no doubt that Versace, Fendi and Hermès are all positioned as luxury brands
because they all share the broad attributes of luxury and prestige.
Narrow level positioning involves specific brand positioning that is attrib-
uted to each brand. Although luxury brands share the ‘luxury’ attribute as a
broad positioning tool, each brand has its own unique positioning supported
by its identity. This is where the battle for the consumer’s mind begins and is
often more challenging to attain than broad-level positioning. The positioning
of different luxury brands varies and they highly influence the brand choices
that luxury consumers make. For example, if you take a moment to think
about John Galliano, Escada, Roberto Cavalli, Chloe and Jean Paul Gaultier,
you’ll discover that although these brands have the ‘luxury’ factor in
common, they do not have the same brand positioning. They also do not send
the same specific brand messages, neither do they address the same tastes.
Brand positioning is what drives consumer choices through comparisons.
If consumers have a clear understanding and perception of a brand, then
they’re likely to place the brand in the right position in their minds and this
will form a part of their selection process. This involvement in the selection
process means that the brand has become part of the group of brands that have
a place in the consumer’s mind and the consumer recognizes the contribution
the brand would make in their lives.
The task of brand positioning becomes even more challenging for luxury
companies that own multiple brands such as LVMH and Richemont Group. On
a group level, these companies are corporate brands that address the needs of
their investors, employees and other stakeholders. This requires the develop-
ment of a corporate brand strategy and positioning that has little to do with
consumers. On another level, the brands that these companies control hold great
significance to consumers and their positioning is associated with consumers.
For example, the brands in the LVMH portfolio include Louis Vuitton, Fendi,
Loewe, Givenchy and Dior; while Richemont owns Chloé, Cartier and Lancel;
and the Gucci Group owns Gucci, Alexander McQueen and Yves Saint Laurent
among others. These individual brands have different positioning points in
consumers’ minds. They are also different in their internal positioning levels
and influence the holding companies’ positioning as corporate brands. These
varying brand positioning points create a challenge for the groups. Also there is
a risk of developing brand positioning overlaps that could confuse consumers
and internal competition that could affect the performance of the brands. To
overcome the challenges posed by these factors, each brand ought to remain
clearly distinct and original, while maintaining the luxury quality.
The following points are important in the evaluation of a luxury brand’s
positioning.
- The products and services must be in alignment with the desired positioning.
- The positioning must be credible, i.e. the brand must have a raison d’être
and be deserving of it.
chapter 5 117the art of creating and managing luxury fashion brands