A number of people may not be familiar with the name Bernard Arnault, however they surely will be familiar with the corporation that he heads the Louis Vuitton Moet Hennessy group or LVMH.
Currently the LVMH group is the largest luxury group with revenue that exceeds €35 billion and Arnault speaks about how he helped to grow the company into the powerhouse that it is today.
Arnault addresses the distinction between luxury branding and marketing, and this is an essential thing for anyone who is in business to understand.
This issue is what confuses many companies because they are not clear on who they are and what they stand for, by this I mean that they are not clear on their definite purpose. In traditional marketing a company will look for a specific market and then create a product to fill the needs or desires of that market. Luxury brands do not this, instead they create a timeless product and then attract the ‘right type’ of client by strengthening their brand proposition by increasing the desirability of the product, and this is achieved in a number of ways such as scarcity, exclusivity, celebrity endorsement, and the like.
‘We don’t do marketing, because marketing is against what a company like us should do.’ – Berard Arnault
Bernard Arnault addresses the Oxford Union