How This Guy Made Christian Dior a Household Name

In today’s email:

• If your company has this, costumers will pay 10X the price for the same product…

• Napoleon wasn’t born French?!?

• Word of the week + a quote to make you ponder

MODERN TITAN

If your company has this, costumers will pay 10X the price for the same product…

A BRAND, not just any brand though but rather a brand of luxury. And trust me when I say you do not need a huge investment to do this.

In 1984, Bernard Arnault (pictured above) saw an opportunity in the financially struggling group “Boussac Saint-Frères”, which owned the brand Christian Dior. At the time Dior was in extreme debt to the point where selling it became the clear option for Boussac Saint-Frères to avoid bankruptcy.

Bernard Arnault would go on to take over the company by raising the money needed to get the Dior company out of debt (at the time $80 million!!) by partnering with french investor Antoine Bernheim of the investment firm “Lazard Frères” who helped find various other investors.

But Dior wouldn’t just become profitable over night by getting rid of it’s debts, no no no. Before any of the glory Arnault first had to take a few VITAL steps to build up the luxuriousness of the brand that would not only catapult the brand’s profitability to the moon but also mark the beginning of what would become one of the wealthiest empires in HISTORY (LVMH).

The following are the main four steps taken that turned Dior from a low-perceived premium brand to a high end luxury one:

1. Price Increases: Arnault enhanced Christian Dior’s exclusivity and prestige simply by raising their prices all around.

2. Product Development: Arnault took up a “nothing but the best” mentality when it came to purchasing material used for Dior’s clothing and accessories. A costumer knew the brand was extremely premium just by feeling the products.

3. Selective Distribution: Arnault also focused on controlling the distribution of Dior products, ensuring that they were available only in select locations. This limited availability helped to enhance the brand’s exclusivity, allowing further for increased pricing.

4. Customer Experience: Enhancing the in-store experience was another KEY component of Arnault’s strategy. Dior boutiques were designed to offer a high end shopping experience, almost the feeling of walking inside of a tiny mansion.

As you finish reading this section, ask yourself the following question: How can you incorporate Arnault’s teachings of perceived luxury into your business and day-to-day life?

CONQUEROR

PHILOSOPHY

Hope you found this useful, see you next Monday 🫡