Fashion from Luxury? the Impact of the Masstige

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From Fashion to Luxury? The impact of the “masstige”
Integrated Communication assignement Msc of LFM 2011-2012
Justine Leupe

Agenda
1. INTRODUCTION OF THE TOPIC
– Definition of “Masstige” phenomenon – Reasons of the “Masstige” apparition – Examples

2. ADVANTAGES
– Mass market brands advantages – Luxury brands & designers’ advantages – Consumers’ advantages

3. RISKS
– Loss of Brand identity – Luxury Democratization risks

Introduction of the topic

« MASSTIGE » definition
 n. A class of products that are affordable for the general consumer but positioned as luxury goods.  “Masstige is a marketing term meaning downward brand extension. The word is a portmanteau of the words mass and prestige and has been described as prestige for the masses.”  Masstige products are defined as "premium but attainable," and there are two key tenets:   They are considered luxury or premium products. They have price points that fill the gap between mid-market and super premium.

 Masstige VS Co-branding
 Co-branding is a partnership between two brands, while “masstige” only works between a luxury brand and a consumer brand. Sources: http://en.wikipedia.org/wiki/Masstige

Reasons of the « Masstige » apparition
 It follows the trend of Luxury democratization.  The European textile market is one of the first victims of globalization resulting in textiles and cheap labor from China.  Hypercompetitive market: Europe (135 billion euros), USA (100 billion euros), China and Japan (35 billion euros).  It is in this uncertain environment that brands have realized the need to adapt and be creative to stay competitive.

 From the perspective of consumer brands that distribute the final products, “masstige” is to boost sales during quiet periods.  For the luxury brand, the association operations are great opportunities to reach a wider target by keeping its image and credibility.

“Masstige” Key factors of success
 Collaboration between luxury brands or fashion designer  Adoption of specific codes of consumer’ brands communication and adapting them according to the market  Luxury brands generally use one worldwide speech.

 Ephemeral nature of business operations which rely on the announcement effect

 Appeal of luxury brand muses
 Use of the Karl Lagerfeld muse, Baptiste Giabiconi, to promote the collection for Hogan

 Target younger and more female consumers than Luxury goods

« Masstige » examples
 1993: Kookaï with Karl Lagerfield & Sonia Rykiel
 The « Kookaïsme » advertising campaign

« Masstige » examples
 2005: Motorola by Dolce & Gabbana
 Design of the RAZR V3i. Limited edition

« Masstige » examples
 2006: Rossignol by Jean-Charles de Castelbajac
 Design of a Ski clothes collection for Men & Women

« Masstige » examples
 2008: Evian by Jean-Paul Gaultier
 Design of a limited edition bottle

« Masstige » examples
 2010: Lanvin for H&M  2011: Versace for H&M

Impact of « Masstige »
Its advantages & Risks

Consumer brand’ advantages
Example of Karl Lagerfeld for H&M (2004):
 Boost sales during quiet period
 Operation launched in November, just after the « back to school »period and before the Holiday season

 Sales increase of 24% in November 2004 comparing to November 2003  Biggest monthly increase since October 2002  Karl Lagerfeld operation represents between 6 to 8 points of the 24%.

 Capitalize on the prestigious image of the luxury brand associated Sources: http://lesevolutions.blogspot.com/2008/04/masstige.html

Luxury brand or designer’ advantages
Example of Karl Lagerfield for H&M (2004):  Reach a wider target by preserving its brand image and credibility in the luxury industry

 Beneficiate of the well-targeted and wide distribution network of H&M  Allow luxury brands and designers to break into the accessible luxury segment through a one shot operation  Increase brand awareness thanks to a high media exposure short...
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