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The secret behind the success of the luxury brands which have been defying the crisis
Analysis 08 May 2010
Hermes, Tod's, Loro Piana, Brunello Cucinelli, Bottega Veneta have been making headlines for the past 10 months, standing out as among the few international luxury brands to register positive results during the unfolding international financial crisis. The secret behind their success ? - focusing on heritage and exceptional cratfsmanship, without compromising on quality. Another key to their success has been their consistent marketing communications strategy which, which highlighted the quality and creativity of their products rather than focusing on the ''fashionable factor''.
Each of these brands have maintained their long time reputation which is all about the quality of their products: Hermes - unique leather bags, Tod's - comfortable exceptional quality leather, Loro Piana - top quality cashmere, Brunello Cucinelli - timeless design and top quality materials, Bottega Veneta - quality leather goods with an original design.
Each of these brands has understood the importance of classic design, while making sure modern and innovative touches are introduced both in their branding and designs. For instance, Hermes has been innovating in certain leather types and Bottega Veneta have been beautifully blending classic retro design with modern accents, especially through their clothing line.
Another factor which has been contributing to the success of these brands during the current crisis is their control of distribution, limiting points of sale and focusing on monobrand distribution. Their financials have been illustrating a higher and steady growth in their directly operated stores versus wholesale. While many other luxury fashion and accessories brands have been cutting costs including in their human resources, these brands have been focusing on maintaining and further investing in the training of their staff, being aware of the crucial importance of customer service. Not surprisingly, their sales on the internet have remained at lower levels, their loyal customers perferring to make their regular purchases at the traditional stores.
Oliver Petcu