Gautam Sawhney’s Post

There’s a lot of debate going on about this video link here talking about how luxury brands like Dior, Georgio Armani etc. sell their products e.g. handbags by marking them upto 50 times the cost, and people buy these products because it makes them feel empowered, fulfilled, indulged and most importantly gives them a badge of honour. It is being debated here that they are clearly playing with human psychology and making them think they are paying for ultra high quality products, but in reality they’re just being made to pay for all the marketing expenses, and retail stores’ upkeep. And not just that, the desire to own a “BAGWATI” from Hermes is what is constantly driving this. It’s a personal choice at the end of day BUT are these luxury brands adding fuel to this “fire” of “desire”? What are your views on it? P.S. The human laws, sustainability matters and rules being flouted by luxury brands are a different topic of discussion altogether.

𝐓𝐡𝐞 𝐏𝐨𝐰𝐞𝐫 𝐨𝐟 𝐏𝐞𝐫𝐜𝐞𝐩𝐭𝐢𝐨𝐧: 𝐖𝐡𝐲 𝐋𝐮𝐱𝐮𝐫𝐲 𝐁𝐚𝐠𝐬 𝐂𝐚𝐧 𝐂𝐨𝐬𝐭 𝐒𝐨 𝐌𝐮𝐜𝐡. Have you ever wondered how a handbag can cost thousands of dollars, even though the materials and production might seem relatively inexpensive? The recent discussions surrounding Christian Dior highlight the impactful role branding plays in luxury pricing strategies. Here are my thoughts summarized in 3 points: Strong Brands Command Premium Prices: Brands like Christian Dior command premium prices due to their established reputation and perceived value. Brand Differentiation and Positioning: Dior's exclusivity, heritage, and unique design justify a higher price point. Customer Loyalty: Loyal customers value the brand experience and are willing to pay a premium. In conclusion, a brand's image plays a significant role in justifying luxury pricing. By cultivating a powerful brand identity, companies can create a perception of value that goes far beyond the tangible materials and production costs.  What are your thoughts? I would love to read them. #Marketingstrategist #LuxuryBranding #BrandPerception #LuxuryPricing #BrandEquity #CustomerLoyalty #MarketingStrategy #BrandDifferentiation #PremiumPricing #Pricingstrategy

First-hand experience: Dior's $2,800 bag's $57 secret was exposed to a Christian Dior Couture customer. I overheard in an Amsterdam restaurant: "That Dior bag? It's garbage. It costs only $57 to make." The owner's face? A cocktail of embarrassment, anger, and regret—emotions no luxury brand wants to be associated with its products. Yet Dior and others embrace it, almost with pride. This seemingly trivial incident exposes a more profound crisis for luxury brands. It's not just about cost-cutting; it's about the unseen, unheard consequences of prioritising profit margins over customer experience. The high price of low quality: The customer feedback data reveals a staggering 90% customer disconnect for Dior, translating to over $7 billion in lost annual revenue. One of the culprits? Quality. Imagine the ripple effect: a Dior bag falls apart, the owner feels duped, and their trust is shattered. They share their experience, tarnishing Dior's reputation. Potential customers hesitate. Quality is a billion-dollar blind spot: Is Dior's Delphine Arnault, CEO, aware that they're actively driving away over a billion in turnover? Did the LVMH Executive Board approve this strategy? Perhaps their hubris is immune from the true cost of cutting corners. It has, after all, been an incredible playbook for the group to date. The long-term cost of a damaged reputation and lost loyalty dwarfs any short-term savings from cheaper production. True luxury is not just about the price tag; it's about creating an emotional connection with each customer. When brands prioritise cost-cutting over quality, they risk severing that emotional connection, leading to severe and unintended consequences. After I arrived home, I was intrigued by what I had heard and searched Google. The (first link) returned is shared here. How can luxury brands strike the right balance between profitability and preserving their reputation for quality? #StrategicDetective #CustomerExcellence #LuxuryBrands #QualityMatters #BrandReputation #HiddenCosts #Dior https://lnkd.in/eBwbhYvw

I find the recent challenges faced by Christian Dior thought-provoking. 🤔 This recent The Wall Street Journal article highlights the reputational risks tied to their $5,700 handbags. It's a stark reminder that in luxury marketing, the story behind the product is just as crucial as the product itself. Ethical considerations and brand integrity play a significant role in consumer trust and loyalty. #LuxuryMarketing #BrandStrategy #ChristianDior #DigitalMarketing

Let’s play Luxury Brand Fun Fact. 🌟 What does Cristobal #Balenciaga and #ChristianDior share the same thing in common? Answer: Birthday! 🥳🎂🎁 Cristobal Balenciaga was born January 21, 1895 and Christian Dior was born January 21, 1905. Yes, 10 years apart. And they both bear almost the same name “Cris and Chris”. 😆 Until the next fun fact! 💫 #LuxuryBrand #LuxuryLifestyle #LuxuryFunFact #TopBrands #LuxuryFounders #LuxuryStoryTelling

Who knew that luxury could be just a click away? Christian Dior has elegantly embraced AR (augmented reality) to transform how we experience high-end shopping online. Their innovative "Rose des Vents" campaign introduced a virtual try-on for exquisite jewelry, blending luxury with cutting-edge technology. What sets Dior apart? Their commitment to maintaining brand prestige online. By ensuring that every detail, from the color to the fit, mirrors the in-store experience, Dior enhances customer confidence and elevates the perception of their brand as a true luxury powerhouse. This blend of tradition and technology not only increases engagement but also invites us to dream a little bigger about the possibilities within the digital landscape. Have you tried something like this? Read more about it https://lnkd.in/gzRCdXqm #LuxuryBranding #ChristianDior #AugmentedReality #Digitalinnovation #OnlineShopping #Retail #AR #RetailExperience #BrandActivation #Marketing #Tech #LuxuryTech

Ever wonder why some brands, like Tiffany & Co. and Gucci, can price their items in the stratosphere and still have people lining up? Or why travellers fork out thousands for a first-class flight experience? 🤔✈️ It's all about perceived value. 💲 Perceived value isn't just about the actual product; it's the experience, the brand prestige, and the feeling of exclusivity. Take a Tiffany & Co. necklace or a Gucci bag, for instance. You're not just buying a piece of jewellery or a handbag; you're buying into decades of heritage, craftsmanship, and the status that comes with wearing these brands. 💎 And that first-class flight? It's more than a seat; it's about the luxury, the comfort, and the elevated service that makes you feel like royalty. 👸 So, if you've ever been told your prices are too high, remember this: Maybe you aren't too expensive; maybe you just haven't found the right audience yet. The right customers understand and appreciate the value of what you offer. Your task is to find them, connect, and watch as they embrace the exclusive experience your brand provides. 👐 #branding #branddesing #businessbranding #brandstrength

How can Dior's suppliers charge $57 to make $2,780 bags?   LuxuryFashion #BrandMarkup #DiorSuppliers Have you heard about the recent Italian police raid on some of LVMH's Dior suppliers in Milan? 🚔 According to prosecutors, Dior pays only $57 to produce handbags that retail for a whopping $2,780! 😱 How is it possible for a brand to achieve such high markups? Check out this article for more details: https://lnkd.in/g6VXzXt... Source: https://lnkd.in/gcSFJ6HM #mymetric360

How can Dior's suppliers charge $57 to make $2,780 bags?   LuxuryFashion #BrandMarkup #DiorSuppliers Have you heard about the recent Italian police raid on some of LVMH's Dior suppliers in Milan? 🚔 According to prosecutors, Dior pays only $57 to produce handbags that retail for a whopping $2,780! 😱 How is it possible for a brand to achieve such high markups? Check out this article for more details: https://lnkd.in/g6VXzXt... Source: https://lnkd.in/gwysi7x2 #mymetric360