Luxury Marketing - Quiz 3

Song communication

Uses PR, larger events, targeted digital methods and shop window displays Song mode is used to communicate brand content on the internet and through PR.

Influence

= [Reach + Authenticity] x Power

Scream communication

Mass advertising

Residual value

Resale value Auction value

"Conspicuous cultivation"

Key for some brands: all should want to be invited, Included, but just a few will, and everyone knows that.

Sustainable Development

"Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs". Identified characteristics such as inclusiveness, prudence, connectivity (we are all connected and what we do impacts the world today and in the future), security and equity as essential components of sustainable development. These could be summarized around 3 pillars: ecology, slow growth and social harmony

The internet is where...

...the Millennials are: in 2019 Snapchat was able to reach 53% of all 15-25 years old in the US ...the stories are told and shown today: the hashtag is the starting point of any storytelling, then consumers or influencers continue the job Storytelling is sharing moments, values and experiences

Determinants of disengagement from sustainable luxury

1) Consumers do not want to be bothered when they make a luxury purchase. It is a gift they make to themselves or to their beloved ones, an access to a "dream" of exclusivity, excellence and experience .• They may not want to learn about the untold realities of production, supplychain, raw materials, carbon footprint, etc. • They want to live their parenthesis of pleasure. Nothing should reduce thispleasure. Personal needs motivate them more than ethical issues 2) Most luxury clients have no knowledge of which brands are actively engaged in sustainable development. • If the mental category "sustainable luxury" does not exist, it cannot influence the decision process: when there is no choice, there is no decision. • Most 100%-sustainable brands have still low levels of brand awareness and thus lack prestige and do not create much desirability. 3) The low frequency of luxury purchases lower the perceived impact and importance of sustainable choices 4) Some clients do consider that luxury and sustainability are intrinsically contradictory. If—as said by Adam Smith—luxury starts when "necessaries" stop, there is indeed a contradiction. • Sustainability activists should be non-clients of the luxury industry: they would feel guilty to purchase such excessive products whose price is far above their functional value

Determinants of sensitivity to sustainable luxury

1) Consumers expect luxury to be perfect, with no flaw at all, whatever the facet: ethical, sustainable and socially responsive also 2) Luxury brands present themselves as the apex of quality. But quality is a concept that evolves with time. • Today, one expects a wine without sulfites. Even Château Latour has to consider this mounting demand. • In the automobile industry, quality today means recyclability of the parts: 75% of a 911 Porsche are recyclable. • Tomorrow, thermic engines will mean no quality at all: all automobiles will have to be electric or hydrogen powered. This pretention to incarnate the best quality—a form of arrogance—may fast backlash if the luxury brand is shown not to achieve the level of quality it says it does, with the rise of the new meanings attached to the word quality 3) The social image a luxury purchase projects about the buyer, especially if the brand and the sustainable product line are famous. Thus, owning a Gucci Rain Forest bag sends a messagethat one is not simply splashing one's money but one takes care too about the planet. • This motivation is what Griskevicius et al. call "green conspicuousness." • Today, the "new chic" would be to buy luxury items which are known by all people around you as ecology conscious or highly sustainable. • Beyond one's wealth, it shows off one's education level and cultural awareness • This self-image motivation is not operating when the sustainable brand is too unknown, as are its own prices. Sustainable luxury must first of all be luxury.

4 Instagram marketing tactics for luxury brands

1) Influencers 2) Instagram stories 3) Shoppable posts 4) Hashtags

Four types of relationship to luxury

1) Internalized luxury 2) Luxury of self-expression 3) Luxury of certain values 4) Luxury of self-assertion relative to others

Critical success factors in the luxury segment of the fashion industry

1) Product quality - Superior manufacturing quality, superior material quality, compliance with specifications 2) Style and design - Unique product design and aesthetics that convey emotions to the customer 3) Country of origin - perceived value is partly due to the country of origin of the product 4) Emotional appeal - Exceptional level of service, fascinating shopping experience 5) Brand reputation - Brand aura, being part of an exceptional brand community 6) Creation of a lifestyle - Strong identification with the brand, the brand's values, the product, the shopping experience 7) Sustainability?

3 criteria for choosing an influencer

1) Relevance 2) Engagement 3) Authenticity

Three modes of communication

1) Whisper communication 2) Song communication 3) Scream communication Luxury brands stay away from scream communication and the more luxury the more emphasis on the whisper mode.

Instagram and consumers

80% of Instagram Users Follow a Business - Some social media platforms lend themselves to brand-consumer interactions, and Instagram is near the top. - For consumers, the visual nature of the platform makes it an easy fit for following brands. 68% of Users Come to Instagram to See and Interact With Creative Types Over 40% of Influencers Are Between 18 and 24 Years Old The Influencer Marketing Industry Reached $6.5 Billion in 2019

Is more social media better?

93% of consumer engagement with luxury brands starts on Instagram (Nov. 2018, since then TikTok has gained traction) Instagram, TikTok and FB: regular consumer engagement, image oriented, huge community Twitter: quick prompt to action, narrower community. Twitter's ads are promoted tweets or paid to appear in your thread. Twitter users tend to be younger, better educated and richer than the US as a whole Twitter provides data to analyze followers' engagement that Instagram/FB does not, making Twitter more and more attractive for data-hungry and data-driven marketers. But... Bottega Veneta left social media - to enhance exclusivity? - to quiet the noise contributing to digital fatigue? - perhaps it's a little more strategized than that? Bottega Veneta seems to be operating a different approach: user-generated influencer marketing. By removing their own voice, they let their advocates do the talking.

Value

= benefits/costs

Increasing the price of a new range within brand's core trade

A new line should be launched at a higher price than the old ones. Luxury is distance which needs to be recreated for its own clients. The new line is designed to increase the desirability andvalue of the brand If launching a cheaper line, it needs to be the result ofinnovation, and it must be immediately counterbalanced bythe introduction of new products at the top of the range:the average price of the core trade must continue to grow

Similarities between luxury and sustainability

Anti-throw-away consumption Rarity, relatively smaller size productions Craftsmanship, highly skilled workforce Quality means Durability, longer life cycle Exchange value (vintage, consignment/second-hand, auctions, collectibles, museums) Timelessness

Digital Influencers vs. celebrities

Approachable Relatable Trustworthy Experts Community builders Content creators Authentic

Relevance

Be sure the influencers content is aligned with your messaging.

Don't communicate to sell. Instead...

But rather to create the dream and recharge the brand value: It's all about the dream! It must be vague enough so that many people can identify with it and find their personal shareof dream This implies refined and artistic communication- Which is coded but not outdated- Which is suggestive and not demonstrative Create word of mouth A good campaign should be pursued/carried out for a long time

Building Desire

Communication must arouse desire from the target and beyond If the brand is not recognized by all, it cannot recreate the social distance it aims to. "Conspicuous cultivation" is key for some brands: all should want to be invited,included, but just a few will, and everyone knows that. Word-of-mouth is vital and should be encouraged: a brand that is not socially shared (with the mass or with a restricted group) is not desirable for conspicuous consumers. For inconspicuous brands, they must be recognized by all potential "applicants" to the pool of exclusive customers: by all the connoisseurs.

Demand for Authenticity

Consumers are no longer content just with available, affordable, and excellent offerings, consumers purchase offerings based on how well those purchases conform to their own self-image. What they buy must reflect who they are and who they aspire to be in relation to how they perceive the world - with lightening-quick judgment of "real" or "fake." To succeed, managers must add to their expertise an understanding of what their customer consider real and fake.

Different consumers experience authenticity is different ways

Consumers use a range of cues to evaluate authenticity which may be based on their interest in, and knowledge of, a subject. Authenticity judgments may be formed around - indexical cues (a factual connection between the object and time; for instance: age, country of origin, method of production) - or iconic cues (the extent to which an object or event is a reasonable reconstruction of the past; for instance, in its communication strategy) The distinction between the authentic and inauthentic tends to be subjective and socially or personally constructed It is a behavior experienced by an individual that is self-authored and self-determined

Creating a luxury brand from scratch - retail

Create a unique retail experience Retail experience must include rituals linked to history, craftsmanship or specific history Display products as pieces of art Products should not be handled with bare hands by salespeople• No price made obvious Emphasize storytelling that needs to become known This reinforces the hedonic experience pillar

Creating a luxury brand from scratch - heritage

Create lineage with craftsmanship or artist Create heritage by buying it Use this to create proprietary knowledge, skills or know-how This reinforces scarcity, uniqueness and is the basis for story telling Heritage must be apparent in the following new products to reinforce brand meaning and brandculture Heritage must be mixed with modern design: the past and the future must co-exist. Try to link either story of the founder, of the products or know-how to elite, aristocracy, or elevated social class This reinforces the social status pillar

Creating a luxury brand from scratch - the brand

Creating a brand takes time Naming Create a style that is unique, desirable and identifiable in order to create a strong brand identity The brand must be full of associations with stories from the past and from today: build brand culture and brand equity overtime. All products must share this style, these stories and must reveal the creative leadership of the creator

Pricing decisions

Discipline Respect Build long-term relationships Consider the lifetime value of customers

Creation of a universe

Events and sponsorships should be related to the same universe (LV—sailing;Ralph Lauren—Polo; Hermès—Horseback riding...) Every image should nurture all of the brand's imaginary—hence the necessity of respecting DNA and codes The aesthetics are stable over time: colors, fonts, shapes, format etc. must remain stable over a certain period of time

Exclusivity found again

Exclusive social networks Products

Exclusivity found again

Exclusive social networks Products for VIPs (about 10% of customer base but represent ~60% of revenue) only: La Ferrari, Hermes Birkin and Kelly Bags Invite-only access (to events, products, stores, etc.) Need to book an appointment (lines with club-like velvet ropes on the street) VIP-only lounges/salons (ex: Bulgaria, MonteNapoleone district) and parties Private salon as the future of luxury distribution? (have an appt. at special location where exclusive products are prepared for you to look at. Important personal relationships between staff & customer. Challenge is will customer leave is staff leaves)

Influencers

Fashion influencers are key to connecting with HENRYs (High Earners Not Rich Yet) and luxury consumers online, driving awareness and consideration of luxury products. Influencer content seems more accessible than brand-focused content and is a powerful way to attract younger customers/ An official partnership with influencers can be attractive but transparency around paid influencer promotion is important. In the US, the "paid partnership with" tag allows you to track ROI on partner influencer posts while building trust with fans

Hashtags

Hashtags mobilize and create communities on Instagram around specific themes or ideas. Brands can create buzz with their own tags and encourage followers to do the same in support of their campaigns and products.

Authenticity

If a brand says "Buy our product. It's great", it more than likely doesn't. However, if someone you know and trust says the same thing, it sticks. Influencer marketing works the same way."

Increasing the price of an existing product

If the product is selling at a satisfactory level: do not rock the boat, keep price stable (people know what they are paying for and what it is worth) In some circumstances (exchange rates strong variations), price can be increased but with an explanation Don't forget: value = benefits/costs, where costs include the price, but not only. An increase in price should therefore be compensated by an increase in benefits relevant for consumers. Such an increase needs to be reflected in communication and via salesforce Increase in volume and economies of scales should not be reflected in the price but rather in an increase of benefits

Internalized luxury

Including the search for an authentic experience, almost an art of living—distinction through elitism -> Communicate on brand heritage, history, timelessness and exclusive know-how or values

Influencer Marketing

Influencer Marketing helps brands become more human by connecting them with consumers through authentic storytelling. Influencers are powerful because the relationships are built onconnection. We choose the people we follow on blogs and social media because they relate to us in some way. That is why influencer marketing has become such a powerhouse as a marketing strategy. Influencers' engagement with consumers and ROI can now be measured, which creates confidence in how effective it is. Influencer Marketing is now part of the everyday marketing mix. It's the next evolution of social media marketing

Influence beyond Commerce

Influencers could use their power for good: A recent study found their followers are more likely to aid causes, especially if an influencer they follow has shown their support for it. Allison+Partners' study uncovered that 35% of people who followed an influencer engaged with a cause their influencer recommended; out of that group: - 52% spread awareness - 51% donated money - 37% personally volunteered for the cause.

Instagram stories

Instagram stories play to luxury brand story engagement, highlight specific and spontaneous connection points - and there's a big audience for them. Over 300 million users actively engage with Instagram stories each day, and one-third of the most viewed stories are from consumer brands.

Creating a luxury brand from scratch - create the 5 pillars for your brand

It all starts with a product that needs to be beyond exceptional and that needs to exemplify the 5 pillars The marketing used needs to reinforce the 5 pillars Take the time to perfect the first product: there is never a second chance to make a good first impression!

Fixing the price in luxury (new product): the Process

Know your positioning, i.e., your competitive universe. As a result, price is NOT a "cost +" method Begin with the price in order to build your product (in abroad sense) Begin to sell the product quickly and observe what happens with end consumer Start at the bottom of the bracket and increase price continuously until demand stops growing. Now you know the number associate with the symbolic value of your product. From then on, you can adapt the price strategy to the company's constraints and model (profitability, growth, image etc)

Why do some brands reposition?

Loss of relevance Loss of luster -> lost your luxury Overstretching of the brand -> need to retreat to core Over growth Need to re-focus on less products

Need for Brand Elevation

Luxury brands need to: -find the right balance between exclusivity & distribution, rarity & abundance - find how to sell a lot without losing the ability to command a high price - hence the need to be elevated to a more intangible level. It is about the dream Luxury demand is resilient for brands with higher positioning and at higher price points during an economic downturn, so brands are better off being elevated in tough times

Distinctive budgeting

Luxury brands spend very little on ads, but when they do it must be top notch and highly visible (first pages or back cover of a magazine). No TV ads, except for fragrance and skincare. Luxury brands spend a lot of money to communicate with their existing customers to integrate them to the brand family. A luxury customer seldom owns only one product of the brand New customers must not replace existing long-standing ones When luxury brands communicate, they do it about the upper part of their range - E.g. Chanel communicated intensively about its high jewelry, not about its best-sellers The dream must constantly be refueled from the top. A great deal of event PR, Cultural sponsorship, arts demonstration: luxury customers must feel they are part of a club

Luxury brands and social media

Luxury brands were reluctant to go to social media for fear of losing control or to destroy one or more of the pillars of luxury But today about 50% of social media users have made a purchase that was initiated on social media Nearly 85% of luxury goods buyers use social media with an average of 3 channels per user Luxury brands have embraced social media with several goals in mind: - Grow brand awareness - Reach Millennials + Gen Z - Complementing and boosting foot traffic in their physical stores To preserve themselves, they have been able to offer internet-exclusive limited editions/collections, to offer customization, to use co-creation of products with influencers (e.g., Robert de Clergerie)

The business model is adapted

Luxury business model is very attractive but requires investments and patience A luxury brand will have better chance to survive if it is bought by a luxury group (LVMH, Kering, Richemont etc.) than if it is bought by a fund because of: • Need for long-term view • Need for expertise

Inter-generational Marketing - Transmission

Luxury is a bridge across generations Luxury is timeless by essence, so it lends itself naturally to intergenerational marketing Luxury products are ways to transcend time, and to connect withthe following generations But for that you need to be a Modern or a Monumental luxury brand, on the side of endurance, not transience. Items must become collectibles Services must linger over time, be unique and unforgettable (El Bulli) To create that timelessness, luxury brands need the artisans, the arts (asseen previously) That's why luxury groups buy out workshops of craftsmen to ensure the legitimating know-how is not lost The ageing of the population and the disinterest of younger generation for manual work have endangered ancestral know-hows: baby-boomers need to be able to transmit their skills over to Gen X, Y and Z. Chanel now has 9 artisan manufacturers under the Paraffection umbrella

Luxury under pressure of sustainable development

Luxury is usually seen at odds with SD, seen as the waste ofresources for the pleasure of a happy few. SD is a global concept promoting a society that can persistsover generations by conserving resources Luxury and SD share 2 deep concerns: rarity and beauty. Luxury is based on objective rarity Resources consumption by luxury industry is a drop in the ocean of waste resulting from mass-production and mass-consumption (plastic bags, plastic bottles etc.) Disgraceful pollution cannot be associate with luxury: hence the need for SD While mass consumption are delocalizing and increasing transportation need (from poor producing countries to rich consuming countries), Luxury stresses: • Importance of crafted, handmade products and a rare savoir-faire • No license • Timelessness and durability (collectibles) • Harmony with the environment • Creating value for the consumers • « Made in » Luxury has been put under pressure of SD because of what it represent s(excess, inequality, irrationality etc.) while fast fashion might represent more excess than luxury in terms of number of items bought and thrown away, for example And is SD really ready for Luxury standards? The luxury consumer of tomorrow will be displaying status and taste, but also altruism and responsible consumption

Managing price over time

Luxury sets the price, price does not set the luxury Once price is adjusted (after launch), it should not vary and should be managed strictly Global coherence Variations result from cost of transportation and duties If variations, the reasons for them need to be public, transparent and clearly expressed The grey market must be strictly managed Uniform global price is recommended for small products easily transportable and easily hidden at customs. No sales -> luxury is timeless so it should not have sales or price reductions

Sources of Brand Authenticity

Natural authenticity Original authenticity Exceptional authenticity Referential authenticity Influential authenticity

Power

The X factor that relates directly to impact and ultimately determines strength. This ability to take authenticity and reach and amplify them, comes from individuals with multiple channels of influence, a broad network of followers who are influencers themselves and an opportunity to access multiple platforms for storytelling

Luxury of self-assertion relative to others

Through the display of wealth and the visibility of consumption famously reserved for a minority -> Communicate with a transgressive discourse, on the values of wealth and glory, excess and power reserved for the happy few

Whisper Communication

One-to-one, happening in VIP clubs, at VIP events. Intimacy is the key feature of this mode of communication

Price display

Price display is traditionally seen as a no-no for luxury products. However, online, prices are displayed most of the time(except for products not available for purchase online, in certain instances). Recent research shows that: - Displaying price does not affect luxury perceptions on high-end brands, making luxury more salient; - Price display enhances luxury brand attitude and desirability through perceived uniqueness; It is especially true for conspicuous brands targeting Parvenus or Poseurs. It might apply more particularly to non-personal goods that can be conspicuously/publicly consumed

Increase the price to increase demand to recreate the distance

Price is not an important criterion for luxury consumers, but they still want to see 'fair' prices. A fair price means a price that reflects the benefits received tocreate a fair value. Value = benefits / costs, A luxury brand must cause its average price to grow continually The launch of cheaper lines for the "day trippers" is a sign of weakness if these lines are not managed with all the codes of luxury Entry-level products need to be of similar quality as rest of the lines The goal is not to sell but to initiate new customers into the brand universe (e.g., LV, Tiffany, Pierre Hermés) Price increase will lead to an increase in sales (within certain limits of course)

Drivers of Perceived Brand Authenticity

Quality commitment Sincerity Heritage Continuity - ability to stay the same overtime, survive trends Credibility - transparency and honesty towards the consumer; willingness and ability to fulfill its claims Integrity - acts correctly, ethically; staying true to one's morals Symbolism - the symbolic quality of the brand that consumers can use to define who they are or who they are not

2 concerns shared between sustainable development and luxury

Rarity and beauty

Determinants of sensitivity/insensitivity to sustainable luxury

Recent empirical research shows that the measures of sensitivity and of insensitivity to sustainability are not correlated We therefore refer to disengagement rather than insensitivity to refer to those declaring they do not care at all: sustainability has no interest to their eyes, at least as far as luxury purchasing is concerned. Sensitive clients are actively searching the most sustainable brands or eager to learn about the degree of sustainability of a luxury product at the time of purchase. They could also boycott luxury brand if they learned it did not respect the demands of sustainability

Price presentation

Round prices dollar price is preferable ($1,500 vs. 1,500.00) No price should reflect a good deal or the costs (no sharp price or .99, or even 99)

Luxury of self-expression

Through strongcreativity and singularity -> Communicate on creativity. Reference to art will be important.

Shoppable posts

Shoppable posts on Instagram allow brands to tag products, creating a seamless link between post and purchase. Instant shopping might work for your luxury brand. Do you want to give customers a fast link to prices and shopping, or would you prefer a more nuanced path to purchase

An Economic Necessity

Social media represent a growing part of the consumer's journey: 40% of luxury purchases are influenced by social media experience and contents In China, many brands are selling online to keep up with the rather recent and exponential growth of luxury sales In the rest of the world, only about 35% of brands have an e-shop

How luxury can use sustainability

Sustainability could provide away to reconnect with the timeless values of luxury: - know-how - transmission - territorial anchoring - preservation of natural resources - Respect for theconsumer YSL has launched the New Vintage Collection created using recycled materials from previous collections

Do luxury consumers care about sustainability?

Sustainability is only rarely mentioned in the selection criteria of luxury brands. As such, luxury is notdifferent from all other sectors. Inconsistency between attitudes and behaviors: People do support corporate social responsibility (CSR) and ethical concerns but are not ready to pay more for them Ethical concerns transform into behaviors only if consumers felt their simple action could have a snowball effect and market influence Consumers tend to purposefully ignore sustainability issues when they purchase, even though they say they are concerned. This is to protect themselves from negative emotions. As a result, luxury purchases are still less impacted by sustainable or ethical criteria: nothing should hurt the dream. Luxury buyers don't value positively the idea of buying a Hermès product made of recycled cotton

Creating a luxury brand from scratch - time

Take the time to launch The products must reflect timelessness, passion and dedication of the craftsmen, as well as a vision of how centuries-old craftsmanship can be brought to create modern object Business must be long-term oriented Use materials that are rare and that need time to be produced This reinforces the exceptional performance/quality pillar

Referential authenticity

Taps into our shared memories and our human history - refers to something that is authentic, something derivative or trivial. Examples: drinking beer in England, tea ceremony in China, "made in","heritage" Pay personal tribute- What person could you referentially honor? Evoke a time- What period of or moment in time could serve as a compelling theme? Pick a place- What particular place could inspire your offerings? Make it matter- What place, object person, event, or idea is worth revering? Be realistic- What stimulated experience could be rendered more realistically?

Digital contents

The contents of the digital stories must be in line with offline brand stories and brand values. Brand values are built offline and are communicated (also) online. Social media are a great tool but they need to be integrated to the broader communication strategy and all contents need to be edited. For service brands, it may be hard to put a service into a picture to tell a story, so the key goal will be to convey an emotion. Digital communication is a communication from person to person, or at least this is what consumers (and above all Millennials) are looking for. Digital allows to create a direct relationship with consumers. The contents needs to be built around showing and creating emotions, a connection between the brand and its consumers, to create a Love brand. To maintain this relationships, brands use influencers

Creating a luxury brand from scratch - close to the arts

The founder(s) must show exceptional talent Promote the arts directly or indirectly Treat products as masterpieces, especially when there are only a few Use exceptional craftsmanship, artisans and/or materials This reinforces the exclusivity, creative leadership and rarity pillars

Does luxury have a minimum price?

The higher the price, the higher the likelihood of luxury perceptions Without a brand name, price is the diagnostic cue A brand name can make the luxury, with almost anyprice: it is the moderate role of brand status If Dior reduces the price of an item by 50%...45% It would remain a luxury, 55% It is no longer a luxury

Price Level

The higher the symbolic value, the higher the price A brand is a real luxury brand if it can ask (almost) any price in its territory without being ridiculous The price reflects the tangible and intangible, although you don't know yet the value of the dream/intangible part for new products

Veblen Effect

The more expensive is, the more people want it so the more it sells (applies to luxury)

Authenticity

The qualitative evaluation of bias, or lack thereof. It is analysis of the source, an individual's personal credibility and the validity of their voice

Reach

The quantitative indicator of an individual's personal net work and includes the number of channels augmented by the number of followers/circulation/viewership

Over-democratization of luxury

There has been a wave of luxury fever There has been a democratization of luxury and this has been "the single most important marketing phenomenon of modern times" "Today, luxury involves elusiveness, nearly uniqueness, and not because it addresses to a few people, but because it is special." Luxury has always been an authentic experience or an exclusive relationship between a customer and a brand. Today's "fashion for all" mentality is killing exclusivity and creating an overexposed world where luxury's appealing symbolic assets are beginning to disappear. Internet and social media in particular have made luxury brands ubiquitous, accessible, and visible

Tensions between sustainability and luxury

They need to manage a tension between "selling dreams and fantasy" and"restraining themselves to be sustainable and responsible" Luxury: - Emotions - Excess, profusion - Indulgence, unnecessary, superficiality - Social distinction - Self-enhancement - Dream - Performance Sustainability/CSR: - Rationality - Frugality - Equality - Self-transcendence - Reality

Content marketing and storytelling

To create or reinforce brand equity, communications must always recall the source of itsimage: roots, traditions, charismatic founder, story around a place, a product, and exhibit- E.g., Dior exhibit at Louvre Content marketing: creating editorials and diffusing visual and auditory creative contentthat delivers contextual information about the brand, its depth, its personality, its history,its values. Content must be creative and entertaining, so that people want to share it, discuss it, show it. This is where the brand comes to life Luxury needs brand content to instill authenticity, to fight counterfeit, and elevate the brand above functionality This is where the intangible value of the brand lies Tales, stories and rumors make the brand denser, richer, "thicker" Use their rich legacy as a focal point around which they weave their content Keep emotions at the center of their story when the product has traversed physical boundaries to become synonymous with a feeling Identify new potential customer groups and connect with them in the places they go to Balance the idea of exclusivity with aspirational value Create quality content that equals their commitment in product creation Showcase expertise in their field through content Make content that goes beyond the product to cater to the psyche of their target audience Create a content vision that is in line with their unique heritage and use every piece to add to that broader plan

The Balenciaga Campaign

Tried to communicate with the 4th type of luxury consumers (products are very logoed/transgressive discourse) Balenciaga designer: Demna Gvasalia Balenciaga photographer: Gabriele Galikmberti Brand has become a lightning rod for controversy since Demna arrived in 2015 - Ikea bag campaign (sold similar bag to Ikea for $2,145 instead of 99 cents) - Heeled and platformed crocks - Balenciaga x Adidas - Balenciaga Gift Shop (supported child trafficking) - damaged the brand. will need to replace the designer and photographer and still questionable whether they will rebound

Natural authenticity

not artificial not synthetic, comes out of the earth, natural personal body care, organic food (hand made, natural ingredients) Stress materiality: What one raw material might serve as a unifying force in rendering authenticity? Leave it raw: What others have overly produced or perfected that could instead be offered raw or flawed? Reek rusticity: In what ways could a less sophisticated offering be appealing? Be bare: What should be stripped down, left naked, or made bare? Go green: How could you help sustain the natural world

Price structure

only options in different raw materials should be reflected in price If item is customizable, all customizations should be either priced in or at the same additional price

Exceptional authenticity

originality of design. Does things that have never been done before. (Apple) Brands that are century old or more, originated the category (Gautier Cognac 1762; Hermès 1837; Saint Louis Cristal 1586; Baccarat 1764) has done extraordinarily well, performed withgenuine care. Examples: Southwest // Ritz Carlton // Aman Be direct and frank- Where and how can you interact more directly and more frankly with customers? Focus on uniqueness- How can you respond to the uniqueness of individual customers? Go slow- What aspect of your business could be accessed in a much slower fashion? Treat as temporary- What could you pop-up and then close on a temporary basis? Be foreign- What foreignness could be emphasized with uninitiated customers?

Original authenticity

originality of design. Does things that have neverbeen done before. (Apple) Brands that are century old or more, originated the category (Gautier Cognac 1762; Hermès 1837; Saint Louis Cristal 1586;Baccarat 1764) Stress your firsts: What beginnings and anniversaries deserve commemoration? Revive the past: What brand, advertising, slogan, material, or memory from the past could provide a source of inspiration? Look old: What new elements of your offering could look old? Mix and Mash: What could be mixed and mashed into a single new offering? Anti-up: What move could you make against conventional norms?

Luxury of certain values

prestigious institutions, for those who seek status and pursue social adjustment through conformity -> Communicate on the myth, the proof of prestige, celebrity and social success to reassure this type of consumers

Why digital influencers work?

Word-of-mouth is the most effective source of influence Credibility and authenticity are the pillars of word-of-mouth influence Sustained familiar relationships with customers are the key to earning credibility with consumers/customers.

Engagement

You can tell a lot about the relationships an influencer has based on their post engagement and how often their readers return

Communicate, don't advertise

You communicate because you sell: each product sold is a piece of dream given away, so the dream needs to be constantly recharged You don't talk about money: there are better things to talk about! If you don't have to (legally), don't publish results, don't talk about margins, it's too material! Use rather PR and press relations: everything should be PR-able. A brand that is not talked about is a brand that doesn't count *Look at layers of luxury communication pyramid

Goals of communication

You don't communicate to sell To show and showcase the products as pieces of arts To increase brand awareness to target and beyond To create desire To communicate brand image To build brand equity and nurture customer relationships To demonstrate the pillars of luxury

Influential authenticity

exerts an influence on us, cause us to a highergoal, gives our life meaning or purpose. Example: Hard Rock café tagline:"Save the planet"; The tagline of Tiffany is "True love grows" Appeal to personal aspiration- What aspirations of individuals could you help fulfill? Appeal to collective aspiration- What shared aspirations among customers can you help achieve? Embrace art- How can you integrate art into your everyday business? Promote a cause- What greater social cause can you personally promote, helping to effect its ends? Give meaning- What meaningful purpose can you infuse into your offerings?

Authenticity is used to refer to:

genuineness, reality or truth of something sincerity, innocence and originality being natural, honest, simple and unspun