Professional Documents
Culture Documents
Luxury Brands
Introduction
In many ways, Gilt is both friend and enemy of the luxury business. On one hand,
Social media marketing shares a
Gilt is fundamentally a discount shopping rack which cuts profit margins from the
fundamental similarity to other mar- brands it sells. From a business perspective, however, it doubles as a risk-sharing
keting efforts: with a well-developed platform since Gilt contracts with brands to unload a mix of inventory that includes
strategy and good execution, brands both “home run” products as well as a brand’s more speculative or unsold stock.
stand to gain in the short and long And whereas a department store may take a whole season to unload product, Gilt
term. is expected to do it within 36 hours.
This guide explains how luxury brands can best accomplish these goals in social media and offers
solutions for particular challenges. Additionally, this guide presents case studies of luxury brands
to illustrate the industry best (and worst) practices.
4. Empower consumers
they come across online. For would-be and current consumers of five to ten thou-
sand dollar watches, the Cartier website should not be
Cartier put in small copy on their website used as a cheap opportunity to hawk watches in bulk.
that “the brand is proud of its technical excel- Cartier should have used its web properties to com-
lence…and reputation as a master watchmaker.” municate its brand narrative and speak to its consumers
The Cartier site, however, has been the opposite in a way they would not be able to through traditional
of technical excellence and obfuscates one of the more media. Integrated film, archival footage, and a personable
compelling aspects of the brand—its storied history and blog are all options that Cartier should have explored.
reputation. Online, well-designed user interfaces and Cartier should focus on the qualities that define its brand,
ease of use are reminders of a brand’s quality. On Cartier’s like timelessness and attention to detail, and create web
site, the fascinating pieces of content that do exist have properties that reflect those principles.
“
S ince Pierre Balmain’s death, The House of Balmain has
undergone several regime changes which have taken the
brand from classically luxurious to edgy tough yet chic
evening wear. Although Balmain’s style has evolved drasti-
cally, the label has always remained true to its trendset-
Leaving a halfhearted attempt at a Twitter
“
presence active sends the same message that
a half finished magazine advertisement
ting roots. Unlike its clothing, Balmain’s web presence has does and Balmain has appeared sloppy and
reflected neither its changing identity nor its commitment unpolished.
to modernity.
When a brand uses a social network must be done with the same care and
lated its core traits online, it must as another venue for press releases, commitment that a traditional com-
find the corresponding digital spaces like Chloé has on Facebook, consum- munication would command.
that coincide with its marketing ers lose interest in engaging with
strategy. Despite the trend of brands the brand. Just like any aspect of the For luxury brands, the challenge is in
impulsively joining the largest social luxury business, establishing a social harnessing digital and social media to
media sites, the “one size fits all ap- media presence requires detailed and promote the brand while still cul-
proach” is not appropriate for luxury extensive planning. The reckless use tivating an aura of exclusivity. One
brands. Platforms like Facebook and of social media to increase exposure way of doing so is targeting influenc-
Twitter are called “social” networks can hurt the brand in the long term. ers, such as prominent bloggers like
because they foster relationships. Even though the possibilities for BryanBoy.com or GemGossip.com,
Consumers look to form connections interacting with online communities who sway the consumption desires of
with brands that have personality. are immense, any attempt to do so their readers.
“
“ Despite the trend of brands impulsively joining the largest
social media sites, the “one size fits all approach” is not
appropriate for luxury brands.
Since online audiences are constantly abhor blatant marketing efforts and
ed messaging—advertisements, press on the hunt for content to digest welcome content that involves them
releases, mailings—etc—with the for entertainment and/or share for personally. The latter ultimately re-
captive audience in mind. By its very personal brand-building purposes, sults in the kind of good advertising
nature, social media is not an effec- brands have a huge opportunity to that a luxury brand would tradition-
tive tool for broadcasting to captive connect with them. Creating content ally budget far more for. For luxury
audiences or speaking to them in a has become a collaborative process. marketers, the key is to build a social
way that presupposes their inability Many consumers publish stories and identity for the brand that furthers a
to walk away. In old media models, pictures that describe their relation- consumer’s emotional attachment to
consumer recourse was usually lim- ship with brands. Brands can harness the brand.
ited to, to borrow an economic term, this genuine advocacy by creating
“exiting the market” e.g. flipping the interactive platforms that weave con-
magazine page or turning off the sumers’ experiences into the brand
television. In social media, however, narrative.With the right strategy and
consumers have a host of options at execution, brands can become a part Best Practices:
their disposal to respond to welcome of the consumer’s online identity and
or unwelcome messaging, and they vice versa. • Deepen the brand consumer
can do so with disproportionately relationship by becoming part of the
wide reach. For consumers, online empowerment consumer’s online status and iden-
tity. Allow them to flaunt the brand
comes from being given access and to their friends.
Consumers often identify themselves information. Fans want to socialize
by items that they purchase and with brands the way they do with • Bring the consumer into the brand
what the brands of these products their friends. Consumers feel special narrative through creative marketing
represent. Consumers can use luxury and wanted when they associate with initiatives that incorporate user gen-
brands as status symbols, broadcast- favorite brands on social networks. erated content, such as encouraging
photo uploads.
ing their association within their Of course, this is usually antitheti-
social circles for personal brand cal to the way luxury brands live in • Humanize your brand by directly
building efforts. Online, consumers the real world, where brands like to communicating with followers and
concretely map out their identities maintain a sense of exclusivity. Just letting the brand’s personality shine.
by selecting interests and brand af- fifteen years ago, a brand like Louis Reply to comments and answer
finities to publicly display on their Vuitton would not have been able questions that will be seen by other
consumers.
social profiles. By “liking” brands on to bring consumers en masse into its
Facebook or sharing content about a leather-making facilities. Now, how- • Deliver content that provides new
brand on Twitter, consumers add to ever, that is exactly the kind of ex- perspective on the brand. Obscure
their online credentials while simul- perience the brand can offer online. historical facts and glimpses into a
taneously promoting the brand. For Savvy luxury brands see social media brand’s archives add to the lore of
luxury brands, this authentic en- as an opportunity to deliver content the luxury brand’s narrative.
dorsement is the most valuable form that provides a deeper experience of
of online advertising. the brand. Social media consumers
The advent of social media tools that the Ritz-Carlton Hotel Com- pulse of consumer sentiment, brands
has allowed consumers to share and pany’s President, Simon F. Cooper’s, should carefully monitor social media
publicize opinions about brands that Twitter account “shows an iconoclas- to avoid crises before they start, do
can spread across the internet in a tic global luxury brand taking a new instant damage control or engen-
remarkable way. Social media has not tack, using a new tool, to expand on der fans that will fight on a brand’s
only given the public a voice but also what they’ve always done -- demon- behalf.
changed consumer expectations as strate unwavering luxury hospitality
to how brands should treat them. As and showing that it’s approachable.
image is such a critical component ‘Welcome to my luxury brand. At Best Practices:
of a luxury brand, the consequences the Ritz, as my guest, you have
of social media can be a blessing or a more than luxury. You have my ear’.” • Devote enough resources—fi-
nancial, manpower, attention—to
curse. Brands that recognize such an op-
maintain a social media presence,
portunity and do it with gusto stand especially when it comes to custom-
One possible approach to using to gain appreciably. er relationship management (CRM),
social media as a tool is getting the which is 24/7.
business’ top executive involved. Many businesses worry that to foray
Executives often do not realize that into social media is to become a • Don’t sound like a PR shill. Leave
by virtue of being a higher-up at a target for an unregulated, unruly mob the marketing speak for press re-
leases and investor relations. Social
major corporation, they have a built- that uses social media to gather and media is about authenticity.
in audience for their voice on social attack at the slightest misstep. These
media. The aspirational cachet of a types of public relations nightmares • Acknowledge consumers—both
successful business leader remains are not the norm and are usually the happy and the disgruntled.
strong, and this can be capitalized the result of poor strategy. Gener- Show that someone is listening
upon in social media to benefit the ally, consumers use social media to
• Verbalize efforts to consider the
brand. One such executive, Paul connect with brands, not as a means
changes they’ve proposed/actions
Smith, has maintained a blog that of making unwarranted attacks. By requested.
feels unedited by public relations gu- maintaining an active social media
rus and seems to give insight into his presence, brands can respond quickly • Consider breaking news to social
personality. His blog has also been to customers and situations. More media simultaneously with the
featured on Vogue.com, giving the importantly, brands should use press, or even before it hits main-
stream news.
brand valuable exposure. social media to proactively establish
consumer loyalty so that when a •Set rules and guidelines before
While blogging is one way to go, blunder does happen the brand can engaging in social media, making
other corporate executives have use the relationships it has built to sure that all employees are on the
found Twitter to be a more effective its advantage. Since a brand’s social same page.
tool. One blog editor commented media properties can also serve as the
Mobile
Mobile Device applications popularized on phone operating systems such as the iPhone and Android
are increasingly replacing time spent on computers. According to a Pew Internet September 2010
study The Rise of Apps Culture, 24% of the U.S. adult population actively uses “apps.” The advan-
tage of apps is that the maker of an app has almost full control (subject to restrictions by the operat-
ing systems’ mobile app stores) with regards to content, functionality and branding. Brands have used
mobile apps to mirror their e-commerce sites, deliver creative content, make product suggestions and
provide a host of other functionalities.
Geo-Location Platforms
Geo-Location services like Foursquare and Facebook Places offer brands an alternative opportunity
to engage in social media without “abandoning” their brick-and-mortar business. Geo-location adds
a wrinkle to social media in that it incorporates real, physical location interaction to social media
platforms, which have traditionally lived 100% online. Geo-location platforms allow consumers to
“check-in” to a virtual location when they visit a physical location, creating a log of activity. These
locations—usually businesses—can incentivize check-ins with tangible rewards. For brands that worry
that their online presentation does not come close to their in-person experience, geo-location provides
an innovative outlet.