As they look to revitalize sales, luxury brands are turning away from discounts to attract new customers. This practice has been especially true for conglomerate powerhouse LVMH, who are leaning further into marketing strategies focused on aspiration, rather than affordability. Read on to see how LVMH is adjusting to the ever-evolving market and learn what this could mean for luxury shoppers in the future!
1. Leveraging Clout over Discounts: How LVMH Plans to Reattract Luxury Shoppers
The luxury brand have always marketed themselves through high quality products and prestigious pricing. But times have changed and shoppers now prefer discounts and promotions to buying at regular price. In response, LVMH has come up with a plan to drive sales and reattract luxury shoppers.
- Creating a Status Symbol: LVMH plans to promote the luxury culture by introducing status symbols that come with the purchase of their products. Through special deals and offers, shoppers can acquire exclusive access to elite services.
- Prioritizing Loyalty: LVMH plans to focus on their existing customers and reward them for their continued loyalty, offering them special discounts and exclusive services that are not available to new shoppers. This way, existing customers feel more valued and appreciated.
These strategies, when combined together, work to create a powerful and cohesive message. By leveraging the power of status and reward shoppers for their loyalty, LVMH plans to drive shoppers back to their store and reattract those seeking luxury goods.
2. How LVMH is Re-Positioning the Perks of Designer Brands
For years, designer brands like Louis Vuitton from the luxury conglomerate LVMH, have been associated with extravagance and exclusivity. However, this has all changed with the introduction of the “see now/buy now” attitude.
LVMH have adapted to the rapidly changing market and instead are repositioning designer brands as being aspirational and accessible. The company have implemented several strategies in order to bring their customers closer to the luxury lifestyle:
- Affordable and Smaller Pieces: Many designer brands have created smaller, simpler pieces at lower prices. So everyone can finally emulate the “luxury look” no matter the budget.
- Partnership with High Street brands and Celebrities: As well as being available at designer stores, you can now find pieces with LVMH collaborations in stores like Topshop or high-end stores like Bergdorf Goodman. The company have also been teaming up with popular celebrities like Rihanna to create capsule collections.
- Dedicated eCommerce Platforms: Unlike conventional websites, the LVMH Group also have their own eCommerce stores and apps. Making their designer brands easy to shop and purchase at the click of a button.
With these new strategies, the perks of designer brands are easier and simpler to gain access to than ever before. It’s no longer about how much money you spend, but instead, experiencing all the brand has to offer.
3. Cultivating an Environment of Aspirational Luxury Shopping
Create a Personal Experience
Creating an environment of aspirational luxury shopping begins with creating an unforgettable personal experience. customers should feel at home when entering your store and be able to find what they need quickly and easily. This could involve:
- Developing signature shopping experiences which keep customers returning
- Adding small touches such as refreshments or personal shopping assistance
- Utilising the latest technologies such as RFID for a more efficient store experience
Such approaches give customers an experience which enhances their impression of the brand and encourages them to buy into the aspirational luxury shopping you are offering.
Raise The Bar on Quality
The second element of creating luxury shopping experiences is through raising the bar on quality. Aim to stock the highest quality and exclusive items in your store which cannot be sourced elsewhere. This could include items such as:
- Unique jewellery
- Authentic, handcrafted artisanal products
- Designer clothes exclusive to your store
- High-end, limited edition electronics
These measures showcase the store’s commitment to offering aspirational luxury shopping experiences to its customers. They exude an atmosphere of exclusivity, prestige, and admiration.
4. The Emerging Role of LVMH in the Luxury Retail Market
Riding the Trend of Luxury Retail
As globalization opens new opportunities for luxury retail markets, the world’s largest luxury conglomerate, LVMH, is quickly taking the reins in terms of sales and influence. Its far-reaching portfolio of exclusive lifestyle brands, often tied to a long and glittering heritage, has unsurprisingly, been in great demand. Whether it’s Vuitton’s iconic monogram print or Hennessy’s distinguished cognac, the prominent presence of LVMH is unmistakable.
The magnate has also innovated further with its unique and contemporary approach to marketing. While the high-end lifestyle may often appear out of reach, LVMH is skilled in broadening its access to a wider audience through marketing campaigns and collaborations. As one example, the group recruited cult Japanese designer Nigo for its Louis Vuitton menswear line in 2020, allowing a younger crowd to tap into the brand’s quality and allure.
- High-end lifestyle approach
- Unique and contemporary approach to marketing
- Louis Vuitton menswear collaborations
Although LVMH’s new strategies may seem unorthodox, they may be the key in unlocking a renewed “brand loyalty” and recognizing that “status is more important to luxury shoppers than discounts.” It may just be that the time to invest in relationships, not numbers, is now.
