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Consumer perception of brand value *will* shift in the coming months, as we spend more time at home than ever.
What is luxury in a world of isolation? The brands that draw the most attention get their allure from direct comparison to adjacent brands. https://twitter.com/allthingsmarco/status/1247631153705730049?s=20
What is luxury in a world of isolation? The brands that draw the most attention get their allure from direct comparison to adjacent brands. https://twitter.com/allthingsmarco/status/1247631153705730049?s=20
Here's my hierarchy of brand viability:
Luxury
Quality
Functionality
Everything better than being reliably functional is only known to be better through comparison. A clear example ...
Luxury Quality Functionality Everything better than being reliably functional is only known to be better through comparison. A clear example ...
If you went to any Westfield Mall in Jan 2020, you'd walk through a section that has LV, Prada, Gucci, Tory Burch, Swarovski, Michael Kors, Kate Spade and more.
They're all right next to each other because they all occupy their own niche of "achievement" or "status" purchases.
They're all right next to each other because they all occupy their own niche of "achievement" or "status" purchases.
Without public spaces, there can't public displays of status signaling. In 2020's socially distant world, these brands lack the environment to outshine the generic versions of themselves.
Brands that compete beyond the scope of functionality and reliability operate on claims of higher quality. (still a comparison)
Today, the top 1% of these "quality" brands are toeing the luxury line while still being able to convert a large customer base. We call them DNVBs.
Today, the top 1% of these "quality" brands are toeing the luxury line while still being able to convert a large customer base. We call them DNVBs.
There are very few digitally native brands that appeal to our "luxury receptors".
They focus on:
- being higher quality
- providing great customer experience
- giving a feeling of luxury that you don't have to pay for
They focus on:
- being higher quality
- providing great customer experience
- giving a feeling of luxury that you don't have to pay for
Luxury brands have lost their natural habitat for comparison and status signaling. They also haven't focused on online community building or non-transactional interactions with their customers.
We'll see a lot of DTC thinkers going to luxury brands to *really* bring them online.
We'll see a lot of DTC thinkers going to luxury brands to *really* bring them online.
