Luxury Brands Making Money on the High Street

The transcript discusses the paradox of luxury brands thriving during economic downturns, highlighting Mulberry's significant profit increase and successful expansion strategy. It explores consumer behavior, noting that disposable income hasn't decreased as much as expected due to lower mortgage payments. The role of celebrities in marketing luxury fashion is emphasized, with examples like Alexa Chung and Emma Watson boosting brand appeal. The aspirational lifestyle promoted by celebrities influences consumer spending, as people aspire to emulate their lifestyles.

What was the economic situation for luxury brands like Mulberry in 2011?

• They had to close several stores.

• Their sales remained stagnant.

• They experienced bumper profits.

• They faced significant losses.

What was one of Mulberry's key strategies for increasing sales?

• Eliminating celebrity endorsements.

• Expanding aggressively overseas.

• Focusing solely on the UK market.

• Reducing product prices.

How did Mulberry appeal to younger buyers?

• By collaborating with sports brands.

• By naming a bag after Alexa Chung.

• By launching a new tech gadget.

• By offering discounts to students.

Which celebrity became the face of Alfred Dunhill?

• David Beckham

• Jude Law

• Alexa Chung

• Emma Watson

What is a common consumer behavior influenced by celebrities?

• Avoiding luxury brands.

• Saving money for future needs.

• Aspiring to live a celebrity lifestyle.

• Investing in real estate.