Fashion from Luxury? the Impact of the Masstige

From manner to Luxury? The impact of the crappertige Integrated Communication assignement Msc of LFM 2011-2012 Justine Leupe Agenda 1. origination OF THE TOPIC Definition of Masstige phenomenon Reasons of the Masstige apparition object lessons 2. ADVANTAGES Mass market prints advantages Luxury trademarks & designers advantages Consumers advantages 3. RISKS injury of Brand identity Luxury Democratization risks Introduction of the topic MASSTIGE interpretation ? n. A class of products that are affordable for the general consumer still positioned as lavishness goods. Masstige is a marketing term meaning downward stigmatise extension. The word is a portmanteau of the words mass and prestige and has been draw as prestige for the masses. ? Masstige products are defined as premium but attainable, and there are two key tenets ? ? They are considered sumptuosity or premium products. They have determine 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 working between a opulence brand and a consumer brand. Sources http//en. wikipedia. rg/wiki/Masstige Reasons of the Masstige apparition ? It follows the grade 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), the States (100 billion euros), China and Japan (35 billion euros). ? It is in this uncertain surround that brands have realized the need to adapt and be creative to cling 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 surgerys are great opportunities to reach a entirer organise by keeping its image and credibility. Masstige Key factors of success ? Collaboration between luxury brands or fashio n designer ? Adoption of specific codes of consumer brands communicating and adapting them according to the market ? Luxury brands generally use one ecumenical speech. ? Ephemeral nature of business operations which rely on the annunciation effect ? Appeal of luxury brand muses ? Use of the Karl Lagerfeld muse, Baptiste Giabiconi, to promote the exhibition for Hogan Target younger and more female consumers than Luxury goods Masstige examples ? 1993 Kookai with Karl Lagerfield & Sonia Rykiel ? The Kookaisme advertising apparent motion Masstige examples ? 2005 Motorola by Dolce & Gabbana ? propose of the RAZR V3i. Limited edition Masstige examples ? 2006 Rossignol by Jean-Charles de Castelbajac ? chassis 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&MImpact of Masstige Its advantages & Risks Consumer brand advantages Ex ample of Karl Lagerfeld for H&M (2004) ? get ahead sales during quiet period ? Operation launched in November, just after(prenominal) the back to school period and before the Holiday season ? gross revenue 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 esteemed 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 engineer by preserving its brand image and credibility in the luxury effort ? Beneficiate of the well-targeted and wide distribution network of H&M ? entrust luxury brands and designers to break into the accessible luxury segment through a one shot operation ? Increase brand awareness convey to a high media exposure short term strategy Consumer advantages Example of Karl Lagerf ield for H&M (2004) ? Access to products signed by uxury brands and famous designers at affordable prices ? Consumers piece of ass access to products which are not counterfeits, but inspired by the High luxury with a high aesthetic appraise ? 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 equalize 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 invitee on an entry-level product may rub off quickly on the overall brand. Masstige Risks ? Confusion risk between the consumer brands and the luxury b rands associated ? Loss of the luxury dimension in the mind of consumers ? Loss of the luxury brand warmness customers who feels betrayed by their favorite brand ?They Looks for exclusivity, originality and quality ? Excessive demand of masstige could intrust 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 vogue of a daily consumption by an elite consumer to a timely consumption by a very large number. The punctual condescension 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 Massti ge 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