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Loewe is making a bold statement with its 2024 product releases, signaling a robust comeback and a firm commitment to the market. They’re venturing into OLED TV production, expanding their premium hi-fi line with floorstanding and standmount speakers, securing Kylian Mbappé as a brand ambassador, launching Mbappé-themed We Hear Pro wireless speakers, and unveiling a new range of top-tier OLED TVs.
Loewe is staging a remarkable comeback after navigating significant economic challenges, including a near-bankruptcy scare in 2013 and actual bankruptcy in 2019, only to be revitalized by Skytec’s investment in 2020. Despite a tumultuous decade, the brand is now resurgent.
Recently, I had the opportunity to attend an event in Berlin showcasing Loewe’s upcoming products. While I was impressed by their ambitious foray into new product categories beyond their traditional strengths, such as their own TV manufacturing and expanded product lines, I also harbored concerns. Is Loewe expanding too rapidly, potentially stretching its resources too thin? This dichotomy left me contemplating the brand’s future trajectory.
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Loewe found itself in a position where its traditional strategies couldn’t salvage it from financial difficulties. Recognizing the need for change, the brand has embraced diversification as a logical step forward. Partnering with Kylian Mbappé, now with Real Madrid and part of a team that recently clinched its 15th European Cup, enhances Loewe’s global visibility, particularly among younger, affluent consumers.
While this revitalized Loewe brand carries the legacy of its century-long history, it operates essentially as a new entity. It must reimagine its distribution strategies and cultivate partnerships with dealers who can effectively support its resurgence. Rebuilding isn’t enough; Loewe aims to surpass its previous iterations and establish itself as an even stronger presence in the market.
Achieving success won’t come easy for Loewe, especially as it establishes itself as a premium brand. Consider their pricing strategy, like the cost of their 32-inch HD HDR TV at Currys UK, which exceeds that of a 48-inch LG C3 OLED TV. Value isn’t their strongest selling point.
It’s crucial to note that Loewe’s direct competitors aren’t industry giants like LG, Samsung, or Sony; they’re more aligned with Bang & Olufsen. This positioning targets a smaller yet more discerning market, primarily centered in Europe rather than having a global reach.
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Wherever I’ve traveled, Bang & Olufsen stores have been ubiquitous, whereas Loewe stores resemble boutique fashion houses. For this iteration of Loewe to thrive, it needs to expand its reach and attract new customers far and wide.
Their current strategies aim to not only re-establish the brand but also redefine it beyond an AV brand. Europe, however, seems to lack premium ‘tech’ brands that excel in the high-end market. What’s needed is a standout success story—a powerhouse that seamlessly blends aesthetics and top-tier performance in a distinctly European manner.
Loewe is pushing forward ambitiously with their new products, and one can only hope they achieve success where they’ve faced challenges before.