Marc Jacobs now has 3 stores on Bleecker street and makes $20 million annually on items priced under $25. And yet with this, and Marc by Marc Jacobs, Mr. MJ magically has not diluted his brand.
How has MJ retained value while selling $10 wallets? Well in a world of brands cloying to be your friend, Marc Jacobs actually succeeded. And you value things made by your friends.
We’ll start with the fact that his women’s clothes look great in reality, not just on the catwalkers. But this is just Step 1. MJ connects not only with the body of his consumer, he connects with her mind – the brand’s face is often Sofia Coppola and Kim Gordon – ladies known best for their artistic prowess. Since MJ is proud to have them on his team, and dresses them well, this makes his brand a destination for the creative/thinking woman, a mental space not previously courted in lux fashion.
And these open arms even trickle down to the salespeople, who buck the fashion stereotype of insulting potential customers with snide looks. On the flipside, both MJ & his people are happy that YOU walked in the door – and think you’ll look ace in their clothes. (word on the street is that he flies every employee to NYC for his annual Halloween bash, not a bad way to court fealty)
And so by valuing his customers, the customers returns the favor, ascribing value to even the ‘cheap’ items. A $10 wallet is perceived not as a scrap tossed out for the masses, but something fun made by our buddy Marc Jacobs. And that wallet retains a slice of lux mindshare. Heartshare too…
Jacobs’ brand may soon go even one step further, as he and business partner Robert Duffy have an eye toward creating a 3rd line that would compete with Gap/H&M. The LVMH brass aren’t too keen on it – they are, after all, a Death Star Lux brand – so we’ll see what happens. Will that dilute the brand? TBD. Vera Wang did Kohl’s and Proenza Schouler did Target successfully, MJ might just be the guy who can take it to the next level, Magnolia cupcake in hand.
