Lux Ed

Luxury is no longer about simply reviving heritage codes of the past, but rather it’s a dream space. Status is therefore found in radical solutions and ground-breaking projects.

My claim is that luxury goods are gradually becoming a noisier signal of one's position in society. This isn't to say that they don't still confer status — they clearly do. People still buy material items to signal their status. But because they've become a noisier signal over time, people are starting to signal their status with their beliefs and ... See more

Customers must want the product. That sounds simple, I am sure, but to get advertising right is very, very difficult—it’s difficult to get advertising to represent the true brand. Most companies think it is enough to use advertising to present a picture of the product. That’s not enough. You need to project the image of the brand itself.

The latest... See more

Each year, new products account for approximately 15 % of LVMH sales, and some of them enjoy operating margins of up to 47 % . (For a list of the company’s brands, see the exhibit “The House of Arnault.”) What makes these statistics all the more remarkable is that many of these products at first appear utterly outlandish—a kidney-shaped handbag cov... See more

At the same time, you want people to constantly reinvent the brand, right?

Yes, otherwise you won’t be current, and a star brand is current—or you could call it fashionable. It is edgy, it has sex appeal, it is modern. In some way, it fulfills a fantasy. It is so new and unique you want to buy it. You feel as if you must buy it, in fact, or else yo... See more