Fashion from Luxury? the Impact of the Masstige

From Fashion to Luxury? The impact of the â€Å"masstige† Integrated Communication assignement Msc of LFM 2011-2012 Justine Leupe Agenda 1. INTRODUCTION OF THE TOPIC – Definition of â€Å"Masstige† phenomenon – Reasons of the â€Å"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. â€Å"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 â€Å"premium but attainable,† and there are two key tenets: ? ? They are consider ed 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 â€Å"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, â€Å"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. â€Å"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-Pau l 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 20â‚ ¬ 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 ov erall brand. â€Å"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 â€Å"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 â€Å"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 â€Å"excursionists. † The â€Å"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 â€Å"Masstige† represents many opportunities for both, it also represents some risks especially for the luxury brand associ ated. ? â€Å"Masstige† can put luxury brands at risks but it could also represent, â€Å"the third way† mixing â€Å"Cheap and Prestige†. Thanks for your attention!