
Indeed, that is the genius of the LVMH model that Arnault has created. It’s quite possible that being the C.E.O. of LVMH would be a less fun and desirable job than being the C.E.O. of Tiffany’s, or Tag Heuer or Dior, or one of the incredible French wineries that LVMH owns.
Iger’s Buyers & the Arnault Dynasty
This offers another reason why Jobsian innovation and design-driven differentiation matter so much. While luxury firms compete for the wealthiest of the wealthy and most discriminating of the discriminating, market realities suggest remarkably little meaningful commoditization at these peaks of the pricing pyramids. No narcissism of minor differenc
... See moreMichael Schrage • Who Do You Want Your Customers to Become?
Luxury brands have to create an extreme amount of value for their consumers. Design, packaging, and function are undoubtedly important features. However, they aren’t what drive Added Luxury Value (ALV), and ALV is the precondition that’s needed before someone will even consider buying a luxury brand.
Daniel Langer • The Luxury Trap: Why it’s a Mistake to Define Luxury By Price
