Lux Ed

This is what I call the luxury trap. It’s a fatal mistake many brands make. Defining a luxury brand by its functional aspects and high prices cannot replace the value a brand creates.

Each year, new products account for approximately 15 % of LVMH sales, and some of them enjoy operating margins of up to 47 % . (For a list of the company’s brands, see the exhibit “The House of Arnault.”) What makes these statistics all the more remarkable is that many of these products at first appear utterly outlandish—a kidney-shaped handbag... See more

`How does online learning relate to buy now pay later? By now pay later delays the “pain of paying” - exploits undervaluing future losses. Where is the satisfaction? The now of the course experience, the qualification itself or the benefits of the qualification that come... See more

Customers must want the product. That sounds simple, I am sure, but to get advertising right is very, very difficult—it’s difficult to get advertising to represent the true brand. Most companies think it is enough to use advertising to present a picture of the product. That’s not enough. You need to project the image of the brand itself.

The latest... See more

What was your reaction when you first saw John Galliano’s newspaper dresses?

I was shocked, which is good, of course. A new product is not creative—it is not important—if it does not shock when you first see it.

And after the shock wore off, did your managerial alarm bells start ringing?

I don’t have alarm bells when it comes to creativity. If you... See more