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Tag: Luxury Brands

  • How Gucci’s Focus on Trendy Fashion Hurt Its Long-Term Brand Success

    The luxury world is shifting and it’s all about “quiet luxury” now—think understated elegance and functionality over flashy logos. Brands like Stone Island are already riding this wave, focusing on minimalism and anti-fashion trends. While big names like Dior and Chanel have adapted to this new vibe, Gucci’s been slow to adjust. Their focus on hype and trends worked for a while, but now it’s starting to hurt them. As more consumers go for subtle, high-end pieces, Gucci’s gamble on staying trendy could be putting its long-term success at risk. 

    Gucci Faces Challenges in Brand Positioning Amid Leadership Changes

    Gucci’s struggles with brand positioning have become painfully clear to everyone involved. In 2023, Kering brought in new leadership with CEO Jean-François Palus and designer Sabato De Sarno, hoping to shake things up. But despite these changes, Gucci’s fortunes haven’t improved much and the brand is on track for another tough year; with revenue expected to drop by nearly 20% in the second half of 2024. It’s evident that Gucci needs a major overhaul and rethinking its brand positioning should be top of their list.

    Gucci Faces a New Challenge: Embracing Functionality in Luxury Fashion

    Moncler CEO Remo Ruffini has recently talked about what he calls the rise of “new luxury”—a mix of luxury fashion with culture, music and especially sports. Stone Island is already embracing this “anti-fashion” approach, focusing on functionality over style. This shift is part of a broader trend towards minimalist, “quieter luxury,” which has been gaining traction, particularly in athleisure.

    The market seems to be craving something different from the flashy, affordable options offered by brands like Nike and Lululemon. As consumers increasingly lean towards subtle, high-end athleisure, there’s a growing gap for prestigious sportswear. The demand for luxury in this space is real and expanding. This is an opportunity Gucci could capitalize on if it can pivot away from its current trend-focused approach.

    Gucci’s Trend-Driven Strategy Faces Pressure Amid Luxury Market Slowdown

    In 2023, the luxury market hit a bump, growing by just 4%—a sharp drop from the 20% boost it enjoyed the previous year. While heavyweights like Dior, Chanel and Hermes have managed to stay on top, Gucci’s strategy of chasing trends and collaborations has put it in a tricky spot. This slowdown isn’t just a blip; it’s partly due to the hurdles luxury brands are facing with their big bet on China.

    With more and more brands flooding the Western luxury scene, the competition has become fierce and those deep-pocketed buyers are now fewer and farther between. Gucci has built its reputation on trendy, buzz-worthy items and flashy partnerships, targeting these aspirational shoppers. However, with inflation squeezing wallets and these buyers pulling back, Gucci’s reliance on hype-driven sales is starting to backfire. Unlike the classic allure of Dior, Chanel or Hermes, Gucci’s trend-chasing approach might be costing it long-term brand loyalty and success. As the luxury landscape shifts, Gucci’s gamble on staying ahead of the fashion curve could be leaving it out of touch with the true essence of luxury.

    Traditional luxury shoppers, who stick with high-end brands through thick and thin, haven’t been swayed by rising costs or economic uncertainties. But the same can’t be said for the aspirational buyers—those who dabble in luxury as a treat but cut back when times get tough. Kering Group’s top three brands—Gucci, Yves Saint Laurent and Bottega Veneta—Gucci has hit the hardest, with a 6% revenue drop during the first quarter of 2024. This is quite a blow for what’s considered Kering’s flagship fashion house, as Gucci traditionally brings in over 50% of the company’s annual revenue. Given its status as a giant in the luxury world, Gucci’s struggle raises serious questions about Kering’s future growth. To make matters worse, Kering’s stock price has nearly halved over 2023 and the first quarter of 2024 (April), dropping from a high of €603 to €383.

    Global Revenue of Gucci 2012 to 2023
    Global Revenue of Gucci 2012 to 2023

    Why Gucci’s Strategy Shift is Hurting the Brand

    The brand’s trouble boils down to its shifting approach. In the past, Gucci thrived by keeping production limited and maintaining its aura of exclusivity. It catered to high-income individuals who valued Gucci’s rich heritage. But nowadays, Gucci seems to have pivoted towards a more premium, aspirational market. The brand has shifted its focus to younger shoppers and started mass-producing its goods. Millennials, aged 25-35, now represent the bulk of Gucci’s customer base.

    Adapting to the Post-Pandemic Landscape

    Gucci’s pre-pandemic strategies have become outdated, forcing the brand to rethink its approach in the new normal. To stay afloat during tough times, Gucci had to adapt its operations, including ramping up its eCommerce efforts—a shift the pandemic underscored as essential for survival in the fashion industry. This period acted as a wake-up call, showing Gucci the critical importance of online platforms.

    For Gucci, building and maintaining a luxury brand goes beyond high price tags. It’s about creating exclusivity and attracting the right people—those who set trends and create a “taste hierarchy.” Traditional marketing methods just don’t cut it in the luxury space. According to a benchmarking study by Kapferer and Bastien (2012), luxury brands succeed slowly, often through trial and error and they use marketing techniques that are totally different from the fast-moving consumer goods (FMCG) playbook.

    Now, with digital technology coming into play, the luxury shopping experience is about to get a major upgrade. Virtual reality (VR), augmented reality (AR) and artificial intelligence (AI) are reshaping how people shop for luxury items, offering more immersive and personalized experiences. A McKinsey & Company survey from 2023 revealed that 60% of luxury shoppers are open to brands that provide these kinds of digital experiences.

    While Gucci has made progress in integrating technology, competitors like Burberry and Balenciaga are ahead of the curve, using AR to offer virtual try-ons and AI to tailor product recommendations, setting a new standard in the digital luxury shopping landscape.

    Digital Marketing Challenges

    Like other top brands, Yves Saint Laurent,  has gone all out with their marketing strategy. They dive into digital promos, video campaigns, social media and even run contests. A great example is how they use YouTube to connect with their audience, promote the brand and reinforce their iconic image. It’s all about using these platforms to keep YSL fresh and relevant in the fashion scene.

    However, one downside for Gucci is that while many lower-priced premium brands pump money into digital marketing to expand their reach, Gucci risks falling behind if they don’t do the same. Another challenge is the rise of counterfeit Gucci goods flooding lower-income markets, along with growing competition from emerging luxury brands and cheaper alternatives. With economic pressures causing a dip in consumer spending, some might start opting for more affordable luxury options over Gucci.

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    The Shift to Online Shopping

    Despite a shift towards digital, the fashion industry, including Gucci, has been somewhat slow in transitioning from its traditional brick-and-mortar model. For years, luxury brands like Gucci, Louis Vuitton and Prada relied heavily on their physical stores to serve their affluent clientele. But once they saw that their customers were finding inspiration and making purchases online, they knew it was time to adapt.

    While Gucci has made some strides, brands like Chanel have excelled in seamlessly translating their classic elegance into the digital realm by mastering the art of creating unique, high-quality content for a social media-savvy audience, further solidifying their online presence as a leading luxury brand.

    Furthermore, on the eCommerce front, Chanel’s partnership with Farfetch, a top online luxury retail platform, has strengthened their connection with shoppers and enhanced the overall user experience for both customers and store staff. By embracing more digital tools, Chanel is not only optimizing customer engagement but also streamlining its operations. Gucci, while progressing, has room to further enhance its digital strategy to compete at the forefront of luxury in the online marketplace.

    Test of Endurance

    Recent marketing strategies and social media campaigns have been aimed at engaging these aspirational buyers, who are more active online. However, this shift has come at a cost. Gucci’s designs have become more about fleeting trends than enduring style, diluting the brand’s once timeless prestige. In contrast, competitors like Chanel and Dior have stuck to their classic, enduring designs, which has helped them weather the storm better.

    As far as creating groundbreaking marketing strategies, Giorgio Armani is famous! He was actually the one who popularized the “zero figure” model trend, hiring only super slim models to showcase his clothes. Armani also made history by being the first to stream a fashion show live on the internet, turning it into a global event. His brand’s reach extends far beyond fashion. Armani has partnered with premium car brands to design ultra-luxury interiors and is a go-to designer for celebrities like Lady Gaga. He’s even created outfits for entire sports teams. These high-profile collaborations have kept the Armani brand synonymous with glitz and glamor.

    Maintaining a Premium Image

    Interestingly, Gucci isn’t big on traditional advertising. They don’t need to be, thanks to their unique image and exclusive product lines. Instead, they focus on personalizing the customer experience. The brand has been all about understanding what their customers want and delivering just that from its very inception.

    With top-tier materials and craftsmanship, Gucci’s prices are high, but people are willing to pay for that level of quality. To maintain their luxury status, Gucci avoids discounts or sales altogether, reinforcing their premium image.

    While Gucci emphasizes personalization, Louis Vuitton excels at staying ahead of trends, employing both demographic and psychographic strategies to deeply understand its customers. They’ve nailed a unique targeting approach that keeps up with the changing needs of their clients.

    To draw in new buyers, they focus on value-based marketing. Their motto, “The Art of Travel,” taps into the idea that travel is more than just a journey—it’s an experience. Their iconic explorer trunks, like the Monogram Cloud and Monogram Mirror versions, showcase this blend of tradition and innovation, reflecting the brand’s adventurous spirit and craftsmanship.

    While Louis Vuitton attracts new buyers with innovative campaigns, Gucci continues to solidify its reputation by consistently delivering an elevated, personalized experience for its loyal, high-end clientele.

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    Conclusion

    Gucci’s focus on trendy fashion might be hurting its long-term success and this could be a sign of bigger challenges ahead for Kering. With revenue expected to further drop by nearly 20% in the 4th quarter of 2024, it’s clear that Gucci needs a major rebrand. If the brand can pivot towards more timeless, high-end pieces, there’s still a chance for recovery in this evolving luxury landscape.

    FAQs

    Who is the CEO of Gucci?

    Jean-François Palus is the CEO of Gucci since 3rd October 2023.

    What is the revenue of Gucci in 2024?

    In the first half of 2024, Gucci generated €4.1 billion in revenue, reflecting a 20% decline in reported figures and an 18% drop on a comparable basis. Sales from its directly operated retail network saw a 20% decrease on a comparable basis, while wholesale revenue fell by 9%.

    How many brands does Kering Group holds?

    Kering Group holds Gucci, Saint Laurent, Bottega Veneta, Balenciaga, Alexander McQueen, Brioni, Boucheron, Pomellato, DoDo, Qeelin, Ginori 1735 as well as Kering Eyewear and Kering Beauté. Out of which Gucci is the biggest contributor in its revenue.

  • Chanel vs. Dior: A Clash of Fashion Titans

    Revolutionizing fashion across the globe with innovative designs that express style and elegance, Dior and Chanel are two of the biggest luxury fashion houses in the world with a rich historical heritage. Both these Parisian brands enjoy a cult following. With that said, both brands enjoy some similarities and many dissimilarities. Here is a comparison between these two fashion giants, beginning from their origins.

    The Beginning
    A Comparison of the Fashion Titans

    The Beginning

    Chanel

    What we know as The House of Chanel now, originated in the year 1909 when Gabrielle (Coco) Chanel opened a millinery shop in Paris at the ground floor flat of textile businessman and socialite Etienne Balsan. It was a year later, in 1910, she opened her first independent millinery shop, Chanel Modes, with financial help from Boy Capel, her boyfriend at the time. Before she ventured into fashion, she worked as a singer in Paris, her stage name being Coco. She was a firm advocate of abolishing the restrictions of the then-prevalent culture imposed on women. This inspired her to style and designs that were heavily inspired by men’s clothing – cardigan suits and jersey dresses.

    By the year 1915, garments made by La Maison Chanel were on every buyer’s list in Europe. Over the next few years, Coco Chanel set fashion trends and created clothing from colors that were traditionally considered male to denote feminine strength. Chanel’s Perfume No. 5 was introduced in the year 1922. Coco Chanel successfully continued to design and sell clothes for more than two decades. However, problems between Coco Chanel and her business partners and the problems in the wake of World War II forced her to stop.

    Chanel presented Perfume No. 5 to the market in 1922
    Chanel presented Perfume No. 5 to the market in 1922

    She re-emerged on the fashion scene in the year 1954, at a time when Christian Dior’s new looks and styles were gaining popularity within fashion circles. She resurrected the House of Chanel, collaborated with jeweler Robert Goossens and also presented leather handbags by the year 1955. She brought success to the House of Chanel through her business expertise. After her passing in 1971, Alain Wertheimer assumed controlling interest in the House of Chanel in the year 1974. Through the years, Chanel has grown and expanded its footprint and its product repertoire. The current Creative Director at The House of Chanel is Virginie Viard and the Global Chief Executive Officer is Leena Nair.

    Dior

    Established in the year 1946 as The House of Dior in Paris, the current Dior Corporation celebrates the year 1947 as the opening year as the founder, Christian Dior, made a first strong impression during his first show. His spring-summer collection of 1947 was originally named ‘Corolle & Huit’ which came to be widely popularized as ‘New Look’ after Harper Bazaar’s editor-in-chief, Carmel Snow, commented – “It’s such a new look.”

    Christian Dior’s “New Look” Fashions | Movietone Moment |

    The ‘New Look’ quickly became popular after the austerity of World War II bringing back femininity and colour. Within a couple of years, after he was established, Christian Dior began expanding internationally by opening a Christian Dior boutique in New York City. By the mid-1950s, the brand had grown into a well-respected fashion empire. Christion Dior launched highly successful fashion lines between 1954 and 1957. By the time Christian Dior breathed his last in the year 1957, his name had become synonymous with taste and luxury.

    Post Christian Dior’s demise, the fashion house underwent a couple of changes and hit a few obstacles and challenges before businessman Bernard Arnault assumed the chairmanship and became CEO and Managing Director in the year 1985. Under his leadership, the brand underwent drastic changes and all for the better. Since then, the brand has steadily grown and expanded and still remains one of the best luxury fashion houses around the world.

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    A Comparison of the Fashion Titans

    Even though both these fashion houses have the same heritage expression, their paths to success have vastly differed. Chanel focused on simple, logical, and comfortable designs drawing inspiration from men’s clothing details to make females feel empowered. Dior’s designs are a complete opposite highlighting femininity and using materials and patterns such as tulle and flowers. However, designs aside, there are a few parameters on which these fashion giants can be compared.

    Maintaining Exclusivity

    Chanel maintains its reputation for exclusivity zealously. The brand has also begun to place limits on the number of Chanel products a customer can purchase per year to fan the desire to own its products. The classic example of this is that a consumer can only purchase one classic Chanel bag per year. This also has the dual purpose of limiting the resale market for Chanel products. Dior, on the other hand, is easier to purchase as there are no such limits placed on its products. In this day of technology and booming e-commerce, Chanel takes its exclusivity clause a notch higher by not selling online. Dior products, however, are easily available through online channels.

    Product Cost

    Similarly at one time, Chanel increased its product prices adding another layer to its image as a luxury and exclusive brand. Dior’s price rise has been very less comparatively.

    Resale Value

    The resale value of any brand is directly proportional to its image of exclusivity. Hence, it is no wonder that Chanel’s resale value is much higher than Dior’s due to its very limited product availability.

    Aesthetics

    Both brands are well-loved by a very loyal following and their designs are timeless. However, Chanel’s designs are focused on simplicity and functionality whereas Dior’s designs flaunt femininity and elegance.

    Product Quality

    Dior’s products are mostly made in Italy and Spain while Chanel’s are manufactured in Italy and France. However, both brands are highly conscious of their product quality and use the finest available leather as well as skillful artisans for their craftsmanship.

    Social Media Presence and Influence

    Both these brands are well-represented on social media and are followed by millions. Due to its exclusivity and product availability limit, Chanel enjoys more followers than Dior.

    Conclusion

    Chanel and Dior are two luxury fashion brands that have global appeal. They are business rivals for sure, but each has a different focus. The haunting question is which one is better. That is a difficult choice as each has its own uniqueness of product and idea. Both brands sell similar items but preference depends on individual customer’s ideology of dressing, product pricing, and to a certain extent, product availability. However, what is clear is that both these brands have significantly impacted the global fashion scenario and continue to do so.

    FAQs

    Who are the present Creative Director and CEO of Chanel?

    The current Creative Director at The House of Chanel is Virginie Viard and the Global Chief Executive Officer is Leena Nair.

    When was Dior established?

    Dior was established in the year 1946.

    When did Chanel present Perfume No. 5?

    Chanel presented Perfume No. 5 to the market in 1922

  • Bugatti – Manufacturer of Fastest Cars in the World

    Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved by Bugatti.

    We have all grown up seeing pictures of various luxury cars. We have admired them, fascinated them and wished to own them someday. They are not such easy-buy vehicles. The price they come at is not affordable for the majority of our country’s population. This is one of the main reasons that we are unable to locate any of such premium brand cars on our roads. Another primary reason is the infrastructure facilities in our country.

    Certain brands like Rolls-Royce, Audi, Benz, BMW, etc. are being designed suitably for the Indian market. But some premium car models and brands are either not affordable or banned from running on Indian roads. One such premium luxury car brand is Bugatti.

    Though Bugatti’s presence in the Indian market is minimal or almost nil, the company’s cars are popular in the Middle East and other parts of the world. Bugatti has more than a century-long history that dates back to the early 1900s. This article covers the complete story of Bugatti right from even before its inception in 1909, its growth, change of ownership, competition and its current status in the world market.

    Bugatti – Company Highlights

    Company Name Bugatti
    Headquarters Molsheim, France
    Industry Automotive
    Founded 1909
    Founder Ettore Bugatti
    CEO Mate Rimac
    Owner Volkswagen (1998-2021), Rimac Automobili (2021-Present)
    Website bugatti.com

    Bugatti – About
    Bugatti – Industry
    Bugatti – Founder and Team
    Bugatti – Startup Story
    Bugatti – Name and Logo
    Bugatti – Challenges Faced
    Bugatti – Mergers and Demergers
    Bugatti – Growth and Timeline
    Bugatti – Competitors
    Bugatti – Future Plans

    Story of Bugatti

    Bugatti – About

    Bugatti is a luxury car manufacturer that was established in 1909 in Molsheim, France. The artistic designs and engineering of automobiles are what Bugatti is known for. Besides, it is also well-known for its sports cars. These cars were extraordinarily well-performing and gained a reputation as one of the most successful racing car brands in the world.

    The Bugatti Type 35 model held the crown in the sports car category in the mid-1920s. The Bugatti Veyron model, which gained huge popularity in the early 2000s, remained the fastest car in the world with a speed of 410 kmph for many years. Bugatti is extremely focused on its design and speed which remains uncompromisable for anything.

    Bugatti – Industry

    The automotive industry involves the manufacturing and marketing of engines, motor vehicles and other related components. It is highly competitive and is one of the largest industries in the world in terms of revenue. As per the statistical reports, China has always led the automotive industry in production and distribution. This industry was on consistent growth in the pre-covid era. In 2017, automobile sales were at a peak and a total of 80 million units were sold during the year. But, the Covid pandemic has stumbled the industry, including China, and is now slowly recovering from its fall.

    Bugatti – Founder and Team

    Bugatti has been under various leaderships over its 113 years of existence. There have been several people who played a significant role in the growth of the company. The following are the founder and a few other key people of Bugatti during its early stages and present times:

    Ettore Bugatti

    Ettore Bugatti - Founder of Bugatti
    Ettore Bugatti – Founder of Bugatti

    Ettore Bugatti was an automobile Engineer and the founder of Bugatti. Ettore Arco Isidoro Bugatti is his full name and was born on 15 September 1881, in Milan, Italy. His interest in automobile designing and engineering came from his father who was a designer himself in the field of jewelry and furniture and his grandfather who happened to be an architect and a sculptor. He started building prototypes for automobiles right from his late teens and finally established the brand Bugatti in 1909. Ettore Bugatti passed away in August 1947 in France.

    Jean Bugatti

    Jean Bugatti is the eldest son of Ettore Bugatti and was born in Cologne on 15th January 1909. It was the year of the establishment of Bugatti and the family moved to Molsheim soon after he was born. He naturally got imbibed into the company. Jean served as the test engineer and designer for most of Bugatti’s cars between 1926 and 1939. He created some exceptional designs along with his father and laid a fantastic pathway for the company’s growth. Jean Bugatti died in August 1939 in an accident that occurred while test driving one of the automobile prototypes.

    Stephan Winkelmann

    Stephan Winklemann was the CEO of Bugatti automobiles, between 2018 and 2021, when the company remained a subsidiary of Volkswagen Group. He was born in 1964 and is a graduate of Political Science. Winklemann started his career as a sales representative of Mercedes Benz and worked in a couple of automobile companies in higher positions. His experience and knowledge in the automobile sector made him the President and CEO of Lamborghini in 2005. He served this position for 11 years before becoming the CEO of Audi in 2016. Stephan Winklemann was again made the Chairman and CEO of Lamborghini in 2020.

    Mate Rimac

    Mate Rimac is a young entrepreneur from Croatia who is the founder of an electric sports car company named Rimac Automobili. His entrepreneurial and innovative skills attracted many big companies like Porsche, Camel Group, Hyundai, etc. to invest in his company. He recently made an affiliation between his company and Porsche to bring in Bugatti under their joint venture Bugatti Rimac. Mate Rimac is currently the CEO of this new company.

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    Bugatti – Startup Story

    The seed for Bugatti automobiles was sown with the birth of Ettore Bugatti in 1881. His artistic family background engulfed him in the areas of designing and engineering. As a result, Ettore entered an apprenticeship program in a bicycle company named, Prinetti & Stucchi in 1898. He was captivated by the technology and engineering behind motors. This encouraged him to develop a motor tricycle and even participate in some races with those developments.

    Then, Ettore Bugatti started making cars and exhibited them at the Milan International Exhibition in 1901. He won an award for his Type 2 Model which he joined hands with the Gulinelli brothers to make it. But the rights to manufacture the model were lost due to the death of one of the Gulinelli brothers and Ettore was too young to sign a deal. Later, he gained his way into the firm that earlier got the rights for manufacturing Ettore’s cars in 1902. Since he was underage, all the agreements were signed by Ettore’s father Carlo Bugatti.

    Ettore later designed cars for various manufacturers in the next few years and finally decided to start his own company in 1909. As a result, Bugatti Automobiles was born in 1909 with the support of Pierre de Vizcaya and Darmstadter Bank. The company’s first project was to manufacture five airplane engines and ten cars.

    Bugatti Logo
    Bugatti Logo

    The name ‘Bugatti’ was derived from the name of its founder Ettore Bugatti. It is the surname of the family. The logo of Bugatti comes in a red oval with ‘BUGATTI’ written in the middle. This oval is surrounded by a white outline that comprises 60 red dots in it. This logo was designed by Ettore’s father Carlo Bugatti who is a jewelry designer. The logo itself looks like a fine jewel. It also carries the symbol ‘EB’ with an inverted E that represents Ettore Bugatti.

    Bugatti – Challenges Faced

    The following are the challenges faced by Bugatti over the years:

    1. The first major challenge faced by Bugatti after WW1 was a labor strike in 1936. Ettore Bugatti always used to take good care of his employees and hence, he considered this labor strike a personal insult. The issue was resolved but Ettore started distancing himself from the workers and the Molsheim factory.
    2. The next big hit happened in 1939. Jean Bugatti, who played a key role in the company, was killed in an accident during a test drive. The entire company was stunned by his death as there was none left to take the company forward after Ettore. To make this worse, WW2 began a few days later and Bugatti was forced to be sold to an entrepreneur from Germany by the government. Bugatti automobiles were never the same after the above two incidents.
    3. Even after the war, when Ettore Bugatti got the company back, he couldn’t re-establish the business due to insufficient funds. The issues made his health deteriorate and he died in August 1947.
    4. The appointed Managing Director took over the company after Ettore but couldn’t run it efficiently. As a result, the production of Bugatti came to a halt in 1956.
    5. Later, the company was taken over by a Spanish automobile maker. Even then, Bugatti was forced to cease its operation in 1995 due to unsaid reasons and later was acquired by Volkswagen in 1998.

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    Bugatti – Mergers and Demergers

    Bugatti Automobiles went through different management and mergers over the years. The first of those came in 1948, right after the death of Ettore Bugatti. Ettore’s heirs appointed Pierre Marco as the Managing Director of Bugatti. But, within three years, another son of Ettore, Roland Bugatti, took over the management.

    In 1963, a Spanish-based automobile manufacturer Hispano-Suiza purchased the company. It was later renamed as Messier-Bugatti and continued production.

    Romano Artioli, a car dealer and entrepreneur, acquired the rights for the trademark of Bugatti in 1987 and operated it under the name ‘Bugatti Automobili S.p.A. But this company ceased operations in 1995 and the rights for the production of the sports car EB 110 were acquired by Dauer Racing GmbH.

    Finally, in 1998, Volkswagen purchased Bugatti and brought it under its portfolio. It was then the company launched some of its successful models like Veyron, Chiron and Divo. But Bugatti left Volkswagen in November 2021 to join hands with Rimac Automobili and Porsche to form a new company ‘Bugatti Rimac’. Rimac controls 55% of the shares while Porsche has the rest in this new venture. All its future operations are expected to happen under this new management.

    Bugatti – Growth and Timeline

    Bugatti Growth | Number of Deliveries of Bugatti Cars
    Number of Deliveries of Bugatti Cars | Bugatti Growth

    Though the company was established only in 1909, Ettore Bugatti entered the industry in 1901 with the Type 2 model. He later built the first race car, Type 5, in 1903 which was a chain-driven model with a tubular chassis frame. Ettore started making advanced modeled cars from the previous versions for Mathis and Deutz in 1905 and 1907 respectively. Then came the birth of his own brand Bugatti in 1909 in Molsheim, France.

    As the years passed, Bugatti came up with new and advanced models of cars at regular intervals. The company kept innovating and enhancing its automobiles and took part in various international motor car races. In 1913, Peugeot Bebe, a four-cylinder car was launched by Bugatti that reached a top speed of 60 kmph. It is one of the largest produced cars by the company in terms of units at that time. It was followed by ‘Type 13 Brescia’ which remained successful until 1926.

    By 1915, Bugatti started manufacturing airplane engines as a result of the First World War. The company broke and created many records in various Grand Prix races in the next couple of decades. With the launch of every new model, there came some enhancement and advanced technological inducement in the vehicles.

    1926 marked the dream-come-true moment for Bugatti when it launched its first most luxurious car named ‘Royale’. The company then entered the manufacture of high-speed trains and launched its prototype in 1932. The trial run was made by Jean Bugatti and a record was created at a speed of 166 kmph.

    Beginning in 1939 Bugatti faced a series of struggles and changes in management until the end of the 20th century. Except for some race victories and a few models the company faced a severe downfall. It was only in 2001, after the launch of the Bugatti Veyron prototype, that the brand started regaining its image. It refurbished its head office in Molsheim, renamed it ‘The Atelier’ and started manufacturing Veyrons. It turned out to be the fastest car in the world. Now, ‘Bugatti Chiron’ is the most popular, fastest and most successful model of the company.

    Despite the struggles Bugatti faced after WW2, it has never lost its brand reputation. The company has always stuck to its quality, design, innovation and speed under any circumstance. They have played a major role in Bugatti’s growth and will continue its streak in its new joint venture ‘Bugatti Rimac’.

    Bugatti – Competitors

    There are many premium and elegant car manufacturers in the market around the world. Therefore, there is plenty of competition available for Bugatti. Here are some of the top competitors of the company:

    Maserati

    Maserati is a luxury automobile manufacturer based in Modena, Italy. This company is known for its reliability, luxury and speed. Maserati was started in 1914 during the beginning of WW1. It was earlier a subsidiary of Ferrari and is currently owned by Stellantis since 2021. Ghibli and Alfieri are some of the popular models produced by Maserati.

    Ferrari

    Ferrari is another company based in Italy that was established in 1947. It manufactures luxury road and sports cars that have a fantastic brand reputation from the people. Ferrari manufactures elegant and expensive cars that have taken part in and won various racing events like Formula One.

    Rolls-Royce

    Rolls-Royce Motor Cars is a subsidiary of BMW that manufactures extreme luxury road cars. The company is based in the UK and has a history that dates back to 1906. Rolls-Royce Ghost and Phantom series cars are very popular and are known for their astounding looks and sophisticated experience.

    Bugatti – Future Plans

    Since Rimac is a manufacturer of electric vehicles, Bugatti Rimac is on a path towards electric and hybrid cars. The CEO Mate Rimac announced that the successor of Bugatti Chiron would be all-electric. He also said that the company is into the production of Bugatti Bolide which might be released later in 2022. A teasing image describing all the above announcements was released by the company. Since it is a newly formed venture, its long-term plans and goals related to various aspects of the business are yet to be announced.

    FAQs

    When was Bugatti founded?

    Bugatti was founded in 1909 in Molsheim, France.

    Who is the owner of Bugatti?

    Rimac Automobili is the owner of Bugatti.

    Who is the founder of Bugatti?

    Ettore Bugatti is the founder of Bugatti.

    What are the top models of Bugatti?

    Top models of Bugatti are:

    • Bugatti Chiron
    • Bugatti Veyron
    • Bugatti La Voiture Noire
    • Bugatti Divo
    • Bugatti Centodieci

    Who are the top competitors of Bugatti?

    Top competitors of Bugatti are:

    • Maserati
    • Ferrari
    • Rolls-Royce

    What is the revenue of Bugatti?

    Revenue for Bugatti is estimated to reach $89.79 million in 2022.

  • List of Brands Endorsed by Bhuvan Bam

    Bhuvan Avnindra Shankar Bam is an Indian YouTube sensation, comedian and singer-songwriter hailing from Delhi, India. He is largely famous for his YouTube channel BB Ki Vines in which he portrays a man in his teenage years having hilarious conversations with a cast of various interesting characters portraying his friends and family, all played by him.

    He started his career by posting a satirical video of a journalist asking insensitive questions to a mother about her son’s demise due to the Kashmir floods. His first video got thousands of views and went viral in Pakistan. This inspired him to start a proper YouTube channel in 2015.

    Bhuvan Bam won the award for the Most Popular Channel on Youtube at the WebTVAsia Awards 2016. He was felicitated by the Hindustan Times at the first edition of their Game Changer Awards. And in 2017, India won the YouTube Creator Summit golf competition, where the main contributor was BB Ki Vines.

    Bhuvan Bam has one of the highest subscribed YouTube channels in India and is the director of BB Ki Vines private limited corporation. He is immensely famous and has a wide audience and influence, especially amongst the youth of this country. This is the reason that he has an array of brand endorsement deals in his name. Among which are brands like Pizza Hut, Lenskart, Beardo, and others.

    List of Brands endorsed by Bhuvan Bam

    Bhuvan Bam is a very famous name now with a good amount of social media influence. He has got tons of followers on various social media platforms which makes him a target for brands to endorse their products. Some of the most famous brands endorsed by him are Pizza ut, Mivi, Artic Fox, Beardo, Lenskart, Winzo, etc.

    Pizza Hut
    Mivi
    Arctic Fox
    Beardo
    Lenskart
    WinZo
    Ola Electric
    Myntra
    Faboom
    Tissot

    Pizza Hut

    Bhuvan Bam featuring in a Pizza Hut advertisement

    Pizza hut is a multinational Italian-American food chain and international franchise founded in Kansas, United States of America in 1958. It entered the Indian market in 1996 and is considered the largest pizza food chain in the world.

    Bhuvan Bam became the brand ambassador for Pizza Hut and was featured in its advertising campaign in 2019 to announce its new pizza range starting at ₹99 and ₹199. In this advertising campaign, Bhuvan was seen grooving to a trendy song called ‘Pizza Hut Javenge’.

    Bam said, “I have never done any such thing before. There were a lot of new things that I did in terms of performing stunts and jumping off from places. We all have grown up eating pizzas from Pizza Hut and to get associated with such a brand is itself an honour and a dream come true. Every second was worth it!” on his collaboration with the pizza giant.

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    Mivi

    Bhuvan Bam featuring in a Mivi advertisement

    An electronic gadgets company, based in Hyderabad, was started by the husband-wife duo of Viswanadh Kandula and Midhula Devabhaktuni in 2015. Mivi signed Bam to be the brand ambassador of their company in 2018.

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    On the agreement, Bam commented, “I am delighted to be associated with Mivi and be a part of the company’s incredible journey. As a brand ambassador, it gives me an opportunity to drive the company’s consumer-first approach to offer quality products equipped with advanced features and superior designs. Considering my viewers are all Gen Z and are always on the go, Mivi’s technology, reliability & cost will suffice their needs. I’m looking forward to this partnership to grow leaps and bounds together.”

    Apart from the advertisement campaign, Bhuvan Bam also promote MIVI in his videos well.

    Arctic Fox

    Bhuvan Bam featuring in an Artic Fox advertisement

    Founded in 2018 by Sridhar Thirunakara, with its headquarters in Bengaluru, Karnataka, Arctic Fox is a backpack designing brand that has also ventured into the designing and production of different products like water bottles as well.

    They signed Bhuvan Bam to be the face of their brand in 2019. The hard work and hustle that Bhuvan went and continues to go through to achieve and maintain the position that he is in resonates with the philosophy of the brand.

    Bam on this association said, “Arctic Fox products are so innovative and stand for ideologies similar to mine. I always say ‘Hustle Karo Bhasad Nahi’ and Arctic Fox believes in the same that you can achieve what you want if you set your mind to it and keep going. So being their very first ambassador is a surreal new beginning for me. I’m looking forward to all the things that are coming up and let me just say, if you really, really want something in life, just Dive In!”

    Beardo

    Bhuvan Bam featuring in a Beardo advertisement

    Beardo is a beard care brand that focuses not only on beard grooming products but skincare and body care products like face masks, soaps, body washes, moisturizers etc. It was founded by Ashutosh Valani and Priyank Shah.

    Beardo recently collaborated with Bam for its 2020 ad campaign where he uploaded on his Instagram a video of him enacting various intense looks of bearded movie characters from Bollywood movies.

    Beardo co-founder Ashutosh Valani said that “Bhuvan is the right choice for the brand because of the influence that he has on his target audience.”

    Lenskart

    Bhuvan Bam featuring in Lenskart advertisement

    An optical prescription eyewear chain, Lenskart is an Indian company based in Faridabad. It was founded in 2010 by Peyush Bansal, Amit Chaudhary and Sumeet Kapahi. It has stores in more than 70 Indian cities. The company had a valuation of more than 1.5 billion US dollars in 2020 and a revenue of around 132 million US dollars.

    In 2019, they announced that Bhuvan Bam would be the face of their brand, the company’s first male ambassador.  

    Bhuvan changed the landscape of internet content creation in India for the youth. He is a youth icon, a challenger of outdated norms and that makes him the perfect role model for everything that Lenskart wants to achieve with its brand. Digital is the way forward and both of them have their ideas perfectly aligned on that matter. He opened a Lenskart store in Gurugram, Haryana, where a large number of people showed up just to get the internet sensation’s glimpse.

    WinZo

    Bhuvan Bam featuring in Winzo advertisement

    One of the biggest interactive entertainment and social gaming platforms in India, Winzo was founded in the year 2018 by Paavan Nanda and Saumya Singh Rathore. Basically, the app gives out the opportunity to third-party games and gives them their platform, where people can play. Here, you can play various games and win real money.

    In February 2022, WinZo announced that they have taken Bhubam Bam as the brand ambassador of the social gaming platform. Over 7 crore people already play on this platform.

    WinZo co-founder Saumya Singh Rathore said that “Bam is one of the biggest digital stars and best entertainers of our age. He portrays over 20 interesting characters like Titu Mama, Bancho, Masterji, etc. and each of these characters constitutes a unique audience and fandom. In Bhuvan, we have got not one but 20 brand ambassadors. This collaboration is a match made in heaven.”

    Ola Electric

    Bhuvan Bam featuring in Ola Electric advertisement

    Ola Electric is an Indian electric two-wheeler manufacturing brand. It was founded in the year 2017 by Bhavish Aggarwal. Its parent company is Ola Cabs. The brand is all about developing electric scooters.

    Ola Electric took Bhuvan Bam as one of their brand ambassador for their electric scooters in 2021. Bhuvan Bam, being one of the most influential figures in the YouTube industry, Ola’s collaboration with him was a strategic one. Through this collaboration, their main aim was to create content that will help in presentation innovations to the public.

    Bhuvan Bam regarding the association said that “I am really happy that Ola Electric considered me as one of their ambassadors. It’s truly exciting to be a part of this green revolution, something I’ve always wished for. The scooters are really sleek, attractive and are designed as per the Indian electric vehicle market. I have joined the green revolution already and I can’t wait for everyone to get their hands on it.”

    Myntra

    Bhuvan Bam featuring in Myntra advertisement

    It is one of the largest fashion E-commerce companies based in India. Myntra was founded in the year 2007 and since then it has never looked back and has been continuously serving Indians with fashionable apparel and accessories.

    In 2020, Myntra made Bhuvan Bam their first digital brand ambassador, this collaboration was made to attract the tech-savvy generation and they decided to create content together. Regarding the association, Bhuvan, said, “I look forward to creating quirky yet relatable fashion-focused content with Myntra that will help countless young people comfortably and confidently express themselves through fashion. I am extremely proud to contribute to Myntra’s vision of powering the fashion tastes and preferences for an entire generation of people coming through.”

    Faboom

    Bhuvan Bam featuring in Faboom advertisement

    Faboom is a popular fantasy sports platform founded in the year 2019. It was founded by Pratik Kumar, Rishab Mathur and Sudhir Kamath. Not only that, the platform won the Best Product Innovation Award in 2020.

    Faboom roped in Bhuvan Bam in 2020 as their brand ambassador. The biggest Indian YouTube star Bam was the perfect choice for them. On his association with Faboom, Bhuvan said “It is of top-most importance to me that the brand I associate with aligns with my ideology and is equally relevant to my audience. We all have grown up playing sports and games during our childhood. At a time like this, especially when social distancing norms don’t allow us to physically relish those times, it’s really exciting how Faboom’s disruptive platform provides us with the exact same feeling of enjoying our favourite sport. I’m eagerly looking forward to being a part of this passionate group.”

    Tissot

    Bhuvan Bam confirms his endorsements through Twitter

    Tissot is a luxury watch brand, the brand is famous for producing stylish luxury watches at an affordable price. In 2019, Bhuvan Bam became the brand ambassador of the luxury watch brand. The influence Bam has on the youth is something on another level. People consume content mostly through the internet now, so naturally, Bhuvan Bam termed announced their collaboration on Twitter and termed it “The New Beginning”.

    Conclusion

    Bhuvan Bam has a large audience amongst the age group of 15-45 years. Not only does he have over 20 million subscribers on YouTube but has 14.2 million and 3.9 million followers on other social media platforms like Instagram and Twitter respectively. He has a tremendous influence on his target audience and that is why he is a hot property in the advertising world and attracts several successful brand endorsement deals from major as well as small companies like Pizza Hut, Mivi Myntra and others. Brands are aware of what kind of influence he has over youth because of his content, that are hilarious as well as provides moral messages

    FAQs

    What is Bhuvan Bam full name?

    Bhuvan bam’s full name is Bhuvan Avnindra Shankar Bam.

    What is Bhuvan Bam’s age?

    Bhuvan Bam is 27 years old.

    How many subscribers does Bhuvan Bam have?

    Bhuvan’s channel BB Ki Vines has 20.6 million on YouTube.

    How many followers does Bhuvan Bam have on Instagram?

    Bhuvan Bam has 11.8 million followers on Instagram.

    What brands does Bhuvan Bam endorse?

    Bhuvan Bam endorses Beardo, Winzo, Faboom, Myntra, Mivi, Pizza Hut, Arctic Fox, Lenskart etc.

  • Is Nike Becoming the Next Big Luxury Fashion House?

    It is super easy to recognise brands. In fact, it is the sole reason why some companies are known as brands. The fact that they are easily recognisable, makes them a big brand. Companies try hard with all sorts to establish themselves as a brand but I kid you not, few of them are actually able to build an empire. Thousands of companies, all around the world survive and die every day, it is just a certain mix of vision and action which makes some of them the success that they seem from a distance.

    The cream of the cream is the one that tends to become a super identifiable brand. One of the most identified companies in the world is Nike. The swoosh logo is something that you just cannot ignore, you know it instantly when you see it.

    There is a lot of work that has gone behind this brand building. All that work is worth it when we see the current valuation of the company. But here is a trend that we can see in the company. The famous shoe brand is trying to get more surface area in the life of a customer. There are speculations about Nike going to enter the luxury home segment. This article talks about the same. We will check if the news is true and if it is true, then to what extent. Let us get right into this,

    We will start off with the topic of branding. Every company in some sense or the other tries to create a persona of a brand. A brand is the perceived perception of a company in people’s minds which helps boost loyalty. Let us define branding in a more formal way and see where the shoe mogul Nike stands in the definition.

    Importance of Branding
    A Brief About Nike
    What is a Fashion House?
    Nike’s Plan to Become a Fashion House
    Benefits of Being a Luxury Fashion House

    Importance of Branding

    Branding refers to the process and all the actions taken thereof in order to create a familiar and trustworthy image of a company. It is creating a strong, valuable and positive perception of a company in the mind of a consumer.

    Apart from all the actions and services that the company tries to give to its consumers, There are many more elements that constitute the brand building. Those elements include Logo, statement, design throughout the customer journey, and a reliable omnipresent theme.

    People might ask about the function of good branding, which is a legit question. Branding works in creating a persona of the company that stands apart from the rest. This creates an identifiable difference in the market which leads to more people recognising the company. The end goal of which is obviously to increase sales. Thus, branding is a silent salesman.

    A Brief About Nike

    The company behind the world-famous swoosh logo probably needs no introduction but we will do it for the uninformed. Nike is a sports brand, which specialises in all sorts of sports equipment. The most famous product among all the products is the shoes. They are probably the most famous and most sold shoes ever. The branding of this company is robust and is probably not going to go anywhere in the future.

    This sportswear brand takes the branding of its products very seriously. One of the most iconic moments that is often lauded in this company was the partnership with Michael Jordan. The Basketball federation, or the NBA, cancelled the use of Nike shoes (Air Jordans) in the game and imposed a fine of some thousand dollars on it. Guess what Nike did afterwards, they paid the fine imposed on the shoes. This incident advertised the shoes even more and today Air Jordans are the most sold shoes ever. This is one of the many stories which prove the efforts that Nike did for establishing itself as a brand.

    They also manage the demand and supply of their goods in such a manner that if you get a pair of shoes, it will feel like a victory for you. They have the hottest sneakers and the company makes it hard to get hands-on with the product from time to time, to induce further demand for the product.

    People like to buy things that are not available, this is a good mantra that the brand follows. Making their top products move through shelves is a great demand puller. It pulls the demand by making products harder to find, which in turn makes people want them more. Following this strategy of infusing demand, the sportswear brand has been able to set aspirations of surpassing even the top brands like Louis Vuitton and Gucci.

    There is more than just that, Nike is now setting the bar of aspirations higher than ever. They are trying to get out of the line from their product and want to experiment with new forms of market. Keeping in mind the huge demand with which the company operates, increasing market breadth seems to be a good option.

    “It’s not like people aren’t spending money on high-priced items,” Business Insider retail analyst Cooper Smith told Complex in a conversation. “It’s just that their preferences for lifestyle and their preferences for fashion are changing.”

    In simpler terms, people are willing to pay a premium for things that they really want. If a company can fit into this sweet little spot, where people want their product to great extent, it can earn greater revenue. Apple does it, Nike is the most recurring example in this space. With this advantage, they can also try to be more than just a sportswear brand, they can enter into new and new markets.

    Nike can take great advantage of its already built market. It can cross-sell more than just shoes and sports equipment. According to some reports, it is planning to do that sometime. Nike is probably planning to be a fashion house. Let us see what it means to be a fashion house first.

    What is a Fashion House?

    Fashion is probably the most misunderstood term all over the world. Some people call it art, or a personality statement. Some just dismiss it saying it is a waste of time and money. This problem has always persisted up until now, some call it art and others just dismiss it as something temporary. Whatever may be the verdict of the customers all over the world, it is quite true that companies earn a lot of money from the fashion world. So what does it mean when someone identifies a company as a fashion house?

    A fashion house is a one-stop destination for all things fashion. As the name suggests, it is a house of fashion. You can find whatever you need to, in a store of a brand which is identified as a fashion house. It has shoes, apparel and accessories of all sorts. It is a dream for many companies to include a lot of products in their product list. Not everyone can pull this off.

    Nike is taking the benefit of its huge fan base. The perception of Nike is no doubt the quality and the pricing that they offer. It already has a lot of shoes and sports materials. They range from being inexpensive to some of the most expensive shoes of all time.

    There is Air Monarch is a common Nike that can be seen everywhere and the range goes to HyperAdapt 1.0, which are probably the most expensive shoes from this sports brand. Standing at this intersection of works, Nike can really take advantage of their pedestal. They can go on and then maybe become a fashion house for sure.

    Nike’s Plan to Become a Fashion House

    Nike has, over the years, managed to create a brand of its name. The famous swoosh logo is now easily recognisable all over the world and this makes this company stand really unique in position.

    As of now, there were some speculations about Nike moving to become a more full-fledged fashion house. The company as of now is focusing mainly on shoes and all sorts of sportswear, equipment etc. but watching its current valuation and the amount of influence it has on all over the market can be a big reason for the company moving to become a fashion house. Here we will see how the shoe business has been working over something and what Nike’s relations have been like with the market in which it operates. Starting off with Foot Locker, a marketplace for fashion products.

    Nike is Foot Locker’s biggest brand partner. Also, Foot Locker is also one of Nike’s biggest wholesalers. They both have been surviving and thriving on each other’s shoulders. Now the situation has changed and we will be seeing something over here in their relationship.

    Foot Locker Store
    Foot Locker Store

    As we all know that Nike is known to create a vacuum of demand. It simply means that Nike stops the supply of its most demanded shoes to increase and induce more demand, which has not been good for Foot Locker. Foot Locker has recently mentioned that they have lost about a quarter of its market value since the shoewear brand has cut supplies of its most demanded footwear.

    Foot Locker said that no single vendor — Nike is its largest supplier — would account for more than 60% of the chain’s total purchases this year, down from 70% in fiscal 2021 and 75% in the year earlier.

    The move of Nike to shorten its supplies is not a new thing, it has always existed and retailers are always worried about the demand that the company pulls toward itself. This method or strategy of Nike helps it to control more of its pricing and to become more profitable. This is good for the brand image on a larger level and it makes the company a price maker.

    Another reason for Nike to follow the same strategy is that it enables it to sell more via its designed applications and websites. Selling through its own built ways, helps the company to increase sales and thus forge better relations with the customers. This is one reason why Nike tries to sell most shoes on its own and well-built network of distribution channels.

    Nike Retail Store
    Nike Retail Store

    Luxury adviser Mario Ortelli estimates that for multi-billion-dollar luxury brands, direct-to-consumer channels account for more than 90% of sales, on average. For Nike, the share is nearing 40% and could reach 60% by 2025.

    It is for sure that Nike will continue to focus on the shoes, which are the star product for the sportswear company. On the other hand, the company is eyeing other opportunities to grow its product line. They want to be more than just a sportswear brand, it is speculated that they want to become a full-fledged fashion house.

    In the shoe department, they will always be a fashion retailer as their mainstream work. There will be plenty of limited edition pieces in the future also that will increase the brand value for the company. An increased brand value will foster more partnerships and collaborations with established fashion and luxury houses. Nike has upscaled itself by partnering with luxury fashion brands like Louis Vuitton, Dior, Supreme and Off White.

    Nike Collaboration with Supreme and Louis Vuitton
    Nike Collaboration with Supreme and Louis Vuitton

    In a recent report, some have also speculated that Nike is also looking forward to buying some established names in other industries as well. For example, it is reported that Nike is eyeing a brand named ‘Peloton’, which is a brand operating in the luxury home fitness space.

    Peloton
    Peloton

    Foot Locker, which we mentioned earlier has to look out for something to fill the gap that has been created as the Nike inventory has shrunk. This track will take some hard work off Foot Locker as they are the biggest wholesaler for Nike. The other aspect of the problem can be that Foot Locker has an opportunity to shift to another domain. The retailer is getting exclusive access to Reebok’s basketball footwear.

    From controlling the demand for their most selling shoes to eyeing companies that are into other luxury products segments, Nike can be seen planning to go more into the luxury segment.

    Getting on the ride to maintain its brand value and spreading its wings in all directions of products, it will be good if this fashion retail goes full throttle in the fashion line. Nike has already made one smart move. The current challenge for the company now is to make a more theatrical shift towards becoming a fashion and/or luxury house.

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    Benefits of Being a Luxury Fashion House

    A fashion house is a company that operates its products in a fashion line. A luxury fashion house is a fashion company that operates in the somewhat same segment of fashion products like shoes, bags and accessories etc. However, a luxury fashion house’s products are expensive and are designed for people who want to make a fashion statement and do not mind paying extra for that. There are many benefits of becoming a luxury fashion house, here we list some of them,

    More products

    A brand that offers the functions of a luxury fashion house, has a lot more products than a brand that is focused on one product line. This helps customers to get more products under one roof, it helps ease the weight of shopping for the customers. As customers go through each aisle of products, the chances of buying more products increase and thus, the profitability.

    Previous Goodwill

    Brands that are already established have some goodwill attached to themselves. For example, if Apple associates itself with a sound company like ‘Beats by Dre’, then their goodwill will be transferred to the company too. This is one example of how previous goodwill can be transferred to other participating companies and their products. As the goodwill is transferred, revenue is multiplied. In the luxury segment, if someone can transfer their old value to a new venture, it can be a great deal maker for the company.

    Trust

    This is an extension of the above point. Goodwill when transferred, also transfers the trust that the brand has built in the past. When this happens, when new products work with the same old trusting partnership, it increases customer loyalty. The more a consumer is loyal, the more the business he/she will create for the business.

    Conclusion

    Nike has always maintained its image as a sportswear brand in the eyes of the public. The swoosh logo is a super identifiable image from the brand, making it different and distinguishable from other brands. The “Just Do It” tagline fits the goal with which the company operates.

    Every branding activity just falls in place as the company manages its stock and creates trends. It is very apt to say that Nike is the torchbearer for the sneakerhead culture in and around the world. With this much power to hone, and a future full of opportunities, Nike can be more than just a sportswear brand.

    Nike can be a luxury fashion house if it capitalises on the right resources. As per the reports and watchers, the brand has been controlling the supply of its most rated shoes and thus increasing revenue. The company is also said to be eyeing other brands that deal in luxury home items. For example, Peloton, which is a luxury home fitness company, deals in fitness equipment. Nike can take advantage of its current position and leverage from the place where it now stands. The benefits of becoming a fashion house are immense.

    An already established brand can benefit from becoming a luxury fashion house, as it will generate more revenue, and there will be benefits and multiplication of goodwill and trust. Nike sits at a leveraged position and can take advantage of that, if done correctly, it will surpass many famous luxury houses.

    FAQs

    Who is the fashion designer for Nike?

    Tinker Hatfield is one of the most popular designers for Nike.

    Is Nike turning into a luxury brand?

    Yes, with the recent collaborations of the sneaker brand with Louis Vuitton and controlling the supply and demand of its popular sneakers it seems like Nike is becoming the next luxury fashion house.

  • Do You Know Louis Vuitton Burns All Its Unsold Bags?

    Louis Vuitton – The King of Clothing brands, was established in Paris nearly two centuries ago. Louis Vuitton is among the world’s oldest and most successful luxury brands. It is one of the most prestigious labels in the world of luxury fashion.

    Louis Vuitton, as an organization, is estimated to be worth nearly $30 billion, and its products are available all over the world. A huge boom occurred between 2006 and 2012 when it was named the most valuable luxury brand every year. A fashion powerhouse, Louis Vuitton is one of the most valuable brands in the world. Louis Vuitton products are handcrafted from high-quality materials and reflect the high-end side of fashion. It has a steep price point that makes it unaffordable for most people.

    Louis Vuitton offers Luxury over price
    Louis Vuitton Controversy
    Louis Vuitton is not the only one to destroy products
    Louis Vuitton destructive practices in not acceptable
    Louis Vuitton refuses these allegations
    FAQs

    Luxury brands Louis Vuitton burning unsold bags 

    Louis Vuitton offers Luxury over price

    Louis Vuitton Logo
    Louis Vuitton Logo

    Strong craftsmanship and distinguishing features make it easy to judge authenticity while Louis Vuitton replicas travel around the world. A handbag’s authenticity can be determined at a glance.

    Although replicas are available, real Louis Vuitton remains scarce. Because the originals are expensive and only available in a few locations, they are extremely hard to find. Being scarce creates a strong narrative because it results in desire. A simple wallet is transformed into a desirable commodity by creating a sense of scarcity. The high demand for rare items makes them even more desirable for people.

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    Louis Vuitton Controversy

    Every year, Louis Vuitton burns every unsold product to maintain exclusivity and high prices.

    Even though there are three main reasons for this practice, it still seems odd to destroy so many products. Louis Vuitton products must continue to be rare and desired. Louis Vuitton, for starters, avoids sales at all costs – they rarely discount anything and want to ensure that ‘everyone gets their products at the same price. So, instead of offering discounts, the brand disposes of unsold pieces by burning them.

    To prevent stock malpractices, Louis Vuitton destroys unsold merchandise. Would-be fashion thieves would be deterred if they had a warehouse full of unsold and legacy merchandise.

    Due to a ‘duty drawback’ law, Louis Vuitton specifically burns bags in the United States. Supposedly, duty payments can be reclaimed if an item is imported into the United States and then destroyed.

    They are divisive and wasteful. Likewise, Louis Vuitton loses potential profits because the bags were a waste of time and effort. It’s a price they are willing to pay for luxury.

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    Louis Vuitton is not the only one to destroy products

    Louis Vuitton bag
    Louis Vuitton bag

    Many other luxury brands follow Louis Vuitton’s lead in this regard. Regardless of how absurd it may seem, there are real reasons for this practice, as we’ve explained.

    Luxury brand Burberry destroyed 37 million dollars worth of goods in a single year in 2018. This drastic action was taken to “prevent it from falling into the wrong hands.”

    To qualify as high-end brands, these companies must maintain exclusivity in their product offerings. Customers will be let down if their products are readily available and sold at reduced prices.

    Louis Vuitton destructive practices in not acceptable

    Consumption soars as a result of this practice, and people are desperate to buy these products before they are destroyed.

    As of 2019, the French government was determined to eliminate these destructive practices. Many of these luxury brands are based in France, and more specifically in Paris. This is one of France’s most lucrative industries.

    There is some debate as to whether the positives outweigh the negatives, however, Is it so bad if these products are disposed of in an environmentally friendly manner and the companies pay for the disposal?

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    Louis Vuitton refuses these allegations

    According to Louis Vuitton (at least in public), a product is either sold or discontinued at a set price. Everyone pays the same price for an item.

    There are also private sales that are held for Louis Vuitton employees, which LVMH employees can occasionally attend.

    Every two years, they’ll gather all of the discontinued items in all sizes into a large warehouse and sell them to the employees for a very low price, even at cost! A dedicated team selects the items, which may have been out of print for years. But they’ll continue to do so until they decide it’s no longer worth it to do so any longer. As a result, they will be effectively destroyed!

    Your goods will not flood the market and end up in places you don’t like or that are bad for your image if you destroy the remaining stock.

    FAQs

    Does Louis Vuitton have an outlet?

    Louis Vuitton products are exclusively sold in Louis Vuitton stores and through Louis Vuitton official website.

    Which country is Louis Vuitton cheapest?

    Louis Vuitton is headquartered in Paris, France. The price of Louis Vuitton products are substantially cheaper in Paris.

    When was Louis Vuitton founded?

    Louis Vuitton was founded in 1854 by Louis Vuitton in Paris, France.