Longchamp’s Strategy

1. Separate brand?

Yes.

Longchamp’s strategy is focused on moving towards the traditional luxury segment because of its long term sustained growth potential and its matching DNA steeped in high quality artisanship and fine leatherworking, which does not align well with the lower price point, higher volume sales of Le Pliage, which uses resilient and light weight materials. Longchamp was perceived as accessible luxury because of Le Pliage’s lower price points, and therefore the brand was caught in an awkward middle position, more expensive than accessible luxury but less expensive than traditional luxury brands. Longchamp’s differentiation was based on know-how and craftsmanship. Le Pliage contributed to Longchamp’s unique positioning, allowing it to play at lower price points, but also held it back from joining the most exclusive companies. It gets very difficult to increase the price points and change the mentality of our customers, which is weighed down by Le Pliage.

There is less dream and aspiration in Le Pliage compared with other lines. It’s more functional and its success may not be eternal. In stores, it was displayed separately from the leather products, often placed upstairs or toward the back and its low price point generated high levels of foot traffic. Stores were often crowded, and salespeople were torn between spending time with luxury customers, showing them the careful craftsmanship of Longchamp’s leather bags, and helping the hordes of Le Pliage buyers in the checkout queue. doors, to bring the level of service that is expected from a luxury brand because of the very high number of daily transactions.

2. How to manage its Le Pliage product line to ensure that it maintains its mythical status?

• Continue to be innovative for both uniqueness and exclusivity

• Redesign with new colors and design since the product line did not exclude anybody,

• Maintain status in both affordable and luxury market

• Also create products that fall in between

• Maintain its high quality and paradoxical converging of opposites.

• utilitarian values—its simplicity, practicality, sturdiness, and lightness