Fashion from Luxury? the Impact of the Masstige

From Fashion to Luxury? The impact of the “masstige” Integrated Communication assignement Msc of LFM 2011-2012 Justine Leupe Agenda 1. INTRODUCTION OF THE TOPIC – Definition of “Masstige” phenomenon – Reasons of the “Masstige” apparition – Examples 2. ADVANTAGES – Mass market brands advantages – Luxury brands & designers’ advantages – Consumers’ advantages 3. RISKS – Loss of Brand identity – Luxury Democratization risks Introduction of the topic « MASSTIGE » definition ? n. A class of products that are affordable for the general consumer but positioned as luxury goods. “Masstige is a marketing term meaning downward brand extension. The word is a portmanteau of the words mass and prestige and has been described as prestige for the masses. ” ? Masstige products are defined as “premium but attainable,” and there are two key tenets: ? ? They are considered luxury or premium products. They have price points that fill the gap between mid-market and super premium. ? Masstige VS Co-branding ? Co-branding is a partnership between two brands, while “masstige” only works between a luxury brand and a consumer brand. Sources: http://en. wikipedia. rg/wiki/Masstige Reasons of the « Masstige » apparition ? It follows the trend of Luxury democratization. ? The European textile market is one of the first victims of globalization resulting in textiles and cheap labor from China. ? Hypercompetitive market: Europe (135 billion euros), USA (100 billion euros), China and Japan (35 billion euros). ? It is in this uncertain environment that brands have realized the need to adapt and be creative to stay competitive. ? From the perspective of consumer brands that distribute the final products, “masstige” is to boost sales during quiet periods. For the luxury brand, the association operations are great opportunities to reach a wider target by keeping its image and credibility. “Masstige” Key factors of success ? Collaboration between luxury brands or fashion designer ? Adoption of specific codes of consumer’ brands communication and adapting them according to the market ? Luxury brands generally use one worldwide speech. ? Ephemeral nature of business operations which rely on the announcement effect ? Appeal of luxury brand muses ? Use of the Karl Lagerfeld muse, Baptiste Giabiconi, to promote the collection for Hogan Target younger and more female consumers than Luxury goods « Masstige » examples ? 1993: Kookai with Karl Lagerfield & Sonia Rykiel ? The « Kookaisme » advertising campaign « Masstige » examples ? 2005: Motorola by Dolce & Gabbana ? Design of the RAZR V3i. Limited edition « Masstige » examples ? 2006: Rossignol by Jean-Charles de Castelbajac ? Design of a Ski clothes collection for Men & Women « Masstige » examples ? 2008: Evian by Jean-Paul Gaultier ? Design of a limited edition bottle « Masstige » examples ? 2010: Lanvin for H&M ? 2011: Versace for H&M
Impact of « Masstige » Its advantages & Risks Consumer brand’ advantages Example of Karl Lagerfeld for H&M (2004): ? Boost sales during quiet period ? Operation launched in November, just after the « back to school »period and before the Holiday season ? Sales increase of 24% in November 2004 comparing to November 2003 ? Biggest monthly increase since October 2002 ? Karl Lagerfeld operation represents between 6 to 8 points of the 24%. ? Capitalize on the prestigious image of the luxury brand associated Sources: http://lesevolutions. blogspot. om/2008/04/masstige. html Luxury brand or designer’ advantages Example of Karl Lagerfield for H&M (2004): ? Reach a wider target by preserving its brand image and credibility in the luxury industry ? Beneficiate of the well-targeted and wide distribution network of H&M ? Allow luxury brands and designers to break into the accessible luxury segment through a one shot operation ? Increase brand awareness thanks to a high media exposure short term strategy Consumer’ advantages Example of Karl Lagerfield for H&M (2004): ? Access to products signed by uxury brands and famous designers at affordable prices: ? Consumers can access to products which are not counterfeits, but inspired by the High luxury with a high aesthetic value ? Prices based on the current prices of H&M products ; minimum price of 20€ for a product designed by Karl Lagerfeld ? With such a price positioning, H&M creates a first blurring of boundaries between mass market and luxury in the minds of consumers. ? Allows segments of middle-income people to get in touch with the complex world of symbols associated with the designer. Masstige” Risks ? Loss of brand identity ? Loss of brand imaginative faculty ? Loss of products’ psychic value ? Devaluation of the brand ? Dilution of the brand to compete ? Impairment of brand image ? The disappointment of a client on an entry-level product may rub off quickly on the overall brand. “Masstige” Risks ? Confusion risk between the consumer brands and the luxury brands associated ? Loss of the luxury dimension in the mind of consumers ? Loss of the luxury brand’ core customers who feels betrayed by their favorite brand ?
They Looks for exclusivity, originality and quality ? Excessive demand of “masstige” could put a luxury brand at risk. ? A too wide diffusion can lead to a trivialization of the brand ? Consumers will not accept to pay a higher price. ? The consistency of the brand may be affected. CONCLUSION ? The enthusiasm of the public for this type of operation is a testament to the success of “masstige”. ? The study of luxury consumer behaviors nowadays , shows there is the passage of a daily consumption by an elite consumer to a punctual consumption by a very large number. The punctual clientele is young and composed of managers and students who they are called “excursionists. ” The “masstige” is a way to introduce them to the luxury and make them adopt certain habits in order to have them as customers tomorrow. ? If “Masstige” represents many opportunities for both, it also represents some risks especially for the luxury brand associated. ? “Masstige” can put luxury brands at risks but it could also represent, “the third way” mixing “Cheap and Prestige”. Thanks for your attention!