Suprising change in luxury consumer preferences – the smaller the logo, the more expensive

A study by University of Chicago presented this week in Paris by branding expert Jean-Lois Kapferer reveals an important change in luxury retailing. The researchers analyzed sales of 236 bags sold on the Louis Vuitton web site and 229 bags sold on the Gucci web site. The results of the analysis highlighted that the bigger the logo displayed on the product, the cheaper it is and vice versa. The study has also identified that same trend in cars, namely Mercedes Benz, which displays a logo of 13 cm on the cheaper A class models while the more expensive cabriolet models of the E class display a logo of 5,5 cm. It remains to be seen whether these findings represent a long term change in consumer behaviour or a temporary attitude dictated by the crisis.