Brand Name and the Quest for Success in the Luxury Sector
Christopher Rao
All luxury designers strive to achieve long-term success. To put a label on a collection of
products is to create a brand, but that label does not provide for definite staying power.
Lucrative brands have gone beyond creating something pretty; an outstanding brand writes a
story that the consumer believes and wants to buy into and the brand then becomes more than its
product. Labels that grasp the importance of branding understand that they must be more than
the watch or bag or scarf. The appeal of a brand must be in who the consumer becomes when he
or she puts on or uses a certain product. Brand awareness widens when a high-end label creates
and conveys a clear message or lifestyle that the consumer thinks he or she can attain through
purchase. That is the art of branding.
Branding convinces the consumer not to simply buy a product, but instead buy the brand
as a whole. A stellar product does not stand alone—behind it must be something deeper, a
message or a symbol which should represent or relate back to the identity of the brand. Within
the luxury sector, where products are often an investment regardless of one’s socio-economic
status, conveying an identity is crucial. If the consumer cannot see what he or she will gain from
purchasing a $2,000 handbag or a $26,000 watch, there will be no sale, and the ship that is the
brand will sink. John Goodchild and Clive Callow, authors of Brands: Visions and Values, relate
the success of brands to “their ability to communicate meaning.” They write that successful
brands “communicate a rich set of messages and allow us to feel that we can relate to the
underlying offer, be it a product, a service, or a company” (Goodchild, 21). Effective branding
changes a consumer’s mentality from one of “I’ll buy that” to one of “I’ll buy into that.”
Ralph Lauren is a classic example of brilliant branding. The label boasts many lines at
various price points, and each one reflects a different lifestyle. Polo Ralph Lauren is the midrange apparel line whose logo is the well-known polo player on his horse. The image itself
represents the elite—few play polo. However, the line is affordable—branding success. The
Ralph Lauren website describes Polo as “the standard of classic style” that offers “iconic, allAmerican looks” (“Men’s”). Its advertisements reinforce this statement. Clean-cut, kindlooking USA-born models pose in articles of clothing that are meant to epitomize the American
wardrobe: denim, plaid, polo shirts, navy blazers, and khaki pants. Ralph Lauren’s higher-end
lines, Black Label and Purple Label for men and Ralph Lauren Collection for women, reflect a
seemingly different lifestyle and cater to another demographic. These higher price point lines
often evoke images of the English countryside estate, equestrian culture, and aristocracy.
Founder Ralph Lauren’s aesthetic is impeccably developed and he understands the need to sell
not only an article of clothing, but a feeling. In a 1993 television interview with Charlie Rose,
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Lauren claimed, “Americans still love England. They still admire an English accent.” Rose
replied, “You have taken that in a sense…and sold it to America.” Ralph responded:
“What I project and what I believe in…is timelessness, for example the tweed jacket with suede
elbow pads. Whether I was fifteen or today, that jacket still [represents] the same things… [The
jacket] represented a lifestyle that I loved… old England. I said, “I’d love to have that.” …I couldn’t
find it in the stores. You couldn’t get it anywhere, so I said, “I’d like to make that.’”
He summed up the thrust of his brand during his interview with Rose: “Designers do clothes. I
do life—I do living” (Lauren).
Chanel is the most obvious example of a label that has branded itself by expanding on its
heritage, or its long-term value and rich history. “Heritage is all about the physical artifacts and
intangible attributes which connect the brand to its past,” says Mary-Adair Macaire, chief
executive of the luxury knitwear brand Pringle of Scotland. “I believe it can be broken down into
codes that can then be used—even abused—to create a common thread, linking the past with the
present and future” (Menkes). Recognition of the trends that Coco Chanel set into motion when
she founded her company in 1909 attracts customers to this ultra-high-end label today. Nubby
tweeds, extravagant costume jewelry, quilted lambskin handbags, and intricate hand-made
embroideries are the Chanel classics. Since its founding, Chanel has remained successful—most
recently under the leadership of creative director Karl Lagerfeld—by continuing to modernize its
image while still referencing the past and the styles and attitudes that first incited its popularity.
Lagerfeld has used these codes, and sometimes abused them, as Macaire mentioned, to make
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Chanel one of the best-branded labels in the sector, valued between $10 and $14 billion.
Everyone knows the double-C logo, and the codes of the house are universally appreciated, and
even copied. To wear a Chanel jacket, carry a Chanel handbag, or use a Chanel fragrance is to
immediately transform oneself into the epitome of Parisian chic. The brand and its styles are
timeless, recognized, and glorified.
Gucci has also incorporated heritage into its marketing. Luxury e-tailer Net-A-Porter
describes Gucci as “one of the world's most iconic fashion houses.” It lauds designer Frida
Giannini for “infusing the label's feminine, wearable clothing with a uniquely ladylike,
intelligent sense of glamour. With an enduring nod to the Gucci archives, [she] has reinvigorated
its glossy brand of timeless sophistication” (Net-A-Porter.com). In mid-March, Gucci’s suede
fringe jacket ($4,140) sold out completely in all available sizes. The garment represents the
heritage and spirit of the brand; it is “classically Gucci.” Made of leather, the material the
company specializes in, it pays homage to the luxe-bohemian vibe that Gucci has long
represented, and that Giannini continuously references. Net-A-Porter stocks Gucci because its
message is so clear, and evidently clearly understood. The fashion house’s fall/winter 2010 ad
campaign featured photographs of several men and women in white lab coats cutting leather and
exotic skins, stitching bags, and affixing metal studs to various accessories. The caption placed
under each of these photos reads:
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The man. The passion. The dream. Guccio Gucci lived the artisan's life of Florence in
1921. Authentic. Enduring. Dedicated to perfection. His spirit inspires our traditions
today. The beauty of what he began nurtured by generations of craftsmen for 90 years.
His desire to create what lasts forever moves each of us. Touching our past as we craft
our future. Compelling us to carry his iconic legacy forward - now and forever (Gucci).
Gucci CEO Patrizio di Marco commented on the importance of heritage as a branding tool when
he said, “over the coming years, it will be particularly important for us to reinforce this duality
[of past and present] in the spirit of our customers” (di Marco). For Gucci and most other brands
in the sector, longevity is a powerful marketing tool and customers gain a sense of security from
wearing a jacket or carrying a handbag made by a company whose reputation is flawless.
For the French luxury goods companies Hermès and Louis Vuitton, the art of
craftsmanship informs the identity of the brands. Dana Thomas, in her exposé of the luxury
goods business Deluxe: How Luxury Lost Its Luster, writes about the process of ordering
custom-made goods from the saddle department at Hermès. The brand has a reputation for
producing gorgeous, hand-made handbags with price tags never under four figures. Followers
of Hermès are thrilled by the panache of having something as obscure as a saddle made by hand;
the average Hermès customer seeks out a high level of personal attention and care. The brand
has continued to thrive by making this made-to-order, bespoke leather goods image an innate
part of its identity. For example, even though handmade saddle production is a negligible
percentage of the company’s annual sales, its existence is critical to the brand. In Deluxe: How
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Luxury Lost Its Luster, Dana Thomas writes:
To be measured for [a Hermes saddle], customers make their way up the back stairs to the
saddle atelier where they straddle a leather sawhorse—just as clients have done for more
than a century—as one of the company’s eight saddlemakers, dressed in a worn cowhide
apron, takes out his tape measure and gets to work. That in a snapshot is what sets
Hermès apart from its competitors in the luxury business. As its 2004 ad
campaign…declared: “Nothing changes, but everything changes.” (Thomas, 180)
In early 2010, Louis Vuitton released a series of ads in Europe that were quickly pulled from
billboards and publications. The advertisements featured models—both male and female—at
artisan tables, making shoes, bags, and other hand-made luxury goods. Though customers in
Britain complained that many of Vuitton’s goods are not made by hand, it is clear that houses are
in support of the idea that, like heritage, craftsmanship is a tool that can reinforce a brand’s
reputation as a luxury vendor, making the customer feel unique and cared for.
Swiss watchmaker Hublot has branded itself by basing its identity on the materials with
which it works. Hublot is one of the most revered high-end watch brands in the sector. However,
it did not always have this reputation. Branding was the key to CEO Jean-Claude Biver’s
revitalization of the brand when he took the reigns in 2004. In a 2009 interview at the 11th
Nikkei Global Forum, Biver described how he arrived at the brand in a time of crisis:
Hublot came out with a product in 1980…that was based on an innovation to introduce
rubber as a strap. Then, [the brand] could not evolve—it stayed on a product. We are not a
product—we have a message. First, we had a concept, and that concept is fusion. Why?
Because in 1980, when we put gold together with rubber, we created a fusion, and [that]
must be our philosophy, our religion. Once we have that concept, we can develop further
products… The most important element in the revival of the brand [was to] take it away
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from the product concept and to give it a brand message”. (Biver)
Biver’s ideas worked, and today Hublot’s men’s watches start at $10,000 retail; models in rose
gold, other precious metals, and diamonds retail for $20,000 and up. The Louis Vuitton-Moët
Hennessy group, which owns Hublot and more than 60 other luxury brands, credits Biver’s
concept of fusion with the nearly “tenfold increase in turnover in four years” that prompted
LVMH to purchase the company in 2008 (Hublot).
New labels must set out with a branding strategy if they plan to succeed. Mary-Kate and
Ashley Olsen’s brand The Row is only four years old, but behind it is a clear identity that has not
wavered or been revised since its inception. The sisters’ objective when naming the brand was
to distance themselves from their child star image. Robin Givhan of Newsweek wrote in April
2011: “Against significant odds, the Olsens have found grown-up respectability and social
purpose in the unforgiving world of high-end fashion with the success of their womenswear
brand.” “The Row” is a subtle nod to Britain’s Savile Row, which is the internationally
renowned hub of bespoke tailoring. The brand is expensive and targets women 35 to 45 years
old. Givhan points out that “Instead of encouraging women to cling to their slacker years, the
Olsens want them to luxuriate in their most productive ones. That point of view is rare.”
Wearing The Row reinforces a middle-aged woman’s lofty socioeconomic status and highpowered nature. With sales estimated at $10 to $12 million annually, the Olsens’ business has
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not only flourished because they know their target customer, but because their brand identity is
understood by consumer and Newsweek writer alike. Givhan describes the brand’s aesthetic as
“basic, minimal, adult, and extremely expensive.” Clarity of vision propelled The Row into the
fashion arena in practically no time, especially when one considers the trajectory of the average
neophyte luxury brand. Nina Mayer, the director of the Fifth Avenue Club at Saks Fifth Avenue
Boston, observes that “sometimes new brands try to do too much, then they lose their focus and
therefore their audience” (Mayer). The Row did the opposite. Newsweek portrays the brand as
popular and successful, thanks to the Olsens’ approach. Women understand the message behind
the clothes, and they are wiling to pay for it. “Consumers like a brand with a clear point of view;
they like to be guided,” says Mayer.
Even if a product is run-of-the-mill, the very fact that it is made by “X” brand means that
consumers are willing to pay more for it. Christian Louboutin’s Décolleté 100 jazz pump, which
retails for $595, is a standard high heel in black leather with a four-inch heel and rounded closed
toe. It transcends seasons, meaning that it never goes on sale. Each shoe has an attentioncatching red sole that has become the brand’s trademark and leads women to pay the high price.
A female consumer with the means understands that through the purchase of the Louboutin shoe,
she will obtain a well-made object that is not only stylish and classic, but recognized. Mayer says
that “branding” refers to retailers or designers whose image or “look” is clearly identifiable to
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the consumer. Louboutin’s red sole has become a genius branding tool—it evokes for women the
sexiness and sophistication that is the identity of the brand.
The best brands allow us to live a dream. As consumers, we have the potential to
transform ourselves through the spritz of a certain scent or the act of putting on a gorgeous
leather jacket made by one of Gucci’s craftsmen in the Italian countryside. The mention of a
luxury brand name evokes in us something bold and appealing. The power of this reaction—
which is achieved by efficient branding—empowers brands to charge enormous sums of money
for objects that are often stunning, but not always worth such mark-up. This does not faze us as
consumers. We are brand-conscious, and brands are conscious of us and who we want to be.
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Works Cited
Lauren, Ralph. Interview with Charlie Rose. “Charlie Rose.” PBS. Manhattan, New York. 22 January,
1993. Television/Internet.
Biver, Jean-Claude. Interview at “The Eleventh Nikkei Global Management Forum: Lessons from the
crisis; finding light in the storm.” IMD’s YouTube channel. Uploaded 1 December, 2009. Internet.
Di Marco, Patrizio. Interview with The Luxury Channel via YouTube. Uploaded 1 December, 2010.
Internet.
Givhan, Robin. “Look, Ma, We're Fashion Moguls!” Newsweek 24 April, 2011. Online.
Gucci. Advertisement. Industrie Magazine. 24 May, 2010.
"Hublot - Watches & Jewelry - A Luxury brand from LVMH Group ." LVMH group, Moet Hennessy
Louis Vuitton: world leader in luxury, listed on CAC 40 index.. N.p., n.d. Web. 12 May 2011.
<http://www.lvmh.com/groupe/pg_societe.asp?int_id=103&rub=3&srub=4>.
Menkes, Suzy. “Heritage Luxury: Past Becomes the Future.” The New York Times. 9 November, 2010.
"NET-A-PORTER.COM | Gucci | Luxury Designer Fashion | Women's designer clothes, shoes, bags &
accessories. N.p., n.d. Web. 15 Apr. 2011. < http://www.net-a-porter.com/Shop/Designers/Gucci>.
Nina Mayer (Director of Fifth Avenue Club at Saks Fifth Avenue Boston) in discussion with the author,
April 2011.
"Men's Clothes, Shoes and Accessories from Ralph Lauren." Ralph Lauren. N.p., n.d. Web. 12 May 2011.
<http://www.ralphlauren.com/shop/index.jsp?categoryId=1766205&ab=global_men_poloralphlauren&cp
=1766205>.
Thomas, Dana. Deluxe: How Luxury Lost Its Luster. New York: Penguin Press, 2007. Print.
Thomas, Dana. Lecture. Books Inc., San Francisco, CA. 27 August, 2007.
Project Abstract
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Branding is the art of conveying a clear message to a consumer. This project focuses
on branding in the context of the luxury goods sector of the fashion industry. Various highend brands have been analyzed, and their strategies picked apart.
The brands that were found to be successful in terms of audience and profits
communicated clear identities to their customers. This was accomplished through several
approaches.
One approach was the creation of a brand’s identity based on its heritage. Luxury
brands have discovered that consumers are attracted to longevity and an enduring spirit of
the past. Those things are now woven into marketing and products as a means to success.
Other brands have made craftsmanship their DNA. The term “handmade” is seen
and heard all over the fashion industry. Though only a few brands boast products that are
start-to-finish handmade, research showed that many brands still pride themselves on not
using modern technology for production; thus, craftsmanship has played a part in
developing the identities of many brands.
New brands face a different challenge completely. Heritage is not something they
can boast; therefore, a branding strategy must be mapped out from the moment of a
brand’s inception. Brands entering the sector should immediately establish who their
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target customers are what they want. New brands that set out to please too wide a
demographic will lose focus and ultimately be unsuccessful.
Wherever high-end clothing and accessories are sold, from department stores to
consignment boutiques, it is evident that the best customer is brand savvy. Both women
and men are attracted to the lifestyles projected by certain brands, and they feel that these
can be attained through purchase.
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