Claire Kent’s Post

Re-Hub has just released its Compass Index placing Louis Vuitton as the top luxury brand on Chinese social media platforms, followed closely behind by Gucci – which surprised many given the brand's recent challenges in the market. This is indicative of Gucci's enduring brand equity, as evidenced also by the 2024 Brand Relevance Report from RTG Consulting Group which saw Gucci ranked as highly relevant in 6 key fashion capitals in the APAC region (including Shanghai), second only to Chanel. How can luxury brands continue to appeal and stay relevant with the evolving Asian consumer? https://lnkd.in/gcSqw--4

Louis Vuitton’s triumph is attributed to its dynamic digital strategy, which included a series of longer-form video content on Douyin, generating over 2.5 million engagements in merely three months. The use of videos highlighted the brand’s diverse fashion categories and runway shows, resonating powerfully with its audience. Gucci came second, perhaps surprising many who speculated that Sabato de Sarno’s more muted style would fail to attract attention. However, this position underscores that Gucci remains the most relevant luxury brand in Shanghai and the second across all of Asia-Pacific. Miuccia Prada’s powerhouse status is again cemented with both Prada and Miu Miu moving up at number 4 and 13, respectively. This upward trajectory was also seen at Versace (12), Tod’s (15), Bottega Veneta (27) and Armani (24) in what seems to have been a good season for iconic Italian brands on Chinese socials. Though Hermès’ slight descent in the rankings stems from its recent venture into Xiaohongshu, industry experts believe the move is part of a planned expansion. This development, in concert with Dior’s foray into e-commerce with a mini-program, underscores a strategic shift by luxury giants to digitally evolve and court new consumers.

Vogue Business Index: Winter 2023/24 Rankings Unveiled! In a year filled with challenges, the luxury goods sector stands resilient, showcasing the industry's ability to adapt to changing landscapes. The Winter 2023/24 Vogue Business Index reveals key insights into the evolving dynamics of luxury, highlighting the game-changing factors of materialized change, strong heritage, and a strategic digital direction. 🌟 Key Takeaways: - Gucci takes center stage, disrupting the top three in the Index and reclaiming its second spot since Winter 2021. - Louis Vuitton maintains its stronghold at the top, showcasing stellar financial results and consistent performance across pillars. - Prada emerges as the biggest riser, leveraging TikTok engagement and preserving its heritage appeal. - Balenciaga re-enters the top 10, showcasing improvement in purchase intent and digital performance. 💡 Insights: Despite challenges, luxury brands like Gucci, Miu Miu, and Ferragamo benefit from pent-up demand, with handbags remaining top of mind for consumers. China, Japan, and South Korea's luxury consumers show resilience, undeterred by global price rises. 🔍 Deeper Dive: - Gucci secures the top position in omnichannel and ESG, signaling a successful digital strategy. - Dior maintains leadership in the digital pillar, with a challenge to sustain iconic status amid changing luxury spending habits. - Prada's TikTok engagement and the influence of co-creative head Miuccia Prada contribute to its upward trajectory. 🌐 Industry Outlook: The gap between the top three and the rest of the luxury lineup widens, shaping the landscape for upcoming indices. Brands focusing on communication of ESG policies and omnichannel offerings, like Chanel, could enhance competitiveness. Conclusion: As we navigate through a dynamic luxury landscape, Gucci's resurgence and the shifting dynamics within the top 10 signal exciting changes for the industry. Stay tuned for further updates as we observe the evolving trends and game-changing strategies shaping the future of luxury. ✨ #LuxuryFashion #VogueBusiness #GucciRises #FashionIndex2023 #GameChangers

In 2023, Nike retained its position as the world’s #MostValuableApparel #brand with a brand value of $31.3 billion, showing that they’re still the untouched leader! Luxury brands such as Dior, Louis Vuitton, and Chanel have shown resilience and growth in the the last few years, with Dior’s brand value increasing by 46% to $13.2 billion, Louis Vuitton’s by 12% to $26.3 billion, and Chanel’s by 27% to $19.4 billion. Fast fashion brands like H&M and Zara have seen declines in their brand values, attributed to shifts in consumer preferences, with H&M’s brand value decreasing by 26% to $9.4 billion and Zara’s by 15% to $11 billion. #Marketingstories #marketing #nike #cartier #adidas #zara #apparel #dior #hermes #gucci #chanel #lv #louisvuitton

Worth a read … As a follow-on from the piece shared last week, this is another article on the theme of the criticality for luxury brands of having a distinctive and precise articulation of what the brand is all about – its essence, story, values - and using them to direct and infuse everything the brand does. Albeit, this time, the rationale for the need is additively different (versus the article from last week). The topic is addressed using the example of the effects on the momentum and performance of Gucci, following it’s change in direction under new business and creative leadership; and relatedly – both the risk (and opportunity) of the impending arrival of Alessandro Michele at Valentino, on that brand’s performance, going forward. On the surface, the article is talking about the luxury fashion sector, and focuses on the influence and effect of new creative direction on such brands and businesses – in light of, or in the absence of a clear, emotionally connective brand definition. But the points being made and lessons to be learned or reminded of, are just as relevant and applicable for any legacy luxury hard goods brands – in particular those on the journey of resurrection, rejuvenation, or outright re-invention. Where a fashion brand is subject to the creative vision (and potential off-brand excess, misalignment, or detour) of a designer, a luxury goods brand is equally influenced by the creative sensibilities or judgements of (new) internal leadership; its creative agency partners - and in particular in today’s collaborative economy – itinerant partner ‘creators.’ Hence the need to have a clear, precise, and explicit story and values framework guiding the brand’s manifestations. The imperative for successfully managing this synergetic relationship for luxury brands – between brand story and values, and creative or executional manifestation is beautifully captured in the article by the author (Daniel Langer): “… when brands give more power to the creative execution than to the underlying brand story – or worse, when the brand story no longer comes across at all – then value is destroyed. And luxury lives largely on its intrinsic value … that’s what creates desire.” https://lnkd.in/dUEK9hVh

The explosive growth and billion-euro milestone achieved by Prada Group are inspiring testaments to the enduring power of visionary leadership and brand authenticity. Miuccia Prada's ability to honor the brand's iconic heritage while boldly innovating has reignited global desire. Miu Miu's 82% sales surge highlights the immense potential of sister labels when allowed freedom to develop a unique identity. Prada Group's success provides valuable lessons for emerging brands: Craft a compelling story, maintain unwavering quality, and align with cultural shifts. Embrace digital platforms to engage your audience deeply. Stay true to your distinct creative vision while tapping into the pulse of the times. With passion, strategy, and a touch of fearlessness, you, too, can leave an indelible mark on the fashion world. Dream big! BTW, if anyone reading this is trying to launch or grow their brand in fashion, beauty, or luxury - please check us out and inbox us. We're a pretty big deal, and we love to build empires. Best, https://lnkd.in/e5D7MXUX

𝐇𝐨𝐰 𝐝𝐨𝐞𝐬 𝐆𝐮𝐜𝐜𝐢 𝐦𝐚𝐢𝐧𝐭𝐚𝐢𝐧 𝐢𝐭𝐬 𝐭𝐨𝐩-𝐨𝐟-𝐦𝐢𝐧𝐝 𝐬𝐭𝐚𝐭𝐮𝐬 𝐚𝐦𝐨𝐧𝐠 𝐂𝐡𝐢𝐧𝐞𝐬𝐞 𝐥𝐮𝐱𝐮𝐫𝐲 𝐜𝐨𝐧𝐬𝐮𝐦𝐞𝐫𝐬 𝐝𝐞𝐬𝐩𝐢𝐭𝐞 𝐚𝐧 𝐚𝐧𝐭𝐢𝐜𝐢𝐩𝐚𝐭𝐞𝐝 𝟐𝟎% 𝐘𝐨𝐘 𝐬𝐚𝐥𝐞𝐬 𝐝𝐞𝐜𝐥𝐢𝐧𝐞 𝐢𝐧 𝐐𝟏? This is the focus of Julienna Law's latest article on Jing Daily to which I've had the opportunity to contribute. 🔍 What happened?   Kering warned of a profit decline due to Gucci's expected 20% sales drop in Q1, largely from weak China demand. Despite this, a report from RTG Consulting Group has identified Gucci as the most relevant luxury brand in Shanghai and the second most relevant brand throughout the Asia-Pacific region. 🤔 What can we get from this?  - The article delves into the paradox of Gucci's strong brand perception amidst declining sales, suggesting a misalignment between its image and market performance. - It also contrasts Gucci's situation with CHANEL, which has managed to secure high marks for both brand awareness and desirability in the report. I was invited to share my view on Chanel's strategy's in China with Arnold Marc-Olivier, emphasizing the importance of investment-worthy products and finding the right balance between exclusivity and accessibility. For further details, read the full article here: https://lnkd.in/d3MgidWN

Their unique approach to supply chain, design, communications, and retail has propelled Hermès to blockbuster demand, allowing them to surpass rivals and emerge as a global megabrand with a market capitalization exceeding that of Nike. One of the most important strategies used by Hermès ever since the company started in the 19th century is branding their products exclusive and creating an illusion of scarcity. Dive into the secrets behind their success and witness the power of innovation and strategic prowess in shaping the luxury market landscape. #brandidentity #businessbranding #brandexperience #innovation #marketingandadvertising #strategicmarketing

What else can we get from this? (1) While awareness, desirability, and willingness to pay are important components of brand relevance, they may not be sufficient on their own. Brand relevance is a multifaceted concept that encompasses various dimensions of a brand's relationship with its target audience and its position within the market. (2) Top-of-mind awareness does not accurately predict consumer behavior, such as purchase decisions. Theories related to associated network memory actually question the value of unprompted awareness measures.

Let me share some of the "Key strategies" to reactivate brands like Gucci as part of the 4th digital revolution: > Revitalize brand storytelling > Don’t lose touch with young audiences > Dial up innovation, inspiration, and creativity thanks for sharing Daniel André Langer #louisevuitton #lvmh #luxury #chanel #hermes #kering #richemont #retail #fashion #luxurybrands #luxuryexperience #customerrelationships #customerexperience