How to build up, manage

and leverage Luxury &

Premium brands in the
new 2019-2025
environment ?

LUXURY MARKETING
& PREMIUM
PRODUCTS
@kbouhajeb
Scoop.it : LUXE 2.0
Thursday, March 11th 2020 – Karim BOUHAJEB –
Paper.li : LUXE 2.0
Tumblr : LUXE 2.0
Blog :
Understanding Luxury
Millenials expectations
Impact on Organizations and
Marketing
1. Asking themselves questions
- Status of the Brand

- Authority

- Diktat
2.
TRANSPARENCY
EXPECTATIONS

- Services

- Stocks

- Interactions
3. CUSTOMER
SERVICE

- Experience

-Individualization -
Personalization
- Engagement
 4. BOTTOM-UP PROCESS

-Questioning the balance of the brands

- In search of the true value of Brands

- E-reputation

- Issues

- Love-Hate Relationship

- Decoding
5.
IMMEDIACY

- Real Time Answers

- Transmission

- Codes

- Culture
 6.
VERSATILITY

- Geofencing

- Showrooming

- Harpooning

- NFC

- RFID

- i-Beacons
7. REDEFINING
BRANDS

- Experience

- Immersion

- Excellence

- Exclusivity

- Customization
8. DELINEATED
PURCHASING JOURNEY

- ZMOT

- Conversion funnel

- Disruption of the chain of

value
Internet & E-business: the new models

Intermediation/ disintermediation

BtoC BtoB CtoC CtoB

DtoC CtoM GtoC CtoG

New vocabulary:
New behaviors:
« Pure players »
« Showrooming » = Store-to-Web
« Click and mortar »
« Web-to-store » Rent & Buy
Brick and Mortar
Click & Collect Shop & Go/ Give Market Place
Click & Reserve Click & Chat E-Tailer
Click & Shop Click & Try Brands.com
Click & Call Click & Fly Start-Up
DNVB
Internet & E-business: the new models

Through the Value Chain (M.Porter)

HR / FINANCE / MARKETING / PURCHASING /…

Commercialization
R& Production Logistic Distribution
D

Transformation
9.
WEARABLES

- High Tech Savvy

- Intelligence

- Connexion

- Stay Tuned
10. e-CRM, s-CRM, m-CRM

- Digital innovation

- Data enrichment

- Mobility

- CRM :
 Activation/Acquisition
 Recruitement
 Retention
 Loyalty
11. SELL WHERE THEY
SHOP

- At Home

- On the Go
- In-store

-Pop-Up
stores
12. SEAMLESS CUSTOMER
JOURNEY

- Omni-channel

- Phygital

- Hybridization

- Convergence

- Unified commerce
13. CUSTOMER CENTRIC

- « The Customer is King »

- Consum’actor

-Refocusing on consumer needs

Product Availability

-Centralization of stocks &

Inventory Management

- 4Ps/4Cs => 5Ps/5Cs

-Marketing For => Marketing

Weave
 14. STORY
TELLING
- Brand Culture

- Brand Content

- Branded
Entertainment
- Brand Content
Strategy
- Retailtainment

- Imaginary

MARKETING
INTERNATIONAL INSEEC
BUSINESS SCHOOL
15. CONVERSATIONAL
MARKETING

- WOM

- Points of Contact

- Dialogue

- Conversation

- Seamless

- Collaborative model
16. COOPTATION
- Social media platforms

- Instant Messaging

- Communities

- Federate

- Inclusive-Involvement
17. SENS &
COMMITMENT - Like

- Post

- Share

- Results

- Empathy
18. BLOGOSPHERE
- Circles of Influence

- Notice

- Tips

- Trends

- Information

- Exchanges

- Social Connection

- Happiness vs Seriousness
19. TOTAL
IMMERSION
- Living the Extraordinary

- Sensory Attraction

- Immersive Experience

- Sound design

- E-motion

- Virtual Smell

- Virtual Touch

- Virtual Reality
20. CONVENIENCE MARKETING
ERA
- Seamless experience

- Streamlining the Customer Journey

- Multiplying and unifying Touch Points

- Trademarks in Full Services

- Delivery in less than 1 hour

- Answers in Real Time

- Consistent & relevant service

Worldwide Luxury Report 2020

Global Economy

On high Alert Beyond China

Continued caution is advised for the year ahead

China will continue to provide exciting
as mounting underlying turmoil could disrupt
opportunities and play a leading role in the global
relations among both developed and emerging
fashion industry, but the colossal market is
market economies.
providing to crack than brands anticipated.
Indicators of recession risk are spurring
As some successful players become over- reliant
companies across industries to build a resiliency
on China & others struggle, companies should
playbook and plan for other macro risks such as
consider spreading their risk by expending to
geopolitical instability and the inflammation of
other high- growth geographies.
trade tensions

2019 Forecast: x 2,3

49% 2020 9% 2025
LUXURY
BRAND
MANAGEM
Worldwide Luxury Report 2020

Consumer shifts

In their
Next Gen Social Sustainability first
neighbourhood

The global fashion industry is

Consumer demand for convenience
As traditional engagement models extremely energy-consuming,
and immediacy is prompting retailers
struggle on established social media polluting and wasteful. Despite
to complement existing brick-and-
platforms, fashion players will need some modest progress, fashion
smaller format stores that meet
to rethink their strategy and find hasn’t yet taken its environmental
customers wherever they are and
ways to maximize their return on responsibilities seriously enough.
reduce friction in the customer
marketing spend. Attention- grabbing Next year, fashion players need to
journey.
content will be key, deployed on the swap platitudes and
The winning formula will feature
right platform for each market, using promotional noise for meaningful
persuasive calls to action and in-store experiences and action and regulatory compliance
wherever possible, a seamless to localized assortments in while facing up to consumer demand
checkout neighborhoods and suburbs for transformational change
beyond the main shopping
thoroughfares

70% of fashion players Biggest challenge for

believe “increased
exploration” of spend on
social media
55% “sustainability and
industry for 2020 #1
The Luxury Industry covers a wide
range of consumer products

Overview of main categories in the luxury industry

LUXURY INDUSTRY
Watches & Wines &
High-end apparel Food Luxury cars
Jewellery spirits

PERSONA OTHER
Accessories L Leather
Hospitality Jets &
LUXURY goods Yachts
LUXUR
GOODS Y
Perfumes & GOODS
Cosmetics Hard luxury (pens, Other luxury Luxury real Collectibles,
lighters, etc…) services esLUMBA
at XUtESG
ReYBENGALORE
BRAND
karim.bouhajeb@gmail.com
LVMH is by far the world’s most diversified
Luxury conglomerate
Segment %of SALES OPERATIN DESCRIPTION
G MARGIN
FASHION AND 34% 29,5% Comprises a portfolioof luxury brands such as LV, DONA
KARAN, LOEWE, MARC JACOB, CELINE, KENZO,
LEATHER GOODS
GIVENCHY, EMILIO PUCCI, THOMAS PINK,
BERLUTI, LORO PIANA and NICHOLAS KIRKWOOD

WINES AND SPIRITS 12,8% 28,9% LVMH focuses on high-end offering in the following
two bussiness Champagne and Wines (Dom Perignon-
Moet)

PERFUMES AND COSMETICS 12,6% 10,6% Comprises the activities of Parfums Christian Dior,
Guerlain, Givenchy, Kenzo, Acqua di Parma, Parfums
Loewe and Fendi

WATCHES AND JEWELERY 9% 10,2% Encompasses the luxury watch brands : TAG Heuer,
Hublot, Zenith and Dior, as well as Chaumet, Fred, de
Beers and Bulgari jewellery collections

SELECTIVE RETAILING
30,7% 9,3% Cover travel retail operations, Sephora and Le Bon
Marche

LUXURY BRAND
MANAGEMENT MSc BSB
LUXURY
Middle-class++ consumers are the key target
market
LUXURY
COMPANIES
Selected
department OWN E-
stores STORE COMMERCE
S
Ultra high High net
net worth worth Upper
individuals individuals middle-class

Middle class LUXURY BRAND

MANAGEMENT MSc BSB
LUXURY
 Groups follow a range of
strategies to ensure profit and growth
Overview of luxury companies’ main growth strategies

Key Strategies STRATEGIC OBJECTIVES Key Strategies

Product line VERTICAL Specialist acquisitions

extension
INTEGRATION

HORIZONTAL
Licensing INTEGRATION Mergers & acquisitions
agreements

INTERNATIONALISATIO
N
Store network Online communications
expansion (social media, websites,…)
STRENGHTENED
DISTRIBUTION

BRAND VALUE Marketing, advertising,

E-commerce
branding initiatives
CREATION LUXURY BRAND
MANAGEMENT MSc BSB
LUXURY
An exclusive market dominated by a
handful of multinationals
The luxury market • The market for personal luxury goods includes a wide range of products, including «
soft luxury » goods (high-end apparel, leather goods and accessories) and « hard luxury
includes a range goods » (watches, jewellery, pens, etc…).
• Perfumes and cosmetics can also be included, although the distinction between luxury
of products, and mass consumption is more blurred for this product category.
• Typically, larger luxury groups also market a wide range of other products (wine &
exclusive by spirits, food, collectibles, automobiles, yachts, luxury real estate, etc…) and services
(hotels, catering, tourism).
nature • Luxury goods and services are characterised, in particular, by their exclusive
nature and superior customer experience.

Large integrated
conglomerates • The global luxury market is dominated by a handful of multinational
conglomerates with large portfolios of specialised luxury brands.

dominate the • The majority of leading luxury groups and brands are concentrated in Western
Europe, particularly in France, Italy, Switzerland and the UK.

market
• In other key luxury markets such as US, Japan and China, only a few brands are
established luxury companies.

LUXURY BRAND
MANAGEMENT MSc BSB
LUXURY
Brand value is vital to ensuring high
margins and customer loyalty
• Although luxury groups’ most exclusive goods can command high prices, the bulk of
their margins and profits come from more accessible products.
Brand value is • Some key segments of the luxury market, such as Haute Couture, are even characterised
by a high break-even point (costly production procedures and low profitability), which

key to high make them unprofitable in most cases.

• Such activities, however, form part of sophisticated marketing techniques and are key to

margins
brand value and competitivness.
• Luxury groups generally focus on building strong and desirable brands before
following « brand-line extension » strategies ie marketing more profitable product
categories.

• Two main customer types can be distinguished :

• High-net-worth individuals who are generally less affected by changing economic
A specific conditions.
• Upper middle-class consumers who generate smaller and fewer sales (typically of more

customer base accessible products). They are more sensitive to macroeconomic conditions and changes
to their disposable income, but offer a wider customer base.

LUXURY BRAND
MANAGEMENT MSc BSB
LUXURY