Armani Latest Luxury Brand to Embrace Online Shopping... 01/12/10

Online is revolutionising retail, and it’s not just for mass-market brands. The MO Down has had much to say on this topic, last week we spoke at length about the relative reluctance of luxury brands to embrace this new domain, and the potential ramifications for sales. Slowly but surely, brands are hopping on the online bandwagon. This week’s medal goes to Armani.

Armani has developed a two-birds-with-one-stone strategy, launching a new online store targeted specifically for China. It’s one of the first luxury initiatives of its kind in China, and we are impressed. Chinese online shopping increased 117 per cent last year, and we don’t need to reiterate the increasing significance of the Chinese market to the luxury industry. Armani is the first fashion house to offer a ‘flagship shopping experience’ online, and to do so in China… This will almost certainly be a success. From a strategic and marketing perspective, it is a very interesting time to be in luxury. We are noticing all kinds of attempts at engaging consumers, and it is exciting to realise that the future of brand loyalty may well be won and lost online.

Image credit: fashionshops.wordpress.com

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Can Luxury Brands Tame Social/Online Media?…. The Jury is Still Out... 24/11/10

We’ve spoken at length about the relative reluctance of luxury brands to embrace social/online media. Luxury brands pride themselves on being at the pinnacle of innovation and cutting edge, but have lagged far behind the cutting edge of using social and online media to publicise their brands. Some have said ‘luxury are above that sort of thing.’ This is both ridiculous and untrue. There is no brand so exclusive it can afford not to publicise itself at all. Different courses for different horses, sure. Some prefer more traditional avenues, and that is fine. But we caution brands against shunning ‘new media’ and online marketing, these are increasingly becoming the first port of call, particularly for younger consumers.

It has been interesting to watch many brands jump at the launch of the iPad, with an array of different apps, and a varied rate of success. Brands like Burberry seem to have their social networking down pat. Others are flailing. Here at the MO Down, we are curious as to what impact the success/failure of these apps will have on the success/failure of different luxury brands’ popularity. Will big brands like Chanel and Juicy Couture be able to keep shoppers engaged, and loyally within their branded apps? Luxury shoppers will use the Internet, and they will use social media. The question is, can brands find a way to use this to their advantage. Customers want something that will give them what they want directly, and save them weeding through the mass of information online. Can brands provide this? Will fashion shoppers take to fashion-only aggregators like Asos? Or will they default to searching with Google and ebay? As far as we are concerned, the jury is still out.

Image credit: www.brandbuildsell.com

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Lanvin for H&M Revealed! 22/11/10

The MO Down has impatiently awaited the revelation of the Lanvin for H&M collection. As previously reported, we have a certain opinion on these collaborations. Clever? Yes. Strategic? Yes. Broadening the (luxury) brand’s audience? Yes. Therefore broadening the (luxury) brand’s awareness? Yes. The one box we hesitate to check is status. Luxury brands work hard to maintain their status. They invest in sourcing the world’s finest materials, in ensuring unrivalled quality and excellence. Mass-produced fashion can be stylish. It serves a purpose, and it’s accessible. But there is a difference between luxury and mainstream, and if there weren’t, we would be out of a job.

We agree with Jean-Jacques Picart’s comment in an AFP article, that for couturiers, whose exclusivity is a vital asset, there is danger involved in associating with the high-street. For Picart, ‘high-street tie-ups make most sense for diverse luxury brands that sell everything from couture to lipstick’– like Lanvin, who are betting on strong perfume sales during this year’s holiday season. ‘If you don’t have any spin-off products then there isn’t much point,’ he said. The fragrance gives aspiring luxury consumers an entry price point.

Realistically, those who shop at H&M or Top Shop or Target are unlikely to wander in and purchase a ready-to-wear item from Lanvin anytime soon. But we are strong believers in aspiration and perhaps sales of Lanvin accessories will spike, as a result of the voracious appetite for the Lanvin for H&M collection.

Here we are, believing in aspiration (and collaborations are a gateway, are they not?), yet we are still concerned about brand elasticity and musing on dilution of brand strength. If these collaborations continue, awareness and popularity aside, these brands are setting themselves up for a debate about pricing. If it costs $90 for a (collaboration) Lanvin blouse at H&M, where do they get off charging $2500 as its usual price? It may become tough to convince shoppers to pay 28 times more– whatever the reason.

Finally, as Monsieur Picart says so well the idea of a serious designer going to work for a more commercial brand is more of a marriage than a serious designer doing a one off collection, which he likens to a fling! He was, of course, referring to Uniqlo's (Japanese clothing behemoth) decision to hire top designer Jil Sander. Let' hope that it's a marriage made in heaven and not hell a la the Jil Sander, Prada fiasco...…

Image credit: www.collegefashion.net

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Study Determines Most Popular Luxury Brands in China 15/11/10

China is the world’s fastest growing luxury market. Here at the MO Down, we have certainly noticed that Chinese consumers are increasingly gravitating towards luxury brands, and luxury brands are in turn clambering to stand out and make themselves known. The habits of wealthy individuals in the Chinese market are still largely unbiased, brands are new and unfamiliar, and customer loyalty has not had time to develop. Something of a blank canvass, it's every marketer’s dream, right?

We were very interested to learn which brands seem to be getting it right. According to a survey conducted by luxury goods consultancy FDKG and Dr Lu Xiao of Fudan University, Louis Vuitton, Dunhill and Gucci are the three most popular luxury brands in China. The study canvassed the opinion of 800 wealthy Chinese, based on their spending habits. The survey claims to give the “most comprehensive understanding of the spending behaviour and aspirations of China’s ever-growing super-rich’, and is of serious relevance to the luxury brands seeking to engage with this highly lucrative market.

In a sense, many brands are starting from scratch when entering China, especially if they are unable to rest on the laurels of reputation. Marketing that works in Europe or America, could very likely be totally irrelevant in China. Common characteristics among respondents have endless marketing potential. One statistic we found of interest indicated that 90.9% of wealthy Chinese regularly give money to charity– see our article on social responsibility and how brands might use this as part of a marketing strategy. We are interested to see how brands approach this new market, and how strategies are adapted and replaced.

Image credit:about-sichuan-china.com

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