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Luxury Brands vs High Street Brands
There is always going to be this constant battle between the luxury brands and the normal high street brands, with prices and quality. Now you'd think that the high street brands like Next, New Look or River Island would have the upper hand.
However this isn't actually true because brands like Gucci, Prada and Louis Vuitton actually have a greater revenue stream than normal high street stores, now revenue isn't everything but you can deduce a lot from the numbers. Where Next had a revenue of £3,406 Billion in 2010, LVMH (Owners of Louis Vuitton) had a revenue of €20,32 Billion in 2010, so obviously this kind of defies logic, because you would think that the more stores that you have covering a great area, the more sales you make which generate into revenue you are more likely to gain.
So why does this defy logic? Well Louis Vuitton is a very high class brand which oozes elegance and luxury, that only the wealthy and generally the people who can afford to shop in these stores can purchase such products from their stores. But let's think about what the brand is all about. When you see someone has just bought a Louis Vuitton handbag, you create this image in your head that this person is doing well for themselves. You automatically treat this person differently and they gain more respect from their peers because they own a little product from a luxury store. These brads keep going every year with more products being released, and they do actually get soled, but why? Well you always see a long list of celebrities shopping in luxury brand stores like Louis Vuitton and because people idolize celebrities, these followers will do anything to be just like them, and this means owning the same products as them, dressing like them.
Then we come to the regular high street brands, which offer a lot more choice of products to the public, and what's more is that absolutely everyone can walk in and afford to purchase one of their products, unlike luxury brands. However the problem we face with normal high street brands is that the price of a product often reflects the quality of the product. So if you bought a £300 handbag you know the quality is going to be at it's best, whereas if you bought a £30 handbag you'd think twice about the quality of the bag and whether it is going to last you.
The battle between the luxury brands and high street brands will always be raging, to try and get the most customers through their doors. People will still continue to purchase their products no matter what, as there will always be a demand for them and people will still idolize celebrities and do what they can to be anything like them. Not everyone can afford to shop in luxury stores, but most people can afford to shop in normal high street stores because products are plentiful and cheaper.
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