From world-renowned names to more discreet new players, designers from all (cat)walks debut their Fall 2012 visions this month. Besides the highly anticipated designs and buzz surrounding celebrities, the plethora of digital innovations that were adopted at New York Fashion Week, have caught the attention of the industry. The majority of the main players live-streamed their shows and fashion brands big and small were highly active on the social media scene.  We take a look back at some of the digital highlights from New York Fashion Week, initiatives that will surely set the scene for the fashion weeks to follow.

A fashion platform for the real VIPs

Fashion PR giant KCD Worldwide, in collaboration with leading digital agency King and Partners, pioneered an invitation-only internet platform for the real VIPs (buyers and fashion editors) to view fashion shows. The first presentation featured Prabal Gurung’s flirtatious debut collection for ICB.

It’s a dream come true for press and buyers, not only having an undisrupted front row view,  but more importantly, access to high resolution images with product details, close ups, and videos, all immediately available from their computers and mobile devices.

Backstage with Diane Von Furstenberg

The iconic fashion house joined forces with iPhone video app Viddy (like Instagram for video) to provide snippets of behind the scenes footage of their activities at New York Fashion Week. The videos were posted to the brand’s dedicated DVF NYFW tab on Facebook shortly after being filmed and were also shared on Twitter. The videos featured model castings, snapshots of hair and makeup, backstage interviews, and frantic preparations before the runaway (including Diane’s special message to the models before the show). This allowed fans with backstage access to a real and in-depth experience of the show as it happened.

Oscar de la Renta calls on fans for digital inspiration board

Immediately following their fashion week show, Oscar de la Renta announced the launch of a branded platform ‘The Board’ which invites people to post images or videos on a virtual inspiration board. The platform is live for the next three months and the images posted will serve as inspiration for the upcoming resort collection. The site, best described as a mini Pinterest with a live feed, is a way for the brand to encourage participation with their fans.

Made’s app for fashion week a runway radar

Made, a platform for fashion, art, and media created by Milk Studios, teamed up with Sonic Notify to create a mobile app that recognizes inaudible sound waves which automatically sync to mobile devices in real-time. This allowed participants at the shows to view photos from the collections on their mobiles as they went down the runway. The images included details about the designers and merchandise which could be tagged to favorites, re-tweeted and posted to Facebook, making it easy to for users to share information and manage their reviews right after the shows.

Tommy Hilfiger’s Twitter model walk

During its menswear show earlier this month, Tommy Hilfiger shared images of the fall shoe collection via Twitter as they premiered on the runway. Fans had a chance to win a pair shoes by re-tweeting their favorite style, or by entering in the competition on Facebook, where the brand also live streamed their show. Tommy Hilfiger’s Twitter model walk may have gained inspiration from Burberry’s initiative when the British fashion house tweeted images from their Spring 2012 collection, moments before the runway.

As New York Fashion Week so prominently demonstrated, digital is increasingly changing the way fashion brands communicate. With Paris and Milan shows soon to follow, we will be closely monitoring the next interesting and exciting moves in digital.

Photo Sources: theboard.oscardelarenta.com, www.luckymag.com, thehighlow.com

According to online research company, Experian Hitwise, Pinterest’s astounding growth rate is similar to that of Facebook when it started in 2006. The rapid 4,000 percent increase fittingly earned Pinterest a coveted place in the top 10 social networking and forums of 2011.

So how does Pinterest work? The platform serves as a virtual mood-board where users (a.k.a pinners) post images to create and manage theme-based collections called boards. These boards are sorted into 32 different Pinterest categories (such as, My Style, Products I love, etc.) and are filled with different images (pins) organized in very attractive displays. Pinners tailor their tastes by following other users or specific boards they like. Based on these interests, they receive real-time updates in a simple and captivating pin board-type feed. Pinterest has also replicated ‘like’ or ‘retweet’ function by the ability to repin, comment and share images.

Within the last 12 weeks ending December 2011, it was recorded that the majority of Pinners (almost 60%) were female aged between 25 and 44. This trend is no doubt attributed women’s fascination with alluring images and tendency to quickly spread word-of-mouth- in the case about the ‘pinning’ phenomena. Not surprisingly, the most commonly posted images on Pinterest tend to feature home décor, weddings, crafts, fashion, and food.

Sure enough, Pinterest’s charming visual displays have already struck a chord with luxury brands. At the forefront are luxury retailers Nordstrom and Bergdorf Goodman with Nordstrom leading the way with a sizeable 6,000+ followers. Both brands have created a range of boards to showcase their offerings including product categories, current trends, specific brands, gift ideas and events. Fashionably forward brand, Kate Spade has also leveraged off Pinterest’s appealing aesthetics by displaying a range of vibrant inspiration boards to allow fans a glimpse into the Kate Spade world.

Photo source: http://pinterest.com/bergdorfs/

What’s especially convenient for these brands is that the images on Pinterest automatically link users to the URL source, allowing them to directly share images without having to laboriously spend time downloading and uploading each picture. Another key factor that is likely to lure in luxury brands is Pinterest’s discreet philosophy: unlike other social media sites, Pinterest does not encourage self-promotion, but rather nurtures community collaboration through image sharing and providing an insight into each brand’s universe.

The pressing question for luxury strategists is, “will Pinterest become a household name for luxury brands using social media?” Given the recent spotlight and impressive figures to show, this is just the tip of the iceberg for Pinterest. The niche appeal, strong growth and visual desirability of the platform are sure to resonate favorably with luxury brands. DLG will be following closely to see how Pinterest’s growth evolves.

Every year at the occasion of the Salon International de la Haute Horlogerie (SIHH), Digital Luxury Group unveils the results for the 15 brands in the Haute Horlogerie category of the WorldWatchReport™, the leading market research in the luxury watch industry. The full edition of the report, which covers 40 brands and 20 markets worldwide, will be available in March at Baselworld.

The WorldWatchReport™  is based on millions of intentions expressed independently and anonymously by consumers searching for luxury watch brands through the world’s leading search engines (Google, Bing, Yandex, and Baidu). The exclusive analysis provides a unique view on the preferences and topics of interest of luxury watch clientele around the world. There were seven main trends revealed for the Haute Horlogerie category:

1. China becomes the #1 market for Haute Horlogerie

For the first time since the launch of the WorldWatchReport™ in 2004, China overtakes the United States to become the market with the highest demand for Haute Horlogerie , with nearly 25% of the international search market share, vs. 21% for the US.

2. 1 out of 6 queries are made from a mobile device

Nearly 17% of the global searches for Haute Horlogerie are now performed through web-enabled mobile devices. The share of mobile searches are particularly high in Japan, where it represents almost 50%.

3. IWC, Patek Philippe and Zenith are the most searched-for Haute Horlogerie brands

IWC (23%), Patek Philippe (16%) and Zenith (11%) capture 50% of the demand expressed for Haute Horlogerie brands internationally via search engines.

4. Audemars Piguet’s Royal Oak dethrones Jaeger-LeCoultre’s Reverso

For the first time in three years, Jaeger-LeCoultre’s Reverso has lost first position as the most wanted Haute Horlogerie model. The watch now finds itself in the third place behind Audemars Piguet’s Royal Oak and IWC‘s Portuguese.

1. A Year of Change: The Luxury Industry in 2011 (Luxury Society)

In 2011, the luxury industry went through an unprecedented number of changes. Luxury Society takes a look at the organizations, the people, and the economics that made 2011 what it was.

http://luxurysociety.com/articles/2011/12/a-year-of-change-the-luxury-industry-in-2011

2. Top 10 Luxury Marketing Ideas in 2011 (Luxury Daily)

There were a lot of note-worthy marketing campaigns this past year – some were good, some were bad, and others went unnoticed.  However, there were a few game-changing ideas that unarguably changed the luxury industry.  Luxury Daily examines them.

http://www.luxurydaily.com/top-10-luxury-branded-ideas-in-2011/

3. The Most Read Articles of 2011 (Fashions Collective)

A favorite industry read at DLG, Fashion’s Collective recaps the most prominent takeaways from the year before, re-mixed to provide context for a successful and thoughtful 2012 year.

http://fashionscollective.com/FashionAndLuxury/01/most-read-articles-of-2011/

4. Top 10 Articles of 2011 (Business of Fashion)

From the rise of digital to the fall of Galliano, and everything in between, Business of Fashion found itself exploring the heart of an ever-changing fashion ecosystem, fuelled by creativity, digital innovation and globalization.

http://www.businessoffashion.com/2011/12/the-best-of-bof-top-10-articles-of-2011.html

5.  2011: The Year in Fashion (EDITD)

EDITD compiled a global overview of the ten key fashion happenings to have on your radar. Analyzing data gathered across the year, EDITD applied their stats to 2011’s most newsworthy events.

http://editd.com/reports/2011-a-year-in-fashion/

6. The 10 Best Fashion, Luxury & Interior Brand Blogs of 2011 (Fashionably Marketing)

Fashionably Marketing’s annual review of brand blogs, which this year includes favorite luxury and home interior and design blogs.

http://fashionablymarketing.me/2012/01/best-brand-blogs-of-2011/

Photo source: Tangent Magazine, Burberry Prorsum SS12  

Earlier this month in Paris, Le Web hosted the biggest tech conference in Europe attracting over 300 participants from 60 countries. The speakers included a star studded list of the tech world’s finest including, Google’s Eric Schmidt, Spotify founder Daniel Ek and Instagram’s Kevin Systorm. This year, Le Web scored one of the biggest names in fashion as a speaker, legendary designer Karl Lagerfeld.

In the much anticipated interview, Karl Lagerfeld along with Net-a-Porter founder Natalie Massenet, announced the launch of the new label ‘Karl’ which will be sold exclusively online at Net-a-Porter from January 2012.

In addition to the big announcement about his new line, the fashion icon gave an uncanny and entertaining view into his world:

At the beginning of the interview, Karl revealed his Apple fetish claiming to have an impressive collection of hundreds of iPods, 30-40 iPads and 4 iPhones!  He emphasized the iPad as an important tool, using it to create videos, sketch designs and jot down ideas. In the previous week alone he had used his iPad to film short advertisements for Chanel, where he is the Creative Director. Karl even gave the audience a  demonstration of how he sketches with the iPad, drafting a quick, yet impressive, self-portrait.

The interview continued with some of his witty and insightful responses to questions asked, sure to be quoted sound bites in years to come:

How do you promote your brand?

“I don’t promote myself, I’m just being me”

Has technology changed the creative process?

“Of course, it’s a very strange thing… but it cannot replace paper”

In response to being the world’s most recognized personal brand…

“You have to invent your own rules and stick with them… life will teach you”

When Net-a-Porter’s Natalie Massenet joined Karl on stage they revealed the new ‘Karl’ range that will be launched early next year. The 70 piece collection has a cool rock-chic inspired theme and will be sold at comparatively affordable prices, ranging from 60- 300 Euros. Massenet added, “The amazing thing about this (collection) is its accessibility – the price points are accessible, women all over the world will have access to Karl.” The designs will be premiered at Couture Fashion Week in Paris on January 25, 2012, allowing customers to purchase the collection the same month it’s debuted. Fans can already join the ‘Karl Kult’ to receive the latest news, sign up for competitions, download the mobile app and preview the collection on the Net-a-Porter microsite.

In the final stages of the interview, Karl was asked, “how do you learn?” His response:

• Keep your eyes wide open
• Be over informed
• Be curious and adapt to the changing world

And in true Karl style, always surprising, he ended, “I hate banality… that’s why I am a big fan of Lady Gaga.”

Photo Credit: www.onemanandhisblog.com, www.techcrunch.com 

If you are already packing your digital marketing bags to launch out into the Chinese market, take a moment to check that you are well prepared for the trip. Having your website translated into Chinese is not enough. An appropriate offensive digital strategy for the Chinese market must take some extraordinary factors into consideration. In fact, entering this complex market requires crucial passkeys that many luxury brands have neglected to prepare beforehand.

Coming up against the Great Firewall of China

One of the major hurdles to Western brands is the unbelievable amount of time it takes for mainland locals to actually be able to access a brand’s website. A recent study published this summer by Strangeloop evokes this colossal time lag as the most dissuasive blockage for Chinese Internet users, 80 per cent of whom lose patience before actually accessing a brand’s homepage. On the whole, optimal load time for a website should not exceed two seconds. However, the reality is that some high-end brands go so far as to brush with the 40-second mark. And in cases where the homepage does finally appear, most users never make it past the first page.
Why the wait? The geo-localisation of the site is the spanner in the works. When targeting Chinese consumers, one click of the mouse and Internet users will know precisely on which side of the Chinese Firewall the site is hosted. It is estimated that sites hosted outside of Mainland China can see their site’s upload speed severely handicapped, requiring about five times more time to open the homepage.

In an attempt to remedy this situation some brands have solicited the help of a Content Delivery Network (CDN) to speed up load time. However, statistically even this has not proven fruitful. Brands will simply have to face the harsh reality of the structural limitations to their website functionality, and revamp their digital strategy accordingly.

Out with the old, in with the new? Not in China

While most web users in the Western world succumb to the overwhelming technology phenomenon of instant-obsolescence, Chinese users have been merrily surfing along for years on outdated equipment and operating systems. And while the West enjoys and relies on its mass availability of technology, Chinese users are now beginning to see their outdated tools as roadblocks to the access to basic information and an enjoyable user experience. But awareness does not proffer a solution from the user end. It is in the hands of companies to adapt appropriately, since web technology in China is simply not able to support sites that require a large bandwidth to operate.

Luxury brands do a double-take when they realise that over 60% of online shoppers in Mainland China still use Internet Explorer 6 (IE6), a browser that had its final update in 2008. To make matters worse, it is no longer even supported by Microsoft, but rather is viewed as an object of derision in the company’s online countdown to the browser’s death and burial. But as most online banking in China is done on IE6 and there are no plans in the pipeline to change this, there appears to be no light at the end of the tunnel for the browser’s demise from the user end. The good news is that for Chinese online shoppers using alternatives to IE6, a more pleasurable and engaging web experience is within their reach, provided brands have already made the necessary modifications to accommodate the firewall issues.

How to guarantee an optimal web experience

Given these technological and legal constraints, what can luxury brands do to create the most seamless flow of navigation on their sites for users in Mainland China?

Any optimal web experience will be contingent on the brand’s ability to come to terms with the unorthodox modus operandi imposed by the local Internet framework. Understanding the challenges and implications of China’s web reality is just the beginning. To this end, a logical first step would be for brands to do their homework. Having a trusted partner geographically on-site to evaluate the site’s current accessibility statistics and “feel” would be a good place to start.
Once the current gap between website user experience objectives and hands-on reality has been identified, companies can enquire about the practical steps and legal formalities that need to be taken to host the site on the mainland. Usually, a non-Chinese company will only be able to host in Hong Kong or in Macau. This will most likely involve going through registration formalities facilitated by a local partner or Chinese-speaking representative. Whether a brand decides to go down this road or not will determine their potential to effectively reach this growing pool of wealthy consumers.

After that, IT specialists will have to sit down and simplify, simplify, simplify. A successful website should perform well across a range of browsers. After all, what good is it for a brand to open the door of their luxury universe to Chinese consumers if users will only see it slam back in their face?

Convincing Mainland Chinese that they are understood by luxury brands goes much deeper than language. Most brands that already have a mainland presence have been able to successfully adapt their web content to reflect specific local trends and preferences. But it is only when Chinese consumers feel that a brand has engineered its site to make the unique Mainland web experience as positive as possible, that a brand will stand out from the crowd. It will have successfully created a subtle but non-negligible touchpoint on the right side of the Wall.

On November 14, 2011, Digital Luxury Group calculated the average loading time of the websites for the following brands from Beijing, Shanghai and Hong-Kong: Audemars Piguet, Blancpain, Breitling, Breguet, Bulgari, Cartier, Chopard, Ebel, Franck Muller, Girard-Perregaux, Hublot, Longines, Omega, Patek Philippe, Piaget, Rado, Raymond Weil, Rolex, TAG Heuer and Zenith. The average loading time is 11 seconds, which is 9 seconds slower than the optimal loading time to attract and retain visitors’ attention.

by Claudia Garofalo de Pretto, Digital Luxury Group

Article published in WorldWatchWeb / Europa Star December – January 2012 Magazine Issue

Based on millions of intentions expressed by shoe aficionados searching for luxury footwear products online, Digital Luxury Group’s analysis – which covers 57 brands in 7 markets – outlines the following trends:

Market coverage

• The US is the most important market for the industry, generating 48% of the demand related to luxury shoes, followed by the UK (17%).

Search patterns

• 91% of the searches are related to brands.
• 35% of non-branded consumer intentions are related to shoe styles (boots, ballerinas, high-heels, etc.)
• 40% of the demand expressed by the US clientele relates  to sneakers, even though most of the 57 analyzed brands do not sell sneakers.

Most popular brands

• Prada and Gucci combined represent nearly 50% of the demand related to brands listed in the category MAISON.
• Christian Louboutin is conquering he Web, with nearly 45% of the demand expressed for brands listed in the SHOE HERITAGE category.
• Alexander Wang and Brian Atwood generate 60% of the demand in the NEW PLAYERS category.

Facebook / Twitter

• Jimmy Choo and Christian Louboutin communities on Facebook both are 4 times larger than all the other luxury shoe brands (multi-products brands excluded)
• Charlotte Olympia and Alexander Wang generate the highest discussion rate on Twitter.

Digital Luxury Group’s Luxury Shoe Industry analysis is based on the same methodology as the World Watch Report, the baseline market study for the watchmaking industry published by Digital Luxury Group since 2004.

Additional and custom information related to specific brands and markets are available on request. Please contact shoes/at/digital-luxury.com

Sadly, the boutique arena is not the only playing field for cutthroat luxury goods addicts.  Some brand-gladiators are so crazed that they are ready to steal the baby before it’s even born.  Just this week the Marc Jacobs SS12 collection was stolen from a train en route to London from Paris. No ransom was demanded, but the designer is offering a reward for the collection’s return.

This disturbing trend is the symptom to a much deeper affliction. Luxury is in crisis, one that needs to be addressed.  Somehow along the way the lines got blurred and luxury lost its identity.  After all, what is luxury?  Is it a product, an attitude, a way of living, a state of being, a “universe”?  Does the product make the man / woman / brand?  What makes brands and consumers act the way they do?

A Distorted Image Leads to Bingeing

Correctly identifying this over-zealous bingeing symptom is the key to diagnosing the disease.  Sadly, both luxury brands and their clients are acting like bulimic teenagers. The sad truth is — the luxury industry needs professional counselling.  In fact, both companies and consumers need to go into rehab…. urgently.

On the “customer” side, we see what author Robert Frank calls the dangerous “high-beta rich” – affluent consumers who derive their wealth from financial markets, bubbles and deals.  These “manic ”consumers are highly volatile, bingeing on luxury homes, cars, clothing and technology, only to have the assets repossessed in the next downturn.  They binge on easy investments that they are subsequently pressured to sell at a loss, hiding a mountain of debt behind a façade of success. In emerging markets, the explosion in the number of millionaires creates fickle purchasing behaviour, as the new rich are searching for identity through luxury consumption. Less wealthy consumers binge on the latest luxury fashions, some even prostituting themselves to acquire their next handbag “fix” in a desperate attempt to maintain their social status.

On the “company” side, luxury companies are feeding on easy revenues, bingeing on consumers outside their target segments.  In an effort to be all things to all people and create the most comprehensive brand universe, they binge on diversification, venturing into industries outside their core competences.  They binge on new markets in en effort to stake their claim to new territory in countries where they have no knowledge of the regulations, culture and purchasing habits of the locals.  To keep up with the resulting surge in sales, brands are rushing to build factories and hire workers to respond to unstable consumer demand.

To acquire new clients, they jump into the newest technologies, bingeing on e-commerce and social media recklessly, without considering how these channels should be used to best fit their brand image.  They binge on acquisitions to expand their luxury empires without taking care of the home front — their core business and heritage.  In the worst-case scenarios, they even binge on gray-market channels, turning a blind eye to the parallel market’s debilitating dissipation of the brand name.

Gray Matter

Unfortunately, just identifying the disease does not provide the way out.  The multitude of shades of gray in the evolution of the luxury industry and its fast-paced deterioration in identity and values has blurred our vision.

But, as any wise teacher will tell you, the answer lies in the question. It seems that both luxury brands and consumers are simply not using their head.

Physiologically, gray matter is vital in sensory perception, like memory, hearing, emotions and speech.  It’s the stuff that allows us to use our senses.  Studies have shown that reflecting on our decisions actually increases gray matter, and that the larger the volume of gray matter the more accurate we are in correctly judging the subject of our reflection.

Just as the bulimic teenager needs to step back and gain a new perspective on the distorted image in the mirror, in the same way luxury brands and their clients need to use their gray matter to pause and reflect on who they are really trying to become, on where they are and how they got there.

One valid question might just be…. should luxury be fat or skinny?

For consumers, bingeing is the result of their desire to become what they think will make them appear successful.  Being “skinny” means sacrificing what makes you fat—a healthy lifestyle, proper eating, saving, family, rest.  The “skinny” luxury consumer image is, in fact, a cheap counterfeit.

Luxury companies are also looking for ways to be “skinny” – they boost margins by scrimping on quality, seduce the maximum number of consumers by sacrificing exclusivity, and thereby gain maximum profits in an effort to retain investors. Their brands are dying but they can’t see it.

The answer could be very simple.  Maybe luxury should be “fat”.  Extravagant quality, customer service, design and craftsmanship used to be the bywords for the industry.  Models used to be womanly, healthy, sophisticated, elegant.  Clients used to be philanthropic, generous, cultivated, noble.

Using our gray matter will reveal the real question…. In a world of true luxury, what profit is it to gain the world but sell your soul?

By Claudia Garofalo de Pretto

Fierce brand loyalty, a natural connection to the digital space, a yearning for knowledge and expert fashion advice… these are just some of the highlights of a recent WWD article on men and luxury.  Brands such as Coach, Ermenegildo Zegna, Ben Minkoff and John Varvatos are but a few of the brands that have discovered that men have been grossly underserved and misunderstood in the luxury market.

What is interesting is the variety of ”inner self” issues that brands are starting to understand.  Brands are learning that men tend to value a more “mature” approach to shopping.  They put emphasis on knowledge, performance, quality and heritage.  The reflection and consideration process takes longer than it does with women, but the actual closing of the sale is decisive and rapid.  Brands are seeing the things that hinder men from fully adopting what luxury brands are offering.

For example, what do men really hate about shopping?  Trying on clothes.  Ermenegildo Zegna has found a solution to this phobia.  Men have access to a virtual fitting room – based on fits.me technology – where they can input personal measurements and visualize what clothes should theoretically look like on their particular body shape.

Visceral Impulses in a Virtual World

While women are finding fulfillment in the cascade of beautiful images that invite them into the digital store to dream, men are getting their “fix” from the tactile end.  The mere sensation of pushing the buttons, of having the world at their fingertips on a mobile application, is profoundly satisfying to a man.  The tactile stimulation and instant gratification in giving the order for a tailor-made item to be produced by the simple touch of a fingertip – that is power.

Another very powerful and real touchpoint that the Internet cannot yet reproduce virtually is smell.  Go into any luxury shop and notice the first thing a man does when considering whether or not to purchase a product he may possibly deem to be overpriced — he smells the product.  Yes, right there in the shop, he puts it up to his nose and sniffs it, as if the odor would make the price tag more digestible.  In the case of luxury, 9 times out of 10, it does.  Hey, if it smells good, it must BE good, right?

The Hidden Superhero in Every Man

But who needs to spend a fortune on marketing studies to understand what really drives men to purchase luxury goods? In order to get in touch with the deep things of the male psyche, brands should get their noses out of the marketing books and go to the movies.

The recent renaissance of DC and Marvel comics has been met with overwhelming success.  If brands would learn from the undeniable magnetic attraction these movies are producing on male consumers, they would be better able to identify the keys to a man’s heart, for free.

The superhero-like names of some of the digital access points that are already catering specifically to men, like GiltMan and Mr. Porter, prove that the superhero phenomenon is real and growing. After all, what young boy has not attached the kitchen towel to the back of his T-shirt and run around pretending to be Superman?  It is obvious that the need to dress for success, to peacock and to get the girl all stem from the visceral realities clearly showcased in the superhero comics.  Everyone knows that the superhero needs to have his special suit on to be able to perform and access his superpowers.

And the need for expert advice and knowledge?  Well, you can find that as well, not only in the superhero films but also in famous spy-movies like James Bond or spoofs like True Lies.  The one who presents the hero with his gadgets is always indispensable to the success of the mission.  In the movie “The Incredibles,” the hero is convinced he needs a cape to make his reentry into the superhero business, but his fashion consultant “E” successfully talks him out of it.  Steve Jobs was the genius behind Pixar who made the film – and it’s obvious that he knew things about what really motivates consumers more than anyone else.

Everybody Wants to Save the World

Right now, the only superhero motivation that has not yet been exploited is the need to save the world. In an ideal world, real men fight for a just cause.  Unfortunately, in our world of economic turmoil, men fight just ‘cause if they don’t, they won’t survive.

If luxury brands really want to boldly go where no man has gone before, they might try to offer a more altruistic motivation to closing the sale.  Brand image could be enhanced by partnering with a just cause that any superhero would jump at.

What if brands could sell the idea that when a man purchases their products, a portion of the proceeds goes to help the future generation succeed?  They could underline that philanthropy and generosity are the true signs of wealth and self-actualization.  The true measure of a man is not the size of his wallet, but the size of his heart.

By developing programs to educate the underprivileged or rescue youth from drug-infested areas, luxury brands could wield a very powerful two-edged sword.  On the one hand, they can appeal to the superhero self-actualization needs of their clients, while at the same time they can demonstrate their practical and sensitive response to the harsh realities of the world in which we all live.

After all, if you don’t save the world, how will you get the girl?

By Claudia Garofalo de Pretto, Digital Luxury Group

Wealthy fans are willing to spend impressive amounts for a piece of the stars, with music icons on the top the list.  Last year, some of Pop-King Michael Jackson’s furniture was put on the block.  Even though he passed away before ever seeing the finished products, the bidding on the Baroque sofa he would have sat on started comfortably at 150’000 USD.  This week a Canadian dentist even invested 31’000 USD to purchase a tooth that supposedly once belonged to singer John Lennon.

Deceased music stars are not the only ones drawing attention. Last month Sotheby’s, which hosted its first dinosaur auction in 1997, sold a full Allosaurus skeleton at a world record price.  Stars like Nicolas Cage and Leonard DiCaprio apparently fought tooth and nail a few years ago over a T-Rex skull, which closed on a 6-figure sum.  A more common investor might choose to snap up a T-Rex tooth instead for a mere 1’000 USD an inch.

Putting the Pieces Together

Apart from Hollywood stars and institutions, who is actually doing the buying, and why?

According to Wealth-X, a Singapore based research firm, the ultra-wealthy in the US should still outnumber those in Asia until 2032.  Eager to make a mark for themselves and catch up to Westerners, Asian consumers are actively seeking new investment opportunities and are building up their personal collections of luxury goods and collectibles.  Some Chinese are even investing in US citizenship just as they would the next new sports car or luxury yacht.

Studying the evolution of buying habits is uncovering an age-old trend – when times are tough, luxury becomes more about long-term return-on-investment than ephemeral jet-set prestige.  Looking back in history, when stocks and bonds are no longer the safe haven for affluents, the market for collectibles skyrockets.  If luxury brands want to compete in this market, they have to provide a comparable offer.

The Missing Link for Brands

Some brands have correctly understood the motivations behind the collectibles trend and have recently launched or reinforced their jewelry lines, emphasizing the eternal nature of the materials and the long-term brand value in the signature.  Others have focused on “bespoke” or limited edition items.

Despite this appropriate product response, brands have often missed the link between what’s going on in the auction market and their choice of brand ambassadors. The reason a collector bids on an item at auction is two-fold:  either he believes in the intrinsic value of the object itself and it’s future ROI potential, or he believes in the potential long-term gain due to name value, posthumous or not, of the original star who owned it or the creator who fashioned it.  For luxury items the name is not just in the brand or the product itself, it is also inextricably linked to their ambassadors and what they represent.  Yet when it comes to choosing brand ambassadors, it seems that many luxury brands are putting their faith in dinosaurs.

Longines, is an example of successful ambassador selection.  Even though they most likely never wore timepieces by the brand, in the past the company has successfully convinced the public that classic Hollywood stars like Humphrey Bogart and Audrey Hepburn were Longines aficionados.  More recently, Aishwarya Rai Bachchan is a classic intimate connection to the Asian consumer, while Kate Winslet‘s in-a-class-of-her own personality speaks to the heart of Westerners. Their marketing campaign is brilliant, with internationally recognized and trusted ambassadors that display timeless star-appeal.  China, a market where Longines shines and far surpasses many other brands in terms of online reach and search results, is captivated by the brand’s tailor-made regional communication.  This in turn translates into a positive perception of long-term value and enduring relevance.

Louis Vuitton is another champion in ambassador selection. The luxury powerhouse is able to interweave their ambassador’s personal journey into the brand’s unique history.  By choosing social justice conscious ambassadors like Angelina Jolie and Bono, or classic icons of elegance and artistic performance like Mikhail Baryshnikov, they stand out as more than just a luxury brand.  Even their choice of photographer allows them to capitalize on personality-appeal, with world-renowned portrait artist Annie Liebovitz taking the online consumer on a cinematographic journey of sight and sound into the world of Louis Vuitton.  A special “Friends of the House” section on their website introduces the online consumer to even more personalities that are linked to the brand.

In a world where luxury is becoming more about quality, values, history and return on investment, brands would do well to also reevaluate their ambassador selection process.

Generation X and Millennial consumers want more than just return on investment.  Much like constructing their Facebook page, they are looking to luxury goods as a way to build their own unique personal identity and peer group.   The ambassador “fans” of luxury brands have powerful impact on consumers.  Their selection is not only about beauty and performance; it is about the ambassador’s long-term personal footprint in the world.

By Claudia Garofalo de Pretto, Digital Luxury Group