Sometime back, Mashable had an interesting post on luxury brands and social media. While a few points were raised on the challenges, the one that interested me most was how the facet of ‘exclusivity’ could be balanced with the relatively open nature of social media, especially Facebook and Twitter. The post also highlights a couple of examples – the aspiration based FB fanpage of Gucci and the invite-only closed social network of Mercedes Benz – GenerationBenz.com. The examples were interesting because they were two different approaches – of how luxury brands can use social media. On a related note, Jeremiah Owyang wrote a post a few days back – 5 ways luxury brands can overcome the conundrum of social marketing.
Before we discuss the specific usage on social media, how exactly do brands become classified as luxury? According to the post above, “When linked to brands, it is characterized by a recognizable style, strong identity, high awareness, and enhanced emotional and symbolic associations. It evokes uniqueness and exclusivity, and is interpreted in products through high quality, controlled distribution and premium pricing”. I assume the above takes into the account the parameter of service – not just in the case of say, hospitality or other service luxury brands, but even regular luxury brands, since the overall experience (from the retail experience of shopping for the brand to post purchase service) is key to earning the tag of a luxury brand.
With regards to social media, I’d say that social media has this way of stripping the veneer, of removing the fluff around entities so that its reputation is made/broken basis its performance on the core value it provides. In fact, sometimes even the cost of ‘production’ is not taken into account, the audience expects things for free and the crowd makes its own sense of value for the product. (yes, I am referring to the interesting free vs paid debate) Wired has an excellent article titled ‘The Good Enough Revolution‘, where it takes examples from various sectors to show how, with advancing technology, consumers’ expectations from their purchases are changing drastically – the rise of the ‘good enough’ tools. While it is essentially attributed to the busy lives we lead now, the fact that it is also ideal for recessionary times is highlighted. From the article,
We now favor flexibility over high fidelity, convenience over features, quick and dirty over slow and polished. Having it here and now is more important than having it perfect. These changes run so deep and wide, they’re actually altering what we mean when we describe a product as “high-quality.”
Of course, there still is an audience that doesn’t live by these credos, but that’s perhaps not really a large number. One could argue that this was the only audience that mattered to luxury brands anyway, but If this trend catches on, then the entire premise of luxury branding becomes wobbly. PSFK has an interesting note on a Louis Vuitton Calabash – on mixing the notions of utility and luxury, and how the addition of a designer label on a commonplace item raises a question on the value of things. A lot of the luxury brand’s aura is through maintaining a perception among the audience, and keeping itself as an aspiration among potential consumers – couching utility in intangibles. This is not taking away anything from the quality of the product per se, but the entire concept of ‘brand’ is usually seen as a way to distinguish the product from similar products and take it to a level above that of a commodity. A lot of communication these days is about the aura/show off value of the luxury brand than anything to do with the product superiority. In a way, its quite logical (and obvious) because if luxury brands focus on the utilitarian value of their product, they really wouldn’t get ahead. The counter point to this would be that the premium charged by the luxury brand is for the emotional high of using the brand, in addition to the (hopefully) superior quality that it provides. Does it mean that luxury brands would have to relook at the premiums they charge?
But having said all that, there are quite a few things that seem to point towards potential synergy between luxury brands and social media. One of the points that Jeremiah mentioned in his post is the usage of celebrity associations. Celebrities are now running rampant on social networks, and luxury brands have a good means of weaving themselves into the conversation, and increasing their aspiration value. Usage by a celebrity also gives them a context to kickstart conversations. Also, social media is about emotional connect and sharing. If much of a luxury brand’s aura is built on the emotional appeal, then it can use social media very well to its advantage. After all, what other medium offers such easy methods to spread some ‘show off’ value? 🙂 I thought the Mercedes Benz idea of a closed network would be great if they allowed users at least partial portability of data to other networks. (to, rather than from) The ‘share’ aspect of social media will also help identify potential customers via existing ones. But most importantly, I feel the biggest use of social media (actually the web in general) for luxury brands is the audience data that is being generated on a regular basis, real time. It offers better segmenting and targeting opportunities, and while this is applicable to all brands, it is all the more important for luxury brands. This can be used for gaining more insights, encouraging sampling and so on.
It is definitely an interesting conundrum, but the web, thankfully has space for all kinds, I think. Will appreciate your thoughts. 🙂
until next time, the luxury of real time? 😉