I’m not a fan of Louis Vuitton. I just don’t like the monogram, mainly because it is so heavily counterfeited that you can’t spot a real from a fake. Some key takeaways from LVMH unit sales growth disappoints:
- “It depends on aspirational demand and new consumers.” This is true for all luxury products. Austerity measures, economic downturns, etc. will hit you where it hurts.
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“The risk of ubiquity is that . . . the consumer, seeing the same products everywhere, all the time, starts to perceive a brand as being too common,” said analysts at HSBC in a note published in January.
So if you’re a luxury brand, exclusivity is important too. A fine balance for growth vs. exclusivity is key it seems.