Discounting and traditional branding can dent brand equity, whereas emotional storytelling increases the scope for achieving higher profit margins. Image credit: Louis Vuitton
How luxury brands can avoid the discounting growth trap
Posted Bya Luxury Daily columnistOn In Featured,Industry sectors,Marketing | No 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","iv":"3df8f773ba9cbf703094142aed7a5f99","s":"b2936fa2189703f6"}