Chapter 905 Luxury Brands

Anna Wintour said: "Prada is my favourite fashion brand, and just as Mithea is a good friend of mine. ”

"Mithea?"

"Miucia Prada, she is the second generation of Prada's head. ”

"Oh!"

It dawned on Donn.

Miucia Prada is not only the current head of the Prada Group, but also the soul designer of Prada. In addition to the movie "The Queen Wears Prada", the costume design in "The Great Gatsby" starring Leonardo DiCaprio was also made by her, and won the Oscar for Best Costume Design in one fell swoop.

I heard Anna Wintour say: "Miu Miu and I have known each other for thirty years, and we ...... Prada is already a dying family brand, and it is she who has innovated and built Prada into a world-class luxury brand. ”

She seemed to be a little emotional, revealing a look of reminiscence, shaking her head and sighing.

"Prada is a world-class brand, there's no doubt about it. But I heard my girlfriend seem to mention that Prada has not had a good time lately. ”

That's the excuse.

Don didn't know anything about fashion, and he wasn't interested in it.

His perception of Prada is still because of the film project "The Queen Wears Prada". In this movie, all the costumes must be designed and produced by Prada, given to the crew for free, and a large amount of sponsorship will be paid.

However, on the issue of sponsorship fees, there is no small disagreement.

Universal Pictures means that the production budget of "The Queen Wears Prada" is between 30 million and 40 million US dollars, and the Prada Group ...... Sponsor half of the production budget, $20 million!

Subsequent box office incentive bonuses are calculated separately.

Prada, of course, disagreed, saying that he could only pay a maximum of $5 million in sponsorship fees.

This is one of the reasons why the project has been delayed in getting off the ground.

Both sides are still consuming.

It was also because of this incident that Don knew that Prada's current business situation was very bad, and it was experiencing a serious debt crisis and cash flow difficulties.

If you change to LV, or Coach and Gucci, which are thriving brands, it is only 20 million US dollars, and you will pay directly!

It's a brand name that goes straight into the name of the movie!

It's a Hollywood movie!

The influence is too great!

Just look at the path to fame of the famous luxury brand "Tiffany's".

What is Tiffany's success?

It's because back then, Audrey Hepburn starred in a movie called "Breakfast at Tiffany's"!

In addition, the road to fame of luxury brands such as Dior, Van Cert, Givenchy, Chanel, and Hermes is also indispensable to the promotion of movies.

This kind of opportunity that can be met but not sought must not be missed.

It's a pity that Prada has no money now.

Anna Wintour said: "Right now, the world's best-selling luxury goods in the fashion and leather goods category is indisputably LV. However, 30 years ago, LV was just a small workshop with a little-known name, and it could not be compared with brands like Prada and Hermès. Later, Louis Vuitton Group changed its operation plan and began the road of mergers and acquisitions, successively won well-known brands such as Hennessy, Givenchy, Dior, Guerlain, Sephora, etc., and began to develop towards a large fashion group. ”

Donn understood, "So...... Prada is also going to follow the development route of such a large group?"

Anna Wintour said bitterly: "Miao Miao had this kind of plan. At the end of the 90s, Prada spent a lot of money and successively won prestigious international brands such as Fendi, Helmut Lang, and Gil Sanda. As a result, it did not reap the expected success, the brand integration failed, not only did not get a huge increase in turnover, but also because of the large acquisition, it was saddled with huge debts. ”

In Europe and the United States in the 90s, there was a frenzy of mergers and acquisitions, not only in the entertainment industry, but also in the fashion industry.

In addition to LVMH, the Swiss Richemont Group has also won many brands such as Van Cleef & Arpels, Jaeger-LeCoultre, A. Lange & Söhne, and IWC, and has suddenly become an enterprise with dozens of luxury brands, shining brightly in the luxury kingdom.

In addition, France's PPR Group also acquired a 42% stake in Gucci Group, entering the luxury industry in one fell swoop, which has also achieved great success.

There are even more failures.

After the advent of the new century, the wave of mergers and acquisitions in the 90s faded, the bubble in various industries began to burst gradually, and many luxury brands began to have various problems, and they faced the crisis of bankruptcy and bankruptcy.

For example, Wedgwood, such as Escada, such as Yohji Yamamoto, such as Argerstine, such as Hermes, and like Prada!

Although Don didn't know much about the fashion field, he had a lot of insight into the laws of business, and nodded: "Family-run luxury brand...... The artistry is higher, but the risk resistance is weak. The market is changing too fast, and the viability of a single brand is not high, even if it is Hermes and Prada, there are risks. If you want to survive, you have to be a group like LVMH and Richemont, and spread the risk across multiple brands. From this point of view, Ms. Prada's M&A strategy is not wrong. ”

Anna Wintour sighed, "That being said, business and art ...... It's not the same thing at all. You know by that point, Done, you're a great film artist, but is your philosophy of managing New Universal the way artists do it?"

Don smiled slightly.

Manage the company with the mindset of an artist, and that's the end of it!

For example, the Dream Factory, managed by Spielberg, is definitely getting more and more mournful.

It can be said that this is an old problem of many European aristocrats.

Just like Murdoch asked him for help and asked New Globe to take a stake in Sky, those old-school European aristocrats are very fucked up when it comes to business management.

Europe has a lot more art than the United States, especially those family businesses, which have a heritage of art. This kind of artistic infection makes them often want to make money and gain dignity when they make money.

How can there be such a good thing?

The normal businessman's thinking is that if you can make money, you are decent!

For example, the thriving rising star LV, and Hermes and Prada, whose sales are getting lower and lower.

Where is the gap?

LV is part of the LVMH group, and the head of the company is Bernard Arnault, a real estate tycoon who knows nothing about fashion, and he is a businessman through and through!

Family businesses like Hermès, Prada, and Bulgari are headed by designers and artists.

It's no wonder that you can manage the company well.

For example, what is the purpose of customers buying luxury brands? Because the quality of luxury goods is better, the style is newer, and the temperament is more temperamental? It is true that some high-end users are like this.

However, a larger part of the population is because luxury goods can show their personal identity!

It's for showing off!

Bernard Arnault keenly grasped the psychology of customers, and as a complete layman, forcibly adjusted the design concept of LV products - to make the logo bigger!

Take women's bags, for example.

Why do women prefer to buy LV bags instead of Prada and Hermes?

Prada and Hermes are too low-key, and the brand logos are designed to be very small, especially Hermès, and there are several bags with brands that are even lined inside, and they can't be seen on the outside at all.

Isn't that?

If others can't see the brand logo, who will buy it?

On the other hand, how does LV do it?

LV's bag, the outside is very flamboyant, and it is loaded with two golden letters "L" and "V"!

It seems to be visible from two miles away.

That's so cool.

Take it out and have a thief!

Customers naturally have a soft spot for LV bags.

The designers of Hermes and Prada often criticize LV's bag design, which is too tyrannical, too stupid, too ugly, too ugly, and has no artistic atmosphere.

So what?

LV is on fire!

The combined sales of Hermes and Prada are not as good as LV!

Art?

That's!

Most customers don't understand the artistry of luxury goods at all, and only care about the added value that luxury goods bring to themselves.

It's the same with movies.

At this film festival, Tang En and Lao Mouzi met a few times, and talked about the movie "Ambush on All Sides" many times, this film has been greatly controversial in China, and it has been sprayed into a dog, with a simple story and full of plot loopholes, which can be called a big bad movie.

But Donn knew that the film had exploded in the American critics' reputation, second only to "Hero". The film's use of overall scene scheduling almost replicates "Hero", which is amazing.

This technique of maximum difficulty was almost lost after Francis Coppola. A Chinese director can use it freely, isn't that great enough?

As for the shortcomings of the plot, they are almost negligible, and the flaws are not hidden. In terms of art and film audio-visual, Lao Mouzi's film is the only one in the world!

From this point of view, "Ambush on All Sides" was selected as one of the top ten best films in the world in 2004 by Time Magazine, and it is well deserved.

However, the audience is different.

When ordinary audiences watch movies, what they see is not the language of the film, not the color rendering, not the scene scheduling, not the artistic content, but the smooth attraction of the story.

If the plot is good, it is a good movie!

If the plot is not good, it is a bad movie!

This is the biggest difference between business and art.

Differentiation must be made between the different targets that are being targeted.

Tang En had a deep understanding and said with a smile: "With Prada's heritage and popularity, this is just a little trouble, right?"

Anna Wintour shook her head and said: "Listing and financing is the best way to solve the debt crisis. However, Prada's listing application failed to pass, and the debt ratio was too high. ”

Well, the debt ratio of the enterprise is too high, and it is not allowed to go public.

Otherwise, there is a suspicion of harming shareholders and cutting leeks.

Don nodded thoughtfully, "So, Ms. Prada entrusted you to find me?"

"No, she didn't say that. Anna Wintour shook her head, "She's just complained about the trouble, but she didn't think about selling the family business." I'm just going to be a middleman and see what you mean. ”

"If I agree, you'll be able to convince her?" Don smirked.

Anna Wintour smiled even brighter, "The potential and strength of the new universe, I don't think anyone will be able to refuse!"

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