Revival of Luxury Brand

Submitted by Victor Sahu Lamare

Luxury defines a special segment of the market. While typically
these products are expensive, they are never over-priced. There
is a difference; expensive merely reflects the quality of the unique
design, fine materials, and excellent workmanship. Similarly,
luxury is not faddish but long lasting.
To be irreplaceable, one must be
different.
Background

´ Chanel had a fall in revenue by 18

percent to 10.1 billion dollars in 2020.
The Paris-based luxury said its business
was “highly disrupted” due to store
closures and suspension of international
travel.
´ Prior to global lockdowns, Chanel had a
robust duty-free business, which
instantly froze as tourism was halted.
While the pandemic has proven to be a
profitable time for luxury behemoths
Louis Vuitton, Hermes and Dior, many
others suffered falling sales.
´ However, Chanel has revived due it’s
own marketing strategy, which included
focus on sustainability. However, Chanel
remains reluctant to have online
presence for selling their luxury
products. The next slides give some ways
which could be used for a revival or
strategies to increase market share of a
company.
Disconnection to
connectivity
´ According to Chanel, shopping for luxury has to be
different. It is an experience that cannot be
accomplished with a simple click.
´ Many luxury brand are reluctant to have an online
presence because they believe some of the luxury
treatment/feeling will be lost if customers just
purchase their products online instead of going to
the store to purchase their product. They link the
luxury with the experience and the ambience along
with the product.
´ Another opportunity for luxury brands is the fact that
selling their products online allows them to reach a
much larger market. Compared to brick-and-mortar
stores where the company is confined to a location,
selling online allows the company to have customers
anywhere around the globe, potentially increasing
their sales
´ luxury companies should make all efforts to connect
with their consumers at all touch points, be it
physical or digital as after pandemic, many have
shifted towards online.
Sustainability
´ The long-term sustainability of the
luxury industry is under significant
threat from various social, economic,
human rights and climatic factors.
Circular economy approach requires
companies to use sustainable raw
materials, close the material loops
and keep the material and products
in the loop, as long as possible.
Transition requires a new
organization, a new mindset and
new forms of action by companies.
´ Italian fashion label, Gucci has
recently announced that it will cut
the number of fashion shows from
five to two every year in an effort to
reduce waste. It is the first significant
brand to make a bold decision to
support the move to a leaner, less
wasteful fashion system.
´ Chanel also took specific measures
to move towards sustainable
production of its products with less
carbon footprint.
Status symbol to self-expression

´ Today, consumers want to spend on luxury products to express

themselves rather than to flaunt. They want to rejuvenate
themselves and feel special by owning high-end items. Luxury is
no longer about ‘fit in’.
´ In the most recent quarter during the pandemic, affordable
luxury brands have been severely hit as compared to true
luxury brands. Affordable luxury brands such as Coach has
seen a drop of around 20 percent.
´ Affordable brands which are resorting to deep discounts to get
sales may run into the risk of jeopardising their brand equity.
During this crisis, even the younger generation has started
valuing quality, craftsmanship and design over quantity.
´ Channel has maintained its true craftsmanship, which is
essential for a luxury brand.
Inspire Collaborations to
Generate Buzz Around Your
Brand

´ Collaboration with various

celebrities, including
famous model and singers,
provide a good marketing
strategy for high-end
brands.
Thank you