We work with a variety of luxury clients, many of which are family owned or still have some family involvement.
So, which is best?
If you don’t already know, one of the most well known family owned brands is Hermés (71% family stake) allowing them to take risks and make their own decisions when it comes to how the brand is portrayed. You can find out more about Hermés family business here.
Keeping a luxury brand as a family business has huge benefits, including the namesake factor. If you’ve built up a brand around your name, stitched it into clothing or bags and had it displayed across the globe in advertising, it seems a big risk to let someone else take over that responsibility. After all, it is your name on the line, for generations to come.
Every brand has a story to tell, but moreso luxury names, especially as it helps to justify the price of craftsmanship and history. This week, we were talking to a new client who spoke about a luxury fashion brand, just across the street from their 200 year old store, who had dropped their entire history in their marketing and communications. That’s decades worth of awards, high profile clients, events and more, dropped to be replaced with 21st century ideas. The brand in question, has been run by a new designer for the past few years after the family owner died.
LVMH, the world’s largest luxury brand conglomerate owns over 60 subsidiaries, including its original merger of companies – Louis Vuitton and Moët Hennessy. Their group turnover stands at around €30bn, making it hard to judge whether each brand’s successes combined could have achieved, or even exceeded this total.
The benefits of mergers between luxury brands include the ability to streamline manufacturing, the supply chain, marketing and strategies. However, it can also lead to cost cutting, loss of heritage and less story related advertising. Either way, corporate of family owned, not many luxury names use their story in their big marketing campaigns – TV, Billboards, Print etc. Instead, many decide to promote it with their product, perhaps in a book or on the tag, or through their website.
We’re currently working with a few brands with great stories to tell, leading us to create stunning print and digital pieces to accompany their products and strategies, informing their potential customers and clients about where they’ve come from and who they really are, right down to the humble beginnings.