WHY YOU SHOULD THINK LIKE LUIS VUITTON
by Tommy McWilliams on 04 Mar,2015
What makes a luxury brand?
– First of all there is an unconditional grandeur of devotion to artistry and delivering Art regardless of the sacrifice involved.
– There is almost always an iconic individual driving the initial passion of creating and the craftsmanship involved in making the product. This is you, or the Rock Star of your choice.
– There is an exceptionally high price point involved. Charge what you know you are worth.
– Vertical Integration. This just means that the brand owns it’s own supply chain. As a music creator you could take this to mean you own everything you need to create your Art. And you control distribution. In the case of brands like Gucci or Burberry they own their own stores so they can completely control the entire purchasing experience. You sell your Art through your own web presence [Website, Social Media platforms, etc]. Your brand is built at the point of purchase. In the case of your music it’s at your main digital portal.
– Global Penetration. Every business is going to have to look at how they are responding to the revolutionary changes that the Connection Economy brings. The opportunities to monetize your Art are no longer just in the immediate proximity of where you are located. They are worldwide.
– Self-Expressive Benefit. This is a big one. It means that by identifying yourself as an adopter of a luxury brand you are announcing to the world that you are part of that tribe. It signals something about you. Everyone is a freak about something. People are dedicated to finding the other freaks like them. The freaks for your Art are in it for the connections that are being made with other freaks of the same brands. People that are interested in luxury brands want too identify with other owners of luxury brands. It’s about exclusivity.
So, what does this mean to you?
There will be winners and losers in the new digital economy.
If you are not moving ahead you are falling behind.
So, as a reality check for all of us is; the biggest loser in the current economic environment is the middle class in the developed nations. The biggest victory in US history has been the advancement of the middle class. This has been the most economically positive force on the planet. Not anymore.
The decline of the US middle class is well documented.
The winners are going to come from those products that are decided upon with the heart not necessarily the head. Emotional investment is the determining factor.
The Mass Market that I grew up with is going away. It could already be gone. The center of the statistical Bell-Curve has flattened out. No center. No regular people. No more average junk for average folks.
Following the herd is done. Fitting in is no longer going to work. You have got to be “one of a kind”, unique, the one they can’t live without. You can’t get there by bragging about it, you can only get there by creating something great.
The new economy will no longer fairly compensate any entity that is average. Same rules apply to both businesses and individuals.
Quality is the new social proof. The bar has been raised considerably.
Nobody will be loyal to cheap. Uncommon, extraordinary and scarce will beat the race to the bottom.
To put it in the parlance of the business professional; you would be ignoring your individual fiduciary duty to not get into the luxury business.
It works for Louis, it’ll work for you.