The trends that are defining and impacting Brand Value most for the Luxury Brands are:
Brands are becoming Media
Brands are increasingly executing the role formerly filled by traditional media—organizing and reaching audiences with relevant content.
That’s because the brands customer data often is more targeted and detailed than the mass-market audience data of TV or print media.
This has been enabled by Technology and the ability to deliver seamless experiences where the consumers do not have to switch devices.
Consumers choose to engage with Brands on different channels and opt-in to see new content featuring new arrivals and designs.
Brands are also engaging consumers with Digital Entertainment and Video Content beyond Advertising. Given below is a link to a preview of Prada Candy YouTube channel episode.
Presence in Local Markets is Imperative for Global Brands
There’s a correlation between high brand value and presence in fast growing markets. Presence doesn’t assure high brand value, but absence makes high value much more difficult to achieve in some categories. Being well represented in fast growing markets helps brands not only by driving sales, but also by influencing higher assessments of forward-looking earnings, which can lift share prices. The full impact requires being present, relevant and well differentiated.
Global presence especially drove growth in categories such as luxury, fast food and soft drinks.
As defined by WPP in their published report, Characteristics of the Brands with Fastest rising value in all categories:
1. Great value
It’s not about price, but what you get for your money. Hermès and Subway both offer great value.
2. Relevant for today
Continuing to renew the brand is essential to remain in contention. IBM reinvention, with its higher margin consultancy that drives a “Smarter Planet,” is totally in tune for today.
3. Harnessing technology
Being available 24/7, being social, being connected is not just the domain of social media. No brand can afford to be out of touch nowadays. Amazon’s online customer management and
purchase recommendation was a game changer.
How the brand genuinely behaves today will be assessed immediately, globally, in a flash. Brand strength, what you stand for, is a valuable component of a good reputation.
5. Meaningfully different Consumers will stay loyal if they feel they are getting the best. To consumers, brands that meet their needs are more appealing. These brands are unique in a positive way.
Consumers see them as ahead of the game in setting trends. These brands generate the greatest contribution to driving current and future sales. Apple is the archetypical “meaningfully different” brand. Analysts and stock market sentiment might at times be more negative, but Apple has a vital and living brand.
A distinctive brand character is more likely to generate consumer passion and create brand advocates. Brands should not worry about polarizing opinion. It’s better to stand for something.
7. Get abroad and about
Expansion of the offer using the brand in its meaningfully different positioning is a route to successful growth. Being present in growth markets in this global economy is a
must if the brand has a relevant offer.
8. A great branded experience
A brand is only as good as its last experience. Recommendation is a powerful force and can make or break a brand even more quickly in this connected world. Zara has built its reputation and based its considerable innovation on delivering fashion fast, which provides a great consumer experience.
The personality that appeals to Luxury Category Customer is “sexy,” “desirable,” and “idealistic” in their imagery and may be “arrogant.” Gucci is seen to have set a first in accessibility with its app and Prada with an e-store.
Action Points for Luxury Brands
1. Protect the logo: Owning luxury continues to be a source of validation for many customers who want logos that symbolize their membership in an esteemed group.
2. Celebrate individuality: Younger customers in particular, are increasingly turning to luxury brands that enable them to express their individuality and personality.
Prada has added Ten Commandments for the Prada Candy Girl to the Prada Candy Twitter Account.
3. Offer intimacy: Customers seek intimacy from a luxury brand. Both global and local brands can achieve intimacy, which is about reducing the anonymity of mass production and restoring the sense of personal craftsmanship.
4. Tell the story: Brand heritage is like sacred scripture. Never stop retelling the brand story.
And always make it relevant.
- How Prada Grew Its Brand Value Faster Than Any Other Last Year (businessinsider.com)