Professional Documents
Culture Documents
Luxury-1
Luxury-1
Luxury-1
MANAGEMENT
/2022
ASSIGNMENT- I
Submitted by:
AS Priyadharrshini (MFM/21/37)
Isha Sharma (MFM/21/451)
Megha Narayan (MFM/21/545)
Nidhi M (MFM/21/755)
Ruchita Kirti (MFM/21/56)
Sakhti (MFM/21/451)
Srishti Kanojiya (MFM/21/373)
Submitted by:
Ms. Kritika GK
(Associate Professor & Campus Coordinator)
02 HERMES 03 - 11
03 DIOR 12-19
04 CARTIER 20-28
05 JACQUEMUS 29-36
06 GUERLAIN 37-42
07 GAPS 43
08 FUTURE TRENDS 44
09 CONCLUSION 45
10 REFERENCES 46
LUXURY MARKET
The word luxury comes from the Latin “luxus”
which means superabundance, excess in the
way of life or a display of wealth aimed at
satisfying desires that transcend real needs.
However, the definition of luxury has been
evolving with time. For a long time, luxury had
been synonymous with haute couture, a model
based essentially on tailoring in which the
designer is the guardian of the aesthetic tradition
of the wealthiest classes.
01
Segmentation of luxury products calls for a very
articulate marketing strategy. Luxury as a
concept can in itself be differentiated in several
tiers:
02
HERMES
ABOUT HERMES
Hermès International, sometimes also mentioned as Hermès of Paris or Hermes, is not only a French
luxury goods manufacturer, it's been consistently ranked as the world’s most valuable luxury brand in
different valuation. Hermès as a brand enjoys an iconic status within the world of luxury. A mixture of
rich heritage, exquisite craftsmanship, eye for detail and high levels of quality and professionalism
through the whole manufacturing process which gives Hermès a position of superiority in the very
competitive and ruthless world of luxury.
The Hermès’ brand philosophy can possibly be summarised by a single sentence quote from former
CEO Jean-Louis Dumas – “We don’t have a policy of image, we have a policy of product”.The brand
philosophy is deeply entrenched in the platforms of “quality” and “refinement”. It is for these very
principles that the brand has always shunned mass production, manufacturing lines and outsourcing.
According to Hermès, each and every product coming out under the brand’s name should reflect the
hard work put into it by the artisan.
03
MARKETING MIX OF HERMES :
04
4. Place and Distribution Strategy of Hermes :
Hermes’ operating network size has not only
expanded extensively in Europe and the United
States but has also introduced to the Asia-Pacific
region and Latin America. Hermes uses an Omni-
channel distribution approach to sell its products. It is
present in about 45 major and popular countries
across the globe. Realizing the great opportunity in
the market to sell luxury bags and accessories
globally, Hermes has capitalized on it. This is made
possible by having its website localized so that
customers can choose the language and content that
best suits their requirements and location. Through
the website, buyers can shop for products depending
on their location, language preference, and currency
of choice. It has also rolled out its expansion for
selling its goods via its e-commerce platform. Its e-
commerce facilities are present in 28 countries and
continue to expand.
05
SPONSORSHIPS ACTIVITY OF HERMES
06
Hermes is one of the best examples of a brand
embracing digital marketing. Hermes focuses a lot
on digital marketing. It has its Podcasts and
documentaries. This proves that it pays off huge for
a company to embrace the power of digital media.
It also has a newsletter that keeps its customers
informed about the company and happening
around the fashion world.
1. Le Temps, un Object Hermes (Time, An Hermes Object) : Le Temps, un Objet Hermes, which means
“Time, An Hermes Object” is a campaign that showcases a fresh approach to create its distinctive style
of watchmaking philosophy.The creative strategy behind the marketing campaign employs a blend of
social, cultural, and economic intention along with technological capabilities to enhance the market
success.
07
2. Objects for Interior Life : Hermes has launched the ‘Objects for Interior Life’ marketing campaign exhibiting the
contemporary series of tableware that brings to life various different interior spaces, giving place to a more refined and
beautiful approach to interior design.
It focuses on showcasing the line of home accessories that focus on simplicity, warmth and artistry. The product line
consists of sleek lounge chairs and tables with a touch of modern flair to them. The cubes, curved shapes and squares
made of different materials give off a sophisticated and clean aesthetic that complements the beauty of minimalist
interiors. The major objective behind this campaign was to showcase and inspire people around the globe to give
shape to their desire through symmetry, form, depth and space.
08
HERMES E-COMMERCE
HERMES WAS THE FIRST AMONG ALL LUXURY BRANDS TO LAUNCH THEIR
FIRST E-COMMERCE WEBSITE IN THE YEAR 2001.
10
BRANDING
Physique : The iconic horse & carriage and the
signature orange were introduced in the 1950's
(Hermès - The Strategy Insights Behind The
Iconic Luxury Brand - Martin Roll, 2018).
Relationship : Items such as the Hermes Birkin
bag are considered the ultimate status symbol
amongst the wealthy.
Reflection : The very high price tag and
exclusivity of some Hermès products lead
some to believe they are a better investment
than gold or the stock market.
Hermès is an ultra-luxury success story, without any doubt. With limited distribution, exclusivity and
controlled marketing, the overall company and many of its product categories have regularly
registered double-digit growth rates year-on-year. This is a true reflection of the Hermès brand
strength among the highly affluent segments of the global population. The company has successfully
kept alive and strengthened a brand differentiated through strong history, exquisite craftsmanship and
superior quality. The fact that it is considered to be the most innovative among all the luxury fashion
houses is a testament to the company’s commitment to constantly manufacture and launch ultra-
luxury products that are unique, have a strong sense of allure and have a distinct mark of superior
craftsmanship.
11
DIOR
Dior, also known as Christian Dior SE, is a French luxury
fashion label that is owned and run by Bernard Arnault, the
chairman of LVMH, the greatest luxury conglomerate in the
world. Dior has 59.01% of the voting rights and 42.36% of the
shares of LVMH. French fashion designer Christian Dior (1905–
1957), a native of Normandy, launched the business in 1946.
This company only sells footwear and apparel in Dior shops.
The Christian Dior Couture division is responsible for haute
couture. Since 2018, Pietro Beccari has served as the CEO of
Christian Dior Couture.
On December 16, 1946, the House of Dior was founded in Paris
at 30 Avenue Montaigne. The opening year is celebrated by the
present Dior organization as "1947," nevertheless. Marcel
Boussac, a wealthy businessman, provided financial support to
Dior. Dior declined Boussac's invitation to design for Philippe et
Gaston because he preferred to start again under his own name
rather than resurrect a dated brand. The brand-new fashion
house was integrated into Boussac's existing "vertically
integrated textile industry." It had a 6 million FFr ($1 million)
capital and 80 staff. The business, which was a "majorly owned
affiliate of Boussac Saint-Freres S.A.," was actually a vanity
project for Boussac. On 12 February 1947, Christian Dior
launched his first fashion collection for Spring–Summer 1947.
The show of "90 models of his first collection on six
mannequins" was presented in the salons of the company's
headquarters at 30 Avenue Montaigne. Originally, the two lines
were named "Corolle" and "Huit".
Christian Dior Couture is a story of dreams and elegance,
passion and excellence, It is also a story of know-how. The
creations of Christian Dior Couture express the passion for
beautiful gestures and exceptional objects. From haute couture
to ready-to-wear, including leather goods, watchmaking and
jewelry, know-how is transformed into the art of making
FALL/WINTER 1949–50
MARKETING MIX
PRODUCT: Dior is a luxurious fashion brand that was
established to appeal to the elite society's sense of
style. It has continued to have the title of being the
originator of the segment known as Haute-Couture. Its
initial line, known as "New Look," was introduced in
1947 and quickly gained popularity. While Dior Homme
and Baby Dior are available for men and children, Dior
Label caters mostly to ladies. Dior creates and sells
leather goods, ready-to-wear, clothing, shoes,
jewellery, watches, cosmetics, fragrances, and skincare
items. Some of its well-known scents for ladies include
Miss Dior and Poison, while Sauvage, Jules, and
Higher are geared at males. The company produces
concealers, foundation, powder, blush for face,
mascaras, liners and primers for eyes, lipstick, gloss for
lips and several other products under its make-up kit.
Toners, serums, scrubs, masks are available as part of
skincare regime.
PLACE: Dior items are exclusive and authentic. They are offered in almost 210 sites around the globe. One hundred
and nine locales in Asia, forty-five in Europe, eight in the Middle East, forty-eight in North America, six in Oceania,
four in South America, and one in the Caribbean and one in Africa are where it can be found. Franchise Dior stores
can be found in prominent areas of significant cities including New York, London, Tokyo, Beijing, and Paris. The
company's headquarters are in France, in the city of Paris. Dior offers all of its goods both through its network of brick-
and-mortar stores throughout the world and through its assortment of online shops at dior.com.
PROMOTION: Relationships and trust are important for Dior. By mailing or emailing the most recent product news to
loyal customers, brands show their appreciation for their patronage. Additionally, it extends invitations for pre-sale to a
restricted group of loyal and exclusive customers. Dior has an online store where interested clients can buy products
and a website where relevant information is readily available. Blake Lively, Madonna, and Ziyi Zhang are a few of the
famous people that have been spotted out and about sporting this brand. Given that marketing involves a lot of
promotion Dior has placed their advertisements in professional publications like vogue that target affluent readers. Its
advertising, which are shown on electronic and social media, focus on elegance and quality.
13
BRIEF
MARKETING STRATEGIES OF DIOR
HISTORY
Unlike marketing that can be used for other brands, marketing for luxury brands is focused on a
specific audience. And the main value is exclusivity. This is well known to Dior, one of the most
important brands in the world. At present, Dior distributes its products in over 200 stores worldwide
and is ranked as the 14th most valuable brand in the world. One way is through clever marketing
strategies that focus on engagement and content.
Bulk beauty
This is one of Dior's tactics that stands out. Since it takes bulk attractiveness into account, it has been
able to build connections with a variety of clientele. clients that are looking for more than just a nice
clothing. Which has been incredibly advantageous since it has received thousands of Instagram
mentions. And it has consistently outperformed the opposition in the majority of the months each year.
The proposal from Dior has always been conservative in its attempts to go digital, it should be
underlined. However, this has been a significant stride because of the brand's global demographic
reach. As a result, the business can keep its current clientele while drawing in new Dior target
customers.
14
Through mobile marketing
When promoting the classic Lady Dior handbag across many channels in 2018, Dior made mobile
fashionable. The business released a brand-new app that lets iPhone users watch its black-and-white,
Alfred Hitchcock-inspired movie "The Lady Noire Affair." This made it possible for users to see the entire
movie, the creation of it, and the trailer on their iPhones. The short, which lasted eight minutes, was
about Lady Marion and what might be in her Lady Dior bag. Dior used Twitter to provide one piece of
information about the movie every day until it was released in order to raise interest and boost demand
for the handbag. For the Lady Dior campaign, the business also created a mobile-friendly website to
interact with premium shoppers worldwide and to increase interest in the handbag range
VR and AR try-on across platforms like Snapchat and WeChat is a priority for
Dior.
BRIEF
A new emphasis is being placed on augmented reality (AR) and virtual try-ons across
platforms like WeChat and Snapchat, from the personalization of a Dior Book Tote to the
B27 sneakers and World Tour accessories. This has proven to be a priceless resource. In
HISTORY
an era when transactions are conducted over the phone and remotely, Dior has discovered
that customers value learning more about a product before visiting a shop. A fundamental
breakthrough is the capability to try items on remotely, like with the shoes on Snapchat.
Omnichannel
The pandemic was the turning point for Dior's omnichannel strategy. Customers used click-
and-collect, made virtual appointments, and conducted online shopping. Dior observed a
sharp acceleration in the use of these services, with customers' purchase habits changing
quite quickly. There is indisputable proof that these new service standards won't change
following the pandemic.
16
ADVERTISING & MARKETING CAMPAIGNS
OF DIOR
Influencer campaigns
The house has been collaborating with some of the most
well-known bloggers in the world to promote its ready-to-
wear, accessories, and beauty launches. Influencer
campaigns are a key component of their new marketing
approach. Key influencers including Chiara Ferragni of
The Blonde Salad, Aimee Song of Song of Style, and
Negin Mirsalehi were flown in for one of Dior's Cruise
shows in Calabasas, and they were all clothed by the
fashion house. In order to reproduce the experience for
the user, the brand also produced brief films where each
influencer discussed the show on Instagram Stories.
Chiara Ferragni and Dior also collaborated on the
design of her wedding dress, which was documented
and published on both parties' social media accounts.
18
BRANDING
Dior's Passion: Despite his love of fashion, Christian
Dior disregarded pressure from his wealthy family and
studied political science with the goal of becoming a
diplomat. In the end, he discovered his way back to
the creative world by starting a little gallery of
handiwork. However, the gallery was forced to close
because of a family tragedy. Christian started selling
design depictions for 10 cents in order to support
himself while continuing to pursue his dream. Dior
started his own store in 1946 in the well-known
neighbourhood of 30 Road Montaigne. The store is
still open today.
19
CARTIER
Cartier is a reflection of grace, beauty, and elegance. One of the most sought-after luxury jewellery
brands in the world. Louis-François Cartier, a jeweller, founded Cartier in Paris in 1847, marking the
start of the company's history. passed over the company to his three sons in 1899, who carried on the
history and laid the way for what Cartier is today. They were responsible for making Cartier famous
worldwide and for revolutionising jewellery design in the 20th century. Quite a few members of society's
higher strata became supporters of the Maison only a few years after it was founded. Cartier stood out
in a sea of jewellery manufacturers with the famous replication of "the garland style"—similar to those
worn by Marie Antoinette—and their skilled craftsmen are what gave them their place among the upper
echelons of society.
21
MARKETING MIX
Cartier Product Strategy:
The affluent class is the target market for Cartier's marketing mix pricing strategy, and the prices are
determined by the product's type, quality, and competition's pricing. They guarantee that the targeted client
group is happy with the merchandise. The prices are fairly hefty, as we discover. The main cause of this is
that the products are personalised, and even if they aren't, the excellent quality of the material is already
reflected in the price of the products. When it comes to quality, they are of the highest calibre. Cartier takes
care to maintain a satisfied clientele. The wealthy members of society are those who use the products.
Additionally, they have gift cards that offer customers a specific type of price reduction when they make
purchases. Few of Cartier's newer products have lower prices when compared to the rest of the company's
offerings. This is done in an effort to corner the market they are trying to break into.
22
Cartier Place & Distribution Strategy:
23
CARTIER OMNI-CHANNEL
Cartier’s tagline is “more than just a service, an
experience”. The discerning luxury buyer that
shops at Cartier wants convenience, and Cartier
delivers, both in-store and online. Cartier pioneered
omnichannel within the luxury industry context. The
Maison’s personalized service experience extends
to online through the Purchase Concierge, offering
an array of e-services to bring the exclusivity of the
Cartier brand experience to the customer’s
doorstep. The concept of buying online and picking
up in store was fairly new when Cartier adopted it,
and they allow customers to pick up their
purchases not only in their exclusive boutiques but
in partner jewelry and eyewear stores. Services like
jewelry engraving, ring resizing, and battery
replacement can be booked online, and can be
completed by mailing in the Cartier piece or
dropping it off in a Cartier boutique.
In 2018, Cartier improved their digital platforms and they were rewarded with the top spot in the annual
Digital IQ Index report for watch and jewelry brands. The laser-focus on personalized service is seen
throughout the Cartier brand, even their job listings for online marketers carry this messaging: “The unique,
personal way that clients are treated in Cartier boutiques is also reflected in the online world. By joining our
digital and e-Commerce team, you help to guide our progress by attracting, nurturing and delighting every
individual who comes into contact with the Maison.” At each and every touchpoint, Cartier does
omnichannel right.
24
MARKETING
STRATEGIES BY
CARTIER
Studying target audience data : Monitoring social
media and keywords to know what their customers
are searching for. Competitive research to determine
what has positioned their audience and how to
respond to it. Demographic research focused on
their internal customer database for more precise
targeting.
MARKETING CAMPAIGNS
Innovative advertisement and social media
contents : Cartier has managed global popularity
through its promotional activities. Good advertising
has increased its brand visibility. They use
celebrities, pop-stars and social media platform for BY CARTIER
grabbing the attention of their customers.
The Culture of Design
Unique online services: Services like jewelry
engraving, ring resizing, and battery replacement One of the best ad campaigns that feature in the
can be booked online, and can be completed by Cartier advertising attempts is the Culture of Design.
mailing in the Cartier piece or dropping it off in a This ad campaign focuses on the Magnificent Seven,
Cartier boutique. which are iconic creations by the jeweler. This Cartier
advertising move showed a change in their tactics.
Outdoor exhibitions : To promote new products Rather than focusing on their new products, they
and get feedbacks from customers. Recently Cartier explored their historic and best pieces. The Culture of
Unveils a Hit Exhibition at the Dallas Museum of Art Design ad campaign featured seven key objects in
their collection. There were four notable watches
which were the Santos, Panthere, Ballon Bleu, and the
Tank. They also featured the Juste un Clou nail
bracelet and the love bracelet. Finally, in the collection
was the Trinity triple ring.
With communication from the Cartier brand so rare, they needed something grand and powerful to make a
mark. This Cartier advertising campaign celebrated the brand’s 165th anniversary. The passion was
present in the campaign, and it took the brand two years to create. The brand shot it in five different
countries with a budget of 4 million euros. It was a hit and was seen by over 160 million people within the
first three months of its release.
26
The Pasha Watch Campaign
Love is All
27
CARTIER WINING CHINA’S SOCIAL MEDIA
The rapidly-changing consumer landscape has
moved at a slower pace in the luxury industry,
mostly due to ingrained notions about what
“luxury” means and the resulting behaviors they
produce. But in China, where a digital
transformation has led to a new generation of
social media, the luxury market has begun
shifting dramatically.
Cartier is an old hand in the Chinese market, having launched there in 1992. However, it has only recently
embraced social media — and, more importantly, third-generation social media — in the country. This
strategy can be seen in its Make Your Own Path campaign, which was released late last year to promote
the brand’s new PASHA DE Cartier watches.
While luxury brands almost always try to give off an heir of exclusivity, Cartier invited everyone on Douyin to
participate in its user-generated content campaign. The premise was simple: show off your dance moves in
a video, apply Cartier’s special filter to it, and post it under the campaign hashtag. This simple-yet-effective
campaign brought in 1.1 billion views and inspired thousands of users to boogie! Cartier even upped the
ante by launching a livestreamed clubbing event by partnering with a hip-hop dance crew and the famous
trap artist DJ Anti-General at a Shanghai club.
The fun, refreshing campaign smartly tapped into China’s creative consumers, club-going youth, livestream
lovers, and social media content creators. Cartier also invited celebrities to participate in the campaign. As
a result, the platform’s algorithm boosted the campaign widely on user feeds and generated considerable
organic support.
28
JACQUEMUS FALL 2022 READY-TO-WEAR
29
THE ASTHETICS
The label is able to create something that not only
properly balances the commercial and the
intellectual, but fuses the two into something
wholly original. It does this by fusing sensual
minimalism with young freshness and
playfulness. In each collection, Jacquemus
creatively portrays the romantic tale of folklore
and artistry from the French shore, drawing
inspiration from his roots in southern France.
Every runway presentation is intensely personal
and intended to convey the designer's life
narrative and worldview rather than just sell
clothing. Jacquemus claims, "I don't do garments,
I do stories," and it is obvious that buyers can't
get enough of these tales. According to
StyleSage data, there are over 335k monthly
searches worldwide for ‘Jacquemus Bag’, vs. 59k
in June 2019.
30
THE JACQUEMUS
MARKETING STRATEGY
Jacquemus clearly has a distinct brand identity and
a compelling narrative to tell, and one of his talents
is his capacity to communicate all of that through
marketing. The brand has utilised and mastered
social media to the fullest extent possible after truly
realising its potential as a marketing medium.
Jacquemus has been able to establish a strong
online presence with an Instagram account that
has 4.8 million followers thanks to the power of Page. 11
community building for the digital era and an
incredibly transparent story through social
platforms. Jacquemus is not the only individual
betting on social media, but just as his approach to
design is unconventional, so is that of his personal
account and the account for his business.
The combination of fitted behind-the-scenes
images and advertisements for business
campaigns has given fans a special sense of
human connection. They can view personal photos
of the designer and his childhood recollections. In
line with their marketing goal of being
approachable and down to earth, Instagram has
developed into a warm and personal channel of
communication between the designer and his
followers. The designer teased the upcoming
collaboration with the humorous caption, "bonjour!
do you want to see my first nike sneaker?" in June.
He also shared intimate photos of himself and his
partner wishing each other a happy Pride.
31
Jacquemus has a thorough understanding of how to
keep a crowd interested and where to find the
necessary resources. The company deliberately
designs pop-ups and events that are all aesthetically
dominant and perfectly suited to being shared and
going viral on social media. The company offered all-
pink 24-hour vending machines in December 2021 as
the ideal marketing approach to connect with
Millennials and Gen Zs (read: audiences that live for
a good photo-opportunity). Customers received a
locker number and code after making a credit card
payment to unlock their prize. The installation
attracted attention and increased social media likes
while promoting the Le Bambino Long bag's new hue.
32
A SMART MERCHANDISING
STRATEGY
Merchandising is the backbone of any fashion line, and
the Jacquemus brand makes differentiated choices in how
it builds its assortment, especially when compared with
other luxury brands.
33
Having iconic pieces that give enduring value to a
company is another foundation of fashion success
today. We've seen the Jacquemus brand really excel
on this concept. The brand has a propensity for viral
products that can become long-term brand classics,
from its iconic cardigan to its boxy Chiquito bags.
One can see how the brand's organised thinking
blends effortlessly with the creative, from offering a
tiny bag in many larger sizes that hint at more
practical utility to developing goods that can be
seasonally updated via new hues or materials.
34
AN ACCESSIBLE LUXURY
PRICING STRATEGY
In addition, Jacquemus' price strategy exhibits an approachable luxury perspective. You can
see the distinctive position the brand holds by contrasting the average price of a Jacquemus
bag, which is listed above at £528 (614 € or $640 USD), with a Saint Laurent bag, which is
listed at £1,384 (1,608 € or $1,678). Its apparel selection likewise features a related motif. In
the end, this plan clearly lays the groundwork for future growth and market prospects as a
growing brand popular among a young demographic.
35
MARKETING MIX
Product:
Both womenswear and menswear are offered. Products are handbags, clothing, footwear, and
accessories including hats, earrings, and scarfs. Jacquemus’ mini bag.
The Le Chiquito bag in all its sizes started a fashion product, based on trends that would've died out.
Fashion products include solely seasonal products. Oversized blazers and shirts with wild patterns and
colours are perfect for seasonal style but will eventually stop growing at the next seasonal drop. On the
other hand, these products have bold and unique elements to them, making them fashionable in the first
place.
Price:
Jacquemus commits to prestige pricing as their strategy. Higher prices account for their exclusivity and
innovative nature of the products they offer. Jacquemus' prestige strategy defines their place in the
luxury market amongst competitors of the same pricing strategy. The luxury sector as a whole has a
limited price range, meaning in order for Jacquemus to compete with similar brands, the price is a
promise of high-quality products. For their target consumers, using prestige pricing makes products
desirable; acts as something to aim towards and look forward to owning despite the normalising of
purchasing designer fashion.
The price of the various Le Chiquiti bags will range from $250 to $580. Seasonal promotions/discounts
would definitely be associated with the product
Place:
With Jacquemus having a strong digital presence, the majority of places to find his products reside
online. This widens the scope and reaches of the brand due to the fact it has no stand-alone stores as of
yet. This may be due to the peak of Generation Z and millennials preferring online purchasing to in-store
as discovered by Mintel (2019). In agreement, consumers would rather shop online or through wholesale
retailers.
The limited purchasing places for the consumer would depend on Simon's idea and passion for a digital
brand. With no permanent physical stores, the only places to grasp onto Jacquemus items physically are
through department store retailers or the rare pop-up experience store. Not big enough to be
concessions, other stockists only stock an exclusive range of the collections.
Promotions :
Social Media:Instagram takes the lead in terms of the brand's digital promotion platforms. With the
strongest presence of the Jacquemus branding, frequent updates explore the brand's personality, values
and inspiration to 2 million followers. Primarily, Instagram is Jacquemus' biggest exploration of
promotion. This also provides a legitimate shopping channel for the brand with consumers being able to
purchase items straight from the post.
Other social medias the brand utilises are Twitter, Facebook and Youtube where each runway is
showcased to their subscribers. Email-Letter,Packaging , Public relations are the strategy for the brand
36
GUERLAIN
ABOUT GUERLAIN
HISTORY
Pierre-François earned the prestigious title of being His Majesty's Official Perfumer for the creation of
Eau de Cologne Impériale for French Emperor Napoleon III and his Spanish-French wife Empress
Eugénie. Guerlain went on to create perfumes for Queen Victoria of the United Kingdom and Queen
Isabella II of Spain, among other royalty.
After the death of Pierre-François in 1864, the House of Guerlain began a long tradition whereby the
position of master perfumer was handed down through the Guerlain family. The roles of perfumer and
manager were divided between the two brothers, with Gabriel managing and further expanding the
house, and Aimé becoming the master perfumer.
Jean-Paul Guerlain, the fourth generation of Guerlain family was the last family master perfumer. He
retired in 2002, but continued to serve as advisor to his successor until 2010. With no heir from within
the Guerlain family to take over, the role of master perfumer is no longer tied to family succession.
The Guerlain family sold the company to the luxury goods conglomerate Moët Hennessy Louis Vuitton
(LVMH) in 1994.
37
GUERLAIN’ BRAND PHILOSOPHY
For over 14 years the House has put conservation at the heart of its work. In the Name of Beauty,
Guerlain is actively committed to creating a more beautiful and sustainable world, elevating Nature
to an Art and passing on its wonders to future generations, with the Bee as sentinel.
Guerlain is committed to preserving biodiversity, to innovating sustainably, to taking action for the
climate and to having a positive impact on society. The Guerlain For Bees Conservation Programme
is dedicated to the protection of bees.
38
3. Place Strategy of Guerlain:
Guerlain products are available
across the world at serviced
counters at department stores,
Sephora, Nykaa, and at thirteen
international beauty and spa
'boutiques'. Guerlain has cultivated
a Boutique Spirit which they
hold dear: welcoming customers
into “our spaces” to share in
their unique savoir-faire as
well as an array of unforgettable experiences. The Boutiques are designed like exquisite, gem-
like settings for Guerlain creations crafted by the most talented artists and artisans.
4. Promotion Strategy of Guerlain: Guerlain continues the long-held policy of direct marketing
and individual customer service that has enabled the company to remain at the forefront of
perfume fashions.
1. Influencer marketing: Guerlain has jumped from the 10th to the 5th most visible luxury
beauty brand worldwide by investing in nurturing relationships with top beauty influencers
and focus on activating them regularly and creatively. Guerlain's strategic and functional
teams use Lefty's end-to-end platform to manage influencer relations resulting in a greater
impact on customers but also on micro influencers.
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2. Immersive Display Format: Guerlain turned to Swirl, a 3D immersive display format
available through Google Web Designer and Display & Video 360 to create a digital banner of
iconic Bee bottle which could be viewed from a 360 degree angle, zooming in and out, and
recreating the experience and sensations of discovering a product in person.
3. Interactive & Engaging Display unit: Guerlain used the 3D-Swirl format to highlight each
scent in the “Bergamote Calabria.” Through an interactive and engaging display unit, customers
could discover the story behind the key ingredients, deepening their connection to the perfume.
4. Email Marketing & SEO Strategy: Guerlain has a strong email marketing & SEO strategy
with a spam score of -2.8, average email size is 6 MB, 67956 keywords with under 100 SEO
rankings
5. Online Personalization of Rouge G & Bee bottle: Guerlain's “Rouge G” collection can be
personalized by choosing different packages and shades from more than 450 possible
combinations, and all this without even going to the store. The 3D configuration and
personalization tool offers them the quality and fluidity expected from a successful shopping
experience. Internet users appreciate this service, which makes this page achieve the 2nd
highest conversion rate with an increase in sales on this range of around 30 to 50%. The
second product which can be personalized is the 'Bee' bottle where customers are given a
choice of ribbons, the bottle, among different sizes and colors, as well as adding decorative
elements and engraving a personalized message.
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BRANDING STRATEGY OF GUERLAIN :
Guerlain's scents have established a worldwide reputation for quality, luxury, and elegance. The
house of Guerlain's reputed peaked when in 1853, for the marriage of Napoleon III and
Empress Eugénie, Pierre-François-Pascal created his Eau de Cologne Impériale, which he
gave to the young bride as a wedding present. The branding strategy adopted by Guerlain is as
follows:
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4. Encounters with talented artists & artisans: Guerlain through its perfumes provides
encounters with talented artists and artisans from the Baccarat, JonOne, Pochet du Courval
and Lorenz Baümer ateliers.
5.Cryptobees as NFTs: In 2022, Guerlain will be selling 1828 Cryptobees as NFTs to support a
rewilding project in the Vallee de la Milliere. The NFT collection named 'Reaverse' is a
combination of real and metaverse. It has four categories according to rarity and comes in
unique graphics. There are 8 super-rare, 20 rare, 500 fairly rare, and 1300 normal Cryptobees.
Each Cryptobee has 1828 pockets of land in the nature reserve. In addition, it will have its
precise geographical coordinates.
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GAPS
Dior has a considerable gap in the utilization of omnichannel marketing strategies because it
relies on its websites for advertising purposes only. The omnichannel strategy presents a
lucrative opportunity for Dior to explore and exploit the distribution and sale of its products.
Hermes has a good online and offline presence. The only problem is they don't have a
cosmetic line. They can extend into the sector since they already have online, and offline
presence and consumer background.
Jacquemus has been an online brand and has only recently set up an offline store. A luxury
brand's offline presence is as important as online to give the consumer a connection with the
brand.
Cartier's target market is men and women of high income who portray their high status but
they should also focus on the younger generation which is gen z who are now becoming
trending consumers in the luxury market.
Guerlain only recently started using its website for shopping online previously it was only used
to find stores that had the product. They still don't ship internationally and should focus on
increasing their e-commerce presence.
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FUTURE TRENDS
Customer centricity and relevancy. Affluent
consumers’ demand for seamless cross-
channel experiences, always-on convenience,
luxury as investment, and genuine commitment
to sustainability, inclusivity, and social
responsibility, will only grow stronger in the
future.
Online will soon surpass all other luxury sales
channels. Early digital adopters saw
exponential growth, while latecomers were
forced to rapidly adapt and (finally) embrace
digital. The share of online sales nearly doubled
for personal luxury goods, growing from 12% in
2019 to 22% in 2021, reaching $70.1 billion.
Millennials and Gen Z drive luxury growth at
accelerating rates. The younger generations of
affluent consumers are set to account for 70%
of the luxury market by 2025 and contribute Into the Metaverse: Worlds of creativity at play.
130% of luxury market growth. In 2022, luxury brands will be expected to
Value-driven expectations and digital-infused launch dedicated virtual experiences to
lifestyles. enhance their customers’ experience both
Resale race: Second-hand luxury becomes a online and offline. For the metaverse to
first-class priority The global second-hand broaden its appeal, brands will need significant
market is estimated to reach $77 billion in 2025, technological improvements, particularly with
with growth rates outpacing the wider luxury AR and VR headsets. Gucci and Balenciaga
market. Resale (thanks to its more curated already filed trademarks for smart glasses and
assortments) is driving the growth and is connected clothes.
expected to grow 11 times faster than ordinary Sustainable sustainability: Towards a more
clothing retail. holistic approach to values. Being more
inclusive and more sustainable will be non-
negotiable for luxury brands to remain relevant
and win over younger cohorts. Some 43% of
Gen-Z fashion consumers actively seek out
companies with a solid sustainability reputation.
Localization: Domestic luxuries to journey away
from the global sea of sameness. With
international tourism not expected to fully
recover for another year or so, we will continue
to witness growing interest and preference of
affluent consumers for locally-made products
and local shopping destinations in 2022.
Shoppers want to support their local economy
and focus on proximity e-commerce channels
for luxury brands.
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CONCLUSION
Since before the pandemic, luxury and premium brands have significantly outperformed
the rest of the global apparel market. This trend accelerated during COVID-19, with luxury
and premium segments generating shareholder returns of 33.2 and 18.0 percent,
respectively, as opposed to 8.9 and 6.2 percent for value and mass segments,
respectively. The COVID-19 lockdowns encouraged more consumers to save money
instead of spending it on experiences and luxury goods. Consumers actively engaged in
"revenge spending" as they sought compensation for life on hold once restrictions were
lifted in 2021 and 2022, saving at record-high rates during the pandemic.
With regard to both the goods' appeal as long-term financial investments and the appeal
of sustainable shopping through high-end resale, consumers are beginning to view luxury
goods through a new lens. The luxury market appears to be gaining momentum thanks to
a new type of conscious luxury consumer—those who value long-lasting products,
sustainable shopping, and potential investment opportunities.
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