Causesumerism refers to

” …the increasing tendency of luxury and fashion brands to help consumers justify purchases by injecting a note of do-goodism into the selling of the product.”

The book focuses mainly on product (RED), which aims to stop the spread of AIDA in Africa by using the sales of branded goods such as Armani and GAP to support the global fund for fight AIDS, tuberculosis and malaria.

I have previously written about the relationship between luxury brands and CSR, and I believe that luxury and good causes are not mutually exclusive. This not only makes good sense for the long-term prospects of the brands in question, but can also be a positive attribute in luxury marketing – particularly if the brand aligns its CSR initiatives to core brand values and identity, and resonate with consumers.

Kahro, a jewelry stores Raleigh NC store which I run, has teamed up with Kay Yow Cancer Fund, a Raleigh NC based charity that work to fight female cancers. Giving to charity is seen as an aspect that Kahro shares with its customers; just as they spend extra, Kahro spends extra. This charitable giving builds self-esteem for all the Kahro employees, as they know that their workplace gives something back to the local community. In turn, this raises productivity and staff commitment.

Is this good in terms of marketing? Yes. But I also believe that it can deepen brand identity, and that it is not always driven by profit – it may make sense from an employee satisfaction perspective, or from a genuine wish to impact local communities.

Image courtesy of Homeplus

In the wake of Kim Jong Il’s death and the changes taking place in North Korea, I was interested to read a recent article on Reuters that discussed the ways luxury marketers are targeting South Koreans.

I have previously written on the trend for Chinese consumers to purchase fake luxury carrier bags, demonstrating that the Asian love affair with luxury seemingly continues to go from strength to strength.

As the world’s 13th largest economy and an increasingly affluent base of consumers, marketers have offered consumers there a novel way of purchasing luxury goods – through mass-market access.

South Koreans will now be able to purchase designers items during their weekly shop at Seven Eleven. The chain, ubiquitous throughout South East Asia, also sold Gucci shoulder bags and wallets during Korea’s Thanksgiving festival in September.

“It was a big success, and we are thinking of expanding our luxury gift line to other accessories for the New Year,” said Seven-Eleven marketing official Cho Yun-jung.

But it’s not just convenience retailers like Seven Eleven that are cornering this market. Retailers Tesco and Lotte Mart, an Asian hypermarket, are also selling Chanel, Prada, Ferragamo and Balenciaga.

The luxury goods market is booming in Korea, with sales growing “at least 12% to an estimated $4.5 million last year,” according to a report by McKinsey & Company in August. This can be attributed to demographics – with more working women who have additional disposable incomes – as well as tourists from nearby China and Japan, who stock up on luxury goods in trips to the region, attracted by South Korea’s cheap currency.

Furthermore, South Koreans have increased access to credit as local banks are eager to provide shoppers with tailored credit cards to fund their spending habits, for example the Hyundai Card which offers “the Black” and “the Purple,” with various luxury life style-friendly features.

The Financial Times has reported that the latest strategy of French luxury giants in Korea is investing in affluent districts such as Chungdham and Apgujeong-dong.

It seems South Korea is the latest strategic location where luxury marketers are investing to strengthen their brands.

The article quotes an Advertising Age report, saying

“The desire for luxury experiences has not disappeared, but has been redefined for a new era… expressions of luxury have become smaller, more personal and intimate.”

I have written about this previously, arguing that luxury marketers need to focus on getting to know their consumers and on encouraging them to behave according to their own personal values, not simply acting as a sales person but rather as a trusted advisor.

In order to better understand consumers, I have developed a simple characterisation consisting of two personality types – Theta and Lambda.

The Theta personality seeks affiliation and control as an ultimate life purpose, so they loom to fit in within a desired group and use socially-derived understandings of product characteristics as a basis for their consumption.

Lambdas, on the other hand, seek achievement and uniqueness as an ultimate end goal, and so are more likely to interpret products based on their individual responses to the product, how it helps/prevents them to stand out, and how the product benchmarks against their regular consumptive patterns.

The article says that luxury is “more than ‘something adding to pleasure or comfort but not absolutely necessary’… to be truly luxury you have to have an element of exclusivity.”

I have previously written on the importance of exclusivity for luxury brands in my articles on the recent trend towards exclusive experiences such as ice sailing, and the rise of ‘no-logo’ luxury.

The article raises the point that brands are trapped between investing in social tools – important to not get left behind, but counter-intuitively making the brand more accessible – and trying to maintain exclusivity.

According to a new study on ‘New Affluents’, the qualities that they value in brands are quality, aesthetics, uniqueness and authenticity, not necessarily a high price tag. They are looking for more brand interaction, and for brands to in a dialogue with them – even to be part of the product development process.

This, I suspect, is why we are seeing more luxury brands than ever throwing themselves into the digital media space, with brands like Oscar de la Renta using platforms such as Facebook to sell exclusive products. But they are also offering tailored services, with Burberry offering a bespoke trench coat service for $9,000 – exclusive, with an element of personalisation.

It is important for luxury brands to connect with their current and prospective consumers, and it is interesting to watch the different ways that brands are going about doing this. Kahro, (the Raleigh NC jewlery store that I founded) for example, differentiates itself by providing consultancy on what kind of diamond would best suit each individual, enabling the customer to make a choice which is both personal and which they are deeply involved in.

Luxury may mean different thing to different people, but if a luxury brand can differentiate itself by both remaining exclusive and interacting with its consumers, it will surely do better than those brands that refuse to change.

“Digital could be the differentiator for brands that become iconic, and those that become irrelevant. Establishing direct relationships with end consumers through e-commerce and social media provides an opportunity for European niche fashion brands to punch above their weight class.”

Their key finding was that luxury consumers passionately enjoy the online shopping experience, and that those affluent consumers shopping online were those spending the most in support of their lifestyles.

The report also reported that:

• Virtually all affluents using the internet; 80 percent of which use social media
• Affluents who shop online are luxury brands’ best customers and best prospects
• Affluents value internet shopping for its convenience, ability to shop 24/7 and its time saving aspects
• Only 11 percent of affluents surveyed liked shopping in store more than online

Luxury consumers value online shopping for its convenience and speed

The report predicted that in the next year, we will see more of social media being used to connect with luxury brands. As it stands, social media is used socially, not commercially.

The report concluded by stressing that there is a need for luxury brands to invest in understanding the needs, desires and motivations of their target consumers.

Therefore I was not surprised to read this recent article on Luxury Daily, which explains that mobile applications with augmented reality features are becoming increasingly popular amongst luxury brands. This is because their customers have come to expect a certain high level of innovation, quality and engagement.

Many luxury brands, such as Audi, BMW and Zenith are using this technology to introduce new product lines and promote events, and are able to highlight their products in a way which seems more immersive than traditional marketing methods such as placing advertisements.

For example, Zenith, a luxury watch maker, have developed an application where the user can browse the digital selection of watches and see how they would look on their wrists. And BMW is taking its digital marketing strategy to the next level by incorporating mobile augmented reality in its promotion of the new X3 model.

BMW's X3 mobile augmented reality app

The article’s author stresses, however, that it is important for brands to remember to use technology to add meaningful experience, not just for the sake of it.

As technology advances and luxury consumers become more tech-savvy, as well as less easily impressed, it is clear that marketing – whether through new technology, innovative concepts or novel experiences – has a strong role to play in developing the luxury sector even further.

I would ask the following questions:

1. When you are offered a selection of diamonds, which one is the best?
2. When you are offered to select a diamond for use, which diamond will you select?
3. Will you select the same diamond in each case?

I doubt it. Beauty remains in the eye of the beholder, with respect to different situations and different purposes.