Company Size vs. Brand Exclusivity: compatible ?
Apparently, and as expected, company size is inversely correlated to entry prices positioning
- High-End Brands such as Valentino/Fendi/Saint Laurent, with entry prices above 350 USD, are maximum reaching the 1 – 1.5 Billion Euro revenue threshold
- Mega Brands like Gucci/Prada/Cartier/Tiffany, with entry prices around 200-250 USD, achieve revenues around 4 Billion Euro
- Premium Brands, with lower entry prices between 50-100 USD, can reach 6-7 Billion Euro revenues as in the case of Ralph Lauren
Dolce&Gabbana de facto belongs to the High-End league after the recent successful strategic repositioning
Louis Vuitton strength is due to its unique positioning: almost double revenues than other Mega Brands!
Hermès growth fueled by very accessible entry prices below 150 USD, mostly coming from the broad Soft and Home Accessories offer
Bottega Veneta and Ferragamo strategic issues are standing out: should reinforce their exclusivity heritage or pursue growth ? For both brand products rejuvenation/appeal is a must, the significant store network probably makes growth the only de facto option for Ferragamo
Hugo Boss rightly giving up the upscale repositioning ( past November announcement) given the very significant price differential with Mega-Brands entry prices
Chanel and Dior brands image significantly diluted by a plethora of beauty&fragrances shoppable items with entry prices below 50 USD.