Each month we invite two experts from the fabulously well-informed B&C community to take a second look at a recent brand and culture story to help us understand what it means, why it’s important, and, crucially – will it work? This month: LVMH goes to Hollywood
This month’s special guests: Dino Myers-Lamptey, founder, The Barber Shop (L) and Beth Bentley, co-founder of brand strategy consultancy Tomorrowism (R).
???? What happened?
Purveyors of all things luxury, LVMH has ventured into the entertainment space by launching a new studio, 22 Montaigne Entertainment. It’s co-headed by Arnault No.2, Antoine, who knows a thing or two about cultural moments as the man behind LVMH’s €150 million sponsorship of the 2024 Olympics in Paris (keep an eye out for Chaumet-designed medals, the Sephora torch relay and athletes kitted out in designer gear). 22 Montaigne will oversee product placement deals and the development and financing of entertainment projects.
???? Why should we care?
Beth: “22 Montaigne feels an obvious next step for LVMH. They have the financial and cultural heft to bring together the best creative minds in fashion and entertainment, an absolute treasure trove of IP to play with and, importantly, first-mover advantage over their rivals. LVMH has always prided itself on thinking progressively and expansively. Remember Bernard Arnault’s rationale for installing Pharrell at Louis Vuitton? “He breaks boundaries”.
Dino: LVMH’s announcement will be fuelled by the changing landscape of media consumption, together with the decline of cookies and the growth of retail media. This means brands must develop direct relationships with their customers. With the brands under the LVMH stable and the intensity of interest in their categories, typically promoted with A-list Hollywood talent, you can see the potential to create outstanding content.
???? Will it work?
Beth: “This strategic evolution feels like a smart, calculated risk. Marvel started making movies to boost flagging toy sales. Mattel has committed $500m to movies about its products (starting with Barbie). And this news comes only six months after LVMH inked a major partnership with Fortnite-producer Epic Games. There’s clearly a decree to monetise cultural value beyond product sales. It’s a shrewd move when LVMH’s numbers show sales from ‘aspirational’ mass-market shoppers are flagging in this economy.”
Dino: The value of this studio being in-house is with the speed of decision-making, and the ability to connect the brands and different business divisions much more closely. Yes teething pains should be expected, and you would hope as much attention is being paid to the distribution strategies, as is with the quality of production and storylines, afterall there are libraries full of great brand content that simply isn’t seen.”
???? Where do we go from here?
Beth: The conundrum for LVMH is balancing creative and commercial priorities. It’s not easy creating stories that don’t feel like ads but ideally bring the benefits of one. The conundrum for viewers feels even even tougher. We’re already bombarded with things to buy at all times. Do we want brands controlling our entertainment? Should we be careful what we wish for? Is branded entertainment at this scale the end of the beginning or the beginning of the end?
Dino: Some agencies may see this development as a threat, but I’m more hopeful as the need for external consulting eyes and validation will only get more important. Any brand considering its own content studio should ensure that there are budgets and commitments to produce exceptional work. If there’s a cost-saving mindset, it could easily bleed into lower-quality scripts, talent, and production techniques. It’s important to establish the brand’s true purpose and what its content ultimately aims to achieve. Finally, my advice would be to ensure the content is put through rigorous validation with diverse audiences to check for lazy stereotypes or cultural blindness. As ever, businesses within businesses can become bubbles within bubbles that need to be popped or even exploded now and then.”
???? Fancy joining a future Double Take panel? We’d love to hear from you.
