The document discusses a roundtable on "me-too" brands in the luxury world. It has a 3 topic agenda: 1) "me-too" brands in luxury, 2) the evolution of luxury consumption, and 3) countering strategies. For the first topic, it explores whether me-too brands are legitimate in luxury and how trends are created, noting that invention is subjective. For the second topic, it discusses how demand evolution may benefit me-too and masstige brands. For the third topic, it provides best practice strategies for leaders and followers, such as differentiating value and innovating, and also countering strategies like protecting critical manufacturing.

1. Round-table:
«ME-TOO» BRANDS in LUXURY
Colloque international « Luxe et Contrefaçon » de
l’Université Wesford Genève et l’Institut de
Recherche sur la Marque
Colloque international « Luxe et Contrefaçon »
09/10.06.2011 de l’Université Wesford Genève et l’Institut de Recherche sur la Marque 1

2. Agenda: 3 topics
1. “Me-Too brands” in the luxury world
2. Evolution of the luxury consumption
3. Countering strategies
Colloque international « Luxe et Contrefaçon »
09/10.06.2011 de l’Université Wesford Genève et l’Institut de Recherche sur la Marque 2

3. Agenda: 3 topics
1. “Me-Too brands” in the luxury world
2. Evolution of the luxury consumption
3. Countering strategies
Colloque international « Luxe et Contrefaçon »
09/10.06.2011 de l’Université Wesford Genève et l’Institut de Recherche sur la Marque 3

4. Are Me-Toos legitimate in the luxury realm?
B. Constans
Colloque international « Luxe et Contrefaçon »
09/10.06.2011 de l’Université Wesford Genève et l’Institut de Recherche sur la Marque 4

7. Counterfeits, Imitators & Adaptors: all have been
existing in the luxury market for quite some time. What
has changed recently?
• Technology brought faster reactivity and speed-to-market for followers
• Luxury brands have off-shored part of their know-how in emerging countries
to gain margin, favoring «free-riders» and «counterfeiters»
• Luxury brands have traded up so drastically that a empty space has been left
• Most brands did not address it with their own «masstige» products
Colloque international « Luxe et Contrefaçon »
09/10.06.2011 de l’Université Wesford Genève et l’Institut de Recherche sur la Marque 7

8. Watches: who really invented the round diving watch?
Omega, 1957 Blancpain/Lip, 1953 Rolex, 1954
Source: Wikipedia
Colloque international « Luxe et Contrefaçon »
09/10.06.2011 de l’Université Wesford Genève et l’Institut de Recherche sur la Marque 8

9. How trends and iconic shapes are created: can a brand
really claim the invention of a style?
• All design work is based on inspiration: we are all
followers
• Invention is subjective: It comes down to being the most
efficient marketeer who in the consumer’s mind «owns» the
design detail or the concept.
• A design becomes iconic by wide acceptance and
recognition by the public, including help from other brands!
– Counterfeiters can help put a brand on the map («flattery»)
– Me-Toos can help create a market segment or a new category
(BBerries vs. iPhone)
Colloque international « Luxe et Contrefaçon »
09/10.06.2011 de l’Université Wesford Genève et l’Institut de Recherche sur la Marque 9

10. Agenda: 3 topics
1. “Me-Too brands” in the luxury world
2. Evolution of the luxury consumption
3. Countering strategies
Colloque international « Luxe et Contrefaçon »
09/10.06.2011 de l’Université Wesford Genève et l’Institut de Recherche sur la Marque 10

11. Will the evolution of the demand benefit to
me-toos and masstige??
B. Constans
Colloque international « Luxe et Contrefaçon »
09/10.06.2011 de l’Université Wesford Genève et l’Institut de Recherche sur la Marque 11

12. Will the evolution of the demand benefit to me-toos
and masstige?
In mature markets:
- Consumers less confident about the future
- Price is less and less a characteristic of luxury
- More about indulging in one’s pleasure than other motivations
- Bad experience with low quality in favor of luxury («I will never buy Zara anymore…»)
- Consumers trading up and down: polarisation/confusion between masstige and entry
luxury will continue and death will occur in the middle
In emerging markets:
STAGE 1 STAGE 2 STAGE 3 STAGE 4 STAGE 5
SUBJUGATION START OF MONEY SHOW OFF FIT IN WAY OF LIFE
JAPAN
HK/SING
TAIWAN/KOREA
CHINA
INDIA
THE LUXURY SPREAD MODEL (Chadha&Husband, 2006)
Colloque international « Luxe et Contrefaçon »
09/10.06.2011 de l’Université Wesford Genève et l’Institut de Recherche sur la Marque 12

13. A middle zone between luxury and masstige will probably keep
on growing: an opportunity for masstige and/or luxury?
Price
LUXURY GOODS
ENTRY / ACCESSIBLE LUXURY CONFUSION ZONE
MASS CONSUMER GOODS
Time
Bastien, Kapferer (2011)
Colloque international « Luxe et Contrefaçon »
09/10.06.2011 de l’Université Wesford Genève et l’Institut de Recherche sur la Marque 13

14. Agenda: 3 topics
1. “Me-Too brands” in the luxury world
2. Evolution of the luxury consumption
3. Countering strategies
Colloque international « Luxe et Contrefaçon »
09/10.06.2011 de l’Université Wesford Genève et l’Institut de Recherche sur la Marque 14

15. Strategy best practises
for a leader / a follower
B. Constans
Colloque international « Luxe et Contrefaçon »
09/10.06.2011 de l’Université Wesford Genève et l’Institut de Recherche sur la Marque 15

16. What we buy in luxury watches : The Watchmaking
Luxury Value Model
INNOVATION TECHNICAL/PERFORMANCE
UTILITY
DETAILS /
«BEAUTIFUL» FINISHING
OSTENTATION
INVESTMENT
INTERIOR
DESIGN /
ARCHITECTURE MANUFACTURE
SERVICE &
STAFF
HISTORY
PREMIUM
/LEGITIMACY
LOCATIONS
Colloque international « Luxe et Contrefaçon »
09/10.06.2011 de l’Université Wesford Genève et l’Institut de Recherche sur la Marque 16

17. Me-Too brands will always exist because they respond
to a perfectly acceptable strategy for delivering value
to the consumer and to the shareholders
NEED FOR INCUMBENTS/LEADERS
TO KEEP DIFFERENTIAL IN VALUE
VALUE TO THE
CONSUMER
OR
WILLINGNESS- WATCHMAKING
TO-PAY (WTP)
LUXURY
CRAFTMANSHIP
DESIGN
Leader / (Product) Low Cost
Incumbent Differentiator
Colloque international « Luxe et Contrefaçon »
09/10.06.2011 de l’Université Wesford Genève et l’Institut de Recherche sur la Marque 17

18. Besides new entrants/competitors, threats will also
keep on coming from the chain itself
• Suppliers gaining power
• Strong distribution/retailing channels wanting to capture
more value without much inspiration will keep on creating
copycats
• Like for automotive, brands from BRICs are a real threat;
they do not master luxury branding right…yet…but will
flood domestic (possibly international) markets with
premium me-toos in various product categories:
- Hotels,
- Consumer electronics, white goods,
- Furniture,
- Beverages,
Colloque international « Luxe et Contrefaçon »
09/10.06.2011 de l’Université Wesford Genève et l’Institut de Recherche sur la Marque 18

19. Countering and preventing strategies: options
EXTEND HORIZ. TRADE/EXTEND UP
DESIGN
INNOVATE
INVEST in BRANDING
LEADER KEEP VALUE DIFF. UP
PRODUCT AS INVESTMENT
«DREAM» CONTENT
DISTRIBUTION / SHOP
EXPERIENCE
TRADE/EXTEND DOWN
BLUE OCEAN
Colloque international « Luxe et Contrefaçon »
09/10.06.2011 de l’Université Wesford Genève et l’Institut de Recherche sur la Marque 19

20. Countering and preventing strategies: a few golden
rules
• It’s a cliché: Do not make counterfeiters’ life easier!
Design your product with exclusive/hard-to-copy
features
Keep critical component manufacturing in-house or
close to you even if it means leaving some value on
the table in the short-term
(example: hair extension dying)
Colloque international « Luxe et Contrefaçon »
09/10.06.2011 de l’Université Wesford Genève et l’Institut de Recherche sur la Marque 20

21. Countering and preventing strategies: : a few golden
rules (2)
• Invest to maintain the differentiation and high
value in all 4 quadrants, especially the ones that are
not accessible to follower brands
• Innovate to keep your LEADER position
• Invest till they drop on your image
• Maintain the «investment» value of the product and the
«dream» behind the brand
• Distribution / Luxury retail: maintain the distribution selective
and an ASTOUNDING experience (service) level
…While being truthful to your brand DNA and fundamentals
Colloque international « Luxe et Contrefaçon »
09/10.06.2011 de l’Université Wesford Genève et l’Institut de Recherche sur la Marque 21

22. Countering and preventing strategies: a few golden
rules (3)
• Create new markets / new categories to earn the high
rewards of the first mover again using a «Blue Ocean»
approach (Apple, Porsche Cayenne, Vorwerk)
• Horiz. diversification: should not be the answer
• Trading up from luxury to ultra-luxury: leaving probably a
lot of money on the table (from the end of the tail,
emerging countries)
• Trading down: HIGH RISK of brand dilution, low success
rate (BMW?, Audi?)
• Change Distribution/Accessibility schemes (Hermès,
Vorwerk)
Colloque international « Luxe et Contrefaçon »
09/10.06.2011 de l’Université Wesford Genève et l’Institut de Recherche sur la Marque 22

23. THANK YOU!
Colloque international « Luxe et Contrefaçon »
09/10.06.2011 de l’Université Wesford Genève et l’Institut de Recherche sur la Marque 23