Managing Luxury Online

After the New York, London, Paris and Milan Fashion Weeks – which Dazed condenses into some key trends – comes the hard sell. We know that increasingly people are shopping online, not only while in the comfort of their home but also while out and about, with 25% of shoppers on their phone looking at a store’s website at the same time as they are in a physical shop, according to ForeSee. The stats for those luxury demographics bear even more consideration; Luxury Daily recently reported that 20% of those earning $150k p.a. or more shop via their phones.

As usual the Louis Vuitton show in Paris was streamed live online. The brand was one of the leaders in pioneering the idea of making such events available to hoi polloi. While some esoteric fashionistas may turn their noses up at the democratisation of luxury, they are increasingly swimming against the current as such efforts become more commonplace. Mere days after Marc Jacobs had taken his bow at the end of his latest collection for Louis Vuitton, the site fashionshow.louisvuitton.com was alive with myriad content, including in-depth interviews with Jacobs et al. It’s a beautiful microsite and worth checking out. At the weekend Zeitgeist decided to browse the Vuitton website from the comfort of his bed on his iPhone. One of the nice little things about the Louis Vuitton website is that to navigate there, all you need type in is “lv” and you are redirected to the site. Unfortunately, the same cannot be said for the mobile internet, where Zeitgeist was instead directed to a website for car insurance. Not a pleasant experience. It’s all the more important to have bought these keywords for mobile devices when the user will find typing less easy and is also likely to have less time than when they are using a desktop computer. It’s a shame because otherwise Vuitton’s digital presence is above reproach.

Worse still was when Zeitgeist then tried to visit Gucci by typing in “Gucci” into their Safari browser on the iPhone. The Gucci logo appeared and all seemed well until it transpired that he had arrived at the German site. Rookie mistakes like this do a disservice to a brand, and hurt it all the more the more luxurious it is.

On the more impressive side, the always admirable Lanvin, doyenne of Mount Street and invader of Savile Row, has finally launched a European e-commerce site, showcasing, as Luxuo puts it, “Lanvin’s dynamic style, the spirit of Alber Elbaz, and the creative wealth of its collections”. The site as whole manages to convey elegance, insouciance, history and contemporary style. Luxury brands have had a hard time adjusting to the online revolution, uncomfortably wondering how to translate the rarefied atmosphere of a boutique into the world of the Internet. Fashion’s Collective puts it best, in an article on redefining exclusivity,

The answer is to redefine what exclusive means. Rather than exclusive being the clientele the brand attracts, it should instead be the experience the brand conveys. Here, the focus shifts to the brand to provide value online just as they do offline. By curating the images, videos, copy, content and experience a brand publishes online, exclusivity is created.

While others have floundered, Lanvin passes the test with flying colours. Very impressive and very distressing news for the Zeitgeist credit card.

Putting the Art in mARkeTing

The Louis Vuitton brand has been featured several times in Zeitgeist articles, not least because almost all the comms for the brand are spearheaded by our francophone cousins at Ogilvy Paris; it’s also a fascinating brand in its own right.

This summer, the Louis Vuitton Art Academy was born, the first of a 3-year summer show in collaboration with several major art galleries in London; the Hayward Gallery, South London Gallery, Tate Britain and the Whitechapel Gallery and the Royal Academy. The idea behind it is to encourage young people to the world of the arts, according to Dazed Digital, “giving 30 young people aged between 13 and 25 the chance to get hands-on-dirty in the creative arts”. The project will allow the youngsters to become involved in the physical production of art, beginning specifically with portraiture.

Louis Vuitton is of course no stranger to flirtations with the arts. Takashi Murakami (whom Zeitgeist has met) and Richard Prince (whom Zeitgeist would love to meet) have both produced collaborations with Marc Jacobs, creative director at Vuitton. Head of LVMH Bernard Arnault is a very keen owner of art, and pieces from his personal collection can be found at the new London Vuitton Maison on Bond St., including a large piece by Gilbert and George in the menswear department. Last year it was announced that Vuitton will build a permanent institution dedicated to the arts, designed by the perpetually-busy Frank Gehry.

This may all be terribly fun for Monsieur Arnault, but what value do you think it adds to the brand? Answers on a postcard or in the comments box, please.

Louis Vuitton’s Brand Balancing Act

LV may have been around since 1854, but, as the saying goes, you’re only as good as your last picture. Just as many an actor has been condemned to Hollywood purgatory through making one poor choice, so it is with a brand. A brand’s equity is made or broken by its perception, i.e. what it’s done lately. Ogilvy’s own Louis Vuitton has been in the press a lot recently, for reasons both good and bad. Zeitgeist takes a look at Vuitton’s goings on, and what impact the machinations will have on it’s brand.

The last Friday of May heralded the reopening of London’s New Bond St. Louis Vuitton boutique, with the new moniker of ‘Maison’, presumably denoting it as a flagship store. Never one to miss a way to include Facebook, Vuitton recorded the event in a live stream over the social network, beaming around the world images of the oh-so tiring Alexa Chung as she hosted the broadcast. The brand has done this previously to great success for it’s Ready-to-wear collections from various shows, which inspire great community interaction. Concurrent with this was the launch of a brand presence on Foursquare, one of the first of any brand to have an account on the location-based social network. (Indeed, this democratisation of fashion could be an article in of itself; Ermenegildo Zegna are taking a leaf from Vuitton’s book with unprecedented access to what goes on in the runup to a runway show). Photos of designer Marc Jacobs, Gwyneth Paltrow et al. graced the front pages of several of the city’s dailies the next morning. Diagnosis: Very good

At the opening, in a separate story that appeared with very little fanfare on the Vogue website, a brief interview was conducted with Vuitton’s creative director Marc Jacobs, who said that when he began working on the brand, his initial thoughts might have taken it in a completely different direction, “When I arrived at Louis Vuitton 12 years ago, and I was figuring out how to create a new tier of Vuitton for a different customer, I thought it would be clever to hide that monogram, which was very stupid of me. That logo is part of what makes Vuitton so desirable. It allows people to become members of an aspirational club.” Zeitgeist has never heard Jacobs utter such an admission prior to this; it is surely an incredibly controversial thought. The problem is that the designer may have been quite right to have thought of removing the logo. Without it, they are almost certainly missing out on what he refers to as a “new tier”; the customer that loves the quality and craftmanship of Vuitton but does not need the validation of having “LV” emblazoned on every product, so instead chooses to shop at Bottega Veneta or somewhere similar. For how long can a brand remain aspirational when it begins to be seen everywhere, including in all the wrong types of places? Zeitgeist recently spotted two pieces of genuine Vuitton luggage sitting in the window of a McDonald’s. Diagnosis: Not good

Elsewhere in Vuitton’s world, the Advertising Standards Authority recently upheld three complaints on a series of advertisements that Ogilvy Paris had concocted, which had received positive press from the FT at its inception, and to which Zeitgeist has referred to previously. The ads, though beautifully photographed in an homage to that brilliant artist Vermeer, were withdrawn after complaints that the print ads gave the impression that the products were completely handmade from start to finish, and that at no point was machinery involved in the manufacturing process. In reality, this is not the case. Craftmanship by hand is indeed a significant part of the process, but the ASA deemed this insufficient. It is also unlikely that such young, beautiful people as depicted in the advertisements work in such immaculate clothing with only chiaroscuro lighting to work by, but there did not seem to be any complaints regarding these artistic licenses. Perhaps this is because such things should be taken with a pinch of salt, instead of at face value. Diagnosis: Not good

Louis Vuitton continues to contest in court in efforts to cut down on the re-selling of goods or the distribution of counterfeit products. The last victory came recently against eBay when the company was fined €200k in damages and €30k in legal costs made payable to Louis Vuitton. TelecomPaper reported “The court described as ‘parasitic’ eBay’s purchase of keywords such as ‘Wuittton’, ‘Viton’ and ‘Vitton’ so that online shoppers searching under these misspellings would be directed to links promoting eBay.” More recently, however, holding company LVMH lost it’s battle with Google over charges “that Google’s practice of selling keywords in advertising searches to the highest bidder damaged trademark law”, according to the BBC. Diagnosis: A tie

Lastly, having already made clear it’s association with a new part of the Journeys campaign – previously featuring such luminaries as Sean Connery, Keith Richards and Catherine Deneuve – that had Pelé, Zidane and Maradonna huddled around a table football game together, this week the company cemented the connection. Vogue recently reported that the World Cup would have an official home in a piece of luggage designed specifically for it by Vuitton. The luggage was revealed in Paris to great fanfare, by that [super]model of restraint, Naomi Campbell. Diagnosis: Very good

It’s been a period of mixed blessings for Louis Vuitton, some of which were completely out of their hands. It’s had some big wins with the new London store opening, as well as the excellent association it has created with the impending World Cup. Long-term, it will be fascinating to see if this is the beginning of a brand embracing to an increasing extent the entertainments and pastimes of the masses (prior to the World Cup, the only sport Vuitton had been involved in was the America’s Cup sailing race, crewed and supported by nought but multi-multi-millionaires), and how they will maintain an aspirational slant if they do so (presumably by continuing to charge £300+ for a shirt). Exciting times are ahead, no doubt…

Curb Your Luxury

From the January, 2010 Zeitgeist…

In these stringent times even Zeitgeist have had to cut corners. We have, for example, begun opting for sevruga caviar over beluga. Luxury brands know that their consumers, a large portion of whom were buying on credit, are in danger of not returning to their stores any time soon. So what have these brands been doing over the holiday period to entice people?

On the Friday before Christmas, Zeitgeist received emails from Hermès, Veuve Cliquot, Emilio Pucci and Yves Saint Laurent. Perrier Jouet, Zegna, Tod’s and Selfridges all followed suit over the ensuing days. Only Selfridges’ email was about a sale. Other emails simply promoted the new season or reminded the reader that there was still time to place an order before Christmas. Some have begun to tie their products in to the lifestyle of their prospective customers, such as Veuve with its The Season campaign. It might be thought that these emails missed a trick by not offering some kind of promotion to those people whom the brand deigned to have on their list, to reward their loyalty in the midst of a recession. No such luck, however. For most of these brands, any such indulgence would not impact the bottom line so much as it would impact the image of the brand. Keeping a semblance of dignity while reminding the shopper of their presence goes a long way. For example, Hermès holds discreet sales for loyal customers at the Dorchester Hotel rather than in-store. Moreover, Louis Vuitton never has sales. Surplus products are destroyed.

However, the recession has in some cases led to some fashionista legerdemain. On a trip to Chloé two weeks before Christmas, Zeitgeist was identified as a returning customer and offered a discreet 40% discount on any purchase.

On Christmas Eve, Zeitgeist found Harrod’s had quietly begun its sale, with 50% off a huge array of items. A significant move as Harrod’s is a stalwart for not starting sales until after Christmas. What has brought about these relatively drastic measures? Though some brands are undoubtedly suffering, the recession has more exacerbated already pressing problems, rather than being the problem itself. Some brands, such as Hermès and Louis Vuitton are doing well. Vuitton contributes some 70% of group LVMH’s profit. In truth, the principle reason for such significant discounting is due to customers expecting and demanding them.

Away from the boutiques themselves, both Gucci and Hermès are currently playing on their equestrian roots. Gucci have decided to take advantage of the rather lucrative industry that has built up surrounding used products, recently starting a venture with Christie’s. Vuitton recently began a new campaign, from Ogilvy and Mather in Paris, which shows the artisans at work. The brand is trying to tread the fine line between its brilliant, bling ready-to-wear collection designed by Marc Jacobs, and the immense heritage it has in the luggage it has been painstakingly making since 1854.

During the recession then, most brands have been sticking to their guns (or the fashionable equivalent), waiting for credit to flow once more, so the cycle can start all over again. Chanel’s new surfboards should get things going again.