Paris Fashion Week is in full swing, concluding the Fashion Month frenzy which sees thousands of celebrities, influencers, press and buyers descend on the ‘big four’ fashion capitals: New York, London, Milan and Paris.
No longer an event for the elite few, Fashion Month has opened its doors to the public with the power of social media, appealing to new luxury Gen Z fashion consumers who are looking for a more accessible and inclusive luxury brand experience.
But this strategy doesn’t work for every brand. And in fact, some traditional luxury brands such as Hermes are now going ‘more exclusive’ to try and set themselves apart from the ever growing, more accessible luxury fashion brands of today.
Hermès artistic director, Nadège Vanhée, said in a recent interview that the brand has distanced itself from the term ‘luxury’ altogether. She is neither on Instagram, nor has she seen hit TV show Succession, which sparked the global-wide ‘quiet luxury’ trend.
Luxury is considered something of a dirty word in her eyes. “I think it’s a meaningless term now,” Vanhée says. “The idea of luxury has been erased.” Instead, the renowned house, which sells coats for £7,000 and its famous handbags for triple that, prefers to talk about ‘craftmanship,’ reports The Times.
But for the mega-brands looking to capitalise on the power of social media, to amplify brand exposure and reach new luxury consumers, they are seeing a direct link between social media growth and financial success.
New data from global research firm Bernstein reveals that fashion brand Louis Vuitton is seeing a positive correlation between social media success and financial growth.
Its May-August social media tracker, which analyses luxury brand’s relative performance on Instagram, Tiktok, YouTube, and Google trends, which are particularly relevant for Western consumers, unveils that LVMH Group mega-brand Louis Vuitton is dwarfing its peers.
THE PHARRELL WILLIAMS EFFECT
Louis Vuitton’s SS24 Men’s fashion show, under the guise of creative director and musician Pharrell Williams, set a new benchmark, creating unparalleled social media traction with A-list celebrities such as Beyonce, Jay Z, Kim Kardashian, Rhianna and Lewis Hamilton all in attendance.
The luxury brand reported its fastest year-on-year follower growth rate on Instagram and average likes in the past 3 months, credited to Pharrell Williams’ June debut, with the brand also having the largest number of followers on Instagram.
And on Youtube, Louis Vuitton now distinctly leads its competitors, primarily due to the SS24 Mens’ fashion show amassing the most subscribers’ year-on-year growth in the past three months, reports Bernstein.
Louis Vuitton has also recently been cited as the world’s most valuable luxury brand for the 18th consecutive year, according to the Kantar BrandZ Most Valuable Global Brands ranking 2023.
The French giant has held this position since the Kantar BrandZ global rankings first launched, the only brand to do so in any sector.
With a 0.4% increase, Louis Vuitton reached a brand value of $124.8bn versus $124.3bn last year. It was joined by five other French brands in the Luxury Top 10, including Dior, which was the fastest-growing luxury brand, delivering 9% growth.
As the global cost-of-living crisis continues, the report highlights how luxury brands are leveraging their brand equity and pricing power in ways few others can – proving more resilient as a result.
And continuing to invest in high-quality marketing plays a critical role for luxury brands, said Kantar.
“The most valuable global luxury brands show that success remains possible for brands despite the current volatile environment and proves that even brands with much higher prices can continue to grow with the right strategy and focus,” it said.
THE POWER OF CELEBRITY MARKETING
Celebrity marketing is a “science mixed with instinct and creativity” Youssef Marquis, who earlier this year with the support of LVMH launched his communications and talent agency Marquis, reports Vogue Business. And the acquisition of Hollywood talent agency Creative Artists Agency (CAA) by Kering Group’s owners only underlines the strategic importance of celebrity marketing for fashion.
While the Luxury Top 10 brand ranking remains largely unchanged, Louis Vuitton, Hermès and Chanel all improved their position in the overall Kantar BrandZ Top 100 Most Valuable Global Brands ranking; Hermès moved into the Global Top 20, rising from No.27 to No.19, whilst Chanel moved from No.45 to No.31.
Kantar said: “During challenging economic times, luxury brands have provided solace, comfort and continuity for affluent consumers. While at the same time being a source of inspiration for the average consumer.
“Luxury brands know how to leverage their distinctive assets to drive sales – from accessible cosmetics to iconic handbags, their logos permeate mainstream ideas of quality and success that help them navigate market fluctuations,” it added.
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