WPP’s BrandZ Top 100 Most Valuable Global Brands 2011 study results have just come out. The study was commissioned by WPP, the world’s largest communications firm, and undertaken by Millward Brown Optimor, the experts in the world of branding and financial valuations. Brand value for luxury brands is up by 19 percent.
Last month, I’ve blogged about the need for luxury retailers to target baby boomers. This latest BrandZ study further supported the fact that although consumers in North America and Europe continued to reject conspicuous consumption, those who could afford a luxury lifestyle are no longer restraining. But luxury has been redefined – flaunting is being frowned upon and there’s a deeper appreciation for the craftsmanship that went into each product creation. Those brands that capitalized on design leadership and brand heritage are clearly winning in the luxury retail sector.
Examples of luxury brands who ‘get’ it were Louis Vuitton, Burberry, Gucci, Chanel and Hermès.
Louis Vuitton launched a program to encourage young artists with publicity and financial support, while continuing to enhance its heritage in travel to preserve relationships with the brand’s traditional following. It also broadcast its London fashion show on YouTube. Louis Vuitton remained in this study as the highest-valued luxury brand and increased in value by 23 percent. This doesn’t surprise me because here is a brand which has successfully diversified to different age demographics and lifestyle sectors without alienating its maturing, diehard fans. Remember JLo, Mr. and Mrs. Bono, Keith Richards and Sean Connery all being featured not too long ago in their ads?
Burberry sent personalized messages to the mobile phones of customers, inviting them to view the brand’s London fashion show streamed live to a Burberry store. According to the BrandZ study, Burberry continued to enjoy year-on-year double-digit increases in all markets. Gucci turned some areas of its stores into small workshops where customers could view leatherworkers crafting handbags. Chanel entered e-commerce for the first time. Hermès’s brand value increased by 41 percent. These are all brands that protect their exclusivity – e-commerce is important to draw younger audiences, but accessibility only applies, for most of these brands, to accessories rather than the entire range of products.
Boomers grew up with most of these luxury brands. But their experience with these brands could be different now – fashion magazines, for example, compete with bloggers for influence; fashion shows are now streamed online in addition to being broadcast on TV; in-store experience and special events continue to create a connection with customers. One way or another, luxury brands are no longer aspirational for boomers – they are attainable should boomers desire them.
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