Your Emcees: Women of Luxury

Transcription

1 The Luxury Market P2PX Thursday, October 4 th

2 Your Emcees: Women of Luxury HEIDI FROSETH, EVP OMNICOMMERCE PRACTICE LEAD KELLY BARTELL EXECUTIVE CREATIVE DIRECTOR

3 As promised, you ll learn Mass Premium Luxury The Anti-laws" Seven habits of successful luxury brands Eight retail experience trends How to avoid middle death 10/9/2018 Epsilon 3

4 Define: Mass Premium Luxury MASS Democratized with mainstream appeal. Efficient benefit marketing strategy to sell the most PREMIUM pay more, get more best category value. Customers rationalize investment. Quantifiable price/quality benefit. Comparative marketing strategy LUXURY Highest brand value with opulent quality and intangible lifestyle attribution. Exclusivity brand strategy leveraging key language and visual cues

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6 Sleek. Exclusive. Expensive. Growing. 10/9/2018 Epsilon 6

7 Source: Euromonitor International; Luxury Brands Look for New Models in a Radical Era, Financial Times, May 14, 2017 *Gucci CEO Marco Bizzarri Mature but still expanding 51% THE RISE IN GUCCI S SALES IN THE FIRST QUARTER OF 2017 THE WINNERS IN THE MARKET WILL BE THOSE THAT INNOVATE THE MOST*.

8 Millennials reject luxury and yet they are the next luxury consumer. Why?

9 77MM Boomers < 99MM Millennials High-net-worth individuals HENRY High earner, not rich yet They own a lavish penthouse condo and have a fat investment portfolio They have steady cash flow, but little accumulated wealth Sources: Deloitte, MSLGroup

10 Trading up to a better life 47 million middle-market households $3.5 Trillion of disposable income Source: Luxury for the Masses by Michael J. Silverstein and Neil Fiske, Harvard Business Review, 4/03

11 it is fair to say that luxury now is a particular set of values, not a price point. Forbes, 2018

12 More mindset than money Self Care Questing Style Connecting underpinned with tech. of course. Source: Luxury for the Masses by Michael J. Silverstein and Neil Fiske, Harvard Business Review, 4/03

13 Most important product attributes Superior Quality Brand s Design Customer Service 73% 54% 47% Source: The New Face of Luxury, Epsilon

14 Not all luxury buyers are alike driving new luxe brand creation Massification of Luxury Brands Dressed for the part True Luxe Luxury Brands Immediate value Aspirational Shopper Moments of Wealth Premium Brands Mass Brands Capacity to purchase Luxurification of Mass Brands Source: The New Face of Luxury, Epsilon

15 We call it the Democratization of luxury

16 There are three types of new luxury goods Accessible super premium Mass Prestige: Masstige Old luxury brand extensions Source: Luxury for the Masses by Michael J. Silverstein and Neil Fiske, Harvard Business Review, 4/03

17 The New Luxury experience

18 Across the three pillars, the new luxury economy demands quality experiences that matter.

19 10/9/2018 Epsilon 19

20 The 7 habits of highly effective new-luxury brands

21 1 2 3 Create an emotional bond that fuels self expression and sense of self Create a brand story and invite consumers in Involve consumers in a brand ritual or exclusive circle Be more than a logo. Luxury marketing Store as temple: Train ambassadors Speak a language. as luxurious as sell not just the product over sales the brand but a way of life consultants Sources: 7 Must Do s for Successful Luxury Goods Marketing, Francine Espinoza Peterson, 2/9/15; trainingluxury.com

22 The 4 anti-laws of luxury marketing

23 1 2 Attack the category Forget about positioning. like an outsider You don t need it. 3 4 Do not pander Communicate to your consumers wishes to those you are not targeting Source: Marketing to a High-End Consumer, Using the Luxury Strategy, Vincent Bastien, Entrepreneur, 9/20/15

24 retail experience luxury products

25 The 8 ideas to avoid middle death

26 One-of-a-kind Make it personal: Keep it minimal: Luxuriate in your brand: immersive what can you do that create demand romance your experiences no one else dares story, tingle. salivate Showcase vs Sell. WOW + Whimsy: Limited Edition: White glove service: The experience create imagination. a collection of must-have s pretend you live spurs conversion. the fantastic. possibilities. best demand creation at the plaza Sources: 7 Must Do s for Successful Luxury Goods Marketing, Francine Espinoza Peterson, 2/9/15; trainingluxury.com