The Magical Power of Brands

Caroline Weber reviewed Deluxe, by Dana Thomas, for the New York Times Book Review this week end.

Ms. Thomas credits Bernard Arnault for realizing that brands by themselves represent an asset for the luxury industry, in a somewhat detached way from craftsmanship or even creativity. The article notes that items sold under a luxury brand are not always made as one believes a luxury item should be made (cheaper material, machines replacing petites mains...)

Another issue for luxury brands: their ubiquity. Counterfeiting is only a part of the problem, as many more clients buy the "real thing." Caroline Weber writes that “ a designer jacket or handbag , or watch no longer transmits reliable information about its wearers’ socioeconomic statue or background. “ Example of why here. It will be interesting to follow how luxury brands will react to keep the magic alive. I suggest the Hermes way, craftsmanship. Sometimes, taking more time still means more money.