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Steel baron Lakshmi Mittal’s daughter-in-law Megha Mittal buying the
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label Escada made front-page news. Mittal was quoted as saying that under her stewardship the brief for the label would be to make it more affordable and accessible. Before the recession took the wind out of the sails of the louis vuitton m40119 business,louis vuitton m40119 “affordable louis vuitton m40119 ” was the buzzword. Many prominent
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goods companies shifted production out of Europe to China to produce quickly,louis vuitton m40119 cheaply,louis vuitton m40119 and in vast quantities to feed the buying frenzy in this segment. But once the recession took hold,louis vuitton m40119 and the numbers of these companies started getting impacted,louis vuitton m40119 there was,louis vuitton m40119 predictably,louis vuitton m40119 a lot of soul-searching about which way the
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business should go.
The answer,louis vuitton m40119 according to many experts in the business,louis vuitton m40119 is real . Affordable eroded the very USP of the business,louis vuitton m40119 which is that its products are made — created,louis vuitton m40119 in a way — and priced such that they aren’t for everyday use. If everyone and your uncle (or rather,louis vuitton m40119 aunty) is carrying that logo bag,louis vuitton m40119 it loses some of its sheen. It also implies that it took less than a nanosecond on a grimy factory floor to make it,louis vuitton m40119 making it far less desirable. It’s then no longer
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,louis vuitton m40119 just another consumer item,louis vuitton m40119 made in just the way so many other consumer goods are made,louis vuitton m40119 in somewhat of a hurry.
Fashion designer Marc Jacobs,louis vuitton m40119 who is at Louis Vuitton,louis vuitton m40119 has been quoted as saying that if anything people want more,louis vuitton m40119 it’s special stuff rather than commonplace goods. For a charity auction,louis vuitton m40119 Jacobs has created a special Louis Vuitton dog carrier,louis vuitton m40119 really an indulgence if ever there was one. But Jacobs and the marketing geniuses at Vuitton know that the really rich and the really cool people will always have money to spend on expensive treats like a Vuitton dog carrier.
Which brings me back to Mittal’s stated policy at Escada. The moment for cheap/affordable
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has passed. The moment is now for something exclusive which hopefully your au pair won’t be able to afford. Turning Escada into an affordable brand is a bit like Tata buying Jaguar and turning it into a Nano-making facility. The way forward for Escada would be to do well,louis vuitton m40119 work on its core strengths and make it more exciting and spend some time and money understanding its new markets and clientele better.
The problem with several Europe-based labels has been that they have not moved fast enough to address and understand new markets that have emerged. Their style and marketing focus is still too Europe-centric,louis vuitton m40119 making them slightly irrelevant in the new markets that they are hoping to conquer.
Mittal should look at setting up offices in the emerging markets and work closely with the teams there if she wants Escada to be profitable again. Within no time she will be able to beat other
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labels,louis vuitton m40119 which flounder in markets like India initially,louis vuitton m40119 for they invest nothing here and instead choose to dictate trends and marketing strategies from Paris or Milan.
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isn’t an easy business — but then,louis vuitton m40119 neither is steel.


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