Dom Pérignon, Hennessy, Céline, Christian Dior, Moët & Chandon, Kenzo, Louis Vuitton, Givenchy and Bvlgari – the list goes on and on. You have seen these brands in the most influential magazines and their stores in the best locations of large cities. However when you buy goods from these luxury houses, you don’t only support them but the largest luxury corporation by revenue called LVMH. But why has almost nobody heard of this firm?
The most famous luxury brands have been founded decades ago by a visionary person in a new category. For example Louis Vuitton started manufacturing waterproof stackable canvas trunks or Pierre Pérignon created champagne by a grape experiment. After years gone by and usually after death of the inventor, a luxury brand could be able acquire their state of heritage and exclusivity.
According to branding strategy insider, branding and marketing of luxury product differ from every-day goods, called the Anti-laws of marketing. A crucial factor is that they are targeted to non-owners and for people who can’t afford them, to make them look upwards to the owners of the goods and dream of possessing one too. In addition pricing of luxury goods need to increase all the time, so that the luxury brand holds it image and value in the eyes of the public.
What is the reason then behind of the non-marketing of LVMH group for public? As a comparison, for example DrOetker uses completely different approach. They have branded all of their product lines under the name of the parent company and have made sure people can trust the quality and consistency. The reason behind this difference could lay on the fact of not trying to mess up with the gut feeling of the old and famous houses or that they want to make the designers feel less restricted. In addition all of the brands are different from each other, so a huge firm association could be unappealing for the public and effect on the revenue. By letting people be in the darkness of the information, or ignorance, probably makes LVMH’s brands even more intriguing and the receipt for the success.
Tungate, M. (2009). Luxury world. 1st ed. London [etc.]: Kogan Page.