What are the best practices for managing multiple luxury brands under one umbrella?

Managing multiple luxury brands under 1 umbrella requires coordination, strategic alignment, and a deep understanding of each brand's unique identity & target audience. While operating under 1 umbrella, each luxury brand should maintain its distinct identity, positioning & values. Avoid diluting the individuality of each brand by ensuring autonomy in branding, mkt, and product development decisions. Develop clear and comprehensive brand strategies for each luxury brand, outlining their target audience, value proposition, competitive positioning, and key messaging. Centralize shared services and resources, and facilitate Cross-Brand Collaboration and synergies Establish robust brand governance frameworks and guidelines to ensure consistency

I am surprised that many approaches to portfolio management miss what I personally consider to be one of the most important factors: the talent. While I certainly agree that it is important to properly curate the portfolio of brands, consciously managing the brands’ positioning, their relevance for various target audiences and to provide for sufficient differentiation across the portfolio - we should not forget that attracting, developing and retaining top talent is one of the most critical success factors in the creative and cultural (luxury) industries. So we should properly consider that as part of our portfolio strategy, which also leads us to the important question of what role we attribute to a group brand.

Managing several premium brands under one umbrella entails ensuring that each brand remains unique and distinct. This entails providing each brand some autonomy in making decisions such as marketing and product design. However, it additionally involves combining some resources, such as distribution and quality control, in order to save money and function more efficiently. To ensure that any brand remains successful, it is critical to keep an eye on what people want and what is occurring in the market. It's also a good idea to explain how all of the brands are related and to safeguard each brand name and ideas. Finally, it comes down to striking a balance between each brand's uniqueness and what makes sense for the entire set of businesses.

When managing a luxury brands portfolio, akin to other asset classes, it becomes crucial to pinpoint the brand(s) that will serve as the core of the portfolio – the proverbial 'jewel in the crown.' Identifying brands that promise significant profitability is key, as they can establish a stable income stream. Simultaneously, recognizing brands that may demand more time and resources to achieve optimal performance is essential. A nuanced understanding of this dynamic allows for the establishment of clear goals and effective resource prioritization

Luxury brands need to segment their portfolios to target different customer groups with varying needs, preferences, and lifestyles. Segmentation helps to create clear differentiation and positioning for each sub-brand, optimize pricing, distribution, and promotion strategies, enhance customer loyalty and satisfaction, and avoid cannibalization and dilution of brand equity. For example, Land Rover has several sub-brands, such as Range Rover, Discovery, and Defender, each with its own positioning and personality. Segmentation also allows luxury brands to create emotional connections with their customers through storytelling, personalization, and exclusivity.

One way to look at segmentation is in a pyramid of accessible at the bottom to inaccessible at the top. In luxury brands must provide you with the ability to dream, even if some of their customers can not yet afford their top-of-the-pyramid products. With this segmentation in mind, you will have to address different market segments, and will have different goals for each. From brand awareness at the bottom to possible loyalty re-engagement at the top. An inability to do this will create inefficiencies in your marketing drives, and can cost you ineffective marketing, as well as resource allocation that could be reused from one tier up to another.

Let's get real. You've got a closet full of luxury brands, but are they all best friends? Time to declutter and create order! Brand segmentation is like having a personal shopper for your portfolio. We're talking about dividing your luxury loves into groups based on who they're for, what they cost, and their overall vibe. How to do it? Think of your brands as VIPs. Categorize them by their luxury level, lifestyle, heritage, innovation, or sustainability. Are they old money or new blood? Eco-warriors or trendsetters? By understanding your brand’s unique selling proposition (USP), you’ll avoid confusing your customers. Remember: A well-segmented portfolio is like a perfectly curated wardrobe – every piece has its moment to shine.

Another way to luxury brands segmentation is with Data analytics. It sharpens brand segmentation by revealing consumer trends and behaviors. For instance, if data shows a surge in eco-conscious shopping, a beauty brand could target this segment with a specialized eco-friendly line, aligning marketing to consumer values efficiently.

Each plate for each dish!?? - Strategic Segmentation: Divide brands by market, product, price, and customer. - Resource Efficiency: Allocate resources smartly by identifying gaps and overlaps. - Issue Prevention: Prevent cannibalization and confusion through careful segmentation. - Diverse Criteria: Use factors like luxury, lifestyle, heritage, innovation, or sustainability for brand grouping.

Knowing your brand DNA very well is the key to managing your brands. I like to use Jean-N?el Kapferer's Luxury Brand Prism model to define the brand's voice. His Luxury Brand Prism is a model used to analyze and understand luxury brands from multiple dimensions, consisting of six facets. 1. physique (product and design), 2. personality (brand characteristics), 3. culture (brand heritage and tradition), 4. relationship (customer-brand interaction), 5. reflection (brand self-image), and 6. customer (target audience). This prism helps marketers and brand managers gain insights into how luxury brands are perceived by consumers, and solidifies their understanding of the brand's voice, making it better to manage them effecitvely.

Understanding nature of the markets in which brands operate and assessing their current positioning within these markets is the initial phase in crafting tailored brand strategies. Market attractiveness and brand strengths will help to identify whether brands require: -continued investment to maintain and further leverage their success; -additional investment to strengthen their position and realize their potential; -divesting or repositioning them.

Manage it all ?? - Efficiently manage portfolio brands through strategic planning and policy implementation. - Monitor and evaluate brand performance and profitability. - Ensure consistency and coherence among brands through coordination and communication. - Leverage best practices and cross-selling opportunities. - Use tools like brand architecture, brand equity, or brand portfolio matrix for effective brand management.

Juggle it all ?? - Manage Effectively: Develop and implement strategies, plans, and policies for each brand. - Performance Monitoring: Regularly monitor and evaluate brand performance and profitability. - Coordination and Communication: Ensure consistency and coherence among brands, leveraging cross-selling opportunities.

Para mim, a melhor estratégia de gerenciamento de marcas de luxo debaixo de um guarda-chuva único é da LVMH, pois dá liberdade criativa para cada maison operar de forma independente (obviamente sob um direcional estratégico do grupo). Parcerias e collabs s?o positivas e até indicadas, mas apenas quando é uma situa??o ganha-ganha, e ambas as marca est?o no mesmo patamar de posicionamento e público.

NEW NEW NEW ? - Expand portfolio through new markets, products, customers, or channels. - Achieve growth organically (expand/extend existing brands) or inorganically (acquire/create new brands). - Drive growth via innovation, differentiation, or personalization of luxury offerings. - Caution: Maintain quality, exclusivity, and authenticity in pursuing growth opportunities.

Utilize strategic partnerships and collaborations with luxury brands, influencers, or artists to boost your brand’s reach and prestige. Carefully selected partnerships can lead to co-branding, limited editions, and exclusive events that elevate market presence and brand exclusivity. Ensure these collaborations align with your brand values and enhance your narrative, enriching storytelling and customer experience to maintain loyalty in the luxury market.

When expanding luxury brands, storytelling becomes crucial as it effectively communicates the brand's values, exclusivity, and emotionally engages customers. Consistency in storytelling across various communication channels and diverse markets is paramount to maintaining the brand's authenticity. The careful selection of brand ambassadors, aligned with the values conveyed in the brand's narrative, enhances customer engagement.

Protecting your brands is ciritcal, as reputation, imitations, fakes and poor internal behavior will eclipse the dream and vision of the brand the audience sees. Luxury brands are held to a higher standard to be above the average and mundane messes and as such should make brand protection critical. Protection will look different for various different risks, but the strength of a brand ethos should pervade the internal and external, and should be strong and consistent, as well as ethical and admirable. One way to protect is to create transparent systems of authentication, increase customer communication and proactivity in customer service. Constant innovation and keeping experiences fresh, relevant and beyond the ordinary is also key.

Amplify your "unfair advantages"—the moats that set you apart—it is crucial. Ask yourself, what can your brands do that others can’t easily mimic? Is it unparalleled craftsmanship, a heritage story, an innovative sustainability approach, or perhaps an exclusive customer experience? These are your moats. Fortify these advantages by doubling down on what makes your story and creativity untouchable. Protection isn't just about warding off external threats like imitation or regulation; it’s equally about internal cohesion, ensuring each brand within your portfolio amplifies these unique strengths, maintaining a united front that competitors can’t easily breach.

Managing luxury brands under one umbrella is like hosting a fancy dinner party where each dish (brand) needs its own flavor but still works well on the same table. You’ve got your flagship brand as the star dish, while others are the delicious sides. Give each brand its own personality but make sure they share some common ingredients—like customer trust and quality control. Don't forget to spice things up with innovation and protect your brands from copycats (because no one likes a bland imitation!). And, just like any great party, do regular check-ins to keep everything fresh and relevant.

Defining unique brand identities, like how LVMH owns Louis Vuitton and Dior, each with its distinct style. Maintaining distinct branding, such as how Volkswagen Group manages Audi and Porsche, each with its logo and design language. Differentiating products and pricing, such as how Toyota owns Lexus, offering premium vehicles at a higher cost. Personalizing customer experiences, similar to Marriott International's luxury umbrella, including Ritz-Carlton and St. Regis, both offering tailored stays. Developing unique content narratives, like how Kering Group manages brands like Gucci and Balenciaga, each with distinct storytelling.

Projecting forward, the innovations of the luxury industry into innovation tech are absolutely critical to create new extraordinary experiences, and to remain relevant to new younger audiences. Web3 is made up of mostly luxury players. As of 2022, LVMH had had 17 Web3 applications over 9 maisons, including; blockchain applications, digital collectibles, token-gating and segmentation, as well as Metaverse activations. It is clear the future is digital.

1. Maintain distinct brand identities, values, and target audiences for each brand. 2. Centralise strategic direction while allowing brand autonomy in operations. 3. Identify collaboration opportunities and synergies between brands. 4. Implement shared resources and best practices where beneficial. 5. Ensure consistent quality, standards, and customer experiences across brands. 6. Continuously evaluate brand performance and portfolio management. 6. Monitor market trends, compliance, and customer feedback for each brand. 8. Keep a customer-centric approach and personalise experiences for loyalty. 9. Strive for operational efficiencies and cost-effectiveness while maximising brand excellence.