Fashion from Luxury? the Impact of the Masstige

From Fashion to Luxury? The impact of the visual modalitytige Integrated Communication assignement Msc of LFM 2011-2012 Justine Leupe Agenda 1. INTRODUCTION OF THE matter Definition of Masstige phenomenon Reasons of the Masstige apparition Examples 2. ADVANTAGES Mass market marques advantages Luxury brands & designers advantages Consumers advantages 3. RISKS Loss of Brand identity Luxury Democratization risks Introduction of the topic MASSTIGE definition ? n. A club of harvest-times that are affordable for the general consumer but positioned as luxury goods. Masstige is a marketing term meaning downward brand extension. The word is a blend of the words mass and prestige and has been described as prestige for the masses. ? Masstige products are defined as premium but attainable, and thither are two key fruit tenets ? ? They are considered luxury or premium products. They have price points that fill the gap between mid-market and super premium. ? Masstige VS Co-brandi ng ? Co-branding is a partnership between two brands, epoch 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 premier(prenominal) 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 milieu 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, masstige is to boost sales during quiet periods. For the luxury brand, the acquaintance operations are great opportunities to reach a wider target by keeping its range of a function and credibility. 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 traffic 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 egg-producing(prenominal) 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 hands & 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 Exam ple 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 ? 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 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 loving luxury segment through a one shot operation ? Increase brand awareness thanks to a high media exposure utterly term strategy Consumer advantages Example of Karl Lagerfield for H&M (2004) ? Ac cess to products signed by uxury brands and famous designers at affordable prices ? Consumers can access to products which are non counterfeits, but inspired by the High luxury with a high aesthetic value ? Prices based on the current prices of H&M products lower limit 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 forelands 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 fanciful 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 overall brand. 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 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 congruity 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 of a daily consumption by an elite consumer to a punctual consumption by a very large number. The punctual trade 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 Masstige represents legion(predicate) opportunities for both, it al so 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 threepenny and Prestige. Thanks for your attention