Posted on : 2023-11-24 03:11:19
Article : 24th Nov 2023- Good evening Friday Management TASK 269- Prestigious labels loose luster and leave customers astounded- why it is so?
In this captivating post we are re-sharing an article which was published near recently on LinkedIn, as such we have done similar project in 2016 for a client of ours on EMEA region. Here the author delves deep into stories where prestigious labels lost their luster and left consumers astounded. From botched collaborations to misguided marketing campaigns, let us see how the fascinating examples of luxury brand failures that shattered illusions and taught valuable lessons along the way.
In recent years, luxury brands have become increasingly popular, with many people eager to own a piece of luxury. However, not all luxury brands are created equal, and some have experienced high-profile failures that have taken consumers by surprise. Luxury brands are typically defined as brands that offer a high level of quality and exclusivity. While many luxury brands started out as small businesses catering to a niche market, they have since grown into global powerhouses. Luxury brands are often associated with a certain lifestyle and often evoke feelings of aspiration and success.
There are several key factors that contribute to the success of a luxury brand. First and foremost, luxury brands must offer a high level of quality. Luxury customers are willing to pay premium prices for products that they perceive to be of better quality than their mass-market counterparts. In addition, luxury brands must be exclusive and offer items that are not widely available. This exclusivity creates a sense of prestige and status around the brand, which is highly appealing to consumers. Luxury brands must be well-marketed in order to create an aspirational image that will appeal to potential customers.
Despite the many factors that contribute to the success of luxury brands, there have been several high-profile failures in the luxury brand industry. One of the most famous is the collapse of British luxury retailer BHS in 2016. The company had been struggling financially for several years prior to its closure and was unable to pay its debts, leading to the loss of over 11,000 jobs and a $580 million hole in UK pension funds. Still, the popularity of luxury brands continues to rise. Many people are willing to pay a premium price for products that they perceive as being of higher quality and more exclusive than their mass-market counterparts. As long as luxury brands can remain competitive and continue to deliver on their promises of exclusivity and quality, they will remain popular with consumers and continue to be successful.
Some luxury brand failures come as a surprise to consumers because of the high expectations these brands tend to set. They are often seen as symbols of opulence and perfection, yet they can still succumb to mismanagement or unforeseen circumstances. It is important for us to remember that even though luxury brands may appear bulletproof, in reality there are several factors that can contribute to their ultimate failure and downfall. Knowing this helps us better understand the intricacies of luxury brand management so we can appreciate them more when they do succeed.
In our Management Solution for this TASK post we will post one of the brands rise and fall. In your career’s experience you also might have come across such brand situations, do post them to help management students and young managers to understand more about brand management in depth. Our Good morning Monday Management solution will be posted on 27th Monday Dec 2023. Through this of our post we thank the Linked In writer Mr. Abdul for sharing his insights in detailed text on brand management of luxury brands. It gave us an opportunity to make it known for more viewers.
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