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Company Size vs. Brand Exclusivity: compatible ?

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Apparently, and as expected, company size is inversely correlated to entry prices positioning

  • High-End Brands such as Valentino/Fendi/Saint Laurent, with entry prices above 350 USD, are maximum reaching the 1 – 1.5 Billion Euro revenue threshold
  • Mega Brands like Gucci/Prada/Cartier/Tiffany, with entry prices around 200-250 USD, achieve revenues around 4 Billion Euro
  • Premium Brands, with lower entry prices between 50-100 USD, can reach 6-7 Billion Euro revenues as in the case of Ralph Lauren

Fig.1_def

Dolce&Gabbana de facto belongs to the High-End league after the recent successful strategic repositioning

Louis Vuitton strength is due to its unique positioning: almost double revenues than other Mega Brands !

Hermès growth fueled by very accessible entry prices below 150 USD, mostly coming from the broad Soft and Home Accessories offer

Bottega Veneta and Ferragamo strategic issues are standing out: should reinforce their exclusivity heritage or pursue growth ? For both brand products rejuvenation/appeal is a must, the significant store network probably makes growth the only de facto option for Ferragamo

Hugo Boss rightly giving up the upscale repositioning ( past November announcement) given the very significant price differential with Mega-Brands entry prices

Chanel and Dior brands image significantly diluted by a plethora of beauty&fragrances shoppable items with entry prices below 50 USD.

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Fashion & Luxury Engagement Insights by Contactlab is licensed under a Creative Commons Attribution 4.0 International License.
Based on a work at http://www.fashion-insights.com