AR_SMedia_Guide_Luxury

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Social Media Guide for

Luxury Brands

Content. Strategy. Optimization.



Abrams Research www.abramsresearch.com 646.370.1240 Digital & Social Media Agency2

Table of Contents3. Introduction

7. Translate Unique Brand Elements To Social Platforms

11. Adapt Business Practices To The Online Business Model

14. Identify and Expand Audiences

18. Empower Consumers

21. Manage Customer Relations

25. Conclusion

26. Addendum




““

Introduction

With over 75 percent o wealthy Internet users actively

using social media, the question is no longer i luxury

brands should utilize the web as a luxury market, butrather a question o how to do so. The dynamics o the

online marketplace continue to shit with the exponential

growth o social media platorms. Consumer behaviors

and expectations have changed.

The modern consumer demands more rom brands

especially luxury brandsthan what they have tra-

ditionally delivered or the past ty years. The days o

captive media audiences are coming to an end. As social

media establishes itsel as the premiere venue or inorma-

tion exchange, the conventional methods o messaging

avored by many organizations will become decreasingly

relevant. Although luxury brands ace unique hurdles,

they also stand to reap signicant rewards by embracing

social media. Social media is still a relatively uncharted

rontier or luxury brands, and the early adopters will

have a large advantage moving orward. Success will be

dependent on developing strategies that address the new

behaviors o the modern consumer online while appreci-

ating that luxury brands in social media must remain just

that, luxurious.

Success will be dependent on developing strategies that

address the new behaviors o the modern consumer online

while appreciating that luxury brands in social media must

remain just that, luxurious.

1. household income o at least $100,000

2. eMarketer, Auent Internet Users: How the Rich Live Online November 2007

3. Morpace, Omnibus Report, June 2010

4. ComScore, State o the US Online Retail Economy in Q1 2010, May 2010

5. “The New Face o Auence Study.” Dwell Strategy + Research, March 2010

6. Google AdPlanner, June 2010

7. Unity Marketing, How the Auent Luxury Consumer Uses the Internet and Social

Media: An In-Depth, Feb 2010

8. eMarketer, How Many Marketers Are Using Social Media, Dec 2010

The number o auent1 internet users is expected

to grow rom 43.7 million in 2006 to 57.1 million

in 20112.

Households o $100,000 or more spend on

average 23 hours a week on the webnine o those

hours on Facebook3.

Over 50 million unique auent US internet users visite

websites in March 2009, making up over a quarter o

the entire internet population or the month4.

Nearly 80% o consumers with an income o at least

$240,000 have at least one social networking profleusually Facebook7.

66% o auent Internet users conduct research

online beore making a major purchase5.

Four in fve US businesses with at least 100 employee

will take part in social media marketing in 20118.

Facebook reaches 51% o online households o

$100,000 or more6.

The Numbers




Luxury brands distinguish them-

selves through superior quality, rom

the actual product itsel to the in-

store experience to the cachet o the

brand. Purchasing a luxury good is

akin to making an investment. This is

why luxury brands take pride in every

step o the process, rom design con-

ception to production. Social media

can help demonstrate to consum-

ers the level o cratsmanship that

goes into production and can serve

as a powerul way to showcase the

luxury dierence. Impactul, turn-key

solutions such as providing vintage

pictures or linking to old newspaper

clippings help consumers appreciate

the signicance and history o what

they are buying.

““Impactul, turn-key solutions such as providing vintage

pictures or linking to old newspaper clippings help

consumers appreciate the signicance and history o what

they are buying.

The LuxuryDifference

While social media has empowered consumers with deeper insight, it has also

had an unintended consequence or luxury brands. In the past, communica-

tions rom luxury providers to consumers were provided through tightly con-

trolled traditional media channels (print, television, direct marketing, etc.) to

infuence the conversations o the elite. For the most part, only those with themeans to purchase luxury goods had infuence on the desirability o particular

goods and services. Simply put, luxury consumers made purchase decisions

based on other luxury consumers.

Social media has opened doors to give more consumers access to both inor-

mation and products previously unavailable to them. With respect to luxury

brands, what is desirable or undesirable is no longer the sole purview o the

traditional luxury audience. While portraying that image remains crucial in

social media, the reality is that even

non-luxury consumers can now have

an impact on the success or ailure o

luxury brands. When providing their

“two cents” online, a suburban teenag-

er in Orlando is on equal ooting with

a socialite rom Paris. Over time, a

crowd o relative unknowns can create

a tipping point or a product’s success

or, i they so choose, ailure.

Many o the qualities that luxury

brands are built on such as tight qual-

ity control and immersive shopping

experiences, may seem contrary tothe nature o social media communi-

cations. Certainly, the use o social

media inherently trades some control

or increased engagement. The reality

is that discussions about brands are

happening already and will continue

to fourish with or without the direc-

tion o the brands themselves.

The Luxury Dilemma

Challenges Online

•Creating an online experience thatmeets or exceeds brand standardsand consumer expectations.

•Relinquishing some control to giveconsumers a sense o brand owner-ship via user generated content.

•Adopting a social media mindsetand participating in two wayconversations.

•Recognizing that luxury brandsrequire a more sophisticated social

media presence than other brands.•Devoting the appropriate amounto resources to make social mediaa priority as part o an overarchingmarketing strategy.



Abrams Research www.abramsresearch.com 646.370.1240 Digital & Social Media Agency

Luxury brands ace a choice: infu-

ence the conversations themselves or

be drawn into the ray through less

desirable circumstances. Blogs and

platorms like Gilt have, or better or

worse, opened up access to luxury to

a larger audience. Luxury brands can

no longer aord to dierentiate pure-ly on higher price points and claims

o quality. Brands need to prove their

worth online in other ways.

A luxury brand requires stringent

attention to the qualities that make

the brand what it is. To maintain that

level o quality online requires a com-

mitment o both human and nancial

resources. Corners cannot be cut just

because it is the internet. Cheapening

a brand’s image online has the same

negative eects as it would in the real

world. A semi-unctional website; a

dead social media prole; an inad-

vertently tacky sponsorshipcan all

actor into a brand’s downall. Due to

the ckle nature o brand equity, any

social media marketing done without

a well-researched approach and ull

scale commitment is highly risky.

Social media marketing shares aundamental similarity to other mar-

keting eorts: with a well-developed

strategy and good execution, brands

stand to gain in the short and long

term.

“ “The reality is that discussions about brands are happening

already and will continue to fourish with or without the

direction o the brands themselves.

Despite the economicdownturn that hadpundits earing theworst or the luxuryindustry, Giltarevolutionary mem-ber’s only shoppingwebsite that holds 36 hour “ash sales” selling labels like Christian Louboutin aDerek Lam and luxury travel packages at prices around 70 percent o retailhamore than thrived. In 2009, just two years ater launch, Gilt has posted revenue

o $170 million and or the year 2010 expects between $400 and $500 millionGilt’s over 2 million members are also predominantly emale, young and high-in-comea target audience or many luxury brands.

Gilt has changed the ashion industry by allowing both small and large luxurybrands to unload merchandise. Moreover, Gilt has undamentally altered how cosumers shop or luxury. It has given consumers rom Paris, France to Paris, Illinoaccess to exclusive brands at insider prices previously only available at New YorkCity sample sales. Gilt has also transormed the notion o online “retail therapy”as Forbes put it “o logging into a site and clicking “buy,” rom something mundaand impersonal to something exhilarating, with its blink-and-you’ll-miss-it salesand aura o exclusivity.”

In many ways, Gilt is both riend and enemy o the luxury business. On one handGilt is undamentally a discount shopping rack which cuts proft margins rom thbrands it sells. From a business perspective, however, it doubles as a risk-sharinplatorm since Gilt contracts with brands to unload a mix o inventory that includboth “home run” products as well as a brand’s more speculative or unsold stockAnd whereas a department store may take a whole season to unload product, Gis expected to do it within 36 hours.




Social media or luxury brands is no longer an optional marketing consideration. The denition oa luxury consumer and o luxury itsel has changed. Luxury brands must deliver brand experiencesonline to see continued success. With a deep understanding o how these new tools can be usedappropriately, brands can harness the power o social media to directly communicate with theiraudiences, promote their brands and urther their brand equity.

This guide explains how luxury brands can best accomplish these goals in social media and oerssolutions or particular challenges. Additionally, this guide presents case studies o luxury brandsto illustrate the industry best (and worst) practices.

1. Translate unique brand elements to social platforms

2. Adapt business practices to the online business model

3. Identify and expand audiences

4. Empower consumers

5. Manage customer relations

Abrams Research

Roadmap




Luxury brands oer a uniquely

polished experience to the consumer.

Many high end brands have been

wary o creating a signicant onlinepresence because they eel their

brand experience does not translate

to digital media. While this may have

been the case initially, the web now

allows brands to create an online

experience that compliments and

enhances even the highest end

luxury business’s brick and mortar

operations.

Consumers now eel entitled to the

same seamless luxury experience

online that they are guaranteed when

interacting with a brand in the real

world. Luxury businesses must deliver

on the brand proposition online

across all web properties and social

media proles. Social media’s low

barrier to entry gives many brands a

alse sense o ease, leading to hap-

hazard attempts that do not represent

the brand well. Brands that leave up

abandoned Facebook proles likeManolo Blahnik (as o De-

cember 2010) lose

credibility

to those like

Chanel who

Best Practices:

• Treat the web and social media asan extension o your brand becausethat’s how consumers view it. Makesure that aesthetics and unctional-ity are consistent with the brand’soine image.

• Identiy qualities that defne the

brand and ensure those traits mani-est themselves across all onlineoerings, rom the brand website tosocial media profles. Cohesion isparamount to success.

• Establish objectives, benchmarksand metrics or all social initiatives.This oten means scrapping ideasthatwhile un and innovativearenot conducive to a brand’s long termsuccess.

• Do not try to simply re-create thein-store luxury experience online,expand on it! Give the consumerincentives to visit you online andin-store.

“ “To avoid this pitall, a good digital and social media strategy

rst identies the essential qualities that dene the brand,

then packages those qualities into relevant content and nally

delivers it to their audience(s).

commissioned director Martin

Scorcese to create a Bleu de Cha-

nel YouTube video. Unsurprisingly,

consumers hold luxury brands to amuch higher standard online, just

as in the real world. Thus it is o ex-

treme importance that a luxury brand

maintains its ethos, value proposition

and quality o experience. I a luxury

brand’s voice online is at odds with

its image in other media, this cre-

ates a dissonance in the mind o the

consumer.

To avoid this pitall, a good digital

and social media strategy rst identi-

es the essential qualities that dene

the brand, then packages those

qualities into relevant content and

nally delivers it to their audience(s).

Ultimately, succeeding online and

in social media is about consistently

staying in character. To do so, a

brand’s digital strategy must include

insights into their own brand as well

as insights into their consumer’s

expectations online.

1. Translate Unique Brand Elements To Social Platforms




been served in a way that aggravates the user (opening

extra windows, using burdensome amounts o Adobe

Flash, making navigation complicated, etc.). Otentimes,

a user will click a eatured link expecting to learn about

the brand and instead be delivered a heavy dose o fashy

marketing.

For would-be and current consumers o ve to ten thou-

sand dollar watches, the Cartier website should not be

used as a cheap opportunity to hawk watches in bulk.Cartier should have used its web properties to com-

municate its brand narrative and speak to its consumers

in a way they would not be able to through traditional

media. Integrated lm, archival ootage, and a personable

blog are all options that Cartier should have explored.

Cartier should ocus on the qualities that dene its brand,

like timelessness and attention to detail, and create web

properties that refect those principles.

ten, brands that are new to social media make themistake o constructing web and social media properties

at odds with the core brand image because they

try to do too much. Cartier, one o the most a-

mous luxury watchmakers in the world, ell into

that very trap. While digital tools are diverse

and powerul, the key to success on the web is

oten about narrowing its scope. For a luxury

brand, that means guring out the must-have

list o brand elements and making sure that

they come across online.

Cartier put in small copy on their websitethat “the brand is proud o its technical excel-

lence…and reputation as a master watchmaker.”

The Cartier site, however, has been the opposite

o technical excellence and obuscates one o the more

compelling aspects o the brandits storied history and

reputation. Online, well-designed user interaces and

ease o use are reminders o a brand’s quality. On Cartier’s

site, the ascinating pieces o content that do exist have

O ““

Online, well-designed user interaces and ea

o use are reminders o a brand’s quality.

Case Study:

Cartier




and sophisticated as

anything you would

expect shopping

in-store.

While the website

has been primarily

ocused on e-com-

merce, Tiany & Co’s

has used Facebook as

a content-provider

that speaks to the brand’s relevance in exclusive parts osociety. Facebook is a choice platorm or providing con-

sumers with snippets o a brand’s narrative. In this case,

Tiany & Co’s prole is lled with pictures o celebrities

wearing Tiany pieces, as well videos o Tiany & Co.

galas and parties, which all eeds back into the brand’s

importance to elite American culture.

Tiany & Co. has also made it easy to take a slice o the

brand experience on the go by creating a ree iPhone

app that allows its users to browse their amed line o

engagement rings. The app contains tools to help pur-

chase online, down to choosing the carat size and sizingthe ring. The high quality app carries the same simple

elegance that Tiany & Co exudes in all o its marketing,

and oers a valuable tool or anyone investing in a

Tiany piece.

Tiany has successully repur-

posed its historical and cultur-

ally signicant brand experience

online across all o its web prop-

erties, and as a quintessential

American brand, Tiany & Co.

continues to set the standard or

luxury, even in the digital and

social space.

he quintessential American luxury brand, Tiany & Co.

built its name on a legacy o associations with American

institutions and icons like the White House and Jackie

Onassis. As one Tiany & Co. an put it: “what woman

doesn’t swoon at the sight o the signature Tiany blue

git box?” Audrey Hepburn in “Breakast at Tiany’s”

remains one o the most amiliar images in the history o

American cinema. It is with those sentiments that Ti-

any & Co.’s brand proposition moves beyond sales o

sparkling diamond necklaces, to selling

glamour that carries historical and

cultural signicance.

On the web, Tiany & Co’s strategy

has been twoold: create a simple yet

stylish shopping experience, and remind the audience

o its standing in the cultural upper echelon o America.

Although the Tiany & Co site has had a stylized edito-

rial eel, the overall shopping experience is straightor-

ward and intuitive. The ocus o the site is clearly on

e-commerce and shopping is made to be reminiscent o

the in-store experience, with jewelry arranged by price,

designer, collection and gem. Featurettes on the brands

storied history are sprinkled throughout the site but donot distract the user rom shopping. Overall, the suc-

cinct messaging and clean design o the web property

have created a shopping experience that is as eortless

T

Case Study:

Tiffany & Co.




picture o Kate Moss

in a Balmain dress.

Neither the webpage

nor the Twitter handleare properties bet-

ting a designer once

considered a “king o

French ashion,” nor

strategic as to the

company’s desire to

remain cutting edge in

the ashion world.

Balmain’s website and Twitter handle are the antithesis

o current as neither medium allows ans to connect withor learn rom the brand in a meaningul way. Leaving a

halhearted attempt at a Twitter presence active sends

the same message that a hal nished magazine adver-

tisement does and Balmain has

appeared sloppy and unpolished.

Balmain should have taken steps

sooner to counteract the conse-

quences o this page by either

shutting it down or directing ans

to alternate channels o communi-

cation. Balmain would have been

better o creating an entirely newwebsite that refects its brand es-

sence and devoting an employee

to maintain the Twitter account.

ince Pierre Balmain’s death, The House o Balmain hasundergone several regime changes which have taken the

brand rom 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-

ting roots. Unlike its clothing, Balmain’s web presence has

refected neither its changing identity nor its commitment

to modernity.

For a brand that has looked to shake

things up, Balmain’s antiquated

website is bland and un-inspiring.

As o January 2011, the site or-mally presents the runway collec-

tions and e-boutique without any

o the glitz and glitter inherent in a

night out on the town. Although Balmain has never been

araid to be over the top, the site is minimalistic and lled

with static content that should lead to extra eatures, but

does not. The web property looks more like an amateur

blog than it does a luxury ashion house’s webpage, as

it has used minimal graphic design and a lo- interace.

Balmain’s brie oray into social media has been similarly

bland and amounts to an abandoned Twitter handle. Theaccount--@balmainparis-- as o the start o 2011 had over

7,000 ollowers but only two tweets: one that directs ol-

lowers to the Balmain website and another to a

S

““Leaving a halhearted attempt at a Twitter presence active sends the same message that

a hal nished magazine advertisement

does and Balmain has appeared sloppy and

unpolished.

Case Study:

Balmain




The principles o marketing in social

media oten fy in the ace o tradi-

tions that have dened luxury brands

or decades. Social media’s democra-tizing nature is a particular challenge

or luxury brands, since much o the

luxury cachet historically comes rom

controlling access. In the physical

world access can be synonymous

with brand dilution. In social media,

access is the currency itsel.

Otentimes, a brand will want to

modiy existing traditional media

campaigns to t into digital and so-

cial media platorms-- or example, to

try to turn a billboard into a banner

ad or a bus shelter placement into a

Facebook prole picture. Brands like

Zac Posen (whose website, ZacPo-

sen.com, has been little more than a

gloried catalogue) risk insulting the

internet savvy consumer who realizes

old marketing has been orced to t

the web. Although in rare instances

that may work, the better approach is

to identiy the core idea that denesa brand and/or a campaign and use

that to inorm the digital and social

media work. This strategic approach

ensures the digital adaptation o the

campaign is a more relevant creative

execution.

Best Practices:

• Don’t orce traditional mediacampaigns into social media. Startrom the planning stage and identiythe insight or the core message thatneeds to be communicated.

• Every brand has an ethos thatcan be the centerpiece o messag-ing in social media, whether it isimpeccable customer service, or acommitment to innovation.

• To decide what type o contentto oer online, fnd what continuesto draw your brand loyalists, andexpand on it.

• Digital consumers are savvyenough to dierentiate between PR/ marketing material and authenticcontentgive them the latter.

There is no template in social media

that works or all luxury brands. In

some cases, a luxury brand’s archival

work is rereshingly relevant in social

media (as has been the case on sites

that ocus on historical brands, such

as Michael Williams’ AContinuous-

Lean.com). Other times, an entirely

new strategy must be developed rom

scratch, using only the core message

and insight rom initial brainstorms.

2. Adapt Business Practices To The Online Business Model




mini historical documentaries on the cars and brand (ex:

Origins o the BMW Logo). BMW TV rewards enthusi-

asts by letting them eel “in the know,” ensuring that this

group will continue to back the brand.

The selection o online video as a platorm was likewise

deliberate: videos on YouTube and bmw.tv are embed-

dable in blogs and message boards, which are the mainweb properties used by online car enthusiasts. Impor-

tantly, both the page and the content have carried the

trademark look and eel o the BMW branda nod to

the brand’s willingness to devote

resources to maintaining the brand

proposition. The BMW TV content

has allowed both existing ans and

curious potential consumers to learn

more about “The Ultimate Driving

Machine” in an intellectually honest

way. Consumers appreciate BMW or

not speaking down to them.

MW TV, which has its own YouTube page as wellas its own microsite, has been a perect adaptation o

a brand message onto a social media platorm. To hear

it rom Forbes.com: “There are three reasons why the

BMW brand scores so highly: consistency, patience and a

simple, upbeat message. It has been beating the drum or

25 years that BMW oers customers the ultimate driving

machine. “BMW is very, very consistent in providing the

product line that echoes what the brand is all about...”

(Forbes.com, The Best-Driven

Brand, July 2002) BMW, which has

driven this message home through

traditional media and event market-ing, has smartly recognized the im-

portance o continuing that strategy

on the web.

In creating BMW TV, BMW sought

to speak directly to their brand loyaliststhe luxury per-

ormance car enthusiast. BMW has used its insight into

its consumerseducated, early-adopters o technology,

appreciative o education about car-racing and tuning

to deliver content that supplements as well as reiterates

the brand message. BMW did not skimp when pouringresources into video production to make high quality

videos that look and sound proessional. The videos range

rom interesting and innovative advertising clips to

B

Case Study:

BMW




also leveraged itsTwitter account (one

o the more celebrat-

ed Twitter accounts

in ashion circles

because o its honest

voice and requent

posting), OscarPR-

Girl, to “live-tweet”

rom the show (a orm

o minute-by-minute

coverage o an event).

This provided yet another platorm or internet ash-ionistas, a powerul and growing demographic, to eel

connected to the brand.

Oscar De La Renta seized an opportunity to pioneer

both the brand and his industry on the web. Ater

embracing the evolution o ‘private’ to ‘public’ caused by

social media and adapting his brand’s marketing strate-

gies to it, Oscar De La Renta quickly came to be seen as

a luxury brand that “gets it.” According to the 2010 L2

Luxury Digital IQ Index, Oscar De La Renta was ranked

11th. By opening the door to throngs o ollowers whomight not otherwise be able to experience a runway

show, Oscar De La Renta traded a marginal amount o

exclusivity or a much larger amount o brand loyalty and

industry infuence.

Luxury brands can and should

reassess their marketing eorts,

identiying those initiatives that

are currently only or industry-

insiders. With an open mind

and the right platorm, some o

those exclusive initiatives can beadapted to reach a bigger audi-

ence without any detriment to the

brand itsel.

ithout a doubt, the role o a runway show haschanged. In the past, the show was principally or buy-

ers. While they are still a key constituency, we also show

or the media. Online media is increasingly infuential

in ashion. This allows that group and others that can’t

attend in person to see things in real time. It’s evolution.”

- Oscar De La Renta.

In ashion, it is not enough to just stay

relevant and ollow trends as they

emerge. Any noteworthy ashion house,

rom the established like Gucci to rela-

tive newcomers like Elie Tahari, seeks topush the envelope in terms o both

the ashions themselves as well as

brand image. According to Oscar

De La Renta’s prole in New York Magazine, despite

being “the tailor o note or women o a certain age…

[De La Renta]’s begun to court a slightly younger, hipper

customer.”

To adapt this overarching marketing strategy and simulta-

neously evolve his industry, Oscar De La Renta partnered

with Livestream.com to broadcast his runway show liveonline. An event previously accessible only to ashion

media and the social elite suddenly opened up to anyone

with an internet connection and a computer. The brand

“W

Case Study:

Oscar De La Renta




Once a brand has successully trans-

lated its core traits online, it must

nd the corresponding digital spaces

that coincide with its marketing

strategy. Despite the trend o brands

impulsively joining the largest social

media sites, the “one size ts all ap-

proach” is not appropriate or luxury

brands. Platorms like Facebook and

Twitter are called “social” networks

because they oster relationships.

Consumers look to orm connections

with brands that have personality.

““

Audience building is not always about breadthit can be

about narrowly targeting the audiences that know how to

leverage social media on your behal.

When a brand uses a social network

as another venue or press releases,

like Chloé has on Facebook, consum-

ers lose interest in engaging with

the brand. Just like any aspect o the

luxury business, establishing a social

media presence requires detailed and

extensive planning. The reckless use

o social media to increase exposure

can hurt the brand in the long term.

Even though the possibilities or

interacting with online communities

are immense, any attempt to do so

3. Identify and Expand Audiences

must be done with the same care and

commitment that a traditional com-

munication would command.

For luxury brands, the challenge is in

harnessing digital and social media to

promote the brand while still cul-

tivating an aura o exclusivity. One

way o doing so is targeting infuenc-

ers, such as prominent bloggers like

BryanBoy.com or GemGossip.com,

who sway the consumption desires o

their readers.

““

Despite the trend o brands impulsively joining the largest

social media sites, the “one size fts all approach” is not

appropriate or luxury brands.




Best Practices:• Identiy the online spaces andsocial media platorms that best ftwhat and how the brand wants tocommunicate. Discussion boardsare not or every company.

• Create individual strategies totarget particular consumer segmentsbased on how they behave online.For example, according to GoogleAd Planner data, 0-17 year oldsdisproportionately use Myspace and

$100,000+ income earners don’tuse it much at all.

• Don’t be average in many socialmedia platorms; be excellent inone or two by allocating resourcesefciently as opposed to spreadingthem thinly.

““

The new “era o customization” presents a prime opportunity

or luxury brands to strategically oer unique and exclusive

experiences to targeted subsets o consumers.

3. Identify and Expand Audiences (continued)

Audience building is not always

about breadthit can be about nar-

rowly targeting the audiences that

know how to leverage social mediaon your behal.

While the internet is an equalizer, in

many cases audiences still sel segre-

gate, orming groups o like minded

individuals through orums, messages

boards and blogs. Importantly, the

sharable nature o social media oten

means that brands can communicate

with niche communities who will

spread brand messaging on their

behal to a wider audience. The elitestatus desired by purchasers o luxury

goods parallels the insider access

that social media users crave. Thus,

social media can be another venue

or brand evangelists to show o

their standing to others. By limiting

direct communication to target audi-

ences, luxury brands keep the cachet

and elite quality o the brand intact

yet benet rom consumer endorse-

ments within their social networks.

Luxury brands are renowned or their

highly personalized brand experi-

ences which allow customers toorm emotional connections to their

products. Fortunately, the internet is

increasingly ocused on the idea o

personalization, where all content

is customized or the consumer and

customizable by the consumer. The

new “era o customization” presents a

prime opportunity or luxury brands

to strategically oer unique and

exclusive experiences to targeted sub-

sets o consumers. This can include

everything rom invite only commu-nities to access to private sales. By

employing dierent tactics or dier-

ent audiences, luxury brands can still

maintain exclusivity without alienat-

ing potential customers by ignoring

them online. Savvy brands will utilize

a diverse portolio o social media

strategies to reach niche communities

and/or the mass market through each

distinct online platorm.




Case Study:

Coach

and brand preerence.

Since Coach limited

its direct outreach to

bloggers, consumer

participation in the

contest happenednaturally. The partici-

pating blog reader

did so because a re-

spected blogger,

not Coach, asked

them too. Consumers

who saw an involved

riend’s social shout out on Facebook or Twitter were

even urther removed rom Coach’s marketing eort and

thus the endorsement was that much more credible.

By oering prizes and allowing bloggers to use theCoach name, the Poppy Project tactically engaged

the blog community with both intangible and tangible

incentives. Consumers treat

social media as a orm o personal

brand-building, and mentions and

displays o brandsmuch like

namedrops during a social conver-

sationcontribute to this activity.

Coach’s orward looking strategy

provided the brand with a built

in network o bloggers to call on

or promotions or (avorable)

coverage o Coach products.

Coach understood that in social

media the approach is oten to

reach a specic, narrow audience

and let the ripple eects o an

eective communication spread

organically.

n the summer o 2010, Coach created the “PoppyProject” which aimed to generate buzz or its new line o

Poppy bags. Coach reached out to bloggers to install a

Coach-created Poppy “widget” onto their blog page and

oered prizes to the most engaged bloggers as well as

readers who spotted a Coach bag via the widget. Coach’s

successul blogger outreach created an army o over 400

bloggers who sel promoted the “Poppy Project, spread-

ing a trail o poppies across the web.

By specically targeting ashion blogs,

Coach reached niche communities with

a demonstrated interest in ashion.Visitors to the participating blogs

saw the prominently eatured Poppy

widget every time they requented

the blog, reinorcing exposure to the

new line o bags or the duration o

the contest. Since bloggers not only

eatured the Poppy widget on their site but urged their

audience to share the contest with their social networks

on Twitter, the Poppy Project spread to audiences Coach

couldn’t have otherwise reached eectively.

For the consumer, a avorite bloggers endorsement o

a brand or product can carry equal weight as a riend’s

recommendation, strongly infuencing purchase decisions

I

““For the consumer, a avorite bloggers endorsem

o a brand or product can carry equal weight a

a riend’s recommendation, strongly infuencin

purchase decisions and brand preerence.

Case Study:

Coach




Case Study:

Jimmy Choo

purchases. The brand’s decision to do a one-o, highlyentertaining and interactive campaign on social media

created buzz that had a lasting impression on consumers.

Curiously, the “Trainer Hunt” had its own Facebook

and Twitter pages, which was a missed opportunity to

centralize all trac and ans onto corporate Jimmy Choo

web properties that would live on ater the campaign.

Once the promotion ended, any new audiences who

connected with the brand were lost as the Trainer Hunt’s

pages lost their relevance. Furthermore, driving tra-

c to the corporate web properties would have been an

opportunity to deliver non-Trainer Hunt content to a re-ceptive audience. Since online attention spans are short,

it is unlikely that many ans took the additional step o

connecting with the corporate properties. In act, several

months later the Trainer Hunt still has ans and ollowers

o its own, although the accounts are inactive.

Despite the immediate success o the “Trainer Hunt”, the

company still overlooked its ability to retain its new au-

dience and build the brand long term. It is important or

luxury brands to think about the ater eects o a cam-

paign, including how to keep the audience and goodwillthat was created.

n partnering with geolocation platorm Foursquare,Jimmy Choo creatively turned the metaphorical pursuit

or its products into a physical one. Jimmy Choo’s 2010

“Trainer Hunt” helped the brand reach new audiences

by oering the general public the opportunity to win a

pair o its new trainers (aka sneakers or those o us on

the other side o the pond). During the campaign, clues

were let online so that anyone ollowing on Foursquare,

Twitter or Facebook could chase the shoes around Lon-

don, trying to nd and win them. The trainers smartly

“checked in” to trendy locations such as the members-

only Morton, synergizing the trendiness o the

visited locations with the shoe brand itsel. It wasprecisely Jimmy Choo’s decision to highlight

the allure o the brand as well as oer a tan-

gible incentive that made the initiative such

a success.

As the rst brand to check in an

objectinstead o a person on

Foursquare, Jimmy Choo innovatively used social media

to create desire or a new product. According to digital

agency FreshNetworks, the promotion ultimately in-

creased sneaker sales by 33%. For everyone who ollowedthe hunt in real lie or digitally and did not win a pair,

the time investment into Jimmy Choo primed uture

I

Case Study:

Jimmy Choo




Traditionally, brands have construct-

ed messagingadvertisements, press

releases, mailingsetcwith the

captive audience in mind. By its very

nature, social media is not an eec-

tive tool or broadcasting to captive

audiences or speaking to them in a

way that presupposes their inability

to walk away. In old media models,

consumer recourse was usually lim-

ited to, to borrow an economic term,

“exiting the market” e.g. fipping the

magazine page or turning o the

television. In social media, however,

consumers have a host o options at

their disposal to respond to welcome

or unwelcome messaging, and they

can do so with disproportionately

wide reach.

Consumers oten identiy themselves

by items that they purchase and

what the brands o these products

represent. Consumers can use luxury

brands as status symbols, broadcast-

ing their association within their

social circles or personal brand

building eorts. Online, consumers

concretely map out their identities

by selecting interests and brand a-

nities to publicly display on their

social proles. By “liking” brands on

Facebook or sharing content about a

brand on Twitter, consumers add to

their online credentials while simul-

taneously promoting the brand. For

luxury brands, this authentic en-

dorsement is the most valuable orm

o online advertising.

Best Practices:

• Deepen the brand consumerrelationship by becoming part o theconsumer’s online status and iden-tity. Allow them to aunt the brandto their riends.

• Bring the consumer into the brandnarrative through creative marketinginitiatives that incorporate user gen-erated content, such as encouragingphoto uploads.

• Humanize your brand by directlycommunicating with ollowers andletting the brand’s personality shine.Reply to comments and answerquestions that will be seen by other

consumers.

• Deliver content that provides newperspective on the brand. Obscurehistorical acts and glimpses into abrand’s archives add to the lore othe luxury brand’s narrative.

““

Brands can harness this genuine advocacy by creating

interactive platorms that weave consumers’ experiences into

the brand narrative.

Since online audiences are constantly

on the hunt or content to digest

or entertainment and/or share or

personal brand-building purposes,

brands have a huge opportunity to

connect with them. Creating content

has become a collaborative process.

Many consumers publish stories and

pictures that describe their relation-

ship with brands. Brands can harness

this genuine advocacy by creating

interactive platorms that weave con-

sumers’ experiences into the brand

narrative.With the right strategy and

execution, brands can become a part

o the consumer’s online identity and

vice versa.

For consumers, online empowerment

comes rom being given access andinormation. Fans want to socialize

with brands the way they do with

their riends. Consumers eel special

and wanted when they associate with

avorite brands on social networks.

O course, this is usually antitheti-

cal to the way luxury brands live in

the real world, where brands like to

maintain a sense o exclusivity. Just

teen years ago, a brand like Louis

Vuitton would not have been able

to bring consumers en masse into its

leather-making acilities. Now, how-

ever, that is exactly the kind o ex-

perience the brand can oer online.

Savvy luxury brands see social media

as an opportunity to deliver content

that provides a deeper experience o

the brand. Social media consumers

4. Empower Consumers

abhor blatant marketing eorts and

welcome content that involves them

personally. The latter ultimately re-

sults in the kind o good advertising

that a luxury brand would tradition-

ally budget ar more or. For luxury

marketers, the key is to build a social

identity or the brand that urthers a

consumer’s emotional attachment to

the brand.




Case Study:

Burberry

editorial eel o the

site has made users

eel like they are part

o a magazine spread.

Second, the site has

been designed to be

both a stand-aloneworld as well as easily

shared with other so-

cial media platorms.

Within the site, users

can easily browse,

“like”, “comment”, or “share” content seamlessly across

Facebook and Twitter. Many users uploaded pictures o

themselves and shared their content or their riends to

comment on and see what a ashionista/o said.

The Art o the Trench received signicant coverage inthe online ashion world and was lauded or its simple

concept and smooth user interace. Access the platorm

now, a year ater its inception, and there is content

provided rom users all across the globe. Burberry has

taken a ocused approach to a pre-existing conceptuser

generated contentand managed to make

it both luxurious and un- call out. By curat-

ing the crowdsourced content, Burberry has

ensured the site continues to be both authen-

tic and appealing. Users have been tempted

to submit a photo since he or she becomes

a eatured part o the platorm, showcasedinstead o stored away in an album. Everyone

understands how Burberry’s platorm works

because they have seen it beore, and partici-

pating is as simple as uploading a photo. The

site has empowered an international commu-

nity to become a living online scrapbook o

the Trench Coat that has produced essen-

tially ree advertising or Burberry.

uring the 2010 London Fashion Week, Burberry Cre-ative Director Christopher Bailey tweeted that Burberry is

“now as much a media-content company as [it is] a design

company because it’s all part o the overall experience.”

Burberry lives up to Bailey’s words with its content rich

site, Art o the Trench.Taking a cue rom user-generated

content platorms such as Lookbook.nu (a website or

users to share pictures o their daily outts)

and Facebook, Burberry teamed up with Scott

Shuman o The Sartorialist to create a

standalone social media property or the

iconic Burberry Trench coat. The site

is designed or ans o the Trench Coatto enter pictures and stories about their

coats into a visual database that they can

participate in and share with riends. The

result has been a user-generated scrap-

book o all things Burberry Trench Coat.

Burberry knew that their Trench Coat was

already a recognizable piece o culture but

needed a way to bring together consumers on that one

commonality. Burberry also recognized that in social me-

dia many users like to show o and carve out their owninternet ame, to build their personal brands. The Art o

the Trench platorm has taken advantage o both insights.

First, the content has been almost entirely driven by users

who upload pictures o themselves in their own Burberry

Trench coat, creating a sense o ownership. Also, the

D ““Burberry has taken a ocused approach to

a pre-existing conceptuser generatedcontentand managed to make it both

luxurious and un.

Case Study:

Burberry




Case Study:

Gucci

quality as your product. Get back to the drawing board.”

While expanding their niche to encompass luxury

living was a natural t, Gucci hurt the brand’s equity by

not making sure the experience was up to par. Gucci

could have easily integrated ashion by using the app

as a platorm to propose and sell Gucci products to pair

with nights out at recommended restaurants and venues.

While the Gucci brain trust recognized that social mediacould be used to add dimension to a brand, they ell

short o successully using it to add value. Gucci seems to

have learned a lesson here since subsequent releases o a

revamped app turned it into one o the better luxury apps

available.

n late 2009, Gucci released an iPhone app that wasdesigned to give users a taste o the Gucci liestyle,

complete with hotel and restaurant recommendations

by Gucci’s creative director, a music channel and a Mark

Ronson inspired game allowing users to mix their own

music. In theory, Gucci sought to extend the brand by

associating Gucci with the latest and greatest across the

luxury liestyle category.

In practice, however, Gucci made glaring mistakes: First,

Gucci ailed to make its core businessashionan

integral part o the app, cheapening both the app and the

brand by ailing to deliver on user expec-tations. Users were not able to browse

many o Gucci’s collections and

archives and could not use the app

or e-commerce unctionality. This

might have let many eeling that

Gucci’s main area o expertise was

being underserved. Secondly and

more importantly: Gucci did not ap-

ply the same quality control to the app as they do to their

retail products. Users on appcomments.com as well as re-

viewers on blogs repeatedly commented on video crashes,sotware bugs and generally poorly designed content.

Users o the app came away eeling disenchanted.

One user succinctly summed up the general response to

the app by saying, “I want to have an app that is as high

I

““First, Gucci ailed to make its core business

ashionan integral part o the app,

cheapening both the app and the brand by

ailing to deliver on user expectations.

Case Study:

Gucci




The advent o social media tools

has allowed consumers to share and

publicize opinions about brands that

can spread across the internet in aremarkable way. Social media has not

only given the public a voice but also

changed consumer expectations as

to how brands should treat them. As

image is such a critical component

o a luxury brand, the consequences

o social media can be a blessing or a

curse.

One possible approach to using

social media as a tool is getting the

business’ top executive involved.Executives oten do not realize that

by virtue o being a higher-up at a

major corporation, they have a built-

in audience or their voice on social

media. The aspirational cachet o a

successul business leader remains

strong, and this can be capitalized

upon in social media to benet the

brand. One such executive, Paul

Smith, has maintained a blog that

eels unedited by public relations gu-

rus and seems to give insight into his

personality. His blog has also been

eatured on Vogue.com, giving the

brand valuable exposure.

While blogging is one way to go,

other corporate executives have

ound Twitter to be a more eective

tool. One blog editor commented

Best Practices:

• Devote enough resourcesf-nancial, manpower, attentiontomaintain a social media presence,especially when it comes to custom-er relationship management (CRM),which is 24/7.

• Don’t sound like a PR shill. Leavethe marketing speak or press re-leases and investor relations. Socialmedia is about authenticity.

• Acknowledge consumersboththe happy and the disgruntled.Show that someone is listening

• Verbalize eorts to consider thechanges they’ve proposed/actionsrequested.

• Consider breaking news to socialmedia simultaneously with thepress, or even beore it hits main-stream news.

•Set rules and guidelines beoreengaging in social media, makingsure that all employees are on thesame page.

that the Ritz-Carlton Hotel Com-

pany’s President, Simon F. Cooper’s,

Twitter account “shows an iconoclas-

tic global luxury brand taking a newtack, using a new tool, to expand on

what they’ve always done -- demon-

strate unwavering luxury hospitality

and showing that it’s approachable.

‘Welcome to my luxury brand. At

the Ritz, as my guest, you have

more than luxury. You have my ear’.”

Brands that recognize such an op-

portunity and do it with gusto stand

to gain appreciably.

Many businesses worry that to orayinto social media is to become a

target or an unregulated, unruly mob

that uses social media to gather and

attack at the slightest misstep. These

types o public relations nightmares

are not the norm and are usually

the result o poor strategy. Gener-

ally, consumers use social media to

connect with brands, not as a means

o making unwarranted attacks. By

maintaining an active social media

presence, brands can respond quickly

to customers and situations. More

importantly, brands should use

social media to proactively establish

consumer loyalty so that when a

blunder does happen the brand can

use the relationships it has built to

its advantage. Since a brand’s social

media properties can also serve as the

5. Manage Customer Relations

pulse o consumer sentiment, brands

should careully monitor social media

to avoid crises beore they start, do

instant damage control or engen-der ans that will ght on a brand’s

behal.

““

The aspirational cachet o a successul business leader

remains strong, and this can be capitalized upon in social

media to benet the brand.




Scandinavian Airlines created an internal Facebook task-

orce to specically address the ashcloud crisis on their

Facebook an page. The Facebook page continuously

updated their customers on fight operations and helped

communicate instructions to customers. For anyone who

has ever fown, these communications can make a huge

dierence to the travel experience.

The airlines’ choice o Facebook and Twitter demon-

strated a good understanding o social

media. Many o their customers were

stuck with only mobile phone access

to the web, which included Facebook

and Twitter. Furthermore, Facebook

and Twitter essentially act as broad-

cast channels or large brands, so the

airlines knew that they would be reach-

ing a large audience that they couldn’t

eciently access by sending emails or

making individual phone calls. Con-

versely, social media connotes a more

personal eel than a press release, an

important distinction or a consumer

eeling ignored and overlooked. Social

networks such as Facebook and Twit-

ter are not always the best choice or

CRM or PR, but in this case they were.

or an industry such as travel, where dierentiation oc-curs at the margins, the eects o social media on a brand

are augmented. United Airlines learned this lesson the

hard way when a disgruntled customer recorded a music

video to voice his displeasure regarding United Airlines

Customer Services’ handling o his baggage on a trip. The

customer posted it to YouTube, and his video has been

viewed 9.2 million times since.

On the other hand, companies

such as KLM, Air Baltic, and

Scandinavian Airlines, were able to

positively dierentiate themselves ina time o crisis. During the volcanic ash cloud disaster in

Europe in April 2010, the hashtag #ashcloud became a

trending topic on Twitter. . Mashable reported that “in

just seven days, there were over 55,000 mentions o #ash-

cloud…” Recognizing that negative sentiment regarding

airlines’ response was spiraling out o control, the three

airlines used social media to deal with the disaster.

Both KLM and Air Baltic switched some o their customer

service representatives onto Twitter to actively engage

with customers who tweeted at them. For customers, acompany that reaches out to them directly carries good-

will that goes beyond the 140 characters o text in a

tweet.

F

““

For customers, a company that reaches out to

them directly carries goodwill that goes beyon

the 140 characters o text in a tweet.

Case Study:

KLM/Air Baltic/SAS




Most likely, the company never established a clear set o

rules and guidelines or its employees. While executives

and customer representatives obviously will have di-

erent leeway with regard to social media, a baseline o

conduct should apply to everyone. The guidelines should

also govern employees’ personal accounts, as a way opreventing the kind o negative exposure that happened

in Robert Duy’s Twitter account. Ultimately, not all

press is good press.

he Marc Jacobs brand’s experience with social mediademonstrates the dichotomy o social media conse-

quences. The Marc Jacobs Intl corporate Twitter account

has been regarded as one o the best Twitter accounts or

a luxury ashion brand. The people behind the account

give insider access to day-to-day happenings, converse

directly with ollowers and write with an edgy honesty

that ts with the brand voice. Followers o the Twitter

account eel a vested interest in the brand’s

activities and actively engage the brand

by participating in inormal contests,

ollowing live-tweets o ashion shows

and commenting about ashion.

The other side o the coin reared

its head when CEO Robert Duy used

his personal Twitter account (not the corporate Twitter

account) to publish risqué pictures o Marc Jacobs ater-

parties. The tweeted pictures, which showed the designer

allegedly inebriated and unfattering pictures o partygo-

ers, ignited a wave o criticism. Duy responded by shut-

ting down the account. Overnight, Duy’s Twitter went

rom being a heralded example o social media use to

being a black mark on the brand. Duy’s Twitter accountgave ollowers a (possibly) alse sense that the company

was unproessional. That could have been avoided had a

social media strategy been established beorehand.

T

Case Study:

Marc Jacobs




has an app that allowsthem to plot out their

travel experiences

(and aspirations) on a

map, catering directly

to and grooming

brand loyalists. Four

Seasons also created

an iPhone app which

allows patrons to

book rooms, spa

appointments and a

host o other travel and accommodation-related eatures.

Four Seasons clearly understood that a comprehensive

social media presence was best or their brand proposi-

tion“oering only experiences o exceptional quality.”

The company strategically structured its social media

oerings to mimic what they oer the consumer in

personcourtesy, dedication and exceptional service.

Four Seasons understood that the modern day traveler

stays plugged into the web throughout the day and needs

more capabilities than a simple call-center can provide.

Luxury brands are reminded to be cognizant o thespecic needs o their consumers and be the ones to oer

solutions.

hile many companies dabble in using social mediaas a customer relationship management tool, the Four

Seasons Resorts and Hotels Group has ully committed

to it. The company has devoted the resourcesnancial,

human, and otherwiseto create and maintain a ull-

fedged social media presence. The company’s strategy

and management has allowed their content to be locally

ocused and relevant.

Instead o coordinating

boilerplate messages across

all o their hotels globally, the

individual hotels’ communi-cations teams interact with

their local populations, their

current visitors and other lo-

cal businesses through social

media. Four Seasons not

only has corporate Facebook

and Twitter accounts or the

brand as a whole, but has

maintained Facebook pages

and Twitter accounts or each

individual Four Seasons location. The corporate Facebookpage boasts over 35,000 ans and acts as a hub, provid-

ing easy access to its local properties. Additionally, Four

Seasons has oered special deals to its Facebook ans and

W

Case Study:

Four Seasons




Conclusion

According to the latest L2 Digital IQ Index, luxury brands

that improved their online experience grew their trac by

52 percent while brands that ignored their web propertiessaw growth o only 8 percent. The improvement o a lux-

ury brand’s digital presence translates to measurable gains

in the number o people who interact with that brand.

The luxury audience has ully embraced the internet

as a resource, communication vehicle and e-commerce

platorm. Luxury brands would be remiss not to do the

same. Although the undamental goals or luxury busi-

nesses have not changed, the most eective and ecient

methods or reaching them have. Companies must now

use social media to build relationships and directly com-municate with their audiences.

To succeed online, luxury brands must translate their es-

sence to the web and leverage the unique capabilities o

the digital space to reach consumers in new and exciting

ways. Consumers will only identiy with a luxury brand

that brings value to their own personal brand. Luxury

businesses who have embraced this are seeing results

across the board rom consumer connections, to the cre-

ation o brand ambassadors, to online sales growth. As the

consumer continues to spend more time online, a strategic

approach to social media and digital marketing will provecritical.

• Creating social media campaigns thatreach and target specifc audiences.

• In-depth digital audience research

and social campaign monitoring.• Translation o traditional marketing

campaigns to the digital and socialspace.

• Managing social media presences.

• Digital content, editorial strategy andoptimization.

• Search engine marketing and web site

optimization strategies.

• Mobile, web, and social media applica-tion development and strategy.

• Preparing or crises in new media andthe blogosphere.

Abrams Research is a full service digital and socialmedia agency, specializing in the developmentof web-based digital marketing campaigns, in ad-dition to advising on social media strategy. Ourstrategists create digital plans, supported by in-depth audience research, designed to to help builddigital audiences and to connect with consumerslike never before.

As a ull service social media agency, Abrams Research

specializes in helping brands create strategic online expe-

riences that generate earned media. Our holistic approachto digital and social media ensures that each aspect o a

brand’s web presence delivers on the brand proposition.

By examining the specic needs o a luxury business, we

provide tailor-made digital and social media programs or

our clients, with services that include:



Forums and Message BoardsWhile the mainstream media and blogs help seed the topics o the day, message boards and orums

are oten the resulting location or discussions. Forums and message boards are open discussion sites

or users to converge on common interests. Users create topical pages dedicated to conversation on

specic subjects and participate in these conversations by posting replies. Popular orums such as

Style Forum have dedicated communities o people reviewing products, discussing brands and con-

ducting e-commerce amongst themselves. These orums are requently seen as a source o expertise

and trusted opinion about various luxury brands.

MobileMobile 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 o Apps Culture, 24% o the U.S. adult population actively uses “apps.” The advan-

tage o apps is that the maker o an app has almost ull control (subject to restrictions by the operat-

ing systems’ mobile app stores) with regards to content, unctionality and branding. Brands have used

mobile apps to mirror their e-commerce sites, deliver creative content, make product suggestions and

provide a host o other unctionalities.

Geo-Location PlatformsGeo-Location services like Foursquare and Facebook Places oer 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

platorms, which have traditionally lived 100% online. Geo-location platorms allow consumers to

“check-in” to a virtual location when they visit a physical location, creating a log o activity. These

locationsusually businessescan 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.


Mainstream Media & BlogsThe mainstream media, which now includes blogs and industry trade journals like Women’s Wear

Daily, oten helps to shape the conversation online. Although the mainstream media continues to be

a very important player, the conversation it osters is a one way dialogue. When communicating with

the mainstream media the consumer is a recipient o inormation, not a participant. Social media is

interactive by nature, allowing users to become part o and even lead discussions in a way that they

cannot within the mainstream media.

THE PLAYERS

ADDENDUM




Forums and Message BoardsAter Google and Yahoo!, the web property that reaches the most afuent consumers is Facebook.

Facebook presents a particularly important opportunity or luxury brands through its ability to run

branded applications and promotions in tabs. Applications are tools that allow users to “opt-in” to

games, quizzes, contests, news eeds, and so on. Organizations can use these to actively engage with

consumers and oer unique content. For the user, Facebook has become a branding tool, allowing

him or her to cultivate and publicly display an identity. Frequently, consumers mention brands on

Facebook as a orm o personal brand-building through wall posts, “likes” and sharing o inormation.

Video Hosting PlatformsVideo hosting platorms like YouTube and Vimeo have allowed social media users to become broadcast

channels. Videos have the ability to rapidly circulate the internet, garnering millions o views in a mat-

ter o minutes. Luxury brands have the ability to create their own branded media channels on YouTube

or Vimeo, as well as use them as hosting services to serve content on their own web properties. The

ubiquitous nature o these platorms has essentially created a new content standard on the web.

Specialty Retail Sites (“e-tailing”) such

as Gilt Groupe, Rue La La, HauteLookOn the surace, e-commerce platorms selling luxury products at discount prices seem undesirable

or luxury brands. The results, however, are undeniable: the popular platorm Gilt reached $400

million in sales or the 2010 calendar year, has more than two million (disproportionately young and

high-income) members and caused a undamental shit in consumer behavior regarding luxury goods

online. According to New York Magazine, “During the hour ater its weekday sales kick o, between

noon and 1 p.m., [Gilt] claims, its site is visited by an average o roughly 100,000 shoppers. For that

time, it might as well be the most crowded store in New York.” While this does not mean that every

luxury product ought to be sold this way, it will be crucial or luxury brands to have a strategy with

respect to these platorms.

TwitterTwitter unctions by allowing users to “tweet” short messages o 140 characters and to subscribe to

the tweets o others. Twitter has grown to rival Facebook in its social signicance and is oten the rst

to break news, beore traditional news channels. Twitter also allows the public to ollow targeted news

and inormation, straight rom the sources they choose to subscribe to. Frequently, Twitter is chosen

as the broadcast vehicle or celebrities and top-level executives due to its ease o use, wide reach and

possibility or quick interactions. Twitter has eectively allowed its top users to become news chan-

nels in and o themselves.

THE PLAYERS

ADDENDUM



Disclaimer: None o the companies cited in this guide, including but not lim-

ited to Gilt Groupe, Rue La La, HauteLook, Chanel, Manolo Blahnik, Cartier,

Tiany & Co, Balmain, Zac Posen, BMW, Oscar de la Renta, Chloé, Coach,

Jimmy Choo, Louis Vuitton, Burberry, Gucci, Paul Smith, Ritz-Carlton Hotel

Company, KLM Air, Air Baltic, SAS Airlines, Marc Jacobs, and the Four Sea-

sons are in any way aliated with Abrams Research nor have they endorsed

the creation o this guide

AR_SMedia_Guide_Luxury

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