Pitfalls for luxury brands to avoid when going global

With many premium brands starting to further extend their commerce and branding presence to other cultures and currencies, there are certainly a few things to keep in mind in terms of maintaining a certain brand image and retaining cultural and colloquial differences in a multitude of channels.

Brands such as Ralph Lauren, Barneys New York and Mandarin Oriental have taken a renewed dive into foreign waters to engage potential customers in different countries. And as more are starting to cautiously peek out into the ecommerce world, some experts are weighing in on best practice for ecommerce and branding strategy in other cultures.

“The great thing about global ecommerce is that it opens the brand up to new customers that may not have access to a physical store,” said Courtney Albert, consultant on marketing and branding for Parker Avery, Atlanta.

“The key, however, is to serve your existing customers at the level that they are used to, but also make a favorable first impression to new customers,” she said. “Sometimes an ecommerce site is the only chance that a retailer can be present to customers without any other outside influences and have to make that opportunity count.”

Crediting cultures
The two main factors to keep in mind are thus: different conversion rates and paying options and maintaining brand image while keeping in mind differences in culture.

Paying via credit card is the main option in the United States, but some countries prefer other methods such as money transfer.

Additionally, it is difficult to have centralized planning without the right technology. This can pertain to financial goals and targets, reconciling and merchandise planning and buying, per Ms. Albert.

A base currency should be established, and marketers should keep in mind that the currency can fluctuate. It can also be used as an indicator of how well or how poor certain categories or regions are performing.

Pricing is another main facet to keep in mind.

Products will most likely be published in different currencies, and there must be careful consideration when managing price points and to ensure consistent pricing through conversions.

“Currencies do fluctuate, so what might have been seen as an optimal price might not always remain the case,” Ms. Albert said.

The other cross-cultural must is to maintain brand voice while still respecting other cultures.

For instance, Mandarin Oriental maintains the same homepage for its mobile site, mobile application and Web site.

Mandarin Oriental mobile site

In addition, Mandarin Oriental’s easy-to-recognize logo will not confuse consumers.

“Particularly in the luxury industry, it gives security to be global and it makes consumers believe that the brand is big and therefore one that the consumer can trust,” said Sophie Hurst, director of corporate marketing at SDL, Maidenhead, Britain.

“For example, Mandarin Oriental wanted all of its consumers to get the same experience on its Web site as they would feel if they were staying at the hotel,” she said.

SDL is responsible for the global marketing strategy of Mandarin Oriental.

Taking the plunge
Retailers, automakers and hotel chains all need to grasp marketing in a different way.

Ralph Lauren and Barneys New York have recently decided to stretch their ecommerce strategies across the globe to countries that do not speak their native English.

Language barriers are a major thing that brands must overcome (see story).

Some experts suggest putting customer service offices in cities so that consumers can have someone to talk to in their own language.

For instance, even though Barneys products are available to be bought and shipped to 90 countries, consumers cannot change the language options right on the brand’s homepage.

Barneys homepage

This could discourage shoppers who do not speak English from shopping.

“Having a global presence means that a retailer has to find a way communicate their unique brand identity and overcome any verbal or visual nuances,” Parker Avery’s Ms. Albert said. “This means doing a review of details such as colors, slogans, logos and especially existing advertising and media campaigns and being sensitive to cultural conventions.

“It would be dangerous to go in to a new market and assume what has always worked at home will work everywhere,” she said. “At the same time, one does not want to move so far away from the existing branding that when customers that are already familiar with the brand do not recognize it or it has become so diluted that it cannibalizes its own image.”

Final Take
Rachel Lamb, editorial assistant on Luxury Daily, New York

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Tags: Barneys New York, Courtney Albert, global marketing, luxury, luxury marketing, Mandarin Oriental, Parker Avery, Ralph Lauren, SDL, Sophie Hurst