Hublot’s value proposition include their exclusivity and avant-garde, unique, and flashy design. The expensive and exotic materials also bring value to Hublot customers. Moreover, customers mention they feel they are joining a community when buying a Hublot watch (Ap, 2018). This is due to the exclusivity of Hublot watches but also the possibility of joining an online community called Hublotista. On this website, customers are invited to exclusive events (often with Hublot sponsored celebrities attending), invited to service their watches after a few years, given early announcements about new limited releases, and easy contact with Hublot representatives. d.b. Sales Channels Hublot sell their watches through two channels: directly to the customer through their boutiques or indirectly through third-party retailers who buy stock from Hublot. Hublot is very selective in their choice of retailers and limit their supply to ensure the exclusivity of the product. Hublot does not sell directly online however some third-party retailers do. Hublot have started a new sales technique they call the “Digital Boutique” where customers can book an appointment for a Skype or FaceTime call with a sales associate who can present watches digitally and work with the customer on finding the right watch for them. This brings the personal assistance that luxury shoppers expect, while keeping the convenience of online shopping. e.c. Sales & Marketing Costs A sizable proportion of the sales revenue goes directly to the retailer and a commission to the salesperson. These values are very secretive and vary significantly between companies. According to the consolidated income statement for LVMH, cost of sales (or production cost) accounts for 33.4% of revenue, while marketing and selling expenses accounts for 37.9% (LVMH, 2>