The power of the brand was something Jean-Jacques Guiony (CFO of LVHM) discussed in the company’s recent earnings call:
“The reality is that pricing power is actually a function of the desirability of the brand. Desirable brands can increase prices and non-desirable brands cannot. It’s as simple as that. So what it…
The power of the brand was something Jean-Jacques Guiony (CFO of LVHM) discussed in the company’s recent earnings call:
“The reality is that pricing power is actually a function of the desirability of the brand. Desirable brands can increase prices and non-desirable brands cannot. It’s as simple as that. So what it is about is really developing strategies, marketing, products, distribution strategies that will increase desirability of the brand, so that in tough times or in other times, we can reflect into prices the cost of doing business. It’s as simple as that.”
All of LVHM segments grew by double digits this past quarter. Desirability means pricing power.
Good article, Joachim.
The power of the brand was something Jean-Jacques Guiony (CFO of LVHM) discussed in the company’s recent earnings call:
“The reality is that pricing power is actually a function of the desirability of the brand. Desirable brands can increase prices and non-desirable brands cannot. It’s as simple as that. So what it is about is really developing strategies, marketing, products, distribution strategies that will increase desirability of the brand, so that in tough times or in other times, we can reflect into prices the cost of doing business. It’s as simple as that.”
All of LVHM segments grew by double digits this past quarter. Desirability means pricing power.