Marc Jacobs spring/summer 2012 menswear

Apparel and accessories brand Marc Jacobs is bringing its spring/summer 2012 menswear collection to the desert in a social video that highlights sunglasses, clothing and bags in a rugged setting and provides item pricing.

The two-minute video called A Desert Mirage shows two men decked out in pieces from the latest menswear collection while wondering through a desert against a clear blue sky. Marc Jacobs is jumping on the social video trend by showing a collection in action, but is trying something new in the fact that few luxury brands are using video to appeal exclusively to men.

“Given the explosion in growth of men’s accessories, the underlying goal is to highlight the brand’s carrying bags for men and to do so in a rugged, exotic environment, making the bags look chic yet manly,” said John Casey, founder of Freshfluff, New York.

“Presenting the look-book via video is far more effective than posting simple glamour snapshots of the products,” he said. “Video adds a coolness factor for the brand and allows it to tell a story.

“It does a good job of placing the brand, particularly the carrying bags, in a unique setting, one that is more rural and outdoors versus the obvious venues of a gym, night club or retail environment.”

Mr. Casey is not affiliated with Marc Jacobs, but agreed to comment as an industry expert.

Marc Jacobs did not respond before press deadline.

The wonderers
A Desert Mirage begins by showing a male model walking alone in the desert. The man is wearing sunglasses, a black leather jacket, a hot-pink T shirt, khaki capris and tan oxford shoes and is carrying the men’s Pebbled Leather Medicine Bag.

Video still 

In addition to sand, rocks, vegetation and palm trees, there are dilapidated structures in the background while the man is walking.

Next, viewers are shown a silver tote bag begin carried by a man. They soon see that this man is wearing sunglasses, a white polo shirt, tan pants rolled up to his ankles and brown flip flops.

Video still 

The only sound effects in the video are guitar strums suggestive of American Western music and the occasional animal noise.

Both men wander the desert alone, stepping on rocks to go over a stream, balancing on a wobbly bridge, riding a camel or walking against a herd of sheep.

Video still 

After a while, both men meet and, without speaking, stand next to each other and put their bags on the ground.

The men cross arms and take hold of one another’s bags.

Video still 

At this time, the camera zooms in to the sides of the men’s faces to show the Marc Jacobs label on their sunglasses.

Then, both men turn and walk in opposite directions.

The video fades out to an image of a white mannequin head wearing the Black Tie Sunglasses from the video. The product name and price in dollars, euros and pounds are shown.

Video still 

The screen continues down the mannequin, which is dressed identically to one of the characters, and shows the product name and price for each item.

This process repeats with the second man’s wardrobe.

The video ends by referring viewers to MarcJacobs.com.

A Desert Mirage video 

“Social video is indeed a great way for Marc Jacobs or any luxury brand to reach consumers,” Mr. Casey said.

“For instance, Marc Jacobs has a built-in click factor for this YouTube video with nearly 700,000 Facebook fans who will likely take a peek and may pass it on to their friends,” he said. “They will probably generate impressive numbers.”

Nature’s beauty
Many high-end fashion labels such as Christian Dior, Gucci and Louis Vuitton are using social video to appeal to female consumers, but it is rare that a video focuses solely on menswear.

Marc Jacobs is most likely catering to its male social media fans by showing its clothing in a rugged setting.

The brand posted about the video on its Facebook, Twitter and YouTube accounts.

Instead of relying on ecommerce sites and in-store displays, brands can leverage certain items through social video by showing them in a creative setting.

Meanwhile, Marc Jacobs’ use of pricing at the end of the video could leave consumers feeling that they are being directly sold to, which could entice buys.

Other luxury marketers are taking a more artful approach to social video.

For example, Dolce & Gabbana is appealing to its consumers’ love for vintage fashion in a silent short film that presents the Italian fashion label’s new eyewear collection (see story).

To appeal to men, videos should be short, punchy and stress practicality, according to Mr. Casey.

“Men have short attention spans, so they are not going to watch something that is over a couple minutes long,” Mr. Casey said.

“Also, keep the video masculine with an element of sport perhaps and do not oversell with men,” he said. “Present the products or brand in a way that is useful to men.”

Final Take
Tricia Carr, editorial assistant on Luxury Daily, New York  

Hugo Boss uses ecommerce to reach Chinese consumers

Factors including increased investments in emerging markets and ecommerce are the prominent factors that are expected to propel luxury goods spend 6-9 percent each year until the middle of the decade, according to findings from a study from Bain & Co.

With the emerging markets expected to become more important in terms of luxury spending as the years go on, China alone takes up 20 percent of luxury spend while Asian market luxury spend is at 50 percent. In addition, thanks to global retail and ecommerce capabilities, the United States, emerging markets and Europe will also push global luxury spending to approximately $254 billion in 2012 alone.

“The study is mainly a confirmation that the luxury goods market has strong fundamentals for growth, even if it is not happening the same way across all geographies,” said Claudia D’Arpizio, Milan-based partner at Bain & Co. and lead author of the study. “There is a bit of a dichotomy in markets where there is strong momentum and where local consumption is flattened or declining.

“Other emerging markets for luxury goods are BRICs,” she said. “China is by far the most important market but Brazil is becoming interesting and India, after many years of speculation and limited growth, has started to open its stores and becoming very relevant.

“Ecommerce and mobile is playing a big role in mature markets, but will become a huge way to penetrate emerging markets and younger consumers in the future.”

Bain’s Luxury Goods Worldwide Market Study analyzes 230 of the world’s leading luxury goods companies and brands. It was first published in 2000.

Growing, growing, gone
Luxury has become a truly global market, according to Bain.

Chinese consumers, including their spending as tourists, account for 20 percent of global luxury sales, while the whole of the Asian market accounts for 50 percent.

Marc Jacobs’ site for Japanese consumers

In addition, the average age of Asian luxury consumers is steadily decreasing, where the average age of affluent consumers in Japan, Europe and the U.S. increased.

This mix creates a new generation of luxury consumers that has varying tastes and preferences, according to the study.

Furthermore, 30 percent of global luxury sales now occur in emerging markets including India, Russia, Azerbaijan, Brazil, Indonesia, Kazakhstan, Malaysia, Mexico, South Africa, Turkey and Vietnam.

Ralph Lauren’s site for Russian consumers

As well, 2012 growth can be attributed to 2-4 percent in Europe, 5-7 percent in the U.S. and 2 percent in Japan.

Therefore, multichannel global campaigns must reach further than ever, according to the study.

Commerce conflicts
This could be a main reason why luxury brands are reaching out to global markets via ecommerce and mobile to ensure maximum reach from these crucial consumers.

“Luxury brands cannot build up a huge market in China, in particular, because it is too big for a physical presence, so the Internet will play a key role in penetrating Mainland China in the future,” Ms. D’Arpizio said. “Another reason is because a lot of wealthy Chinese prefer to pay in cash, and that makes the online channel a limitation.

“However, online will continue to be relevant in the U.S. and Europe and will be a major source of revenue in emerging markets in the near future,” she said.

Along with a change in spending throughout different markets, the way that consumers are spending is also differing as time goes on, per the study.

For example, women are increasingly buying more traditional male purchases such as watches and business attire.

Meanwhile, men are more likely to seek traditionally-female brand dimensions around fashion and beauty in addition to product functionality.

Another key finding was that luxury product usage is more casual, which is probably why brands have been creating casual-chic lines.

What has not changed is consumers’ desire for high quality and greater craftsmanship. These factors are what really constitute luxury in their minds.

“All digital initiatives will become a key tool to attract and retain the attention of the younger generation,” Ms. D’Arpizio said. “Brands also must create the right awareness to their particular brand, including the emphasis on history and brand DNA.

“The real challenge ahead is being able to appeal to the new generations,” she said. “Since they will become a huge part of the population buying goods in the future, becoming relevant for them in terms of value proposition and a status symbol will be important to growing in the long run.”

Final Take
Rachel Lamb, associate reporter on Luxury Daily, New York

The Section summer guide and e-boutique

London-based department store Harrods is pushing summer fashion and beauty in a digital shopping guide and e-boutique presented by occasions that affluent consumers would likely celebrate.

The retailer is offering summer-appropriate items in an e-boutique called The Season that is also a guide to dressing for festivals, balls, races and parties and is sharing the content via email and social media. Harrods has used shopping guides in the past to offer products for a certain time of year or British holiday.

“Harrods’ The Season guide, part of the Inspiration and Trend segment of the site, serves as a beautiful brand extension,” said Molly Leis, principal of MRL Communications, New York.

“Created with an editorial perspective, Harrods curates a luxurious lifestyle humanizing the online shopping experience and inspiring shopping through storytelling,” she said.

Ms. Leis is not affiliated with Harrods, but agreed to comment as an industry expert.

Harrods did not respond before press deadline.

Tis the season
Harrods is using the notion of “how to look pretty but stay practical” to appeal to female consumers when marketing The Season.

Users are directed to the ecommerce boutique that corresponds with each section of the guide via the Shop the Look buttons.

The Season is split into four sections –The Festival, The Garden Party, The Races and The Summer Ball.

The Festival section is based on an outfit worn by model Alexa Chung. The retailer presents jackets, wellies, graphic tees and accessories that a woman can wear to keep warm at an all-day festival that are similar to Ms. Chung’s.

The Festival guide 

Next, The Races section focuses on hats, shoes, nautical clothing and the pencil dress by telling women what type of clothing is appropriate for the British Ascot races.

This part of the guide holds a video featuring hat maker Philip Treacy that shows consumers how to find the perfect headpiece.

The Races guide 

The Garden Party page gives tips on how to dress for an outdoor occasion with a suitable dress, pair of sunglasses, picnic basket and makeup shade.

The Garden Party guide 

Lastly, The Summer Ball section of the boutique shows four evening looks inspired by celebrities including Blake Lively, Drew Barrymore, Alexa Chung and Diane Kruger. Each woman is shown in a picture from the red carpet with text that describes the look.

The retailer recreated the look with its items that consumers can browse and purchase with the click of a button.

The Summer Ball guide 

“These style guides add value by addressing the proverbial consumer worry of what to wear to an important event,” Ms. Leis said.

“Through offering recommendations to meet their customers’ needs, hence solving their problems, brands build trust and a more meaningful connection with their consumer,” she said.

Seasoned retailer
Harrods is using bright imagery and editorialized text in The Section, most likely to feel welcoming to consumers.

This may help the retailer gain more action on its ecommerce site because consumers feel like they are being offered useful information in exchange for their purchase.

Harrods has used shoppable guides frequently to align certain products with a time of year or a British holiday.

For example, the retailer tapped into locals’ affinity for Queen Elizabeth II to market a product line based on the monarch’s Diamond Jubilee (see story).

In addition, Harrods created an e-boutique and guide to attract brides as well as wedding participants and guests to leverage products during the wedding season (see story).

The brand’s use of email and social media to promote its shopping guides will likely drive more clicks.

Harrods sent an email May 15 to its list to raise awareness for The Season.

Harrods email 

The retailer is also sharing the guide via its Web site, Facebook account and Twitter feed with hashtag #TheSeason.

Since the Harrods store is a landmark in London, the brand might want to consider in-store displays based on the guide to reach more consumers.

“Ecommerce sites have realized that it is not enough to attract consumers to a Web site simply selling products their consumers generally like,” Ms. Leis said.

“Harrods’ summer guide demonstrates the success of personalizing the experience to achieve individual consumer interest and connection,” she said.

Final Take
Tricia Carr, editorial assistant on Luxury Daily, New York  

NowManifest site

Condé Nast subsidiary Fairchild Fashion Media will acquire Fashion Networks International, best known for its curated blog portal NowManifest, in a move that is likely to increase the publishing giant’s Web presence at a crucial time.

NowManifest – which hosts popular bloggers including BryanBoy, Elin Kling and Anna Dello Russo – attracts nearly 1.2 million unique visitors per month. In addition, Fashion Networks executives will become part of the Fairchild team, where they will overlook products and development for NowManifest.

“The acquisition makes sense in theory, yes,” said Al Ries, chairman of marketing consultancy Ries & Ries, Roswell, GA. “But, in practice, it would depend upon the price Fairchild paid. If the price is reasonable, then the acquisition is probably a good one since it is consistent with the luxury-market position Fairchild wants to dominate.

“Also, there is no question that print media have been declining and digital media have been taking their place, so Condé Nast and other publishers need to stake out positions on the Web,” he said. “It’s hard to know in advance what would make a good digital strategy, therefore a print publisher needs to experiment with different approaches.

“Perhaps a blogging site is a good direction.”

Mr. Ries is not affiliated with Fashion Networks or Fairchild, but agreed to comment as an industry expert.

Fairchild Fashion Media, which publishes Women’s Wear Daily, Style.com and Style.com/print, declined to comment for this story.

Invest in manifest
NowManifest’s insider’s look into the fashion world is what makes it so popular with consumers and, after that, luxury brands.

Cartier, Bulgari, Net-A-Porter, Hugo Boss and Marc Jacobs have all bought ad space on NowManifest.

Hugo Boss ads on BryanBoy’s page

In fact, apparel and accessories designer Marc Jacobs International saw strong site traffic and click-through rates with an advertorial launch celebrating 10 years of its Marc by Marc Jacobs line on NowManifest (see story).

Fashion Networks cofounder Christian Remröd will become Fairchild’s managing director of NowManifest and Fairchild Fashion Media Business Development.

Mr. Remröd will oversee product and development for NowManifest, per the company. He will also work with Fairchild to develop new digital concepts for current and new businesses.

As of right now, all aspects of NowManifest and its marketing efforts will not change, according to Fairchild. However, Fairchild may begin to discuss changes when Mr. Remröd settles into his new role.

Net-A-Porter ads on Fashion Toast’s page

Emerging trends
The fashion industry is constantly reinventing, adding and dropping brands to perfect their image.

Style by Kling’s Marc Jacobs advertorial

Indeed, the merger-and-acquisition market in the luxury industry has been active in the past year.

After the recession hit the luxury industry, most companies were reluctant to take risks and continue a profitable mergers-and-acquisitons business. However, experts are taking its recent revival as a sign of a recovering industry (see story).

For example, with the acquisition of Italian label Brioni last year, Gucci and Yves Saint Laurent owner PPR has made clear its interest in a luxury menswear, a segment where it sees much potential (see story).

PPR also acquired sportswear manufacturer Volcom and announced its majority control of Swiss watchmaker Sowind Group, parent company of Girard-Perregaux and JeanRichard.

The right acquisition move can help companies increase revenue, awareness and prestige within the industry, but the buy must make sense.

“If NowManifest continues to grow and prosper, the acquisition will obviously add value to Fairchild Fashion Media,” Mr. Ries said. “It depends on how Fairchild manages the bloggers on the site. This can be difficult since many bloggers are independent souls and don’t take well to being a part of a large corporation.

“Don’t try to make too many changes in the near future,” he said. “Micro-management is the cause of many ill-fated mergers and acquisitions.”

Final Take
Rachel Lamb, associate reporter on Luxury Daily, New York

Amex London app

American Express is using a mobile application for an insider’s look to London that offers special discounts, reviews and events only for cardholders.

The Amex London app is only available for American Express cardmembers including the Centurion card, Gold card and Platinum cards. It is available for free in Apple’s App Store.

“The obvious strategic directive is to position Amex as a lifestyle-oriented brand, focused on providing its traveling customers not only with the tools necessary to effectively manage their financial concerns, but also with expert guidance offered to help them get the most out of their travel experiences,” said Scott Forshay, mobile and emerging technologies strategist for Acquity Group, Austin, TX.

“The traveler engagement strategy obviously plays directly to strengths of the mobile medium as customers are not tethered to a big browser environment but, rather, are experiencing the world,” he said.

Appetizing offers
The Amex London insider’s app helps cardmembers make the most of their time in the city this summer, according to the brand.

Users must enter their American Express user ID and password before they can access the app.

Details on London Fashion Week

Consumers have access to exclusive discounts if they use their American Express cards in certain restaurants, bars and tourist hotspots.

The app also serves as an insider’s guide to London so that consumers can get special deals off the beaten path.

Cardmembers will also have information about special events including London Fashion Week and the Summer Olympics.

There are also reviews and articles inside the app.

Reviews section of the app

“By highlighting local offers and events, complete with a map view function, as well as offering curated guidance concerning various attractions of potential interest, the brand is aligning itself with the experience of travel,” Mr. Forshay said.

Location, location, location
The exclusivity of the app is definitely something that speaks to affluent consumers.

Indeed, insider’s tips and exclusive experiences are some of the most valued parts of the affluent lifestyle.

This app will likely add value to American Express cardmembers both in loyalty and in transactions.

Deals on the Amex London app

Offering reviews and discounts that are only accessible to this clientele is something that will surely prompt cardmembers to use their American Express cards.

Likewise, American Express users will continue to be customers if they think that they will keep getting special treatment.

However, there are some basic functions that could make the app a more seamless experience, such as location-based services and contextual relevancy.

“I was surprised not to be prompted to allow location-recognition after logging in to the app,” Mr. Forshay said. “There is certainly an opportunity missed by the brand to more accurately assist customers in navigating places and events of potential interest based on their current location.

“Additionally, offering push notifications to customers would allow the brand to proactively communicate offers or guidance based on a customer’s current location, without the app even having to be open,” he said. “These are basic blocking-and-tackling considerations in any functionally useful app that, hopefully, will be rolled out in subsequent versions of the app.”

Final Take
Rachel Lamb, associate reporter on Luxury Daily, New York

Bergdorf Goodman spring 2012 beauty book

Bergdorf Goodman is continuing its focus on beauty in a niche catalog that shows fragrances, cosmetics and creams from luxury brands such as Prada, Chanel, Valentino and Tom Ford.

The New York-based retailer is pushing its offerings at its first-floor beauty counter in a 32-page mailer. Bergdorf is likely sending the catalog by tradition, but it could also be looking to attract consumers during its month-long beauty initiative with the Melanoma Research Alliance.

“Given Bergdorf Goodman’s customer base, which includes a healthy percentage of women over the age of 50 who use digital platforms with little frequency, it is important for the brand to use traditional forms of marketing to remain top-of-mind in its customers’ lives,” said Christina French Houghton, associate strategist at Siegel+Gale, New York.

“This catalog is very much in line with the brand that Bergdorf has built and wishes to maintain,” she said. “It conveys elegance via its high-quality images and simple layout and it is also very sophisticated via the high-profile brands with which it aligns itself.

“The fact that Bergdorf predominantly promoted this marketing effort via direct mailings implies that the brand does not feel the need to be too contemporary, which likely sits well with its key customer base.”

Ms. Houghton is not affiliated with Bergdorf, but agreed to comment as an industry expert.

Bergdorf did not respond before press deadline. Neiman Marcus Group owns Bergdorf.

Open up
The spring 2012 beauty book shows a selection of products offered by Bergdorf, some of which are exclusive to the retailer. Its thick pages show custom photographs of fragrances, cosmetics, creams, tools, anti-aging serums and other luxury products.

High-end labels such as Prada, Chanel, Valentino, Elie Saab, Givenchy, Balenciaga and Tom Ford that are marketing beauty lines are included in the book.

Balenciaga fragrance next to Estée Lauder makeup 

Estée Lauder, Lancôme, Kiehl’s and other beauty brands are also represented throughout the catalog.

A photograph of Maison Francis Kurkdjian’s Oud fragrance on a curved piece of wood is shown on the cover. Inside, the retailer tells readers that they can visit the beauty counter to receive a complimentary vial of the perfume.

Catalog cover 

The middle of the book shows a Lancôme’s regenerating elixir next to a bottle of Valentino perfume.

Lancôme elixir next to Valentino fragrance 

Product descriptions appear on the pages starting with brand name and followed by description, size, price and a phone number to seek more information in smaller font.

The back cover shows Tom Ford bronzing powder, a bronzing brush, cream color for eyes and nail lacquer.

Back cover 

Bergdorf sent this catalog to its mailing database. Consumers can also access a digital version of the catalog from the beauty section of the retailer’s ecommerce site.

“The book also offers tempered creativity,” Ms. Houghton said. “Each product page has a distinct, branded layout incorporating shells and flowers and water-colored backgrounds.

“Yet, each page is uncluttered, which reinforces a sophisticated, classic sensibility and allows individual products to shine,” she said.

The beauty of mail
Bergdorf is in the midst of its month-long beauty initiative with the Melanoma Research Alliance.

During Melanoma Awareness Month, the retailer is donating 10 percent of proceeds from select beauty products to the Melanoma Research Alliance.

Bergdorf is reaching out to consumers to promote this initiative with multiple campaigns across Facebook, Twitter, Pinterest and its blog that could help the brand reposition itself as a leading beauty retailer (see story).

Meanwhile, it is likely that the retailer created the spring 2012 beauty book to continue its tradition of niche catalogs that get consumers to focus on one type of product at a certain time.

This season alone, the retailer has sent out a few catalogs. For example, Bergdorf’s spring 2012 jewelry book presented lesser-known designers, which could be a move to position itself as a trendsetter in the jewelry industry (see story).

In addition, the retailer showcased its high-end spring shoe styles through an independent catalog (see story).

“In today’s increasingly digital world, it would be a mistake to only promote products via direct mailings,” Ms. Houghton said. ”That said, when I receive my third daily email from a favorite brand, it is easy to click ‘delete’ without even opening it.

“Beautifully-designed paper catalogs earn a permanent place in many people’s hearts,” she said.

Final Take
Tricia Carr, editorial assistant on Luxury Daily, New York  

Saks Fifth Avenue

Today in luxury marketing:

Saks shares pummeled after luxury giant misses revenue expectations
Shares of the luxury department store chain Saks Inc. declined more than 10 percent in pre-market trading this morning, after the company reported disappointing revenue figures for the first three months of the year, according to Business Insider.
Click here to read the entire story on Business Insider

Paul Smith returns to China
The move is the latest proof that many British luxury good manufacturers are relying on the burgeoning Chinese middle class to fuel their profit growth, according to the Telegraph.
Click here to read the entire story on Telegraph

Millennials: Young, broke and spending on luxury
Though some millennials, those born between 1980 and 2000, are launching promising careers, most are burdened with large student loans, and thousands are unemployed. Indeed, millennials make up one of the highest unemployment rates in the country. Despite this, they are making luxury purchases a priority, according to The Fiscal Times.
Click here to read the entire story on The Fiscal Times

Retailers bullish on Father’s Day
Dad’s going to get a boatload of apparel for Father’s Day this year — at least that is what retailers are hoping, according to WWD.
Click here to read the entire story on WWD

Tony O. Pham is vice president of marketing and engagement at Life360

By Tony O. Pham

Mobile is becoming increasingly ubiquitous and, as such, competition in the mobile space is soaring.

In December 2011, The New York Times reported that the number of mobile applictions surpassed 1 million with more than 15,000 new apps being released each week. In this environment, the need for companies to market their mobile products in new and innovative ways becomes more important than ever.

Most consumer brand companies know the importance of leveraging social media platforms to increase their presence within the industry and their engagement with target customers.

However, what gets overlooked is that there are opportunities with social media that go far beyond an online social presence. Here are some of the ways that marketers with a mobile play can go beyond the norm with social media and more meaningfully connect with consumers.

Creating integrated campaigns
Instead of thinking of mobile apps and mobile Web sites in one bucket and social media channels in another, look at how you can integrate them and, therefore, strengthen the approach to promoting your company and its products.

When Jackthreads launched its mobile app in January, it not only sent a dedicated email to its 1.6 million members, but it also promoted the debut to the company’s 23,000 Twitter followers and 104,000 Facebook fans.

Not only was the Jackthreads app downloaded 65,000 times in the first week of launch, 20 percent of total company sales during that week came through the app.

Sharing across social media platforms
Social media is all about building relationships by participating in conversations.

While it may seem obvious to talk to your customers, if you look, it probably will not take you long to find a brand Facebook or Twitter account that has unanswered comments and questions. These are the basics.

Assuming you have that down, consider providing prompts in your mobile products to encourage users to share through their social media channels.

For example, an app can include a bonus freebie such as a music track, which will provide motivation for a customer to post download links to their social networks.

You can give further incentive by offering extra goodies if the customer hits a certain number of people adding the app based on his or her referral.

Leveraging user testimonials
Companies leverage user testimonials because the most important opinion about your company is that of your customer.

However, it can often be challenging to identify and make contact with the people behind your most compelling user stories. Social networks are a great outlet to quickly and easily obtain feedback from your users.

Ask your social networks to tell you about a positive or unexpected experience they have had with your product.

Additionally, by asking your social media followers for candid feedback and more closely engaging with them, you have created an authentic public dialogue on what makes your app useful. What better way to promote your app than having users do it for you?

YOU ALREADY TOOK the first step toward making an imprint in the booming mobile market by hopefully creating an innovative and substantial mobile offering, along with setting up profiles on the most popular social media platforms.

Now, get the most out of all the channels at your disposal to stand out in the face of ever-increasing competition.

Tony O. Pham is vice president of marketing and engagement at Life360, San Francisco. Reach him at tony@life360.com.

Consumers may cut back this year

Approximately 38 percent of high-end consumers are planning to spend less over the next 12 months, according to findings from a study by Boston Consulting Group.

In BCG’s most recent study, it was discovered that marketers should expect a bit of resistance as luxury consumers are still worrisome about the economy and saving for the future. There is a steady increase in desire for quality, so marketers may want to emphasize craftsmanship, quality and design as part of their ad strategy.

“The majority of consumers are still planning to spend less over the next 12 months, and high-income consumers say they will cut back over the next 12 months,” said Michael Silverstein, Chicago-based senior partner at The Boston Consulting Group. “Even wealthy consumers are concerned about the economy – they will need to be pried free from their money.

“They appreciate the finer details of the best goods,” he said. “However, high-income consumers will trade up selectively.

“They will look for brands to provide them with innovation, new styles and new materials.”

BCG’s 11th annual Consumer Sentiment Survey is based on 15,000 consumers in 15 countries.

Luxe cuts
Most consumers blame the government for the debt crisis. In fact, 94 percent say that the government should hold a good share of blame for debt.

Many consumers, even the wealthy, are insecure about their financial futures.

Indeed,  47 percent of respondents say that they are financially insecure or in trouble.

Younger consumers are the most anxious. Approximately 57 percent of millennials and Generation Y respondents are insecure about their financial futures in contrast to 46 percent of baby boomers.

In addition, 43 percent of consumers agree that the economy will not improve for the next several years, according to the study.

Interestingly, consumers in China seem to be more optimistic than their U.S. and European counterparts.

For example, where only 21 percent of U.S. consumers believe that the next generation will have a better life than theirs, 83 percent of Chinese consumers believe this.

In addition, only 16 percent of Chinese consumers felt financially insecure.

“Consumers want more money, less stress and more security,” Mr. Silverstein said. “Consumers believe savings, health and value for money are much more critical, and luxury and status has dramatically dropped as a value for consumers.”

Mixed reviews
There have been mixed reports as to whether or not consumers are willing to spend in the future.

On the one hand, the top 10 percent of United States households are expected to spend approximately $244 billion across 13 categories this year, a 3 percent increase from last year (see story).

On the other hand, although leading luxury conglomerates, automakers and retailers have posted stellar results for the first quarter, there is reason to believe that the rest of 2012 will not be as strong (see story).

There is one thing that companies can do to keep up with the ever-turbulent economy, and that is to create relationships with and produce quality products.

Even if consumers are reluctant to spend on luxury items, they will be more likely to buy well-made, quality products that will last a while rather than cheap products.

Indeed, brands should always focus on these for marketing efforts on quality of craftsmanship, heritage, legacy and emotional value, since these attributes are what differentiate luxury brands from other marketers.

“Expect headwinds,” Mr. Silverstein said. ”Increase your level of innovation and merchandising and make every purchase experience worth telling a friend about.

“Badge your goods for visibility and a mark of sophistication, and do not cut back,” he said. ”Increase spending to take higher share of total spend.

“Also, deliver emotional values and help the consumer ladder-up in a troubled world.”

Final Take
Rachel Lamb, associate reporter on Luxury Daily, New York

Juste en Clou collection

Cartier is making use of old-world marketing by pushing its spring collection via a catalog with a personalized and signed letter.

The French jeweler is highlighting its best pieces with one of the most traditional marketing channels for luxury marketers. To add depth to the experience, the brand included a personalized letter to recipients that invites them in-store.

“For a customer that may not live close to or does not have the time to visit a boutique, a catalog is an ideal way to introduce new products, visually showcased in a way that aligns with the brand’s image or an in-store experience,” said Courtney Albert, brand strategist at Parker Avery, Atlanta.

“Additionally, carefully-scheduled catalog deliveries can serve as reminders for special events and keep the brand top-of-mind for holidays,” she said. “For a luxury jeweler, a catalog can create a more educated, confident consumer.

“In this scenario, the catalog acts as a pull mechanism to draw consumers into the store with very specific ideas in mind and already with a certain price point expectation without the fear of embarrassment attached.”

Ms. Albert is not affiliated with Cartier, but agreed to comment as an industry expert.

Nailed it
The “Creations Cartier Printempts 2012” 24-page catalog contains full-page, color images on glossy paper.

The Cartier-red front flaps of the catalog open up to reveal the products inside.

The spring collection consists of rings, bracelets, broaches, watches and necklaces.

Cartier Juste en Clou collection

There is also a section on the Juste un Clou collection, which the brand has been pushing lately (see story).

Consumers can flip through the Cartier catalog and see all of the products, which are unhindered by text or other graphics.

Other products in the back of the catalog include leather goods, sunglasses and pens.

Cartier accessories in catalog

Emmanual Perrin, president/CEO of Cartier North America, sends consumers a personalized letter that describes the catalog.

The letter also expresses hope that the recipient comes into a boutique in the near future.

This kind of personalization is what could set Cartier apart from other jewelers.

Cartier collection

Getting personal
Multiple brands are using mailers to promote new collections and styles.

For example, New York-based retailer Bergdorf Goodman marketed a few different lines through dedicated mailers for its jewelry and makeup products (see story).

In addition, British menswear designer Alfred Dunhill aimed to position itself as the ultimate fashion authority through its spring/summer catalog that mixes campaign images, style advice and editorial (see story).

Catalogs are one of the most traditional marketing tactics for luxury brands, and many of them use this method.

Therefore, brands should try to differentiate themselves when using them.

For example, Cartier’s personalized note that prompts an in-store visit could be what gets a consumer into the jeweler’s boutique as opposed to a competitor’s.

Similarly, Bergdorf’s use of QR codes could spark a mobile or ecommerce transaction on the spot.

“Personalized letters are crucial to today’s catalog and retail strategy for luxury brands,” Ms. Albert said. “It shows that the brand regards you a valuable customer and has not forgotten about you after a sale is completed.

“Savvy retailers also encourage their sales associates to write a personalized, follow-up letter after an in-store or phone transaction,” she said. “As a luxury retailer, it is important to maintain a tailored, consistent communication channel with your customer.”

Final Take
Rachel Lamb, associate reporter on Luxury Daily, New York