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How LUXURY BRANDS Make Money 

Fashion Roadman
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In today's video I highlight all the ways luxury fashion brands make money from selling clothes to diffusion lines, perfume, sunglasses, accessories, footwear, licensing and more.
FULL DOCUMENTARY: • The Look - Scenting Money
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#perfumes #fragrances #designerfragrances

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13 июл 2024

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Комментарии : 93   
@4567donny
@4567donny 3 года назад
The licensing thing makes so much sense! Luxottica makes so many designer glasses (probably in the same factory) and people still pay a premium for them. Like Valentino and Prada Sunglasses are both made by Luxottica but so is RayBan yet all three are sold at different price points. Love a good scam lol.
@alexstefan8879
@alexstefan8879 3 года назад
Regarding diffusion lines, I was surprised you didn't mention Comme des Garcons, I mean Rei and her partner are, for me, the masters of diffusion lines.
@FashionRoadman
@FashionRoadman 3 года назад
Comme definitely has a good diffusion model but that model was made by many brands including Armarni before Comme mastered it.
@Doctorandergraun
@Doctorandergraun 3 года назад
I juts love your insight on every subject related to Fashion. Please make a video about SneakerHeads and in general the HYPE world. Regards from Spain :)
@Bal_2002
@Bal_2002 3 года назад
clau!!
@BraveNewWear
@BraveNewWear 3 года назад
I've been saying this for years but it bares repeating also didn't know about that documentary I need to check it out
@FashionRoadman
@FashionRoadman 3 года назад
Definitely bares repeating
@zaheeralghul2509
@zaheeralghul2509 3 года назад
Luxottica is an example of licensing they make glasses for a lot of big brands such as Chanel, Ralph Lauren, and Prada.
@Xselleton
@Xselleton 3 года назад
Can you do more videos like this (commenting on fashion documentaries)? This was very educational and super interesting! Great video!
@FashionRoadman
@FashionRoadman 3 года назад
I have a few others planned
@kmelfrancis4999
@kmelfrancis4999 3 года назад
Facts. Stay dangerous King!
@graememacinnis7990
@graememacinnis7990 3 года назад
Learned a lot of this in one of my fashion marketing courses. Awesome you're providing this knowledge to people for free. Much love
@logantomlin2429
@logantomlin2429 3 года назад
i love these fashion business videos, these are so deeply interesting to me! its so interesting to see the inner workings of luxury
@jhoover3098
@jhoover3098 Год назад
You should totally consider fashion consulting!! With your multi-level knowledge base and good taste, yeah you could do very well!!
@FashionRoadman
@FashionRoadman Год назад
Maybe I should haha
@PrincipalSkinner3190
@PrincipalSkinner3190 3 года назад
IMO Armani failed with its diffusion lines. It worked in the beginning, people still viewed Armani as a luxury brand. But it became so oversaturated almost no one distinguishes between mainline armani and diffusion brands, and all are viewed as cheap.
@FashionRoadman
@FashionRoadman 3 года назад
This is very true especially amongst the luxury / high-end customer. However I do still see the mass consumer base wearing Armani exchange as some sort of flex.
@KjvYaBoii
@KjvYaBoii 3 года назад
@@FashionRoadman must be a European thing. Here in NYC i don’t know or see anyone that seriously wears Armani Exchange that isn’t a European tourist or someone raised in the Eastern Hemisphere in general.
@FashionRoadman
@FashionRoadman 3 года назад
@@KjvYaBoii yeah it must definitely be more of a European thing especially because of where Armani is based
@KjvYaBoii
@KjvYaBoii 3 года назад
@@FashionRoadman 100% i agree
@chigal0926
@chigal0926 3 года назад
In the end, Cardin made a mistake licensing his name to everything. Because now, he has disappeared from the scene. His fashion house has disappeared. I don’t ever see it being a YSL.
@Viviano_Magami
@Viviano_Magami 4 месяца назад
exactly, all product that has his name is gone..
@kriscuthbertson5787
@kriscuthbertson5787 3 года назад
I’m only 5 mins in and you’ve nailed this video! Keep it coming, you’re killing it!
@whoisjasonsiu5821
@whoisjasonsiu5821 3 года назад
That's why all department stores put the cosmetic departments at the very entrance...so you have to walk through them to get to everything else.
@laurakaylalopez7796
@laurakaylalopez7796 3 года назад
loved this video. It's super useful to learn how the machine works behind the scenes.
@FaithlessFlight
@FaithlessFlight 3 года назад
Marketing literature predicted years ago that by 2020 consumers would have to exposed to a brand 15 times before even opening a CONVERSATION with a brand - most marketers now say it's about 15-20 exposures to pique a consumer's interest. Interesting stuff for sure
@stee0831
@stee0831 3 года назад
Love your insight on the fashion industry!
@GhiffariFardhana
@GhiffariFardhana 3 года назад
very informative... loving the content man!!!
@rruxiiv
@rruxiiv 3 года назад
i love this video! so much knowledge
@thedishonstyle1275
@thedishonstyle1275 3 года назад
First of all your imitation of a California girl - hilarious! You've got the accent down, coming from a Canadian LOL Second, I did not know that licensing was how these brands make so much money but in the grand scheme of things, it makes sense. How many $30k dresses can you sell? Not many...
@FashionRoadman
@FashionRoadman 3 года назад
🤣 I tried my best with the accent
@Groypler
@Groypler 3 года назад
Amazing video man, so insightful!
@PhillipDrumz
@PhillipDrumz 3 месяца назад
Great insights! Thanks 🙏🏼
@dirikimiller1026
@dirikimiller1026 Год назад
I'm not only saw but I tape this documentary all the way back in the day this was in 1990 to 93 is when I say seen it under PBS station and I taped the entire documentary the first part and second parts and thank you for this video because I think that a lot of designers were emerging designers really need to understand this this is how they're going to ultimately end up making money especially if they desire to have a luxury brand you know they're going to make money off accessories perfumes colognes cosmetics handbags and much much more when you do couture or high fashion that's money that you're making on the side but your bread-and-butter is going to come from a plethora of accessories and fragrances and skincare I already knew this but there's so many designers out there that don't know this so thank you for this video
@retroazul
@retroazul 3 года назад
50k yes proud of youuu boss, jeez the perfume insight was very interesting they make a lot of cash from that 😱
@askmartinez6409
@askmartinez6409 3 года назад
Great video, interesting to understand the aspect of perfumery.
@quester09
@quester09 3 года назад
Pierre Cardin is the first one mentioned. He had over 600 licenses issued.
@stephwliu
@stephwliu 3 года назад
Having worked in sales for luxury sunglasses, there is a big quality difference between high street and licensed designer sunglasses. Whether it's worth the £390 price difference, is another question (in my opinion not). Just quality wise, there is a sizeable difference between H&M (low-end), Ray Ban (mid-range), Chanel (high-end) and Chrome Hearts (ultra high-end).
@u.s7072
@u.s7072 2 года назад
I never really “got” the CH hype until I saw a pair of their sunglasses on Grailed. $2000 for some shades? These better be incredible. I looked at them and was instantly blown away by the craftsmanship and design. They even had REAL Leopard fur lol. Needless to say I get it now.
@mohamedtraore99
@mohamedtraore99 2 года назад
Ray ban and Chanel both get there shades made by luxottica
@Coastpsych_fi99
@Coastpsych_fi99 2 года назад
thank-you!
@JohnnyDLaw
@JohnnyDLaw Год назад
@@u.s7072 leapord fur on a pair of glasses....for $2000...thats still madness
@tiegangarnett
@tiegangarnett 3 года назад
Took away so much value from this short video, thank you for enlightening us on your key takeaways from the film and your overall insight to licensing etc.
@Jeffreynelius
@Jeffreynelius 3 года назад
Awesome video man
@janeadita7489
@janeadita7489 Год назад
Good content!!
@sulemanomar
@sulemanomar 3 года назад
really good video i rlly enjoyed it im defo gonna watch the documentary
@p.s5060
@p.s5060 3 года назад
Congratulations on 50K!!!! Also, so so excited for the magazine!!
@FashionRoadman
@FashionRoadman 3 года назад
Thanks ❤️!
@sontypausminternet7824
@sontypausminternet7824 3 года назад
congrats on 50k!
@FashionRoadman
@FashionRoadman 3 года назад
Thanks ❤️🙏🏿
@athzii
@athzii 3 года назад
love you!
@TheGrifhinx
@TheGrifhinx 3 года назад
"Ohmygod I wanna like go to the Louis Vuitton store and spend like ten thousand dollars..."
@SwankMusicVEVO
@SwankMusicVEVO 3 года назад
rip pierre cardin 😔
@SmithEricL
@SmithEricL 10 месяцев назад
Thanks! I’m an aspiring jewelry designer and found this video you shared very insightful. Do you have any thoughts on how to draft a step by step plan or to creat a luxury fashion/jewelry brand with the intent to later sell perfumes…. And maybe licensing on the future.😊
@FashionRoadman
@FashionRoadman 10 месяцев назад
This is such a layered question that would need hours of talking for you to get your answer. I'd say your best bet is using brands as case studies. How they progressed their product rollouts - what was the timeline? - how long did it take to launch certain products - what's their demographic and how does that affect their product offering and marketing etc. It's very complicated
@ioloedwards4823
@ioloedwards4823 3 года назад
Waiting for the comments asking what “je ne sais quoi” is
@wilhelmhakansson3105
@wilhelmhakansson3105 3 года назад
With the exaggerated je ne sais quoi of a black teen
@quester09
@quester09 3 года назад
¿que?
@Comedyvibes
@Comedyvibes 3 года назад
May God wonderfully bless you and your family
@LP-zz7uz
@LP-zz7uz 3 года назад
I once heard that every or the majority of luxury fashion houses all make their perfumes at L’Oreal, but the only house that actually makes their fragrance in house is Hermes.(not 100% sure this is correct). I guess if you really want to not fall prey to these marketing crap the answer is independent fragrance makers or niche fashion houses (example Sruli Recht perfumes are exceptional but you pay i think 180$ for a bottle).
@FashionRoadman
@FashionRoadman 3 года назад
Yup the best way is to buy perfume from specialist perfumers. That’s if you actually care a lot about fragrances which I personally don’t but yes they give you more value for money for sure
@burgersuperking
@burgersuperking 10 месяцев назад
Also Dior (and LVMH) and Chanel. Current Wertheimer's Chanel grew out of a perfume brand, and technically has no connection with Coco's actual clothing brand.
@carlosrangel1631
@carlosrangel1631 3 года назад
What perfume brands would you recommend or u think are the best regardless of price. The ones which use real high quality ingredients??
@johnevans6250
@johnevans6250 3 года назад
so how much does it cost to make a bottle for a luxury brand
@blanctonia
@blanctonia 3 года назад
All my suspicions confirmed
@gatesboy7645
@gatesboy7645 3 года назад
Honestly I don't know why people get so mad At " It's all marketing" As a Marketer and owner of a Fashion Brand. Design is Brutally overrated. Marketing is the real art tbh. Is the real magic of the business and love of the customers for the brand. Design is Just there to justify things. Kanye literally just drawn a black hole on his last merch. And It's still looked at "OMG KANYE WEST INCREDIBLE DESIGNER VISIONARY". Marketing is the real game. Design is just logistics. Just a cool thing to have. Most Big Brands Just sells logos. Generic logos printed in a diferent way and color every season. Bro like FEAR OF GOD? It's just freaking marketing man. Most of the pieces by Jerry Lorenzo is like "ESSENTIALS" - Fear of god. on Basic clothing
@justusgreen8498
@justusgreen8498 3 года назад
Yes but it’s also human nature and association by cause. It helps boost it. But I love marketing a lot. It is a true art man.
@MrJfergs
@MrJfergs 3 года назад
@@justusgreen8498 I guess if you think bullshitting people is an art then sure.
@justusgreen8498
@justusgreen8498 3 года назад
@@MrJfergs lol idc were on earth once I don’t have time to listen to your comment
@quester09
@quester09 3 года назад
Luxottica is the name of the sunglass manufacturer
@zackj99
@zackj99 14 дней назад
Would you say licensing is the same as outsourcing just under stricter terms (deals, %'s, revenue shares)? I still can't wrap my head around the idea of licensing (within the luxury market).
@burgersuperking
@burgersuperking 10 месяцев назад
I think YSL got in trouble with licensing and because YSL Beauty was sold to L'Oreal, they lost chance to have Slimane's SLP perfume line, which could have reached astronomical heights, like Dior Homme, and current Vaccarello's YSL deserve proper perfume, instead of this crap like YSL Libre.
@sy20777
@sy20777 3 года назад
You know jo malone has this perfume calls “english pear” and miniso sells the copy cat calls it “british pear” but a lot cheaper. They smells exactly the same. The funny thing is miniso’s perfume last much longer than jo malone’s perfume 🤣🤣🤣
@elitsagospodinova7241
@elitsagospodinova7241 3 года назад
My Jo Malone English Pear lasts really long though, and much longer on my clothes. It is also quite strong and I am cautios while spraying it on myself. Since it is more of an autumn scent, I tend to spray it once on my sweater and it would still smell when I put it on once again like a week or 10 days later. My mother hugged me once and told me she thought I had just sprayed myself. I haven't tried the Miniso one but something makes me doubt your comment. Jo Malone is really good and there is nothing wrong with that.
@sy20777
@sy20777 3 года назад
@@elitsagospodinova7241 i have both of the jo malone and the miniso, i got this info from my friend, she likes jo malone a lot but then she bought the miniso one, shes a smoker addict, so she need to use a lot of perfume to dissuade the ciggs smells, im not a smoker, but she told me the miniso lasts longer on her (i thought maybe she said that because obviously miniso price tag is a lot cheaper, maybe that influence her review) but then i tried it, its the same bruh, i know its weird, i also dont believe it until i try it myself, like how the hell miniso could be better, hell no they didnt... but i guess i thought it might be because the miniso one is label/concocted as “eu de toilette” and jo malone is label/concocted as “cologne”, 🤷🏼‍♀️🤷🏼‍♀️🤷🏼‍♀️ maybe im confuse too, i mean eau de toilette last longer than cologne. I have other perfume (margiela beach walk is my fave), but the miniso is deff my go to emergency perfume. Wait i just realized, you dont wash your sweater after a day?
@Jackson-nr2mw
@Jackson-nr2mw 3 года назад
maybe it's just me but I feel like fashion brands are moving more towards handbags instead of perfume to make money recently. maybe it's just social media but I feel like I see more people buy handbags than perfumes
@TheVirtualStealth
@TheVirtualStealth 3 года назад
You cant really flex a fragrance on social. Bags are easy for that.
@FashionRoadman
@FashionRoadman 3 года назад
Yeah was just about to say. You’re definitely going to see more people wearing handbags because you can’t visibly see the perfume someone is wearing unless you know the smell of a specific perfume. Luxury brands definitely sell more perfume as it’s significantly cheaper to buy a fragrance than it is to buy a handbag from a luxury brand.
@TheVirtualStealth
@TheVirtualStealth 3 года назад
Trust, I have smelled Dior Sauvage too much in public for it to be a coincidence lol.
@nimigeorge8089
@nimigeorge8089 3 года назад
Hay sponsorrrrrr
@FashionRoadman
@FashionRoadman 3 года назад
FULL DOCUMENTARY: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-WHNIJ84HGU4.html
@janewonder6895
@janewonder6895 3 года назад
Read Heine Klaus and Kapferer both teach luxury branding
@vadimbrilyantov4881
@vadimbrilyantov4881 3 года назад
But wait! What about lenses? For instance Ermenegildo Zegna partners with Barberini lenses company for sunglasses, and these lenses are quite expensive by themselves, and the quality is really good. I don’t believe H&M with their awful lenses in which I couldn’t see anything inside a room outsource to the same company. Or Prada for instance, and many other brands - they outsource to same company for lenses which are quite good (not as good as Barberini from my experience but still). I can’t believe H&M use same lenses. With the body of sunglasses - yes, maybe. Why not. But as for lenses I cannot imagine it’s true
@FashionRoadman
@FashionRoadman 3 года назад
Maybe Zegna is an exception to the rule but brands like Gucci for example have sunglasses that are horrifically bad quality.
@shazam1522
@shazam1522 3 года назад
Luxxotica is thr name
@chigal0926
@chigal0926 3 года назад
I hate to admit it but I bought a pair of Pierre Cardin pants, it was at an outlet mall close to the university I was attending at the time. The quality was terrible.
@blackkaissan9911
@blackkaissan9911 3 года назад
pierre Cardin is one of the brand that sold its name the most and kinda made his image lower because of that. thats why you see a Loy of basic Cardin clothes in thrift stores for exemple more than other luxury brands
@FashionRoadman
@FashionRoadman 3 года назад
I think in the video I mentioned luxury brands have to master the balance between diffusion and maximising profits and making sure it’s exclusive enough so the name isn’t cheapened. Pierre Cardin is not a good example of this. Thought too short term in the 90s and fizzled out of relevance very quickly.
@TheSwagcorner
@TheSwagcorner 3 года назад
Super interesting video and all, love it. My thing, with the perfume segment, if we wiped all the fashion brands off the earth, who’s perfume would we buy? Besides Axe I can’t name a single non fashion perfume company and I don’t think I’m alone in that. I def think many brands license the life out of their brands, but the fragrance sector is one I think is 100% fine, when you invest in a high end fragrance that actually smells unique I think it actually stands out compared to lesser ones that just smell generic. Could just me be but 🤷🏽‍♂️
@alvinanis3006
@alvinanis3006 3 года назад
People tend to have a misconception about luxury brands and the stereotype that only those valley rich girls buy their products. Most luxury brands have their own list of clients that they cater to, these clients are important due to the fact thay they tend to be the most loyal and would spend a lot of money for early access on collections.
@FashionRoadman
@FashionRoadman 3 года назад
This is for the ultra expensive and exclusive stuff for sure but in a more general sense it still doesn’t bring in the most money. A few exclusive clients collectively spending a few million a year doesn’t come close to accounting for the total turnovers of the brands in the 100s of millions of euros.
@Comedyvibes
@Comedyvibes 3 года назад
Jesus loves you and he wants you to accept him as your lord and saviour
@audrablue515
@audrablue515 3 года назад
Chanel No 5 smells AWFUL.
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