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LUXURY IN A RECOVERING SOCIETY ©
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Page 1: LUXURY IN A RECOVERING SOCIETY - LuxeSF · Part 1 What’s going on in the luxury market • Recession created resentment of wealth • Consumers are shying away from overt displays

LUXURYIN ARECOVERINGSOCIETY©

Page 2: LUXURY IN A RECOVERING SOCIETY - LuxeSF · Part 1 What’s going on in the luxury market • Recession created resentment of wealth • Consumers are shying away from overt displays
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Luxury Trend Report 2010

The Panel

Njide UgbomaEditor-in-ChiefLet Them Eat Cake Magazine

Pippa IsbellWorldwide Director of PR Orient-Express

Patrick JephsonWriter, Broadcaster

Fran Page Head of Marketing Liberty

Alan TreadgoldHead of Retail Strategy Leo Burnett

Georgie Coleridge-Cole Founder & Editor Sheerluxe

Liz Hambelton Contributing Beauty EditorGrazia

Fiona SandsersonManaging DirectorThe Luxury Channel

Peter HowarthManaging DirectorShow Media

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Part 1 What’s going on in the luxury market

• Recession created resentment of wealth

• Consumers are shying away from overt displays of status

• There is willingness to spend on luxury if it is toned down and genuinely deserves its luxury status

• Bling was already on its way out before the recession

• The market crash accelerated the association of overt luxury with the fast-buck culture

• People are making more discriminating luxury purchases and will often compensate by budgeting elsewhere

• There is a new emphasis on the personal relevance of brands

• Status is still important - but it is only to be recognised by those in the know

• There is a new consumer mindset: more discriminatory, making integrity an important factor

SUMMARY OF MARKET

TREND REPORT

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Part 2 How to address the new trends

• Brands must truly fulfil luxury criteria to justify purchase

• A marketing ‘message’ is no longer enough; brands now require stories that imbue a purchase with greater meaning

• Stories set a brand apart, but they need to resonate with values and experiences

• It is no longer enough for a brand to tell one story which it projects to consumers

• Brands need to involve consumers who relate on a more level playing field than ever before

• Brands can use online as a tool, not a hindrance, to connect with their consumers

• Luxury brands need to provide multiple stories for their consumers to blend and colour with their own

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SUMMARY OF MARKET

TREND REPORT

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Part 3 What are the brand stories to tell?

• The story of superior performance: substantiated by how and why it is the best, reassures the consumer

• The story of sophistication: a subtle language that assures the consumer of a shared taste and aesthetic

• The story of craftsmanship: upheld by expertise, time spent, tradition and beautiful design

• The story of collaboration: gives a brand an exciting hybrid story, co-opting the creative partner’s brand attributes, for a collective experience

• The story of exclusivity: imbuing an item with a sense of rarity and exception, which justifies the expense

• The story of involvement: the rising demand for bespoke items builds the status and exclusivity of both brand and consumer

• The story of innovation: keeps brands relevant, particularly those with a heritage story; and a really significant innovation can create a luxury brand

• The story of heritage: not just a name and a date of inception; but a proper history, whether a story of longevity or a cultural immersion

• The story of provenance: if a brand comes from a location famous for that product, that place’s story becomes its own

• The story of ethics: a green or fair trade badge isn’t enough - there must also be an authentic, inspirational or heartwarming tale

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SUMMARY OF MARKET

TREND REPORT

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hat’s going on in the luxury market

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hether splashing out on bling with a bonus, or flaunting the fact you can buy the latest top-of-

the-range in any consumer

category, it’s no longer fashionable to be seen to have a lot of disposable

income in these days of recession…

‘What’s the difference between a banker and a pigeon? A pigeon can still leave a deposit on a new BMW.’- Worldwide email joke in 2009

‘Barclays bankers £500,000 banquet. Fatcat bankers flew to Italy yesterday on an all-expenses-paid bash - as the rest of the country was left in financial meltdown.’ - The Sun

‘Top 10 worst WAG moments - footballers wives criticised for excessive spending on fashion, kitchens with six ovens, and £1 million weddings: - The Mirror

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s this bad news for luxury brands?

‘The new spend-averse consumer is now wanting much more reassurance on value’ - Alan Treadgold, Head of Retail Strategy, Leo Burnett

‘It is no longer acceptable to be obviously broadcasting status.’ - Patrick Jephson, Writer, Broadcaster

‘People don’t want to walk down the street wearing something that makes you look filthy rich’- Peter Howarth, Managing Director, Show Media

‘The days of belt notching and showing wealth and status that way are well and truly fading, a trend that was only accelerated by the recession.’ - Pippa Isbell, Worldwide Director of PR, Orient Express

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The market for luxury goods and services is not diminishing dramatically, so much as going undercover. In a recovery economy,

people are looking to treat themselves - but they need stronger reasons than ever to buy. The flavour of the month just won’t do: they need to

be sure that one or more qualities

will justify that purchase for some

time to come.

‘People are willing to spend on luxury again; it’s just that the sense of shame attached to overt displays of wealth has stuck.’- Pippa Isbell, Worldwide Director of PR, Orient Express

‘Super-premium brands are somewhat more resilient than less expensive discretionary spend products as they’ll continue to be valued.’ - Alan Treadgold Head of Retail Strategy, Leo Burnett

‘It is how you don’t flaunt it that has become the new status symbol.’ - Patrick Jephson, Writer, Broadcaster

ut it’s not the whole story…

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For consumers, the age of bling and other outward-directed symbols is over. Such overt displays of spending have become associated by many Britons,

Western Europeans and metropolitan Americans as synonymous with less sophisticated people from nouveau riche

/developing parts of the world. ‘The luxury peacocks will keep away for a long time to come thanks to consumer reticence when it comes to overtly showing what they can afford.’ - Alan Treadgold, Head of Retail Strategy, Leo Burnett

The global financial crisis accelerated the latent public resentment of those regarded as only having eyes for the fast buck. Identifiably expensive clothing,

cars and accessories marked people out, fairly or unfairly as ‘those responsible’ for the crisis.

Big, bold logos turned into badges of shame. And so there has been a genuine wish

to disassociate from perceived financial irresponsibility.

‘There is definitely a sense of “luxury shame” now. But in many ways there is a relief attached to having to live in this new balanced way - it was a pressure to fit in and keep up with that level of consumption.’ - Pippa Isbell, Worldwide Director of PR, Orient Express

new consumer mindset: the importance of integrity

Luxury Trend Report 2010

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Note, however, that we are talking about attitudes, not ability to purchase. There is still disposable income and a taste for luxury. Now, the attitude is one of introspection and discretion - spending money not to show that

you’ve spent it, but on goods and services that have a real meaning to the purchaser. This

often means that it is one special purchase

mixed and matched with cheaper goods.

‘There is a polarisation of spend as consumers happily spend at a premium but cross-subsidise in other parts of their spend. Clothing is a good example - mixing a Calvin Klein jacket, for example, with a pair of Top Shop jeans.’ - Alan Treadgold , Head of Retail Strategy, Leo Burnett

‘The importance of having a point of view, of mixing experiences for savvier combinations very much applies to travel. People will fly cheap on Ryanair and stay in a five-star hotel. The consumer feels good about making more mindful, balanced choices.’ - Pippa Isbell, Worldwide Director of PR, Orient Express

Personal connections with a brand or an appreciation of its qualities not only create a deeper source of pleasure in the purchase than mere

status symbols, but also serve to justify making a luxury purchase,

if there is any lingering spend-guilt.

Now people are far more discerning and re-evaluating what constitutes a luxury experience.’ - Peter Howarth, Managing Director, Show Media

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Status is still important. It’s just that the communication of that has changed. The idea is no longer to rub status in the

faces of those without it, but to be noticed by those with the same superior tastes - a Berluti shoe or logoless Oliver Peoples

sunglasses are recognisable to those in the know, but pass unnoticed by those out of the loop. Status has now become

bound up with integrity. True luxury is not flashy fast-fashion or this month’s

hot bar/restaurant/holiday destination, but a brand that resounds with a story.

‘Status now is about showing personality, knowledge, and investment - luxury purchases often represent investment rather than expenditure. There is a much greater desire to know the true value of what we’re buying - that rational underpinning will completely influence consumer behaviour.’ - Fiona Sanderson, Managing Director, The Luxury Channel

‘Sophisticated luxury users tend to direct their status messages at increasingly focussed groups of people; building small and intense knowledge groups.’ - Georgie Coleridge-Cole, Founder and Editor, Sheerluxe

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ow to address the new trends

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new way of communicating status: the strength of stories

With the consumer of luxury goods requiring greater meaning and value from their purchases, as well as

justification for making them, a marketing

message is no longer enough.

‘Brands are having to learn how to talk to their consumers more than ever. They will need to learn how to deliver their message in an engaging and entertaining way, so that it becomes more editorial than marketing.’ - Fiona Sanderson, Managing Director, The Luxury Channel

Brand messages are deemed superficial, whereas stories hold the values and substantiation the consumer is now looking for.

When fleshed out in editorial, images and video in magazines, adverts and online

they give the consumer licence to desire.

‘Movies and documentaries have an extremely important part to play - by telling the story. you’re not only inspiring consumers but you’re also providing the rational explanation they’re looking for.’ - Fiona Sanderson, Managing Director, The Luxury Channel

‘Products need an amazing story behind them, as it gets harder and harder for brands to get into magazines.’ - Liz Hambleton, Contributing Beauty Editor, Grazia

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Consumers are picking and choosing these stories to create their own anthology. By personally assimilating a range

of stories, the consumer highlights their own values and interests. A bespoke suit indicates a love of detail, an Omega

Speedmaster creates memories of watching the moon landing, but counter-pointed with

own-brand Specsaver glasses and a Mötorhead

T-shirt under the suit.

‘We have seen the rise of the smarter know-it-all consumer and that is a trend that is set to continue beyond the recession.’ - Liz Hambleton, Contributing Beauty Editor, Grazia

The DIYster woman might save money on nail salons and manicure herself; but she keeps money aside for her six-

weekly hair colour and cut, after reading about Cate Blanchett’s hair regimen.

‘But we’ll see the return of a more magpie-like consumer who is willing to explore again - but with a new emphasis on the personal relevance of brands and products.’ - Liz Hambleton, Contributing Beauty Editor, Grazia

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new marketing imperative:offer brand stories for your consumer to own

It is no longer enough for brands to tell one story and project it onto the consumer

‘The joy is in the subtlety, the stories behind everything we do. And it’s the stories and conversation which create a shared experience.’ - Fran Page, Head of Marketing, Liberty

Brands must recognise and respect the fact that consumers understand and love messages delivered via stories. For different purchases they

have different priorities - craftsmanship, superior performance, innovation etc. Luxury brands need to provide multiple stories for their

consumers to blend and colour

with their own. ‘We need to think about the purpose of luxury. Now, it’s less about pure consumption and more about the multiple messages you are sending out.’ - Patrick Jephson, Writer, Broadcaster

‘The luxury experience means very different things to different people. A brand needs a clear point of view on what it stands for but also flexibility on how to communicate their equity to different audiences. Having a personal point of view is the most enduring form of luxury.’ - Alan Treadgold, Head of Retail Strategy, Leo Burnett

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Brands must now recognise the consumer as a powerful storyteller in their own right. They operate on a more level playing field than ever.

This impacts on celebrity fashion and beauty endorsement. Celebrities are still important, but there is less slavish apeing of their look, and people

are just as likely to be influenced by their peers as by the stars. And when a brand allows a (controlled) forum for relating to the product,

that equality is reinforced, to

everyone’s benefit.

‘We’re seeing the end of the ‘whole look’ celebrity influencer. Celebrities will continue to be important, but not as clothes horses - it’ll be the smaller creative details we’ll look to and want to adopt as our own. The biggest influencer is now increasingly our fellow consumer - the sisterhood knowledge and the style tips shared between ordinary girls and women.’ - Liz Hambleton, Contributing Beauty Editor, Grazia

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hree key tactics

Creating experiences is an effective way of blending your brand story with those of the consumer. Personalised tailoring to suit a

customer’s individual requirements (and, at

the upper end, uber customisation - bespoke)

allows a relationship to build between

consumer and brand.

‘The consumer is now far less passive and wants to be more involved in every part of the process. The boundary between production and retailer is blurring as people demand more interaction with the brand.’ - Fran Page, Head of Marketing, Liberty

‘In terms of luxury resorts - it’s less the name that matters now, and more the experience. Furthermore, people want to personalise as well as tailor those experiences.’ - Pippa Isbell, Worldwide Director of PR, Orient Express

Luxury has always been portrayed as a fantasy item, but having someone open up their world, express their personal thoughts and relationship with clothes, fashion and luxury is unparalleled. Look at the way the Burberry website - theartofthetrench.com - engages its customers around the world.’ - Njide Ugboma, Editor-in-Chief, Let Them Eat Cake Magazine

1. Involve consumers

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Many luxury brands have been wary of the internet and its uncontrollability. Luxury watch brands, for example, will not sell online because of the internet’s association with fakes. However,

if it is artfully operated (as in Burberry’s case), the digital

world can engage consumers and influencers with your story and

close the deal successfully, while still preserving the brand image -

and sometimes enhancing it.

‘Digital serves a purpose by keeping the brand image conceptual and abstract - free from the sullying effect of the inferior “stories” of its customers.’ - Georgie Coleridge-Cole, Founder and Editor, Sheerluxe

‘The online environment can dilute brands if not done properly. But sophisticated websites have the huge advantage of being able to track interest and recreate the same sense of exclusivity and ‘special access’ that you find in the real world.’ - Patrick Jephson, Writer, Broadcaster

‘The online environment is booming for beauty - bloggers have far more power to drive sales and trends than any assistant in-store. Going to beauty counters has never been a pleasurable experience, whereas people are enjoying the conversation and experience of searching, conversing and purchasing online.’ - Liz Hambleton, Contributing Beauty Editor, Grazia

‘Fashion bloggers were sitting front row at Burberry - literally two seats away from Anna Wintour! There’s something about blogs like Style Bubble and Jak and Jil that makes fashion more approachable, relatable and engaging.’ - Njide Ugboma, Editor-in-Chief, Let Them Eat Cake Magazine

2. Online is a tool, not a hindrance

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We have identified 10 core stories for the luxury market to tell…

The story of… superior performance The story of… craftsmanship The story of… collaboration The story of… exclusivity The story of… sophistication The story of… involvement The story of… innovation The story of… heritage The story of… provenance The story of… ethics

3. Have multiple stories to tell

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ONE BRAND WHICH DELIVERS

ACROSS ALL THESE CATEGORIES IS

LOUIS VUITTONIf a brand wishes to inspire and engage the right consumer at the right time

and in the right place, one story is not enough. A single story may lose its potency. Much more powerful is to create what might appear to be one story

but which in fact has many different facets: a story of craftsmanship may also have a story of provenance and heritage too, as well as exclusivity. Different stories thrive in different media, so

channel choice will also be a key part of this process.

The company ticks the boxes of each core story identified above, and is brought alive in different media. From undoubted superior

performance and craftsmanship, through collaboration with say the artist Richard Prince, exclusivity with its bespoke luggage-making service, to ethics, with its special auction last November at Sotheby’s - where LV invited the likes of Marc Jacobs, Patrick Louis and Annie Leibovitz to contribute items, and profits went to the Red Cross.

Many of the brand examples featured in the following pages have multiple stories to tell. One particular brand which delivers across all these categories, for example, is Louis Vuitton.

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hat are the brand stories to tell?

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Another intent here is reassurance: putting consumers’ minds at rest that they are making the right investment.

In order to tell the story of superior performance, a brand might borrow cues

from other stories, such as ‘craftsmanship’ or ‘innovation’ - these are the means by

which that performance is reached - but it is the superior ends that are important here.

BrAnd exAMpLes:

Crème de la MerAfter 12 years and 6,000 experiments, Dr. Huber perfected the art of bio-fermentation… Something extraordinary was discovered: Crème de la Mer and its nutrient-rich Miracle Broth™. And just as Dr. Huber hoped, skin appeared dramatically smoother and miraculously improved. Even the driest complexions were soothed on contact.

Loro PianaTheir ‘storm cashmere’ is their usual finest cashmere treated so that it is water resistant - and is now even used in their sailing gear. The natural fibres are made totally waterproof and wind resistant by combining them with the most advanced technology - ‘a perfect synthesis of style and function’

The Story Of Superior Performance

The superiority story explains to consumers why a brand is quite simply the best of its kind. It is the simplest criterion of luxury. But the message needs to be

substantiated with the story of why and how that superiority comes about.

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To tell this story effectively, brand ideas must demonstrate

a subtlety of reasoning.

Stories of sophistication should assure the consumer of their taste,

or give them a credo to aspire to (which is different to simply

saying that this item is something to aspire to owning).

The Story of Sophistication

Sophistication is perhaps the hardest story to tell as it is based on intangible principles. But therein lies its advantage too. If you can communicate a sense of sophistication, that act of communication

becomes a sign of sophistication itself. It’s a private language. The consumer ‘gets’ the brand and feels the brand understands them.

BrAnd exAMpLes:

Patek PhilippeThe tag line runs: ‘You never actually own a Patek Philippe; you merely look after it for the next generation, you are actively encouraged to pass it on to your son or sons. It suggests a society of those in the know: ‘A Patek Philippe watch is a silent statement about your values. Each Patek Philippe is made to become a story, a tale of emotions. Who gave you the watch. On what milestone of your life. With what words. To whom did you pass on your watch. A labour of love received and given with love.’

Soneva FushiA ‘jungle reserve’, where the likes of Madonna stay. Tapping into guests’ desire not to be seen as flash, they have created a deliberately basic-looking environment with rusty bicycles and a ‘no shoes, no news’ policy. Personal assistants are on hand throughout your stay. Guests here are effectively saying, ‘I have more taste and integrity than the people staying at the gaudy hotel down the road’.

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stories of craftsmanship will often be told in terms of time spent on a product,

and the lavishing of personal attention - the ‘handmade’ aspect.

However, there are other ways craftsmanship can be described if that

does not apply to a brand: quality of construction, beauty or intricacy of design

or a traditional method can tell the story too. Often they will be combined with other

stories such as heritage or provenance.

BrAnd exAMpLes

Canali suitsSuch is the level of quality control at Canali that a bank of women is employed to stare at vast bolts of cloth whizzing past their eyes on rollers, looking for infinitesimal flaws. Seven seamstresses are employed to sew handkerchief pockets.

Berluti shoesBerluti leathers come from young calves raised on a 100 percent vegetable diet in the Alps. This guarantees a pure, dense and elastic skin of which only two per cent are chosen to make Berluti shoes. Over the years, the house has developed a patina technique inspired by the burnishing virtues of moonlight, giving the leather the lustre of a well-preserved piece of antique furniture.

A consumer can find meaning, significance and value in the detail and subtlety of a product. The bling-shy consumer will be aware that some ‘luxury’

products are priced high simply through fashionability and will reject them. Craftsmanship will always beat mass-production for the true luxury-seeker.

The Story of Craftsmanship

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The very act of collaborating with another brand or creative source says something positive. You are a creative, dynamic brand who is

always on the look out for new ideas. You recognise excellence - and not only in your own specific field of expertise. Having an impressive

name agree to collaborate with you shows that you are credible in the greater community of sophisticated brands and are respected by

those worthy of respect themselves.

The collaboration gains you an entirely new story to tell. It is a hybrid story, whereby you co-opt your creative partner’s most

prominent brand attributes, weaving their story into your own.

The hybrid story has to make some kind of sense; a point where the two brands meet. Consumers will be quick to spot a marriage of convenience,

in which it is obvious that there is a purely financial motive.

Musical collaboration works best when the two artists share a passion (Alison Krauss and robert plant’s exploration of blues

and folk, raising sand, as opposed to Tom Jones and robbie Williams singing Are You Going To Go My Way?). In the same way,

the story of a luxury goods collaboration needs to start with the tale of what brought the collaborators together.

A collaboration, if well done, can have an exponential effect on your brand and peoples perception of it.

BrAnd exAMpLes

Lacoste & Zaha HadidThe award-winning London-based architect has been working in a sporting context in recent years - designing railway stations for a ski train in Innsbruck as well as the London Aquatics Centre for the 2012 Olympics. She has also worked as much in product design as architecture. In a similar way to the way she begins a building project, she took a digital rendering of the Lacoste crocodile logo and worked it into a fluid, undulating landscape on the shoe that adapts and moves with the foot.

Kashimax & Paul SmithJapanese saddle specialist Kashimax worked with Paul Smith to create a leather saddle decorated with the British designer’s signature stripes. If it had been another designer such as Alexander McQueen, this could have been a gimmick, but Smith is known as a keen cyclist (he was born in Nottingham, home of Raleigh) and has a bike decorating his Floral Street shop.

The Story of Collaboration

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Traditionally, exclusivity simply due to the expense of an item was enough to satisfy the demands of the luxury consumer. Rarity was an additional

attractive quality, which created demand. However this is increasingly not enough. The story of rarity and exclusivity now needs to be explained.

BrAnd exAMpLes:

Lodger shoesThe British luxury footwear firm produces a Shoe of the Month - a style which is available for only four weeks and never again. The likelihood of encountering anyone with the same shoe as you is extremely minimal. Your handmade pair has your name printed inside and delivered to you personally.

Harry WinstonCreated a New York collection, comprising exquisite designs inspired by Manhattan landmarks, like the art deco Chrysler building: one-offs that will speak volumes to lovers of the big Apple.

Le LaboThis fragrance brand has boutiques in NY, LA and Tokyo (as well as mini-stores in department stores in London and Berlin) produces an individual scent exclusive to each location, creating a sense of exclusivity for their consumers.

exclusivity because of the difficulty in obtaining a component of the product, because a designer has only created a limited edition, or because an item

is a prototype, taps into the consumer’s need to discover something new and get the early-bird buzz.

Limited Locations: In opposition to online availability and samey shopping streets (not only ‘high street’

brand homogenisation, but samey luxury boutiques and outlets worldwide), there is a trend towards limiting

the geographical availability of luxury goods. There are several advantages: the PR yield is higher for the brand,

while the thrill is higher for the informed consumer.

The Story of Exclusivity

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Increasingly a consumer’s proximity to the creative process, and their perception of being on a level playing field with a brand, has become a positive indicator of brand exclusivity.

Brands needn’t fear consumer involvement. If the consumer is regarded as an equal in taste, the brand

can weave the consumer’s story into that of the brand.

As long as it is done in a controlled way, brands needn’t fear consumer involvement. If the consumer is regarded as an

equal in taste, the brand can weave the consumer’s story into that of the brand in the same way as with a collaborator.

As the consumer interacts more with the brand, the experience goes beyond a mere purchase, it is the

building of a relationship.

The Story of Involvement

The involvement of the consumer in creating their own luxury goods is not new: couture dresses, bespoke suits and personal

perfumiers have been the epitome of luxury for centuries.

BrAnd exAMpLes

CreedThe fragrance has offered a bespoke service for 240 years. It made Fleurissimo for Grace Kelly’s wedding to Prince Rainier of Monaco, as well as scents for Errol Flynn and Cary Grant. Today a customer can have a consultation with sixth generation perfumier Olivier Creed, who will go away and make up a sample in Paris, before fine-tuning it after a second meeting.

BurberryThe Art Of The Trench website has created a photo-led community of Burberry trenchcoat wearers and enthusiasts. It is edited, to control the image of the brand, but essentially it puts the consumer on the same footing as celebrities and style icons photographed by The Sartorialist’s Scott Schumann and others.

Orient ExpressThe luxury holiday no longer involves sheer indulgence and being waited on hand and foot. On Orient Express holidays, increasingly the client helps create the experience of travel and, particularly in poorer countries, gets involved in the local community’s activities - eg, in Colca Canyon, Peru, feeding alpacas, cooking food with farmers.

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Where a story of heritage is reassuring because of past performance, innovation suggests that a brand is set to create a strong heritage in years to come. This is of course important for a new brand, but is almost more crucial for established brands.

The story of innovation says that it is not stuck in the past.

There are very clear examples of luxury brands earning their success by starting off as innovative thinkers:

prada, for example, moves forward each season with new technological advances in fabrics, cut and techniques

(like last season’s introduction of laser-cut leather).

And some brands develop and use innovative technology as the genesis of their business: Nespresso’s neat, mess-free coffee

pods and machines not only make great coffee, but lead the field in cutting-edge design and application.

BrAnd exAMpLes

Alexander McQueenNot only did McQueen use innovative designs and materials - intensely detailed digital prints and the fused materials of his shoes - but he innovated in fashion show presentation too, streaming his last show live on youtube.

SwarovskiThe ‘crystal’ manufacturers have come a long way from making cutesy glass animals. Nadja Swarovski says, ‘Technology is going to keep us at the forefront, with innovations like integrated crystal, new interpretations, new projects. We’ve made crystal into a fabric with crystal mesh. It turns into a fluid material and opens the door to new applications.’

While heritage has long existed in the DNA of almost all luxury brands, stories of innovation will keep brands relevant.

The Story of Innovation

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THE STORY OF INNOVATION

JUSTIFIES LUXURY PURCHASES AS A

GOOD INVESTMENT IN THE FUTURE

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Heritage is a traditional luxury message. The challenge now is to tell the story of heritage in a fresh way. This is the most literal ‘story’. The history of a brand, its cultural associations, its famous and respectable

customers, can be woven into an interesting tale which will capture the imagination of the consumer and tap into their own interests and stories.

editorialising this story - researching the details, telling it in a compelling way - is essential to avoid it sounding like a superficial, old fashioned cliché.

The story of heritage works particularly effectively as a springboard for other stories, eg craftsmanship and

provenance, and even innovation (if a brand’s heritage includes a track record of pioneering advancements).

The heritage story will most often describe a brand’s longevity, but if your brand is not

fortunate enough to have 300 years of archives, there may be a cultural heritage to talk about

- an association with the creative arts, with a sport, an admirable profession.

The Story of Heritage

BrAnd exAMpLes

HermèsFrom its Paris atelier on Rue Faubourg St Honoré, the Hermès family has created iconic pieces of fashion (including its famous scarves and the legendary Kelly and Birkin bags) for nearly 125 years.

ChanelOf course, all fashion ateliers with a history can look back through the archives - at Chanel, Karl Lagerfeld does an astonishing job reinterpreting Coco’s classics for the contemporary woman, channelling Chanel like no-one else can.

BreguetWatchmaker ‘depuis 1775’ - plays on its historically significant clients of old… Napoleon Bonaparte, Winston Churchill (whose Breguet fob watch, given to him by his grandfather, was on display in the Cabinet War Rooms recently).

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This is a sister to the story of heritage. The difference is that the measure here is of space rather than time. They can work in

tandem: if a brand has been operating from a locale for many years, that can be an advantage. However you can have a new brand born out of an established cradle of a craft or product.

As a reaction to overpriced goods from parts of the world deemed to lack the soul of the craft place

names such as Geneva (watch brands), Provence (perfume), Florence (leather, original home of

Gucci) even Northampton (Church’s shoes) become a credential, as they are synonymous with skill

and knowledge in a specific field.

The provenential stories that work best reveal a geographical history that is both flawless and valid. This is a story that will have to withstand

scrutiny, as it has to be substantiated. so, no flags of convenience here. But the location

justifies the highest quality of goods.

The Story of Provenance

BrAnd exAMpLes

Santa Maria NovellaA Florentine apothecary since 17th century, originally run by monks and named after Florence’s first basilica. Favoured product of the spa at the Four Seasons, Florence.

VilebrequinThe men’s swimwear company was founded in St Tropez at the height of its fashionability in the early 1970s; with the first pair of shorts cut from a tablecloth on the terrace of the fashionable Café Sénéquier.

Dr HauschkaHas had its own gardens in Germany since the 1920s; it has also set up gardens to grow specific ingredients in places famous for that plant, eg Bulgaria (the valley of roses) and Burkina Faso (biggest producer of shea butter).

DunhillAlfred Dunhill’s early motoring business at the end of the nineteenth century offered ‘everything but the motor’ and grew to become known, as it is today, for its quintessential Englishness, quirks and all, offering traditionally inspired menswear and accessories of the highest quality.

THE PROVENENTIAL STORIES THAT

WORK BEST REVEAL A GEOGRAPHICAL

HISTORY THAT IS BOTH FLAWLESS AND VALID

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Stories that can actually prove ethical responsibility, however, are part of a luxury status.

A brand pressing its ethical credentials needs to go above and beyond the expected providing the

consumer with a story when they make a purchase.

There are many examples of high-end fashion brands working with charities as part of a philanthropic and ethical motivation. The

results are often stylish and imaginative, rather than hair-shirts.

Complementary stories of provenance, tracing the origins of the product,

can be important in some categories.

BrAnd exAMpLes:

EdunAli Hewson (Mrs Bono) formed the ethical clothing company after charity-related visits to Africa. Edun uses organic cotton products from Uganda - from seed to finished product.

Six SensesWith their long-standing commitment to sustainability, the company is working to make the elegant Soneva Fushi resort in the Maldives the first island in the world that is carbon neutral.

MerciThis Paris shop, opened by founders of upmarket children’s retailer, sells fashion and interiors with a flower and coffee shop, and all profits go to a foundation to help deprived children in Madagascar. Designers such as Stella McCartney, YSL and Azarro are happy to reduce their usual margins by 30 per cent, and others engage in unique collaborations or produce limited editions.

Pippa SmallThe jeweller (who also has an MA in medical anthropology) has often collaborated with Nicole Farhi, Gucci and Chloe, and used ethical rough diamonds in many of her pieces. She’s merged her two interests working on craft initiatives with indigenous communities like the San Bushmen of the Kalahari and the Batwa Pygmies of Rwanda, helping them to research their traditional designs to generate self-sufficiency and income.

In a world where oil companies are advertising their research into alternative fuels and changing their logos to flowers, messages

of ‘green’ and fair trade’ are now expected and so slip below the radar. Labels declaring ethical credentials (a fair trade or organic

certification badge, for example) can get lost among the bar codes.

The Story of Ethics

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ummary

• For consumers, the age of ‘bling’ and outer-directed symbols is over.

• The mood is more introspective, more about meaning and discretion.

• Consumers need justification when making luxury purchases.

• They still want to communicate status, but through the lens of integrity.

• Brand messages are deemed superficial, whereas stories hold the values and substantiation the consumer is now looking for.

• Consumers are picking, choosing and personally assimilating these stories in order to create their own.

• Brands need to inspire the right audience at the right time in the right place. Different stories will thrive in different media.

© Copyright 2010, atelierlb (a trading division of Leo Burnett Ltd). All rights reserved.

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The atelier-lb contributors

Janet CarpenterManager Director

Robin HarveyCreative Director

Blaise DouglasCopywriter

Lilli EnglishPlanner

Tom SussmanPlanner

Jo TauscherBoard Account Director

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Contactatelier london t: +44(0)207 071 1166 e: [email protected] contact: Janet Carpenter

atelier tokyo t: +81 3 5437 7200 e: [email protected] contact: Jim Franzen

atelier new york t: +1 212 759 5959 e: [email protected] contact: Aude Gandon

atelier hong kong t: +852 2567 4333 e: [email protected] contact: Margaret Chan

atelier buenos aires t: +54 11 4819 5959 e: [email protected] contact: Diego Beltran

atelier beirut t: +961 1 201 090 e: [email protected] contact: Youssef Naaman


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