Weekly Round-up: January 30, 2012

McDonalds big fail; Jean Paul Gaultier's tribute through Couture; five skills for mastering the web; China's happy New Year and a luxurious read.  Here are some of the past week's top news stories concering PR, social media, and the luxury market.


Not all publicity is good publicity
McDonalds made headlines on Twitter for what is now being referred to as the "McFail." Originally intended as a positive marketing move, the company purchased #McDstories as the promoted trending topic on the twitter homepage. Unfortunately, twitter users had more negative stories to share than positive ones. I guess these people were not lovin' it.

A surprise ending in Paris
The 2012 Paris Couture fashion show debuted last week, and ended with a Jean Paul Gaultier collection inspired by Amy Winehouse, who died just 6 months prior.  Models rocked the late singer's signature 'bee-hive' hairstyle while walking to a live a capella version of Amy's very popular 'rehab' song.

Mastering PR
If you want to become "technologically savvy" dominating these 5 skills will guarantee to make you a more effective and efficient in public relations.

Year of the Dragon
The WLA - World Luxury Association - announced the top 100 most luxurious brands for 2012.  With this also came news of 2012's largest luxury market -- China. Quite the way to ring in the Chinese New Year.

The Pursuit of happiness
Magazine readers, look out for the newest addition to the Bloomberg family. It was announced that the company is launching a magazine dedicated to the luxury market.  A spin-off of Bloomberg market, Bloomberg Pursuits will focus on the best of the best in luxury -- everything from shoes to home decor. Editor for new magazine, Vince Bielski, commented on the magazines loyal readers and the enjoyment of life's finer things:

“Our readers don’t just own and appreciate luxury. They have a command and mastery of their toys”

Luxury market and sales strong for savvy high-end brands

Today, like every day after New Years for the past decade, I started the work year by researching luxury holiday sales. After a 2011 that overflowed with mind-numbing negativity in the media and among many high-end companies, I’m thrilled to report to the luxury industry: the sky may be a different shade of blue than you’ve seen before, but it most certainly is not falling.

As you’ve probably already heard, retail sales for the 2011 holiday season increased more than analysts anticipated. While the final numbers aren’t yet in, the increase is expected to be around 3.5% over the 2010 holiday season.

One of the strongest categories cited again and again in media reports? Luxury goods. Indeed, affluent American consumers (those with the top 10% of household incomes), who represent 35 percent of overall retail sales, are spending.

• According to ABC News, luxury is on fire. They quote Howard Davidowitz, chairman of retail consulting and investment banking firm Davidowitz & Associates: "When we look at luxury sales on a national level, we see they're doing just fantastic. Saks and Neiman's, they're terrific. Coach is fine, Nordstrom is fine. Bulgari and Tiffany, tremendous." 
• MSN, meanwhile reports: "'Twas the season when wealthy people unscrewed the vice clamps that had been on their wallets and decided to stimulate the economy. Tiffany and Coach were among the winners this holiday season, according to Jason Asaeda, retail analyst at S&P Capital IQ. He rates both as "strong buys" and points out that wealthy consumers are attracted to the exclusive merchandise being sold by department stores.”
• NBC reports that luxury retailers like Chanel and Gucci reported better than brisk business this holiday season; Neiman Marcus sold out of the ten 2012 Ferrari sports cars it offered in its Christmas book of fantasy gifts for a whopping $395,000 each; and Saks Fifth Avenue reported a resurgence in full-priced selling. 
• In a post holiday report, National Jeweler says that, for some independent fine jewelers, the end of the holiday season was strong enough to draw comparisons with post-recession seasons, while others reported that they saw fewer customers but that those who did come in made bigger purchases. 
• In November, high-end department store sales rose 6.5 percent over the same period in 2010, compared to a 0.3 percent loss for mid-tier department stores, according to Bloomberg data.
• According to Reuters, Wall Street analysts expect higher-end chains like Saks and Nordstrom to report strong seasonal sales, helped by the continued recovery of high end spending and a stock market that rebounded after swooning earlier in the fall.

So, while luxury shoppers are clearly not in hibernation, they are shopping differently than they traditionally have. For starters, online shopping hit a record a record $35.27 billion this holiday season, up 15 percent versus the corresponding period last year, according to comScore. This season also saw 10 days in which online sales surpassed $1 billion in one day. And, according to USA Today successful luxury goods firms are utilizing social media and digital marketing techniques to drive traffic and, ultimately, sales. 

Weekly round up: August 19, 2011

Make your Tweets stand out; digital marketing tips for luxury firms; a Google+ primer, and tips on writing press releases. Here’s our summary of this week’s top news in the world of PR and social media.

Sweet Tweets

The biggest complaint I hear about Twitter is the deafening “noise” of tweets that people don’t care about. But are your own tweets contributing to that meaningless chatter, or rising above it? The key to Twitter (as with all social media) is to engage. This is the best summary I’ve seen on how to sweeten your tweeting.

The luxury market’s digital lag

Too many luxury firms are still too focused on digital bells and whistles, rather than engaging content. Here are some of the struggles, and some of the success stories.

Google+ for beginners (and intermediates)

I’m the first to confess: I’ve dabbled on Google+, but haven’t found the time yet to immerse myself and really figure it out. If you’re like me, or if you’re a few steps ahead, here are a couple instructional videos to help you master this booming new social media tool.

PR 101: press releases

Whether you’re trying to write your own press releases, or providing a quote to your agency for a release, this is a must read. Love this quote: “A common problem with press release quotes is that they’re full of lazy corporate verbs such as synergize, utilize, leverage, or facilitate. 'We are leveraging cutting-edge technology to meet our customer’s needs.' What does that even mean?”

Oxford’s new dictionary additions

The Concise Oxford English Dictionary added 400 new words this year. If you aren’t retweeting or sexting or cyberbullying, check out this article. Woot! Woot!

The art of promotion: providing product to Bloggers

From traveling to conventions and events to paying employees and suppliers, money can be tight and PR/marketing often falls off the bottom of the to-do list for businesses. Advertising can cost a fortune and traditional PR takes time and patience. But have you considered the new--and less costly--alternative of promoting your company with the help of bloggers? Whether your business is in the food, wine and spirits, fashion, or sporting goods industry, there is a blog out there that has hundreds or thousands, or hundreds of thousands of readers...readers anxiously waiting to hear about what’s new.

With thousands of blogs in the interactive world and hundreds in categories that your company would fall into, interacting with bloggers is marketing tool that is underutilized--especially by many small business owners. Many bloggers host giveaways, in which they promote a good/service in exchange for the product, which they will provide to one of their readers. After a review of the product on their blog, many bloggers will ask their readers to enter by commenting on the particular brands Facebook page, tweeting to the company and spreading the word about the contest and giveaway for extra entries. The result of those mentions/interactions with your social networking profile? According Adweek, “Facebook users who like a brand's page on the social networking site use its products regularly or occasionally and, after following the brand on Facebook, more than a third want to buy this brand's product more.” So, as those tweets and posts about your product add up, so does your army of brand ambassadors. The cost to you? Your product to give away.

With all that said, how do you find the right blogger? You probably already know the best ones in your industry. (If you’re lost in the blogosphere, your public relations agency can be determine which to target, whom to contact, and facilitate the giveaway).

From Dick’s Cottons sunglasses on the blog Sarafit.comSarafit.com to Pop Chips on A Knack for Nutrition, bloggers are making it easy for companies to get their names out there. According to Bizammo.com, a leading resource for small business owners, there are three major steps that are important to recognize when offering up a product to a blogger. First off, “think outside the box.” This may seem obvious to you--you wouldn’t create the same exact product as a competitor, right? Don’t decide to just give something away because you have tons of product left in stock, just sitting in a warehouse. Think about it. You want to find your target market, so find a blog that gets attention and traffic from readership that is similar to those who buy your product or service. Then, find something that your business produces that these readers would need, or desperately want. Second, make sure whatever you provide to the blogger is easy to find and purchase. “The whole reason the item is free is so that as many people as possible benefit from it and learn about your company – if the customers can’t find the product, you may as well be charging for it.” Lastly, give it time. In Public Relations and marketing there are no immediate results--but there is value in raising awareness and engaging potential future customers. As long as your product is useful and is being promoted through different mediums, attention will follow.

The Allure of Social Media in the Luxury Marketplace

We’ve discussed before how massive the digital movement is, and with so many mediums to communicate a message it’s no wonder that the luxury market has “struck it rich” in social media. How can you “strike it rich” too? Look no farther than some of the largest and most influential businesses in the fashion industry--Bergdorf Goodman Department Store, Breitling, Bvlgari, Diane von Furstenberg, Dolce & Gabanna, Ermenegildo Zegna, and Marc Jacobs.

By zoning in and breaking down the approaches of each of these brands, we can explore what is setting each apart from their competition. From there, we can adapt these strategies to fit your business model. But before we start analyzing, remember: social media is not learned overnight. With a few changes and adjustments to your current social media programs, your brand can blossom and develop. 

To start, we will focus on Bergdorf Goodman, the luxury department store that is always at the forefront of fashion and “high-class” living. Bergdorf focuses mainly on Twitter and Facebook, which are two platforms that in our opinion attract the greatest audience due to the high volume of participants. On these sites, the brand engages with it’s fans, posting everything from makeup tutorials to style tips of the day. By answering the questions of their followers and appearing more like a person than a large company, they are not only approached by their clientele but bombarded by them. 

Swiss watch makers Breitling and Italian Jeweler Bvlgari focus more on Facebook than any other medium, and they are darn good at it. Ever think of promoting contests, offering prizes and creating games for your fans? If not, you can learn from these fashion dynamos. Breitling pushed a “Spirit of Aviation” photography contest on Facebook in which fans of the brand submitted pictures in an attempt to win flying lessons with the Breitling flying team in Dijon, France. The contest was also connected to the legendary movie-star and flying-enthusiast John Travolta. By asking their fans to “link-up” with the contest and spread word to Facebook friends, the brand got even more attention and contest entries. In a similar instance, Bvlgari teamed up with a celebrity, actress Kirsten Dunst. An Enchanted Garden Facebook app was launched which provided links to its Facebook commerce microsite where consumers could purchase jewelry and fragrances. The interconnectedness of the app to the commerce site displays the importance of cross promoting. Have at least two forums to promote your company? Utilize both and gain traffic. 

Lastly, Marc Jacobs may be the most inventive designer in the digital world. The brand took their company one step further and aligned themselves with bloggers. Bloggers are no longer the up-in-coming freelance writers of the digital world, they have staying power. Bloggers are gaining designer sponsorships, partnering with magazines and becoming just as influential as timely designers. The designer bought “advertising on NOWMANIFEST.com and held a photo-shoot with blogger Elin Kling to celebrate 10 years of the Marc by Marc Jacobs line.”  This social media move was so large that the Marc Jacobs website saw over 94,000 impressions after one day of advertising on Elin Kling’s blog! 

From these success stories it’s apparent that social media offers major opportunities to luxury firms. Whether your business is a corporation or a start-up, it is crucial that you entertain digital marketing. After all, luxury brands are selling not only products, but also a lifestyle, so engaging a client within his or her own lifestyle is imperative. Social media provides just the platform to do so.

Bergdorf Goodman makeup tutorial

DVF Facebook page

Marc Jacobs advertisement on blog

Jewerly Spakles this Holiday Season

The economic recession devastated the American luxury market, that’s no surprise. What is a surprise is the increased demand this season for perhaps the most quintessential luxury item: jewelry.

Some encouraging stats:

-The percentage of people who bought jewelry during “Black Friday Weekend”, Nov. 26-28, increased from 11.7 percent to 14.3 percent. That is close to a three percent increase.

-In a recent study from the National Retail Federation, the percentage of people saying they will be giving jewelry as gifts has increased from 18.4 percent to 20.3 percent.

-According to “Cotton Lifestyle Monitor” jewelry is ranked at number five as planned holiday gifts in 2010. Jewelry didn’t rank at all in 2009.

The jewelry industry may not draw out the 2 a.m. crowd on Black Friday, but the increase in jewelry sales this past weekend was felt immediately by both retailers and designers. It also helped spark optimism for the economy and retail sales in general.

“While Black Friday weekend is not always an indicator of holiday season performance, retailers should be encouraged that a focus on value and discretionary gifts has shoppers in the spirit to spend,” said Matthew Shay, National Retail Federation, president and CEO.

Looking at the bigger picture, the fact that people are looking at jewelry a lot more this holiday season could mean that American’s are ready to start spending on luxury items in general again. It might be possible that this is the first sign of the recession being a part of the past.

Luxury: The Good Thing About All the Bad News

After a busy few days, I caught up this morning on the news and walked away with my head a-spin, between high-profile bankruptcies and foreclosures, and reports about luxury spending. 

From a business standpoint, I cringe. But, honestly, digging a little deeper, I find myself encouraged and confident that this reality check will help the luxury market emerge stronger and more true to itself. 

Perhaps it is partially the old-school New England mindset drilled into me when I was a kid growing up in Connecticut (I can't count how many times mom shook her head and said: the truly wealthy don't put on a show). In my neck of the woods, the "rich" people drove boxy Volvo wagons (before Volvo luxed themselves) and wore L.L. Bean. So, when I started covering the luxury market as a journalist in the mid-1990s I experienced quite a culture shock. That shock came mostly from displays by people who owned small businesses, yet lived (to quote mom again) "like Rockefellers". Private jets, $10,000 bags, over-the-top real estate. Wow. How did they afford that stuff?

As bankruptcies pile up, I realize: they couldn't. Somehow, over the past 15 years or so, "luxury" became all about hype and image. Spending (on credit) was the way to go. Obviously, I'm not stating anything we don't all already know (and perhaps I'm sounding like a broken record). But, as our collective fears are stoked by each wave of bad news, and as we scurry to find our way through these times and regroup for whatever the future of "luxury" holds, I stand firm in my faith that the luxury market, however gradually, will not rebound as much as reemerge. Those companies who remain focused on quality, live and work within their means, and base their businesses on value (rather than hype), will be those who survive and define the future of "luxury"... Not unlike those who defined the word to begin with.