Authority brand is a brand with the power to influence others, especially because of one’s dominance, significant influence or one’s recognized knowledge about something. Authority brands are considered as a real authority in their business. They have a specialised scope and they often focus on patents, innovation and distinctive styles or products, and are enriched by experiential product benefits auto-directed. The best example of an Authority brand is an Italian clothing company specialising in high-end, luxury cashmere and wool products, Loro Piana.
Authority brands have the power to influence and persuade by virtue of their particular expertise. By adopting these brands you feel reassured and gratified, a benefit that goes beyond the functional aspect.
The Loro Piana family started as merchants of wool fabrics at the beginning of the 19th century.
On July 8, 2013, LVMH purchased 80% of Loro Piana for €2 billion, the rest of shareholding remaining in Loro Piana family’s hands. Put and call options on the family’s 20% stake expired in 2016. On 19 December 2013, Sergio Loro Piana died.
Today company has stores in Europe, North America, and Asia, totalling 132 stores worldwide. In 2012, turnover reached €700 million and net income represented 20% of sales. In December 2013, LVMH announced that Antoine Arnault would become chairperson of Loro Piana. In 2016, revenue was estimated at €800 million.
- Refined raw materials
- Conservative image, timeless elegance
- Limited production
- Vertical integration
- Hidden marketing
- Personal relationship with clients (personalisation in customer orders, look examples⇓)
Top Western manufacturer of cashmere and baby cashmere thanks to direct relationships with government agencies in China and fully owned operation in Mongolia.
Extra-Fine Merino Wools
Single top purchaser of extra-fine wools auctioned in Australia and New Zealand.
Exclusive right to reintroduce this fiber into the world market from 1994: this endangered species was saved from extinction.
Since 2000, Loro Piana has sponsored an annual prize for the world’s finest bale of wool, which produces enough fabric for 50 men’s suits. Generally, it is won by an Australian or New Zealand woolgrower. In 2008, Loro Piana paid a record 48,000 cents per kilo for a bale of superfine merino wool averaging 12.5 micron produced by Peter and Greg Munsie and Phil and Judy Fittler of Uralla, New South Wales.
Loro Piana produces about 5 million meters of fabric each year, and supplying textiles to other brands accounts for about a quarter of its revenue.