Introduction
Recently, during Pitti Fragranze, I visited a department store in Florence. My wife was looking for new fragrances and a body moisturizer. Even though we were staying in a great hotel, the creams provided were pretty poor. We visited the Dior corner to try the new extracts from the always impressive private collection and purchased a particularly beautiful one.
The Search for Quality
We also found a body cream from another brand, and it was getting close to being released when we stopped to look at some new body products with a very nice design and texture, from a brand that we had in our assortment until a couple of years ago. The lady who assisted us, seeing my wife tempted to buy it, tried to convince us: "Today there is a 20% discount at the checkout".
The Perception of Value
We looked at the lady with a certain incredulity and asked her: "But also on these?" She, all satisfied, replied: "Yes, yes". I don't know if we are particular, but every time I find myself in front of products with freely accessible discounts, my perception of the value of those products and of the relative brand drops to the minimum. So, we thanked her and left without buying.
Reflections on the Brand
On the way back, I reflected on the origin of the removal of this brand, along with other niche or artistic perfumery brands, which were acquired and managed by a large international group. The main cause of this removal was the inability to manage quality relationships with their network of retailers and the total ignorance of the sales dynamics for certain types of products.
Sales Dynamics
It is clear that retail is seen as a number that must produce numbers, even at the cost of depreciating its products and brands. This way of operating does not suit what should be a refined product, a niche or artistic product.
Comparison with Other Brands
Today, other luxury brands are also owned by large multinationals. However, many of them are avoiding such dynamics and maintaining healthier relationships with their retailers. Even if they still have a lot to learn about how to present and sell their products, they are more understanding.
The Universal Law of Value
In my experience, there is a sort of "universal law" that states that once you start down the path of selling at any cost, the "value decay" curve begins to decline rapidly. As you increase sales at any cost, prices go down and the perceived value of the brand decreases.
Sustainability in the Luxury Market
In other luxury sectors, such as watches, there are examples of products that do not need to be depreciated to sustain sales. In 2024, we expect large multinationals to adopt more modern approaches, using current and not obsolete development models.
Conclusion
If not, well, we will find other brands. The niche must remain in the niche, and the value must be preserved. Quality and craftsmanship should always prevail over aggressive sales strategies.
