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Companies without focused brands - Mitchell named Oldsmobile - are in danger when affordability is the only selling point, because "somebody builds a cheaper or more convenient product, you're irrelevant."As China and Brazil lead the race among emerging nations to enter the global middle class, Louis Vuitton suddenly finds itself with millions more potential customers outside its typical market of Europe and North America. A strong brand reduces business risk precisely because it stands for something more than affordability. In 2010, Louis Vuitton's net profit jumped 73% led by the Asian market. They have to be beacons of a certain point of view."LVMH's stock has recovered to the high 30s, a few points from its all-time pre-recession high.
"We need roots, a back story, but also we need wings to stretch forward into the future. After surviving the recession, Louis Vuitton's next challenge is to navigate the narrow channel between mass market technologies and a high-culture message."We talk a lot about roots and wings," Mitchell said. The ad world has become a hectic, decentralized ecosystem of apps, targeted Web ads, and Facebook pages. "They're looking for brands as signifiers to make sense of a new world."The new world in advertising is moving away from the glossy magazine pages that often make a home for thickly coiffed men in shades and a Vuitton bag slung over their shoulder.
We use Sean Connery, Keith Richards, Bono. I think Cristal champagne, Tommy Hilfiger and Burberry, all hurt their brands with overexposure to celebrities. "We can't be opportunistic about whoever endorsed us this week. But its newest creation is Amble, a mobile app that lets users follow celebrities' favorite city experiences or create their own online journals with photos, videos, and notes.Will Kanye West, the Louis Vuitton don himself, someday make an appearance in an LV advertisement? Don't count on it.
They're more aligned with where we want to take the brand.
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