I don’t shop much and am not a fashionista—just watching the trends, just like the rest of us.
Great brands have a lot of in common.
For instance, Nike and Louis Vuitton sell commoditised products but both must have great supply chains, like Inditex :
-
Nike associates itself with top athletes. Try their Nike Training or Run apps—it’s about the experience. Under Armour has a tough path ahead but it’s done well so far.
-
LVMH targets high net worth people and their stuff is scarce. They create that illusion of scarcity and price their stuff so that only the “well-off” who care about status and logos buy their stuff (or something like that). Think Armani.
So they use the psychology well on consumers targeting our brains, hearts, etc, the way Apple and Amazon do.
If M&S starts selling $1000 bags, noone will buy them. Maybe, Ocado/M&S Foods will save them.
Also, great brands love and use data.
It’s 2019—every company should be a tech company.
Amazon
Amazon has many brands you’ve never heard of. You may have bought a pan made for Amazon but it didn’t have a Smile logo on it.
Expect Amazon to enter the sports-leisure clothing market soon with own labels which won’t even have an Amazon logo; partnering with Puma is just practice, Amazon has the platform and the data: