Classic Guide To Luxury Marketing


Luxury DailyTMA CLASSIC GUIDESeptember 2013 595THE NEWS LEADER IN LUXURY MARKETINGwww.LuxuryDaily.comClassic Guide toLuxury Marketing

CONTENTSPAGEPAGE3EDITOR’S NOTE: Focused marketing continues todrive desire for luxuryBy Mickey Alam Khan19Social, mobile consumers are disrupting digitalmarketing and ecommerceBy Shoplgniter’s Marko Z. Muellner4Does technology belong in-store?By Tricia Carr21Q&A: Luxury marketers lack fullomnichannel presenceBy iProspect’s Andrea Wilson6Print advertising should position product as heroBy Erin Shea23Elevated luxury storytelling in a socialmedia spaceBy Digital Brand Architects’ Karen Robinovitz8Q&A: Growth to be result of stepping out of luxurybrand’s comfort zoneBy Unity Marketing’s Pam Danziger25Q&A: Luxury brands must embrace shifts indigital technologyBy Morpheus Media’s Shenan Reed11Why luxury brands need two-fold mobile strategyBy Plastic Mobile’s Melody Adhami26Why smart luxury brands embrace bloggersBy Siegel Gale’s Elspeth Ross13Q&A: High-net-worthconsumers are more informedthan ever, but less loyalBy Affluent Insights’ Chris Ramey15Obstacle to opportunity:Showrooming and theluxury brandBy SapientNitro’s Chris Cobb17Q&A: Focus is what makesluxury brands successfulBy Ries & Ries’ Al RiesGucci Style application for iPadPAGE 2Luxury Daily CLASSIC GUIDE TO LUXURY MARKETING

EDITOR’S NOTEFocused marketing continues to drive desire for luxuryWhile the global economy is going through ups anddowns – trouble with the BRICS, marginal recoveryin parts of the EU and regained consumer fervor inthe United States – luxury brands and retailers havemanaged to hold their own and even grow.One of the contributing factors toward this luxury resilience issound marketing built on a foundation of strong brand values,continued stoking of audience desire and consumer engagement in the channels and mediums that matter.Yet, every now and then, even the more experienced luxury professionals seek marketing counsel from veterans, which is whatthis second Classic Guide to Luxury Marketing is designed to do:offer tactical, strategic and executional best-practice tips formultichannel marketing.Expert tipsIn this mix of opinion pieces, Q&As and reports from LuxuryDaily team members, readers will find valuable advice on disparate topics such as print advertising’s role in the product ashero, social and mobile’s role as disruptors and the clever artof storytelling.Also included are discussions on how affluent consumers areless loyal as they grow more informed, tips to handle the showrooming phenomenon, the lack of an omnichannel focus andwhy bloggers are key players. A must-read Q&A is on how focusis an important ingredient in a luxury brand’s success.A big thank-you to industry experts such as Unity Marketing’sPam Danziger, Affluent Insights’ Chris Ramey, Plastic Mobile’sMelody Adhami, SapientNitro’s Chris Cobb and ShopIgniter’sMarko Z. Muellner.Christian Dior’s Secret Garden campaignMany thanks also to Ries & Ries’ Al Ries, iProspect’s AndreaWilson, Digital Brand Architects’ Karen Robinovitz, MorpheusMedia’s Shenan Reed and Siegel Gale’s Elspeth Ross. Pleasereach out to these contributors and tap their expertise in luxurymarketing and retail.Finally, thank you to Tricia Carr for laying out the book and toErin Shea as well – they played a key role in this publication’scoverage of luxury marketing and retail. The Classic Guides arepart of Luxury Daily’s repertoire of luxury-focused media offerings, including the daily newsletter edition as well as annualconferences such as Luxury FirstLook, Luxury Roundtable andthe Luxury Retail Summit.Please read this guide cover to cover. It is designed to help smartluxury marketers get smarter.Mickey Alam Khanmickey@napean.comMickey Alam KhanEditor in Chiefmickey@napean.comTricia CarrErin SheaEditorial Assistanterin@napean.comMichelle NanceEvent Coordinatormichelle@napean.comJen KingEditorial Assistantjen@napean.comJoe McCarthyEditorial Assistantjoe@napean.com401 Broadway, Suite 1408New York, NY 10013Tel: 212-334-6305Fax: 212-334-6339Email: news@napean.comWeb site: www.LuxuryDaily.comFor newsletter rFor or reprints:ads@napean.comLuxury Daily is the world’s leading luxury marketing and retail publication. The Napean-owned franchise comprises Luxury Daily,, the Luxury Daily newsletter, Luxury FirstLook, LuxuryRoundtable, Luxury Retail Summit, Luxury Women to Watch, Luxury Marketer of the Year, Luxury Retailer of the Year, Luxury Publisher of the Year, Luxury Agency of the Year, Luxury Researcher ofthe Year, Luxury Daily Awards, webinars and Classic Guides.PAGE 3 2013 Napean LLC. All rights reserved. No part of this publication may be reproduced without permission.Luxury Daily CLASSIC GUIDE TO LUXURY MARKETING

Does technology belong in-store?By Tricia CarrDepartment stores and boutiques are where luxury Ecommerce works for luxury brands because shoppers canmarketers can present collections in a physical, tra- go at their own pace, access customer reviews and sugditional sense, but technology should be added in gested products and have a private shopping experience.some instances to show brand innovation.Yet, face-to-face interactions between a customer and aNow that ecommerce and mobile commerce are being sales associate are what drive loyalty.used by more affluent shoppers, the in-store setting couldbe considered the outdated path to purchase. But in real- “To illustrate, think about the sales associate who is able toity, stores remain to be a driver of sales and luxury market- make recommendations not from only past purchases, buters must add technology that makes the physical shopping from past conversations,” Ms. Albert said.experience relevant and desirable to wealthy consumers.“Who remembers that you like solids over prints and has“The store does not lie,” said Alexandre Meerson, managing a glass of Champagne waiting for you in the dressingpartner at La Boutique de Luxe, Paris. “It is entirely about room?” she said.people and product – product discovery, touch, experience and expertise – and all of this conveyed to customers “You not only become more loyal to that brand, but to theby passionate, trained, empathic and helpful brand relationship that has been created.”sales representative.At the same time, luxury marketers must also realize that“The store is also the place where surprise and delight affluent consumers do extensive research before they enreaches the maximum effect,” he said. “Most luxury brands ter the store, per La Boutique de Luxe’s Mr. Meerson.acknowledge this and are going back to basics, such asdesigning new sales ceremonies that focus on their per- Consumers constantly go back-and-forth between physisonality and value across all touch points, training sales cal and digital brand channels.representatives and deploying newCRM tactics to re-engage directly withtheir customers.”Be our guestRetail locations welcome consumersto experience and purchase from a luxury brand in ways that are not offeredvia digital.The most prominent added value inbricks-and-mortar is the customer experience, or simply, customer service, perCourtney Albert, management consultant at Parker Avery Group, Atlanta.Bergdorf Goodman personal shoppingPAGE 4Luxury Daily CLASSIC GUIDE TO LUXURY MARKETING

Luxury marketers that present tools for consumers tocheck item availability, reserve a product for storepick-up, contact a familiarsales associate or privateshopper and access theirloyalty account will seamlessly link their in-store anddigital commerce channelsto keep both alive.“The last few years were intense times of do-it-yourselfdigital retail when gimmickswere presented as innovations,” Mr. Meerson said.“Today, the priority is to acknowledge that in-store clients inform their decisionsonline,” he said.Technologically inclinedThe store should represent the 360-degree brand experience, so luxury marketers need to incorporate technologyif it is used in other parts of their marketing, Parker Avery’sMs. Albert said.Burberry’s Smart Personalization technologyTablets have been used in-store by some luxury marketersto offer extended inventory and other services.“I believe the store is a place for technology, especially withan omnichannal strategy,” Ms. Albert said. “This creates amore interactive experience for those customers who relyA pioneer in luxury marketing, Burberry introduced its new on technology, online and mobile channels, or who appreSmart Personalization technology during the first quarter ciate discovering on their own,” she said.of 2013.The made-to-order service offers custom outerwear andbags with engraved personalized nameplates that havea built-in technology, which allows them to unlockvideo footage.Customers can also choose to have their nameplates trigger videos on large-scale mirrors at the London flagshipstore on Regent Street, connecting the product, mobileand in-store experiences.Luxury marketers can also place digital content throughout the store such as videos from current marketing campaigns and product demonstrations to engage shoppers.PAGE 5Best-practice tips Technology adds value to the bricks-and-mortarexperience if it enhances customer service Sales associates can keep in-store shopping alivefor luxury brands with personal recommendations,service and mobile technologies If technology is used in some parts of the brandexperience, it should be used in-storeLuxury Daily CLASSIC GUIDE TO LUXURY MARKETING

Print advertising should position product as heroBy Erin SheaThe product should be the centerpiece of a luxurybrand’s print advertising strategy so that it can remain distinguished from others in the traditionalmedia landscape.“Print remains an effectivemedium for luxury becauseit’s something we can hold,touch and remember”Print ads can easily blend together since many luxury advertisers focus on the imagery, people or attitude that thead is conveying, and not the product. The luxury brandads that stand out are those that pull the focus back totheir products.Only when that impulse is triggered and the purchase ismade will the print advertising become successful.“Luxury ads are infamous for not being able to tell what adit is unless you read the name of the product,” said Milton “High production value is important, but an idea has to bePedraza, CEO of The Luxury Institute, New York.exciting and interesting to be truly original and effective,”Ms. Brenes said.“In the absence of the product-is-hero approach, advertisers are just selling imagery,” he said. “That does not sell a “Getting an ad to stand-out physically is also a key pointlot since this could be any luxury brand.of differentiation that luxury marketers tend to invest in,”she said.“Some of the best performing luxury ads feature the product as the hero, not the people.”Although print is important to the 360-degree brandstrategy, some luxury marketers are putting more weightRemaining relevanton targeting affluent consumers in a more cost-efficientToday, print advertising is still a relevant tool for manner, per Luxury Institute’s Mr. brands since the visual experience is a large part oftheir marketing.But luxury marketers have not yet abandoned print advertising altogether.“Print remains an effective medium for luxury because it’ssomething we can hold, touch and remember,” said Leane “They are not at the point where they are walking awayBrenes, creative director at Brenes Co., New York.from print since that glossy, rich feel of a magazine is hardto beat,” Mr. Pedraza said.“Luxury marketing is different in the way it approaches theconsumer, both creatively and strategically,” she said.“They are looking for other ways to get their brand imagery and their brand story out [to consumers],” he said.Stimulating visuals elicit emotions in consumers to purchase certain products.Leaders of the packSome luxury marketers have found ways to stand out fromLuxury marketers should aim to produce ads that the rest in their seasonal print advertising that emotional impulse and the need to have acertain product.For instance, Ralph Lauren dominated the very first pagesPAGE 6Luxury Daily CLASSIC GUIDE TO LUXURY MARKETING

The French jeweler reinvented its use ofthe panther while still keeping the focus onthe product.Cartier took out print ads in major publications for its Winter Tale campaign and topromote its Tank Anglaise watch next toyoung panthers.“Cartier’s branding is some of the best inthe luxury market today,” Brenes Co.’sMs. Brenes said. “They have proven that abrand can stay true to its roots, while beingrelevant and current.“This past year, Cartier’s campaign ‘L’Odysséede Cartier’ was across all channels,” she said.“The campaign reengaged the audience witha fresh new take on the panther.”Effective print campaigns such as Cartier’swill also drive consumers to experience thebrand on other channels.“Print can drive traffic not only to brick-andmortar stores, but also to digital storefrontswhere a brand can come alive even morewith rich media,” Ms. Brenes said.Ralph Lauren spring/summer print campaignof spring’s fashion magazines with advertisements for itsmen’s and women’s collection.The ads were typically a two-page spread, with at leastone page devoted to the product.“Ralph Lauren tends to be extremely good at showingproduct,” Mr. Pedraza said. “They show the product as thehero of the ad when other brands focus on the people.“In research that we’ve done over the past year, the adsthat are cited by consumers are the ones that feature theproduct as the hero, instead of featuring people,” he said.Additionally, Richemont’s Cartier looked to stand out inthe jewelry category with its holiday print campaign.PAGE 7Best-practice tips Print advertising should inspire consumersto purchase a product Advertising campaigns that are cited mostby consumers are those that

Gucci Style application for iPad PAGE 2 Luxury Daily CLASSIC GUIDE TO LUXURY MARKETING. EDITOR’S NOTE Focused marketing continues to drive desire for luxury Mickey Alam Khan Luxury Daily is the world’s leading luxury marketing and retail publication. The Napean-owned franchise comprises Luxury Daily,, the Luxury Daily newsletter,