Most Predictable Luxury Brand Expulsion Reaction
In the last two years, numerous high-profile luxury brands have been rocked by scandals and controversies, from Dior’s infamous yellow fragrance to Burberry’s woes and Armani’s struggles in recent years. It’s safe to say that the industry is in a state of flux, and brands that were once considered untouchable are now at the mercy of public opinion and scrutiny.
In light of this, let’s take another quick trip back in time, to a brand that has bucked the trend, maintained a stable reputation, and soared despite all odds. We’ll call this brand ML. Can you guess what it is?
The most surprising part of this brand’s incredible journey is that it’s not even a particularly well-known luxury brand. Sure, you might have heard of Marc Jacobs’ exquisite fashion houses or seen people wearing Gucci or Louis Vuitton clothing items, but you might not be familiar with the designer’s eponymous leather goods or handbags company. Even more surprising is that Marc Jacobs is one of the few luxury brands that actually earns a significant amount of its revenue from outside of the luxury industry. In 2019, the company reported total group sales of $8.8 billion and an after-tax income of $2.7 billion. That’s a healthy 86% of its revenue comes from non-luxury products and a fairly high 34% from outside the U.S. As you might imagine, this brand’s biggest competitors are some of the well-known luxury brands you might have heard of.
Despite its lack of popularity, Marc Jacobs has managed to stay ahead of the fashion curve and inspire fashionistas and luxury enthusiasts around the world. The brand’s success is largely thanks to its unwavering commitment to quality and innovation. This brand takes pride in crafting luxurious products that are built to last and designed to fit comfortably within any luxury wardrobe. To ensure consistent high standards and quality, Marc Jacobs hires a small group of master leather craftsmen and gemologists who set the standard for the industry. These experts work tirelessly to ensure each product, from a handbag to a pair of shoes, lives up to the brand’s famously high standards.
Given its incredible success and innovation, it’s only natural that Marc Jacobs would be the first brand to explore the future of luxury. In 2019, the fashion house launched a new division aptly named NEXT to explore and experiment with the boundaries of luxury and convention. The brand’s goal is to continue to grow and evolve while staying true to its founding principles. This is primarily achieved through in-house innovation and using the most advanced technology to develop new products.
Let’s take a closer look at what’s new from Marc Jacobs.
The Marc Jacobs Beauty Lab
As we’ve established, Marc Jacobs is a luxury brand that’s built on quality and durability. Its latest project explores how it can apply those values to the beauty industry, and quite frankly, it’s a dreamy one. The brand’s new beauty lab, located in NYC, is tasked with developing innovative beauty products that can outlast the standard makeup and skincare items. Can you guess what these products might be?
The answer might be a little bit of a mind-bender. Take a look:
The beauty lab will be looking to tackle some pretty ambitious projects, including creating a waterproof makeup that can withstand swimming in the ocean. Naturally, it also plans on using biochemically-driven technologies to develop skincare products that target specific problems, such as aging or dark spots. It’s apparent that Marc Jacobs is looking to take the industry by storm, raising the bar for everyone.
The Evolution Of Luxury
Marc Jacobs isn’t the only luxury brand that’s exploring new horizons. Burberry, the company that owns the famous trench coat, has seen its share price fall by 42% since April 2021. This reflects a deterioration in the brand’s fortunes largely due to the increasing spread of the coronavirus. (It’s now valued at just $2.3 billion). Similarly, Armani, the Italian fashion house, has also seen its share price fall by 22% in the last year. Interestingly, both Burberry and Armani have a history of pivoting and adapting, maintaining a close relationship with their customers while forging new paths for themselves. (It’s important to note that both these brands remain highly profitable with revenues in excess of $11 billion and $13.5 billion, respectively).
One of the key reasons for the recent slump in the price of Armani and Burberry stock has been the growing skepticism towards large fashion houses altogether. As consumers have lost faith in the traditional model of mass-produced clothing and footwear designed to be worn once and then thrown away, these brands have found it harder to gain trust. This comes as no surprise considering the vast amount of wealth and influence that many of these brands wield. With more and more people moving towards veganism, eco-friendly, and sustainable living, consumers are seeking out brands that they feel good about supporting. This has driven a rise in popularity for ethical and sustainable fashion houses like Marc Jacobs, who employ nearly 300,000 people and generate an impressive 26.5% of its revenue from outside the U.S.
In conclusion, the luxury industry has undoubtedly changed, and it will continue to evolve as the world around it changes.