Welcome to the luxurious world of Fashion...
HOW DO L U X U R Y B R A N D S R E F L E C T T H E I R IN-STORE EXPERIENCE O N L I N E ?
WHATS INSIDE
C O N T E N T S This report aims to explore the promotional methods of three luxury brands who are online to determine who manages to best encompass their brand ethos and in-store experience consistently both online and off. Analysing the three selected luxury brand stores; layouts and interior, their staff approach towards consumers, product placement and stock; the messages and stories portrayed, and their online content.
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M E T H O D O LO G Y
What resources have been used, who has been approached and what platforms have been used to conduct constructive analysis for this report.
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Why are brands present online and what challenges have luxury brands faced when entering the virtual world.
M O S C H I N O
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3.1 Gucci customer profile. 3.2 Introduction to Gucci. 3.3. Gucci’s in-store experince. 3.4 Gucci’s online content 3.5 Summary of Gucci’s online and offline promotion
INTRODUCTION
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5.1 Moschino customer profile. 5.2 Introduction to Moschino. 5.3. Moschino’s in-store experince. 5.4 Moschino’s online content 5.5 Summary of Moschino’s online and offline promotion L
4.1 Chanel customer profile. 4.2 Introduction to Chanel. 4.3. Chanel’s in-store experince. 4.4 Chanel’s online content 4.5 Summary of Chanels online and offline promotion
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30. BIBLIOGROPHY
References and resources used throughout the report
C O N C L U S I O N
Findings from the research and analysis of each brand. What outcomes do the different brands have based on their online and offline promotion.
As more and more consumers have accepted internet purchasing, luxury vendors have quickened their adoption of the internet and begun to use sophisticated information technologies to improve their online presence and promote brand awareness (Okonkwo 2014).
METHODOLOGY
R E S E A R C H Initial research was conducted to choose three luxury brands with contrasting approaches to allow ample analysis to ultimately determine the conclusion
In-store research was conducted by visiting one of each brand’s flagship stores in London. Analysing all aspects of the store. Talking to members of staff and analysing their approach towards people in the store. WGSN Trend reports Online resource - Emerald reports Online resource - Mintel reports Social Media Channels (Instagram; Twitter; Facebook; Youtube) Brand’s personal wesbites Questionnaires with consumers Books: Luxury brand management: a world of privilege Chevalier, Michel; Mazzalovo, Gerald Luxury world: the past, present and future of luxury brands Tungate, Mark, 196
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Luxury brands were slow in embracing the digital revolution, as a result of their concern for losing the aura of exclusivity (Okonkwo) But with 46% of the world’s population now online, and 31% active on social media (Digital in 2016 we are social UK 2016)
With e-commerce sales for the Luxury sector expected to grow to 24% annually through 2020, the pressure for luxury brands to have online presence is increasing. (Spring luxury update (2016) Luxury brands are now embracing the digital world.
WHATS INSIDE
I N T R O D U C T I O N
Chanel SS16 Catwalk Show
Moschino SS16 Catwalk Show
Gucci SS16 Catwalk Show
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Image Source: Pinterest
This puts a level of pressure on businesses to create an online platform that represents the brand in its entirety, and executed in an easy-to-use interface and pleasing online aesthetic, which provides that end consumer with the same experience as they might receive in store.
Image Source: Gucci.com
Image Source: Moschino.com
Image Source: Google
Image Source: Chanel.com
The fashion world comes together to watch catwalks shows from some of the world’s most talented and forward-thinking designers, the pieces shown on the catwalk are then altered, manipulated, transformed and re-communicated into everyday, ready-to-wear, high-end fashion collections, the products are then available to purchase in-store or online. Over the past five years consumer demand for the ability to purchase products online has continued to increase, putting a level of pressure on businesses to create an online platform that represents the brand in its entirety, and executed in an easy-to-use interface and pleasing online aesthetic, which provides that end consumer with the same experience as they might receive in store.
Being able to truly capture and communicate an already well-established brand digitally, is an artform that has to be executed well to result in higher brand perception, awareness and ultimately, sales. Online buying of luxury goods is growing and the research shows that 50% of shoppers have bought designer fashion online, either from the official brand’s website or from another website (Mintel Luxury Instore 2013)
‘For a product to be called ‘luxury’ it is not enough for it to possess superior quality, and distinctive design, it should also convey a particular symbolic meaning; a story behind the product that can be linked to the consumers perception of luxury. Branding can add this value to the company’s products’ (Levy, 1959; Holt al., 2004)
Image Source: Google (Chanel store)
Image Source: Google (Gucci store)
Image Source: Google (Moschino store)
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High-end fashion is all about exclusivity and inaccessibility, in contrast digital is about accessibility; providing for a mass market, and doing it quickly, which is why many luxury brands were slow in embracing the digital revolution. As a result of their concern for losing the aura of exclusivity, this may be why, interestingly, 40% of luxury brands still have no online presence ((Digital: The one fashion luxury brands can’t keep up with (2015)). A luxury brand’s concept of exclusiveness is seemingly incompatible with the ubiquitous accessibility provided by the mass medium internet. ((Liu, X., C. Burns, A. and Hou, Y. (2013)) for brands who pride themselves and their reputations on their in-store experience, service and brand ethos, how can they portray this virtually?
“The new contemporary vision for the brand is now clearly beginning to come to life across multiple touchpoints: Alessandro’s new collections, new advertising campaigns, new store windows, new packaging and now a brand new store concept. We could not be more proud of what we have been able to accomplish so far, as we move to implement our new business strategy.” -Marco Bizzarri Silk Wool Flounce Jacket £1,79 0
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Flora Silk Jacket £2,27 0
Flora Snake Print Sil k £2,84 0
Sequin with Crysta l Embroidered Dres £7,24 0
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Image Source: Pinterest
GUCCI CUSTOMER
T R A C Y
H O L L A N D
3.1. Tracy is a 38 year old, currently working as the marketing director at Elemis. Tracy enjoys the outdoors, spontaneous trips away and regular trips to art exhibitions.
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From Left to Right 1.Gucci Coat (£2,950) 2.Tom Ford Perfume (£50) 3.Estee Lauder Foundation (£31) 4.Embroidered tartan wool skirt (£2,030) 5.NARS Audacious lipstick (£24) 6.KURT GEIGER LONDON Nova jacquard ankle boots (£230) 7.EMILIO PUCCI Leather flower print tote (£445) 8.KATERINA MAKRIYIANNI Gold-plated, labradorite and zircon earrings (£220)
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Creative, Passionate, Imaginative, Successful, Laid Back, Spontaneous, Fashionable, Loyal, Adventurous
G U C C I
Image Source: Own Photographers
‘The new store design not only brings together diverse elements, blurring the lines between the traditional and the contemporary, but also allows the clothes and accessories to speak for themselves.’ -Alessandro Michele. They’ve opened their doors for consumers online, and made their ‘runway’ collections available to purchase online as ready-to-wear garments. Gucci’s superior product quality is reflected in the premium pricing; associated with an image of high quality and the prestigious pricing make their products a status symbol. They offer some discounts on selected items at selected times, primarily on internet purchases to garner more sales and to keep their loyal customers happy.
3.2 Eclectic, contemporary and romantic, unsurpassed for their quality, Gucci’s attention to detail through design and stories told through promotional campaigns represent a dreamy feeling of a being invited during their adventure into their fantasy world. Founded by Guccio Gucci in Florence in 1921, Gucci products represent the pinnacle of Italian craftsmanship. Creative director Alessandro Michele has reinvented modern day fashion and exceeded in their promotional campaigns, further reinforcing Gucci’s position as one of the world’s most desirable fashion houses.
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Images from right to left: Inside Gucci’s store Location: New Bond Street, London, Gucci’s window display Location: New Bond Street, London, Guccis Flagship store Location: Selfridges London
BRAND ONE
PROMOTION
O F F L I N E Friendly staff dressed smartly in black welcome consumers at the door and help is offered in a sophisticated manner, offering their services if the consumer requires it.
Champagne and macaroons are offered too to add to the feeling of luxury. Only images of products, consumers request to take photographs of for personal use are allowed, this is to attain the exclusivity of the store itself. and persuade consumers to visit the stores to see it themselves.
Image Source: Own Photograph
- Chesterfield Sofas
Image Source: Own Photograph
- Luggage Trunks
- Velvet Chairs
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ucci have 550 stores worldwide, located in expensive and high profile street locations that are exclusive and distinguished, appealing to customers that belong to the elite group. 3.3 The store sees the combination of traditional and modern, industrial and romantic, with velvet armchairs, chesterfield sofas, old fashioned dressing tables, red cherry and peacock blue carpet, marble staircases and cushioned seats; sparking the feeling of being in someone’s bedroom which creates a homely environment making consumers feel welcome and relaxed. The use of luggage bags and trunks create ‘decorative elements to reflect a central theme of travelling and adventure throughout the new store design.’ (pnogueira (2015)). Their products are sectioned apart so consumers can easily browse through all the collections, creating this idea that consumers are constantly discovering new aspects of the store when walking around.
Gucci’s in-store interior is consistent throughout all stores and flagship stores, ensuring all consumers get the same experience.
Image Souce: Google Images - Gucci SS16 campaign
O N
3.4 Gucci’s website is the first doorway to their world, this is where they’re able to show consumers who they are and feed them content they believe reflects the brand. Wanting to reflect their ethos, their attention to detail, and tell a story. The website constantly changes in association with their current collection, providing consumers with current imagery of on trend collections. Gucci4Rooms combines storytelling with product placement and artwork. A contemporary themed video for each room reveals four contrasting rooms, of which to unlock the fourth you must click on a ghost in each of the first three videos; digging deeper into the brand.
L I N E
Gucci are aware only consumers passionate about the brand will uncover the remaining room. The product isn’t revealed to the consumers until the end of the video, focusing primarily on each room itself, showing Gucci’s priority lies with the art and the overall appearance and aesthetic rather than pushing sales; something which is reflected throughout all forms of promotion.
Gucci4Room: Room 1 (www.Gucci.com)
Gucci4Room: Room 3 (www.Gucci.com) Gucci4Room: Room 4 (Locked) (www.Gucci.com)
Gucci4Room: Room 2 (www.Gucci.com)
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In Gucci’s first quarter report in 2016 a 4% increase in revenue, with their sales in that period climbing 3.1% to 1 Billion pounds.
Gucci’s Facebook Page
Gucci’s Instagram Feed
Gucci’s Instagram feed acts as the brands online portfolio, allowing consumers to easily see the different sections as they scroll down their feed, this reflects the stores layout - making each collection clearly visible, allowing the consumers to browse with ease both online and off.
Gucci’s Twitter Feed
It’s not enough to be present - it’s about what creates the dream” - Ian Schatzberg.
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Gucci Promoting Charities (#BeHerVoice)
WIDE PRODUCT RANGE Including clothing, wallets, watches, footwear etc. CHARITIES Gucci has partnered with UNICEF as a part of CSR initiative COLLABORATIONS Ford, General Motors, Fiat added brand value
COST OF THE BRAND Has to invest huge money in order to protect and maintain its brand image LIMITED MARKET Diversified product range, hence has a risk of brand dilution
O P P O R T U N I T I E S
CONSISTNET distributing content effectively
This encourages consumers to then search to find the items on Gucci’s personal website, which directly takes them to a deeper section of the brand. If the product is then unavailable to purchase online, this reflects the exclusivity of the brand - making the consumer want the product even more, a technique to get consumers to then visit a store to find the product which they desire.
EXPANDING Emerging luxury markets in emerging economies like India and China ACCEPTING COMPETITION Creating competitive advantage in different business segments BROADEN MARKET To target the youth segment which stylish designs
3.5 They use their authority and consumers loyalty to help push not only fashion related content but also educate them on environmental and social issues, as regular posts supporting charities make up a proportion of Gucci’s Facebook news feed.
T H R E A T S
ONLINE PRESSENCE Strong Brand Image, brand equity and re present on all social media platforms
W E A K N E S S E S
S T R E N G T H S
Gucci uses their Facebook presence to educate their consumers and promote their other online channels such as Instagram and Snapchat and campaign videos on their Youtube channel. No prices or links to buy a product is pushed on any social media channel, only short, descriptive, detailed captions of the imagery and the collection the products are from.
COMPETITORS Extremely competitive segment SIMILAR PRODUCT S Product substitution is easily available NARROW MARKET Diversified product range COST OF THE BRAND Investing huge money in brand promotion to maintain brand image
BRAND IMAGE Expand and create more luxurious product arise
The brands success is in it’s creation of a lifestyle that people want to emulate and buy into. From their in-store experience and online promotions, their content, ethos and overall brand image is consistent and sophisticatedly excellent.
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“Fashion is not something that exists in dresses only. Fashion is in the sky, in the street, fashion has to do with ideas, the way we live, what is happening.” - -Coco Chanel
Cashmere Pin k
Wool Twee d Came l
Embroidered cashmere & wool Tweed Black & Ecr u £5,94 0
Wool & cotton Tweed Black, Grey & Silver £4,24 0
Image Source: Pinterest
CHANEL CUSTOMER
V I C T O R I A
H A R P E R
4.1 Victoria is a 51 year old, currently working as the director at Home Sweet Home, a interior design company. Victoria enjoys the going out for lunch, tennis and spa days
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From Left to Right 1.CHANEL Tweed ecru, orange and lilac Jacket (£5,320) 2.CHANEL No. 5 perfume (£68) 3.TOM FORD foundation (£64) 4.CHANEL Tweed muslin turquoise, pale pink and blue (£2,540) 5.CHRISTIAN LOUBOUTIN Very prive Lipstick (£65) 6.LK BENNETT Sarafina Sude ankle boots (£35) 7.MULBERRY Bayswater bag (£995) 8.ANNOUSHKA Classic baroque 18ct white-gold and pearl earring drops (£320)earrings (220)
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Sophisticated, Determined, Hardworking, Manager, Independant, Productive, Sociable, Healthy, Active
C H A N E L “Once upon a time Chanel was old hat. It was only Parisian doctors’ wives who still wore it. Nobody wanted it, it was hopeless,” Karl Lagerfeld
4.2 Designer, visionary, artist. Gabriel Coco Chanel in 1909 changed women’s fashion forever. Chanel stood for ambition, her fine cut, precision and pure elegance of her products lines, Chanel didn’t build the brand, the brand built around her (The Chanel brand 2011).
As trends changed and competitors offered more creative ranges, other fashion brands continued to grow, a creative movement needed to happen within Chanel to retain the brands authority and keep consumers interested. To meet this challenge Karl Lagerfeld took over as Chanels creative director to revamp the brand and bring it back to life.
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Own Photograph. Artwork in Chanel Store. Location: New Bond Street London
BRAND TWO
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O F F L I N E Greeted at the door, consumers are invited in with warm faces. Help is always offered and questions are always answered by approachable members of staff. Women are presented in the traditional Chanel Tweed blazers and suit skirts and the men are smartly dressed in black. Each store works directly with a Visual Merchandiser to make sure the layout of the floor is continuously changing every fortnight, to keep loyal consumers visually engaged every time they enter the store. Sculptures and artwork exhibited in store were designed specifically as one off pieces.
- Film tape from ‘Coco Before Chanel’
hanel stores takes inspiration from Chanel herself, right from her apartment in Paris, to her love of camelia flowers, pearls, attention to detail and the number 5, reflecting directly the heritage the brand still treasures today. 4.3 The artwork, interior and service of staff are consistent throughout all 310 stores, staff are told to inform consumers upon request about products and the store itself. One of Chanels top stores is located on New Bond Street in London, which has recently installed digital screens playing footage from their current catwalks shows, for consumers to see whilst browsing the shop; mirroring their adaption to the virtual world, by adapting digital trends into their design.
PROMOTION A center piece in the main hallway is a sculpture inspired by the strands of Coco Chanel’s iconic pearls running from the top ceiling to the bottom floor of the store. Capturing the eyes of consumers who take themselves upstairs to where top end celebrities and the royals would be taken for a personal shopper experience, 5 black canvases are directly in eye sight. The closer you look the strips of tape that make up each canvas become noticeable, this is the tape from the film ‘Coco Before Chanel’ - a film which celebrates the talents of Chanel, telling her story from birth and the inspirations she took and journey to her success.
O N
www.Chanel.com Chanel’s personal wesbite
L I N E
4.4 Consumers are unable to purchase products directly from the Chanel website, showing the consumers an insight to the brand but making them come in-store to physically purchase something shows they want consumers to get the full luxurious shopping experience.
Chanel still want consumers to browse through their website, making it user friendly and giving consumers a choice of pages including product categories, a link to their latest ready-towear collections from the catwalks and direct access to ‘Inside Chanel’ - 17 short films showing the different aspects to the brand. Feeding consumers information about the story of Chanel creates a connected between the brand and consumer, inviting them to discover the world of Chanel. Video editing and post production techniques excel in incorporating old film footage with modern day trends. Their use of film is consistent through their online content; Instagram, personal website and Facebook which reflects the use of digital screens in-store. This allows loyal consumers and people who want to find out more about the brand do so in a visually engaging way.
Despite being latecomers to the virtual world, joining Twitter in 2011 and Instagram in 2014, this hasn’t pushed them to catch up with the content on their channels having only posted 556 times; contrasting with other luxury brands such as Gucci who have posted a total of 2,518 times to date, showing Chanel focuses on quality not quantity when referring to online content, but still managing to attain nearly 2 million likes, comparing to Guccis 727,305 and Moschinos 288,976.
17.6 million likes
Joined Twitter June 2011 12.5 million followers to date
16.6 million followers
Chanels Facebook page has attained 17.6 million likes, their Twitter has over 12.5 million followers Instagram account over 16.4 million, and their Youtube channel just under 680,000 subscribers.
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Chanels social media victory is led by their use of video, inviting their followers into their brand with exclusive VIP footage live from catwalk shows and fashion events via their Instagram and twitter, such as Chanels Haute Couture show in January 2016 and celebrity takeovers on their snapchat such as Cara Delevingne and Jared Leto.
DESIGNS Classic and timeless designs are a major part of their collection CUSTOMER SATISFACTION Comfortable and functional clothes
INCONSISTANT Despite good brand visibility, brand switching is high PRIORITISING OFFLINE PROMOTION Attating new consumers will become increasingly more dificult for the brand
BRAND IMAGE Strong brand equity and loyalty
O P P O R T U N I T I E S
AUTHORITY Highly established brand worldwide since many years
COMPETITORS Stiff competition from other premium brands means market share is limited
Online analysis and consumer engagement shows the brands authority and consumers interest in the brand and it’s content.
ONLINE PRESENCE Online sale and E-marketing gaining a lot of importance EXPANDING THE BRAND Emerging markets and various expansions and acquisitions abroad CREATIVITY Product innovation and takeovers
T H R E A T S
AMOUNT OF STORES AND LOCATION 310 Chanel boutiques; 90+ shops in Asia, 70+ shops in Europe, 128 shops in North America
W E A K N E S S E S
S T R E N G T H S
Chanel took number one spot on the ranking of the top 45 luxury brands between September 1st, 2014 and August 31st 2015, based on brand conversations on social networks, review sites, blogs and forums and news sites worldwide and had an increase of 152% in mentions online. ((Wightman-Stone, D. (2016))
COMPETITORS Competitors in the same business providing similar kind of clothes and accessories CONSUMER SPENDING conomic slowdown and downturn also has an effect on production PRICE WARS Counterfeits and price wars are also a viable threat CHEAPER PRODUCTS Other cheaper and lower brands trying to copy their timeless styles and selling at much affordable rates
4.5 Chanel provide consumers with an online presence, but still doesn’t allow them to purchase their products online. This shows Chanel has embraced the digital world but still wants to remain exclusive, making consumers go in-store to have the full experience. If their in-store experience and image was reflected more online, rather than just focusing primarily on content with digital influences this could allow Chanel to attract new consumers, showing they’ve embraced digital influences but stayed true to the brands ethos. Despite this reflection on Chanels current online presence, it was still voted top luxury brand on social media, their authority and consumer loyalty has overshadowed the overall consistency as a brand and their online image.
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“My brain thinks in icons and working with things that universally bring people into it, I just want to share my work with everyone.”
- Jeremy Scott
Fu r £ 1,020.0 0
3/4 Length dres s £ 2,021.0 0 Fu r £ 2,052.0 0
Minidres s £ 608.0 0
E L L I E
Image Source: Pinterest
MOSCHINO CUSTOMER
H A R R I S
5.1 Ellie is a 27 year old, currently working as the Digital Marketing Assistant at Popercorn. Ellie enjoys putting her dancing shoes on and going out at the weekend in London, Soho. Her fabourite meal is sunday dinner and she loves a Gin ‘n’ tonic.
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From Left to Right 1.MOSCHINO jacket (£1,144) 2.Vivienne Westwood Perfume (£30) 3.Bobbi Brown Foundation (£30) 4. MOSCHINO Knee length skirt (£454) 5.MAC Ruby Woo lipstick (£15.50) 6.JOSHUA SANDERS Pom pom cable-knit skate shoes (£226) 7. MOSCHINO Leather jacket backpack (£1,635) 8.TED BAKER Ronda rivoli crystal drop earrings (£35)
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Creative, Passionate, Imaginative, Successful, Laid Back, Spontaneous, Fashionable, Loyal, Adventurous
BRAND THREE
M O S C H I N O Once upon a time, Franco Moschino left tomatoes and flowers on editors’ seats at a show, suggesting they could judge his collection as they pleased. Franco Moschino was a rebel in his time, and his satires of fashion laid bare the industry’s conventions—its faddishness, its peculiar etiquette, its superficiality and excess. One of his most notorious campaigns stated, “Stop the fashion system.” - Franco Moschino
5.2 With a giant teddy bear wearing a Moschino top riding a motorbike in the window, Moschino’s London store located on New Bond Street is easily recognisable. Greeted at the door; with giant love heart door handles, by a security guard,
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The shop floor reveals the focus point is the products, sectioned off into different collections which are instantly recognisable form the catwalk shows.
Starting with the most recent, consumers can see the ready-towear products as a whole and easily browse the products in the collections, showing they’re aware their target consumers will be interested in buying into a certain collection.
PROMOTION
O F F L I N E 5.3 The interior is decorated with patterned wallpaper to represent shelves, and a simple chair and table in the centre of the store, this contrasts with the vibrant colours, wacky designs and out-there style Moschino ‘pride themselves in’ and push to be online, suggesting their priority is in their online content and the image they can create for themselves online.
More attention goes on Moschino Flagship stores in Selfridges, where their creavite, vibrant and wacky approach to design is clearly visable. With digital screens and combining different pieces from contrasting collections together so the whole enviroment becomes the focus point rather than the collections. This reflects Moschino’s strategy of targeting younger consumers, knowing they will be shopping in these locations. Staff are unwilling to talk about the store layout and use of interior, which contradicts the friendly engagement Moschino has with consumers online.
C R E A T I V E , V I B R A N T , W A C K Y .
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oschino’s online content is product heavy, aiming to push sales, make profit and attract younger consumers. Jeremy Scott believes ‘anyone can own a luxury item’ and by promoting items of a lower price range on social media channels, they aim to target a younger audience on, making them buy into the brand and own a luxury item, this message is clearly visible through the use of promotional hashtags, posting the price of products as captions, using celebrity endorsement and using an informal tone of voice consistently online.
O N
L I N E 5.4 Moschino’s approach to Instagram is to push products and attract new consumers with celebrity endorsements; reposting celebrities wearing Moschino products onto their own profile. Aiming to connect with younger consumers on a more personal level, Moschino uses promotional hashtags across all online platforms such as #JustSayMoschino and #Instafashion to send more traffic to their page, their Facebook page is heavily based on attracting younger consumers with frequent posts on BTS footage at catwalk shows and celebrity interviews.
Moschino’s Facebook page currently has over 800.000 likes
Moschino’s Twitter has just under 350,000 followers
Moschino’s Instagram account over 4 million
Moschino’s Youtube channel just under 25,000 subscribers.
For a brand who believe ‘everyone should own a luxury item’ and aims to ‘universally bring people into the brand’ this approach to the virtual world is directly appropriate, attaining new consumers and sharing as much information as they can with their followers.
Moschino Website: (Gifts) (New Season) (Moods) (Sale) (World of)
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SALES High profitability and revenue USE OF SOCIAL MEDIA Experienced business units
O P P O R T U N I T I E S
S T R E N G T H S
ATTAING NEW CONSUMERS High growth rate
BRAND IMAGE Brand portfolio is limited High loan rates are possible COMPETITION Competitive market, brands with similar products PRICE Cost of garments are more expensive than high street brand s
CONSUMERS Income level is at a constant increase PRODUCT The brand can introduce new products and services CONSUMERS SPENDING Growing economy will increase the number on consumers spending more money on products NEW CONSUMERS New markets, oppotunities to attain new consumers
T H R E A T S
COLLABORATION Existing distribution and sales networks and a domestic market
W E A K N E S S E S
TARGETTING AT DIFFERENT MARKETS Barriers of market entry
COMPETITORS Similar products avalible for cosumers, at a lower cost FAST FASHION Having to produce wide ranges of collections for consumers to stay interested AVERAGE PRODUCT PRICE DECREASING Growing competition and lower profitability
5.5 Moschino prioritises online promotion over the consumers in-store experience, using the virtual world to create a brand which is desired by a consumer who uses fashion to make a political statement and enhance their social esteem. Despite their flagship stores reflecting their online brand image, with a more abstract approach to design, their ethos and identity isn’t reciprocated in their branded stores, losing their wacky, creative style. Moschino’s online content in comparison with their in-store experience shows their priority lies within online promotion, resulting in an inconsistent brand image from online to in-store.
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CONCLUSION
F I N D I N G S The virtual world is unable to provide consumers with the same emotional connection to a luxury brand that an exclusive in-store experience is able to achieve. But as e-commerce sales for the Luxury sector are expected to grow to 24% annually through 2020 and the number of online users increasing, in order to attract and attatin new and existing consumers, luxury brands need to be present online and prioritise brand consistency. To excel in online promotion luxury brands must portray their brand ethos in a way that augments their image, their customer service, in-store experience and ultimately their profits to ensure they reach a much larger market and continue to grow.
G C M ucci excel in consistent branding, provide the consumers with the same experience and tell the same story throughout, prioritising how they make their consumer feel both online and off creating a desirable brand people want to buy into. Gucci stay true to their style and portray it in the most efficient way, which embraces fashion as artwork, a lifestyle and a doorway into a fantasy world.
hanel prioritise their in-store experience, not enabling consumers to purchase their products online show they want consumers to come into the store and have an experience they believe goes handin-hand when purchasing their products. Their authority and recognition leaves them with a large following online, but with inconsistent and infrequent posts, they risk failing to attract younger consumers to the brand which won’t allow the brand to grow.
oschino prioritise online promotion to target younger consumers, by using promotional hashtags, reposts and celebrity endorsements. This approach could see an increase in younger consumers buying into the brand, increasing sales. Because their store doesn’t reflect their online content, Moschino risk losing the luxurious experience consumers expect when purchasing a product instore. Moschino’s consumers are interested in their social esteem, making a statement and purchasing the newest products, therefore prioritising online promotion and having a large stock online works in favour for Moschino.
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To successfully reflect a luxury brand’s in-store experience online, their content must be consistent throughout all forms of promotion, brands must portray the same messages, tell the same stories and provoke the same emotions as they do in-store. Gucci excel in consistent promotion, and provide consumers with strong imagery and an emotional connection throughout. If Gucci were to use Moschino’s approach of online engagement with consumers and communicate with them on a more personal level, as well as making the products more exclusive like Chanel by making less garments available to purchase, this would result in more consumers wanting an instore experience and consumers feeling more connected to the brand online and off.
BIBLIOGRAPHY
R E S O U R C E S “Once upon a time Chanel was old hat. It was only Parisian doctors’ wives who still wore it. Nobody wanted it, it was hopeless,” Karl Lagerfeld Liu, X., C. Burns, A. and Hou, Y. (2013) ‘Comparing online and instore shopping behavior towards luxury goods’, International Journal of Retail & Distribution Management, 41(11/12), pp. 885–900. doi: 10.1108/ ijrdm-01-2013-0018. Name (2011) The Chanel brand. Available at: https:// corporatebrands.wordpress.com/ chanel/ (Accessed: 7 December 2016). pnogueira (2015) Milan Fashion boutiques: Gucci unveils new store concept. Available at: http://www.milandesignagenda.com/ milan-fashion-boutiques-gucciunveils-new-store-concept/?utm_ source=MilanDesignAgendanovember2015&utm_ medium=email&utm_content=newestspring-fashion-trends&utm_ campaign=newsletter (Accessed: 27 November 2016).
Digital in 2016 - we are social UK (2008) Available at: http://wearesocial.com/uk/ special-reports/digital-in-2016 (Accessed: 24 November 2016).
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R E P O R T Written By Georgina Atkinson