Page 34 - BrandZ Top 100 Most Valuable Global Brands 2014

Section 03 | The Categories
Consumer and Retail | Luxury

At home on social media
Still, the China Outbound Tourism Action Points for Brand Building
Spotlight
Insight
Research Institute predicts that more
than 100 million tourists from China will
To control the brand experience,
travel overseas this year. Among brand 1. Be seamless
3. Be daring
brands typically created content for Link between label
larger screens, like tablets, rather than initiatives to reach these shoppers, and personal image The brand experience needs to be Don’t be afraid of mobile or digital. Don’t
Attitudes toward apps for smartphones. Fendi and Louis Burberry hired 150 Mandarin speakers as strategic, cohesive and seamless. be afraid to be irst. Digital is not only for
sales associates in key tourist destinations.
varies by region
ultra luxury embrace Vuitton presented content about Any gap between a brand’s identity young people. Digital doesn’t mean
experience, values
backstage at fashion shows, for example, Burberry also created special product in the physical and virtual worlds ecommerce necessarily. It’s an
providing a behind-the-scenes glimpse The importance of a designer needs to be explained.
opportunity to create a brand world
of the brand world.
offerings for important Chinese label as an expression of personal for a broad audience of both current
While affordable luxury is
occasions and holidays. And the brand image varies by region. In fast 2. Protect the brand
and potential customers.
entered into a partnership with Tencent,
still about status and display, Brands also engaged in sophisticated the Chinese Internet giant, to present the growing markets with rising A few years ago, in the effort to build
attitudes to ultra luxury are online games, which might involve a brand in social media and on Tencent’s middle classes, consumers are sales during hard times, some brands 4. Seek customers everywhere
changing. People who can
consumer posting a photograph with the more likely to view the label
afford ultra luxury are moving brand, connecting younger people with other online platforms.
as a relection of personal aimed wide. Today it’s more possible Fast growing markets are important.
away from physical goods the brand experience.
identity. The trend is sharpest in to narrow the audience and limit But brands need to get the geographical
As luxury sales in China slowed, brands brand dilution.
balance right. As more people return to
consumption, often to unique balanced the immediate desire to drive China. American and European luxury, there is enormous untapped
experiences and sometimes even Cartier presented its brand in an sales with the long-term need to consumers share similar attitudes. potential in the US and Western Europe.
to austerity. They’re increasingly elaborate movie fantasy of a leopard on a protect brand equity. Gucci reduced its But within Europe views also vary.
concerned with living responsibly worldwide journey that evokes historical
and the impact of excess on their heritage and positions the brand as exotic store openings while rolling out a Labels and personal image
children. The model for this and inimitable but contemporary. Hermès refurbishment plan to align the image of
its retail network. With less presence in China
behavior seems to be created
was playful and accessible online, where China, however, Prada opened locations
by the tech entrepreneurs, with it’s possible to purchase from the site. The in the major inland cities of Chengdu 50
their relatively modest displays brand’s relaxed feeling online contrasted
of wealth and the values
with the reserved elegance of its stores.
and Chongqing, bringing its China store UAE
they espouse.
total to 33.
48
Insights: BrandZM BigData
Burberry, which pioneered the presence
Anastasia Kourovskaia
of digital luxury and luxury online, Brazil
Vice President EMEA
featured a campaign called “Kisses with Insight
41
Millward Brown Optimor Google,” in which a person could seal an Different and desirable, Top 10 Luxury brands
Anastasia.Kourovskaia@millwardbrown.com
email message with a kiss. The recipient Italy
sexy and successful
Desirable 116
received the message in an envelope with 29
the imprint of the sender’s lips.
New social media The luxury category is no less
Spain
competitive than everyday price-driven Sexy 115
Burberry also collaborated with Apple, strategies protect
taking the images for its catwalk with categories. Successful luxury brands 23
Successful 112
the latest iPhone. The brand, which brand exclusivity
offer something distinct and different,
France
most often underpinned by a desirable Premium 120
attempts to present a seamless physical and sexy personality that then drives
and virtual experience, also opened As luxury brands increasingly use their premium.
13
concessions, outlets and 14 stores, social media they increase the risk Source: BrandZM database All brands average = 100
Chanel appealed to younger consumers including lagships in London, Chicago, of brand dilution. Many brands Europe
by offering cosmetics and makeup Hong Kong and Milan.
resolve this tension by using their
13
tutorials. In its messages, the brand online initiatives to invite people
attempted to project youth and frivolity Rolex launched its multimedia “Icon and to experience and interact with US
within the context of its heritage.
Rolex” campaign, featuring the faces and the world of the brand, its fashion
stories of famous people who wore shows, for example. But they
13
To protect brand exclusivity, Chanel Rolex watches, including Dwight limit ecommerce. This approach
UK
limited the products available for online Eisenhower, Winston Churchill, Martin introduces the brand to new
purchasing. In contrast, Coach made the Luther King, and Elvis Presley, with the audiences but drives customers 11
brand more accessible, opening more strapline, “Rolex doesn’t just tell time.
to physical stores.
stores, both lagships and factory outlets. It tells history.”
Germany
Slower US store trafic during the Eleanor Sellar
holidays impacted sales.
9
Fast growing markets
Associate Director Cultural Insight
Added Value E.Sellar@added-value.com
Social media intensiied the ongoing The slowdown in the economic growth
tension between brand exclusivity and
popular appeal. To maintain a productive rates of the BRICs impacted luxury Source: TGI 2013 / Base: All adults 18+
balance, brands often used the web to sales both in those countries and in Percent who agree: A designer’s label
North America and Europe where improves a person’s image.
express the essence of their brand in
sales to tourists from fast growing Europe includes the UK, Spain, Germany
a virtual world. But they limited the markets represent a large portion
and France.
products available through ecommerce.
of luxury revenue.

66 BrandZM Top 100 Most Valuable Global Brands 2014
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