Competition
frame
The
luxury leather sector is one of the most dynamic areas in the luxury
industry. Indeed, for women, the handbag especially, has became "the"
fashion accessory to have. Originally created for a functional use,
it became over the years an object of desire thanks to the luxury
brands. Louis Vuitton and Hermes, top specialists of leather have
to face fierce competition among fashion houses such as Christian
Dior, Chanel, Prada, Gucci and Versace. Each of them have a strong
personality and history, and have succeeded to match their
ready-to-wear collection and hand-bag/ leather good management. To
pretend competing in this market, each brand has to be able to offer a product with high quality, that is fashionable, trendy and remarkable assets. The image of the brand is also really important, the
reputation, and the background. The price must be high, as well as
the level of the service. Indeed people who are purchasing a luxury
good expect to feel special, to do something different than the
other. It could also result from a need of esteem, the fourth level
of the Maslow pyramid.
The
Target Market...
...
Of Louis Vuitton:
The
first target of the brand is high income level consumers, who are very
wealthy, of both genders from 16 to 80 years old.
Business
men and women with great income are also targeted.
They
also use a psycho-graphic segmentation, such as lifestyle and motives
to identify another part of its target market:
-
for instance, the "fashionistas", people (especially young
women) who are carefully following the fashion and the trend. The
brand has collaborated with famous celebrities such as Kanye West in
the design and launch of some products, such shoes.
-
they also target people who need to show their social status, their
success by purchasing luxury goods. Indeed, the brand don't sell only
an up range product, but also the psychological benefits like the
prestige and the feeling of belonging to an exclusive group.
...
Of Hermes:
Like
Louis Vuitton, high income level consumers of both genders are
targeted . The difference is that Hermes do want to be on an "ultra"
luxury market (the "absolute" luxury), and target the
Elite. They are really demanding people who are seeking more for the
quality of the product than the image and who prefer the discretion
rather than the "blig bling" attitude.
For
both companies, developing countries such as China, Russia, Brazil,
India are also important targets with a lot of potential. For most
people of these countries, the social recognition is really
important. Even if their knowledge about the luxury notion was quite
low few years ago, these brands, especially Louis Vuitton wanted to
be the ambassadors of the luxury culture and teach them the fine art
of living and travelling.
Point
Of Parity & Point of Difference
POP
& POD of Louis Vuitton
POP
|
POD
|
-
High quality : the leather, canvas and other
raw materials used for each product are precious ( veal, velour,
crocodile... )
-
High price : entry price for a LV bag is around 600€
-
High quality of service : one to one service
for the VIP customers, many sales people in the store to take
care of customers, possibility to personalize products
-
Fashionable / Trendy : Famous and talented Artistic director such as Marc Jacobs, and recently Nicolas
Ghesquière
-
Star Products : Speedy, Keepall,Steamer models
|
Exclusivity :
the brand sells its products only in its own stores and houses,
never do any discounts to keep this spirit
Tradition
& innovation combination : the brand succeed to keep
its heritage spirits and in the same time, innovate to adapt to
the trend
Very
Stylish : the products are really trendy with
sophisticated designs
Ever
lasting : best seller such as Speedy, Keepall,Steamer
models
Monogram :
has a strong story behind it and everybody recognizes it when they see it
Know
How : thanks to its heritage. «Every L.V creation
result from an intransigent research of quality and an
exceptional hand craft »
|
POP
& POD of Hermes
POP
|
POD
|
-
High quality : use
of precious and fine raw materials.
-
High price : all
Hermes products are very expensive
-
High quality of service : the SPA service
consist in allowing customers to give back their old product to get
a « lifting » operation.
-
Star Products : Kelly,
Birkin models
|
-
Premium quality for
each component of bag (from the smallest to the principal)
contrary to other house.
-
Premium price : bags
cost from 5000 to 200 000€, much more expensive than Louis
Vuitton
-
Exclusivity, rarity : the
brand restricts deliberately the number of its production. For
instance, to get a Birkin bag, some customers have to wait 2 years
before getting it. Moreover, when a product become too popular,
the company stop the production.
-
Family business : Hermes
belongs today to the 6th
generation of the family. It allows the family to better control
the image of the brand. They are trying to keep the original
values of its founder.
-
Tradition : is
an important value for the brand
- Craft-men Know How : Some
products, such as the Birkin bags are 100% hand made, and could
take 2 weeks to be created. Hand-craft also has huge value for
Hermes.
|
The Brand Mantra of Louis Vuitton
Innovative,
Prestige, Desirable, Stylish and Dream
would be for me the essence of Louis Vuitton.
Indeed,
since its debut, the brand has succeeded to maintain its prestige
over the years thanks to its Know How, and its ability to sell dreams
to people. Louis Vuitton has also succeed to remain trendy thanks to
its creativity ,innovation, and partnerships (with celebrities for
instance).
The
Brand Mantra of Hermes
Tradition,
Timeless, Rarity, Dream and Excellence would
be Hermes' essence.
Even
if it has grown up globally, Hermes has succeeded to remain a family business and to preserve the spirit of its origin. As said by Guillaume
de Seyne, Vice General Director of the group, "our values are
about the handcraft excellence, the quality focus, the attention
about every detail and finishing touches." Indeed, most of
Hermes products are entirely made by hand, which can take 2 weeks to be
achieved. The brand also bet on the classic style and offer to give a
lifting to customer products in order to make them timeless: “For
us, the hand-bag is not just a fashion accessory but an essential of life.
It will never been offered for only 6 months. It come for years into
a family”.
Audrey
H
Sources:
Leather industry has been a wide industry over all the world however there is need of more innovations. Phd dissertation writing services
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