Matthew Smith’s Post

🧐 What Does Louis Vuitton Do with Unsold Products? 👜 A typical business would offer discounts to move unsold inventory, right? But luxury brands like Louis Vuitton take a very different approach—they burn their unsold products. 🔥 Why? Because the value of luxury items is driven by scarcity. To maintain exclusivity, Louis Vuitton ensures that their products don’t lose their prestige by being sold at lower prices. Discounting their items would suggest a lack of demand, which could damage the brand’s image and value. 💡 Takeaway: In the luxury market, maintaining exclusivity is essential to preserving brand value, even if that means destroying unsold goods. What do you think of this strategy? Let’s discuss below!👇 Follow Chetan Kumar for more insights! #LuxuryBrands #Exclusivity #BrandStrategy #LouisVuitton #MarketingTactics

🌟"Luxury goods are the only area in which it is possible to make luxury margins."🌟 This is a statement made by Bernard Arnault, the CEO of LVMH and one of the three richest people in the world. Luxury brands have an unparalleled ability to transform a $50 product into a $1,000 or $2,000 masterpiece. This isn't just about the tangible item—it's about what the brand represents. When people buy luxury, they invest in prestige, status, and exclusivity. They're acquiring a piece of heritage, like Louis Vuitton, a storied French brand since 1854, Or Rolex, where owning a watch means being part of an exclusive club. In the world of luxury, it's not just a product—it's a statement and a legacy. #LuxuryMarket #Fashion #ExclusiveBrands #LVMH #LouisVuitton #Rolex #LuxuryLifestyle #BernardArnault #MarketingInsights

Pre-Owned Luxury in Demand Pharrell Williams , creative director of Louis Vuitton, owns a luxury auction house and resale company called JOOPITER. #luxuryresale JOOPITER auctions rare highly coveted luxury products owned by influential musicians, fashion designers, artists and cultural icons. Pharrell entered the luxury resale market because he saw the rising demand for pre-loved luxury products. He is a master of understanding how culture drives commerce. Joopiter has sold millions of dollars of pre-owned luxury products since it's launch in 2022. Joopiter is targeting a very specific kind of customer, who are growing in number and purchasing power. #luxurycustomer Will explain in more detail later. Scientia est Potentia - Knowledge is Power #luxuryresale #luxurycirculareconomy #thefreshkid

This video compares the 13 largest luxury companies worldwide by market cap. Let’s look into the data: • Louis Vuitton's market cap is almost 60% larger than the combined market caps of the bottom 10 companies on the list. • Hermes International is by far the largest single-brand company on the list and ~3.5x larger than Ferrari. • Despite owning 10+ brands including iconic maisons such as Gucci, Saint Laurent, and Bottega Veneta, Kering's revenue is "only" ~€20B, compared to Hermès' €13B. • Tiffany & Co. was acquired by Louis Vuitton during the pandemic at a valuation of $16 billion, which would place them at number 8 on this list. Chart graphic by Quartr / Video by tranches

I love this initiative. Buying pre-owned luxury goods not only tackles waste and promotes recycling, making it an eco-friendly choice, but you can also often discover rare or discontinued items that aren't available in stores anymore, which adds uniqueness to your collection. Many luxury items are built to last, so buying preowned often means you’re investing in quality craftsmanship. #PreOwned #PreownedGoods #LuxuryBrandManagement #LuxuryGoods

✨How Luxury Perfume Brands Transform Scent into Captivating Ads Crafting a captivating advertisement for a new luxury perfume is no easy feat. These high-end fragrance brands must find a way to evoke the elusive experience of smell through the visual medium of film. So how do they do it?💧 Successful luxury perfume ads often employ several strategic techniques: 🥚Sensory Storytelling - Rather than simply showing the perfume bottle, the ads weave an immersive narrative that taps into the viewer's senses. Lush visuals, emotive music, and sensual movements work together to transport the audience and make them feel the allure of the fragrance. 🥚Aspirational Imagery - Luxury perfume ads frequently feature glamorous models in opulent settings. This cultivates a sense of exclusivity and desirability around the brand, inviting the viewer to imagine themselves experiencing that elevated lifestyle. 🥚Capturing the Essence - Perfume houses work closely with directors to distill the core notes and personality of the fragrance into every visual and auditory element of the ad. From the cinematography to the wardrobe, every detail is carefully crafted to embody the scent. The end result is an advertisement that goes beyond simply promoting a product. It creates an immersive, sensorial experience that captures the spirit of the perfume and leaves a lasting impression on the viewer. How have you seen luxury perfume brands innovate with their advertising? I'd be curious to hear your thoughts! #LuxuryMarketing #Fragrance #SensoryExperience #Advertising #Branding

Reviving a Queen’s Heritage Brand in the M&A Scene | Arnaud de Lummen, a renowned 'brand reviver', shares his insights in an exclusive interview with Marco Consonni for WWD. Heritage is the cornerstone of luxury brands—it’s irreplaceable and forms the essence of iconic names like Dior and Chanel. These brands weave their rich history into their identity, selling not just products but compelling stories. However, heritage brands are seldom up for sale. When they are, they often come with financial struggles or hefty price tags. In recent decades, industry leaders such as LVMH and Tod’s have shifted their focus to “dormant brands”—heritage brands that have ceased operations. Notable examples include Balenciaga, Schiaparelli, Roger Vivier, Jean Patou, Moynat, Buly, and Paul Poiret, all of which were once dormant before being revitalized. Curious about how dormant brands are identified and acquired? Read the full article here: https://lnkd.in/dyKq6C64 https://lnkd.in/dqTxQwV4 #HeritageBrands #Luxury #BrandRevival #MA #LuxuryIndustry #DormantBrands #BusinessStrategy #FashionIndustry #BrandStrategy #ooaa

Not all luxury items are liabilities! 📈 The numbers speak for themselves: from 2007 to 2024, investing in a Louis Vuitton bag has yielded a remarkable 214% return, outpacing both gold and the S&P 500. 💼 Luxury investments can be more than just status symbols; they can also offer substantial returns. This data challenges the conventional wisdom about assets and liabilities, proving that strategic luxury purchases can be smart financial decisions. #Investing #LuxuryGoods #FinancialWisdom #LouisVuitton #WealthManagement #InvestmentStrategy

Louis Vuitton Trunks Are Scarce LVMH recently shared it's last quarter results with it's fashion and leather goods the best performing category. Louis Vuitton , LVMH’s most popular brand, and it's heritage trunks are very popular on the resale market.#luxuryresale The oldest and most sought after trunks are scarce. They also tend to exchange hands for the largest sums in the resale market. Luxury customers who love travel are often looking to purchase a piece of history and nostalgia when purchasing the older trunks. #luxurycustomer Some of the trunks that were made in partnership with artists also command a premium. As there is considerable demand for them and they can be sold reasonable easily through auctioneers and luxury resale companies. They are often being purchased not just to enjoy, collect but also as investments. #alternativeinvestment Scientia est Potentia - Knowledge is Power #luxuryresale #luxurycirculareconomy #thefreshkid

LVMH Moet Hennessy Louis Vuitton SE The group is an owner of one of the most recognised luxury brands in the world, likes of Louis Vuitton, MOËT & CHANDON, Hennessy, Veuve clicquot, Tiffany and Co, Tag Heuer, Dom Perignon, Christian Dior etc  which they call Maisons. The group posted a 3% decline is sales for the 3Q and 2% decline for the 9 months to September 2024 after weak demand, especially from Japan, sending it share price down 15.27% YTD to €611.60 (2024/10/17) and from a high of €872.80 in the YTD. With Global interest rates going down and disposable income going up, the luxury sector might benefit from the Cycle. LVMH been a great share to hold with a CAGR of 22% (Excluding dividends) since closing price of 2015 to closing 2023, Constant dividend payer, not to mention that if you a South African the devaluation of the rand against the EUR would have added to that return. It is interesting to read at how much the founder, Chief executive and Chairman Bernard Arnault is so passionate about his Maisons’, in the introduction to his review in the 2023 annual report he writes: “Our flagship Maisons’ have established their positions at the pinnacle of the finest craftsmanship, their names synonymous with the ultimate in prestige and international renown. They exert irresistible appeal, turn heads and inspire dreams; they are where creativity reaches its zenith, where the magnetic force of desirability is strongest. We devote all our energy to making these beacons shine ever more brightly across every continent. Throughout the challenging period our world has experienced these past few years, the desirability of the products that our Maisons design and craft has continued ever upward among our customers, who have driven growth across the LVMH Group at unprecedented rates. It is because each of our 75 Maisons’ products inspired joy and encapsulated beauty at a time when joy and beauty really mattered, that our Maisons were able to achieve this growth.”