Ever since years ago when Versace opened an incredibly luxurious hotel in Dubai, I felt it was going to be just one of the first fashion houses to do so. Why? It’s incredible how creativity and brand codes can expand to multiple disciplines and help the brands to expand awareness, identity, and of course, numbers.
Taking in count Dior’s famous café in Miami, Prada ephemeral one in London or even Jacquemus or Gucci’s beaches sets this 2023 summer, today we are going to analyze why this strategy is part of almost every name in the luxury map nowadays. Tiffany and Co included, the very first one I have in mind because of Audrey Hepburn’s movie and their iconic Café establishment.
Even Karl Lagerfeld, the brand, is building a hotel under the founder’s own name and style to enter the game. One that the designer himself would’ve loved because of its extension and durability in time, close enough to Coco Chanel’s Ritz Suite, where she stayed for 34 years, where the price could even ascend to €18.000 a night.
As we all can see, it’s not as new as we think and it has been a game the brands have been playing for quite long. Now, there are three powerful reasons/insights that are connected to this business penetration, and here they are:
The first one is clearly to sell a lifestyle.
Brands like Chanel, Hermès or Dior are aware of what they represent to people. They have been aspirational ever since they were created and in the current context and economy even more. This is why their investment in other disciplines such as restaurants, spas, hotels or cafés is part of their annual game, alongside events and pop-up stores in summer A-List places such as Ibiza, Saint-Tropez or Mykonos.
Even with an overpriced latte at Saint Laurent’s now permanent coffee shop in Paris or a dessert at the Prada Café in London, brands get to sell retail and accessible products, food, moments and most of it all, gain popularity through free social media posts by all the people who visit their establishments. It’s a gain – gain game, if you ask me.
On the other hand we have the now inevitable experiences.
I am pretty sure you all have been dealing with this word even more than me, because it’s out there in the socials, the publicity, the walls and even in products.
Luxury brands and specially in stores are created to give the customer an experience in all possible ways. Entertainment, brand history hacks, accommodation, brand immersion, and now, even food. Because who doesn’t want to experience an Italian restaurant inside the famous Dior’s 30 Avenue Montaigne in Paris while shopping for Haute Couture pieces?
They make it simple for personal shoppers, travelers, and fans! Because now it’s even more important to create these memories inside of a store or a restaurant, so they can become sure the people return later on and keep buying their high-end products, and experiences. The one that goes beyond perfume customization, make-up production, and even museums like Dior’s Galerie, located in the same building which now belongs to LVMH’s precious crown jewel.
And even if this is not enough, now you are even able to dress up your home.
Indeed. These experiences, hotels, and lifestyle insights are not enough. Because if in the early 00’s we were able to get Hermès most-wanted blanket in the market, now almost every brand own a Home Line, where they can be present in your daily life through products such as china, glasses, furniture, bed accessories, towels, umbrellas, and even the most unimaginable product, is available, branded, and of course, represents the house’s codes and values.
Connecting all the dots, it’s clear that this relationship is growing non-stop and it’s becoming rentable, successful and almost a must-have for high fashion brands. Even more with LVMH announcing the building of a luxurious hotel at Champs Elysees in Paris, the most important and biggest luxury street in the world, I must say.
So, if there is a good relationship in the Luxury World right now, this must be the one.
By
THE J-NESS