Oct 19, 2016
Closer look at the luxury market: brand perception is everything, both for Louis Vuitton and Cucinelli
Oct 19, 2016
A survey by the Exane BNP Paribas agency on the relationship between price and the perception of exclusivity for luxury brands revealed that Louis Vuitton is perceived as more expensive than it actually is, while the opposite is true for Brunello Cucinelli.
Entry price is essential for the worth and profitability of luxury goods brands which, at the same time, have every reason to foster this perception of exclusivity. "A brand which comes across as too accessible can easily become a victim of its own success, and lose its powers of seduction," explained Exane.
The survey highlighted that a brand that is perceived as "expensive" takes on an aura of "exclusivity". However, in the majority of cases, the perceived and the actual prices do not coincide.
"For example, Louis Vuitton is perceived as much more expensive than it actually is, while the opposite is true for Brunello Cucinelli, which is dearer than it is perceived to be."
According to Exane, the lower the entry price, the better the perception with regards to price is.
This concept applies especially to major cosmetics brands such as Chanel and Dior.
"Louis Vuitton enjoys the best ratio between perceived exclusivity and entry price," concluded Exane BNP Paribas, confirming its "positive overall opinion" of LVMH.
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