Gucci became a Multi Brand Global Company through the acquisition of several labels and uses different channels of distribution for each of its acquired labels.
* vertu established flagship stores in exclusive shopping districts, thus benefiting from a alo effect. Vertu has developed a unique buying experience by creating "gallery-like" feels to its retail environments. In keeping with element of exclusivity, original artworks were commissioned and exhibited throughout the stores.By offering a first class personal service combined with extensive product knowledge, Vertu has enhanced their image of reliability and expertise. Vertu phones are available online and customer can personalize their mobile phone too. The company is also extremely particular when choosing suitable retail channels that must have a global reputation in offering quality and luxury products.
Q3: Discuss how exclusive brands may lose their aura of exclusiveness and fashion status, identifying possible threats to these brands?Some brands are targeting both ends of the market. The risk of 'democratizing the brand is that they may lose their aura of exclusivity - as it can be obtained by anyone. If one brand goes down-market, it may have profound repercussions on the appeal of the parent brand. Calvin Klein brand name was affected when they sold the Jean in discount supermarkets such as Wal Mart during the 90s. This has downgraded the image of Calvin Klein Jeans. Failure to retain alented designer or losing them to their rivals may also affect the brand's exclusiveness.
Counterfeiting is huge subculture within the luxury brand sector. The quality of fakes is getting better, making it harder and harder for people to distinguish the fake from the real thing apart from price. This is a huge threat to luxury brands. Conclusion Advertising can only create awareness for the product/service. The success of Gucci, Louis Vuitton and Vertu can be attributed to quality of service, brand image, retail environment, management structure, and ability to combine these factors to create exclusive experience.
