Hoity Toity Marketing

June 1, 2009

For years, companies like Target have used pop-up stores to attract attention to the store’s new products and/or special designers in high-profile locations or areas where they haven’t yet opened stores.

But now, high-end brands like Chanel and Hermes are getting into the game. But unlike Target, which uses the stores to show off new products or limited-time only design locations, these luxury brands are using the stores to attract customers like me and you (that’s assuming most Idea Peepshow readers don’t sport $1,400 handbags) with truly eye-popping discounts.

The reason? They need to keep their brand image elite and can’t afford to make their current customers with $$ who enter the 5th Avenue stores feel anything less than first-class —┬ábut with the economic downturn, they still need to make a buck. By opening these pop-up locations, they can attract people who may spend a tiny bit more than normal if they can snatch up a real Louis Vuitton bag.

I think its a great branding move, especially if it lets the aspirationals dip their toe into a little Chanel eau de toilette. Your thoughts? Will stores like this eventually hurt their luxury brand equity?