Why the Acquisition of Tiffany & Co is Important for LVMH
The marketing of luxury goods requires a very intense level of commitment.
Hermann Simon • Confessions of the Pricing Man: How Price Affects Everything
This kind of bundling also occurs in the luxury watch market. Dealers occasionally need to buy a bundle which includes models that are hard to resell. These models often end up in gray-market channels, where original watches get sold at steep discounts. This kind of price erosion is toxic for luxury goods. A customer who has paid $25,000 for a watc
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Luxury brands like Chanel excel in storytelling, emphasising their heritage, values, and the unique experiences they offer to their customers. For example, Coco Chanel’s revolutionary efforts in reinventing the fashion world and liberating women from certain constraints have become an integral part of the brand’s story and identity.
Luxury brand positioning strategy: How to craft a winning one
The Grand Complication reveals another fundamental characteristic of luxury goods: as price rises into the stratosphere, the number of units available also seems to disappear into ever-thinner air.
Hermann Simon • Confessions of the Pricing Man: How Price Affects Everything
The luxury hotel industry is a good example. Comments such as ““overcapacity is pelting the prices at top hotels” and “the higher the standard, the lower the profits” describe the state of the industry.”12 Despite the depression in prices, investment in new luxury hotels remains robust.
Hermann Simon • Confessions of the Pricing Man: How Price Affects Everything
Up until then, every cosmetic ad was designed to sell a product. I decided that rather than selling only a product, our ads would sell the brand. The brand would be timeless and would translate across languages and countries. All our advertising would be oriented toward the brand. Focusing on the brand would hone our identity and be our North Star:
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