The consumer needs to be reassured of the value proposition of luxury goods and services in an era of increasing skepticism towards brands and institutions
“There is only one thing in the world worse than being talked about, and that is not being talked about.” Oscar Wilde’s bon mot is particularly applicable to the luxury business where image, trust, word-of-mouth referrals and brand messaging are key to long-term survival and all-weather market approval.
The luxury business, particularly the goods part of it, is currently not in good nick.
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Barring Hermès, Prada and perhaps Chanel, major conglomerates such as LVMH, Kering, Richemont and Swatch have seen a slump in sales worldwide, impacted by a slowdown in China, U.S.-imposed tariffs on imports and belt-tightening among aspirational luxury buyers.
Allied sectors such as automotive, art and hospitality are feeling the pressure too, albeit sales of yachts, watches, jewelry and luxury real estate are holding up.
It is at this inflection point that finely tuned luxury public relations and brand communications should be deployed to greater effect.
The overall goal should be to reassure consumers across the spectrum – high-net-worth as well as aspirational – that luxury goods are a good store of tangible value, and that experiences built through travel and stays build up pressure memories of good times.
Advertising announces, PR sustains – that was the traditional role of the two disciplines. Now, PR often carries advertising’s burdens and even more. Professionals in the field are expected to have expertise in media relations, online, search and experiential marketing, and access to influencers and likeminded brand partners.
For those observing the business, there has been much consumer and media questioning over the value of luxury goods – whether the products are actually worth the price paid, doubts over the country of manufacture and whether the whole thing is the result of a hype machine.
Consequently, the overall luxury goods industry is on a backfoot, with many aspirational and even HNW customers doubting the value proposition of luxury brands.
It doesn’t help that videos pop up repeatedly showing luxury goods being made in China that claim France or Italy as their country of origin. The lax laws over country-of-origin labeling in these countries don’t help either.
Three’s the charm
So, here is where properly stewarded luxury PR and brand communications can play a stellar role:
Rebuild trust with consumers. Trust is the glue that binds consumers to brands, particularly in luxury’s context. Luxury brands must win back customers sitting on the sidelines – and earn their trust once again – with genuine communications that stress the brand’s provenance, authenticity, source of manufacturing and intrinsic value.
Quite often, consumers perceive luxury goods and services as the creature of marketing, and not quality. Trust is integral to maintaining luxury's reputation, which like Julius Caesar's wife, Calpurnia, has to be above suspicion.
Storytelling that generates desire. Luxury is born of wants, not needs. Which means the brand story has to arouse emotion by romancing the customer or prospect. The brand’s PR and messaging have to reflect this reality.
Just because a brand has made a name for itself with one generation does not mean it is the automatic choice of the next. The more digital a generation, the less the need it has for tangible goods – which is mainstay of most luxury companies bar those in travel and hospitality.
The heritage story and raison d'être have to be retold in ways that resonate with the newer, younger cohorts to stay relevant and in sync with their lifestyle and value systems. More importantly, they want to be part of the brand story via unique experiences and activations that create buzz and a sense of tribal belonging.
Creative storytelling that engages consumer interest from a position of authenticity is key.
Quality must be stressed – over and over. A key reason for luxury’s current malaise is a simple fact: luxury brands rarely emphasize the quality of their goods and services, barring a few, say, in the automotive, art or watches and jewelry businesses.
Few communications from luxury marketers stress either the intrinsic value of the product or the materials, human effort and time that go into the manufacture or delivery of the item or service. Sadly, the quality angle has been upstaged by marketing.
A return to stressing product quality via all means of PR and brand communications will justify the price and anticipation for discerning buyers and even aspirational consumers. Who doesn’t want value for money?
PR HAS A broad remit. It can turn an ordinary into extraordinary.
A recent example is the scaffold cladding around the Louis Vuitton store under renovation at the northeast corner of 57th Street and Fifth Avenue in Manhattan.
The scaffold cladding resembles a series of Louis Vuitton trunks stacked on top of each other – and now ranks among the most-photographed and Instagrammed manmade structures in the city and beyond. It was a PR move beyond reproach and has earned Louis Vuitton tens of billions of dollars in media and marketing exposure. When the store reopens, it will continue to be the talk of the town for years to come – and extend the cycle of desire for customers who want to be part of the brand story.