There is no purer form of marketing luxury brand marketing: It is an industry in which all customers drive perceptions. One slip and fall lists of most wanted Shoppers can quickly and brutally.
Luxury clothing, handbags, shoes, jewelry and maybe even well-made, but they are not hard to do. The whole business depends on keeping consumers confident that the brand alone is worth extra for is.
So what is best for this?
Each year, one of the market research firm Millward Brown, the top 10 luxury brands in the world, based on "brand equity." The BrandZ enterprise model takes into account the dollar earnings of a brand, its future earning potential and quality of the brand in the mind of the consumer to reach a final "brand value" expressed in dollars.
We share this information with a description of the marketing plan for each brand: Now you know why the labels to bear the wear.
10th Burberry. Brand Value: $ 4 billion, up 21%
Burberry story is often told: Once upon a time there was a brand that has been insensitive to the stuffy upper classes of Great Britain. Then in the 1990s, he invented himself adorned with a full line of clothing in the Burberry plaid. The company saw £ 1900000000 sales last year. The company built to expand its reach, now offers an extension of the body and Burberry Burberry Prorsum collection of upscale clothing.
The company is also proud of their digital marketing. His website has a click-to-chat function and stores only sell iPads for customers who want to sail across the screen.
A word of warning: Burberry said that growth in China slowed its last financial update.
9th Moet & Chandon 4200000000 $ to 8%
Parent control LVMH Moët 1.697 hectares of Champagne in France is growing, according to its annual report. Its brands include Moët & Chandon, Dom Perignon, Veuve Cliquot and Krug, and together they constitute 18.3 percent of the global market. Good luck in the competition with Moet-French of the agency that sets limits on the regulation, the annual production Champagne controls.
LVMH and is transmitted mainly in the region, and competitors can not enter unless the company sells. It's a classic barriers to competition-situation created by government regulation. (Prosecco and cava are often just as good as champagne, but people want to celebrate special occasions with "the real thing.")
It is not surprising that € 1.8 billion in sales came mainly from LVMH champagne.
8th Hennessy. Brand Value: $ 4.6 billion at 8%
Hennessy story revolves around the barriers to competition, built after you have created a dominant position, provided that you have done that may be more than a century ago. Hennessy Cognac brand was the highest since 1890 and now holds 41.1 percent market share. Cognac unit of LVMH, part of the Diageo drinks division reported € 1.7 million in sales last year. (The value of the brand be dropped, because its market share, two years earlier, Hennessy sells a share of over 50 percent in bottles.)
Good luck finding a foray into this market: Hennessy has 177 acres of the Cognac region is growing, and actually reduces the pay area of 60 hectares in 1999 in a scheme to farmers to grow other types of grapes, said his annual report.
7th Cartier. Brand Value: $ 4.8 billion euros, down 9%
There are two distinctive jewelry boxes in the world, robin's egg blue Tiffany, Cartier and red with gold accents. Cartier is the jeweler generally only be listed on Millward Bown.
The company is managed by the Richemont Group, which also owns Van Cleef & Arpels, among other things in possession. Her jewelry brands saw sales of € 4.5 billion last year, to € 3.5 billion in the previous year. China: The massive start-up can be explained in one word.
Here's how CEO Johann Rupert said, and we quote verbatim from recent results call Richemont
I will not say that this is sustainable. We have no idea what to do currencies.
... So, someone who will ask, "So what do you mean next year look like?" Why not ask the question not only because we do not answer that? It is not that we are shy or funny. We do not know. We do not want to do the currency, and we do not know if the Chinese continue to buy at infinity. We do not know.
... I feel like a black tie dinner at the top of a volcano am. Okay? This volcano is located in China, but that's what I feel. I am in the morning we will be better in our relationships and our watches and we are, and the food and the wine is better and the weather is great, but we fool ourselves. It is a volcano somewhere, be it this year, in ten years or twenty years. We are exposed to China. I think they are traveling more. I think it will survive. I think all these things, but we are now a "game from China," and it suits us, if the euro weakens.
6th Prada. Brand Value: $ billion 5.8, N / A
Prada store rose by 42 percent in the first Quarter of 2012, the Group recorded € 541.5 million of total revenue. Much of the success of Prada only one thing: a massive expansion in the number of branches. It opened 65 of them between April 2011 and April 2012.
Millward Brown said: "After the IPO (Initial Public Offering) in June 2011 raised on the Hong Kong Stock Exchange, which ($ 275 million) on € 206 million plans to Prada to add about 80 stores by year over the next three years with a total of 30 stores in China. Most jobs Prada will be branded stores, suggesting a general trend among luxury brands to assert tighter control over the brand by moving away from licensing and deductibles. brand currently operates over 200 stores worldwide and distributes an extensive network of wholesalers. "
5th Gucci. Brand Value: $ 6.4 billion, up 14%
Luxury goods holding company PPR frightened investors in the first quarter, noting that sales growth slowed in the fourth quarter of Gucci last year. "Slow" is a relative term. In 2011, sales amounted to € 3.2 billion, Gucci, up 18 percent over the previous year. They had a similar amount for the first quarter of 2012, as well. To 56 percent of sales come from Gucci handbags.
In the future, the Gucci posting a revision of his extravagant department stores, with digital video screens.
Unlike other luxury brands in a culture of almost obsessive secrecy about themselves (to say that exclusive, heavy), PPR more down-to-earth, how it intends to operate Gucci is that it acquired in 2004. He centralized media buying for all its brands (including Volcom and Puma). And it is constantly stirred to its supply chain factory to the store, which it owns, in whole or in control.
4th Chanel. Brand Value: $ 6.7 billion, up 2%
In the 1970s, after the death of Coco Chanel, the brand itself rescued by the list of dealers to sell the Chanel No. 5 of 18,000 to 12,000 and making it harder to find and more desirable.
Chanel head designer Karl Lagerfeld and have hard to ensure that the air of exclusivity (it does not sell products online, for example) to keep working, and the company has approximately € 1.8 billion pounds of revenue per year. But it has actually expanded its brand to more mass market again, as with Coco Mademoiselle sub-brand for young women.
Like many luxury brands, Chanel has also opened new stores in Asia, and Lagerfeld special attention to Japan, where a Chanel store in Ginza.
Third Rolex. Brand Value: $ 7.2 billion, up 36%
Rolex sport closely associated equestrian, golf, motor sports, skiing, tennis and sailing. All these activities are favored by the super-rich, and that Rolex is the most popular shows among the "penta millionaires", or people with a net worth topping $ 5,000,000, according to Luxury Institute. Rolex is based on the majority of print ads and sponsorship of tennis players like Roger Federer, Ana Ivanovic, Andy Roddick and Justine Henin, but it can run ads on ESPN on major tennis tournaments.
Since 2008 the private company Rolex succeeded in spite of herself. The brand has a new leadership in 2008, as CEO Patrick Heiniger came for "personal reasons" after reports that it lost $ 900 million of company money in the Ponzi scheme of Bernie Madoff. He was Bruno Meier, who replaced the corporate culture of secrecy maintained. Then in 2011, Meier was replaced by Riccardo Marini, who was previously responsible for the Rolex Italia. The brand's flagship London store was sold last year for £ 12.5 million.
No one really knows if the company is healthy or not.
Second Hermes. Brand Value: $ 19200000000, up 61%
CEO Patrick Thomas warned growth slowed down when he, the results of the first quarter of 2012, which delivered a 22 percent increase in revenues of € 777 million included. Part of the secret is Hermes-management in order to keep it in the family. In June 2013, Axel Dumas became co-CEO of Hermès International, along with Thomas-Dumas is a member of the sixth generation of the Hermes family, and is currently the Chief Operating Officer.
The company sees itself as guardian of the creativity and craftsmanship. But it is also financially disciplined, he sold his interest for Jean Paul Gaultier and recently expanded into household items. The chain has only 328 stores worldwide.
Annual report of the company is quite unpredictable. It describes the performance of last year as well, "Hermes spent 2011 with the lightness of the horse, who plays the obstacle."
First Louis Vuitton. Brand Value: $ 25900000000 by 7%
Louis Vuitton's strategy is to associate only with celebrities classic, iconic. His new campaign include Muhammad Ali, for example. The star has just finished Angelina Jolie sitting in a boat in Cambodia. Other stars who joined the brand are Mikhail Baryshnikov, with Annie Leibovitz, Pele with Maradona and Zinedine Zidane, with Bono and Ali Hewson. Carcelle, CEO of Louis Vuitton, LV is considered the luxury brand that is most closely associated with travel.
The parent company, LVMH, has sales of € 8700000000 Leather Goods in 2011-7500000000 € last year. It has an operating margin of 35 percent, which earned more in recent years, according to a plan of 1998 to its list of suppliers for leather, which probably had the effect of the maintenance of price competition between its suppliers expand. LV also controls its distribution through a chain of 1,200 stores it owns.
Real growth of this brand, however, comes from Asia, Japan and South America. Sales are actually available in Europe and the U.S.
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