How can upmarket brands such as Louis Vuitton and Tiffany maintain their exclusivity while marketing to a much wider target market? This is a major challenge for all kinds of luxury brands, as discussed in a recent Marketing Week story.Global recession conditions have slowed sales for many and, in an effort to broaden their targeting, some brands are casting a wider net. Yet making the brand more accessible also opens it to a change in perception--risking the loss of exclusivity that gave the brand its cachet in the first place.
Vuitton is now on Facebook (where more than 2 million people "like" it) and posts videos of its fashion shows online. "Liking" a brand isn't the same as buying it, of course, but it does establish a connection, possibly an aspiration.
Finding the right retail space for an upmarket brand can be a problem. Luxury malls appeal to the target market but purely upmarket brands may have to share space with premium brands to attract sufficient footfalls. Premium brands may like to be associated with the top brands, but will consumers change their perceptions of the most luxurious brands in such situations?
Gucci and others are testing China's appetite for luxury with retail openings and social media marketing. Gucci's worldwide director of marketing says: “50 percent of Chinese consumers like to share images and information on luxury brands.” Will that interest translate into profitable sales and support the upmarket image of these luxe brands?
