Older, Affluent Consumers Go Social

To get your target market to hear your brand message, you must be sharing that message in the places where you find your target market. Pretty basic business tenet? We thought so but, given how many small luxury brands are still neglecting social media in their marketing, apparently not as basic as we thought.

Recent reports show that social media usage continues to increases among wealthier and older Americans. Today, 68% of U.S. Internet users with incomes greater than $75,000 use now using social media.¹

Meanwhile, if you continue to buy into the “Facebook is for kids” myth, it’s long past the time to look at the facts:

• 77% of U.S. Internet users between 30 and 49 use social media.¹
• 52% of those aged 50 – 65 use social media. ¹ 
• 65% of college-educated U.S. Internet are active on social media sites.¹

Research also reveals that Facebook continues to be the most popular social tool, with 67% of U.S. Internet users logging on and staying active. Important for luxury brands to note: Facebook is being used by 73% of U.S. Internet users with an income greater than $75,000, making these wealthiest Americans the most active Facebook users.¹ 

Twitter meanwhile, continues to be the second most popular social networking site, and 32% of U.S. Internet users over the age of 30 are active on Twitter.¹

Finally, Pinterest continues to gain momentum, and is more likely to attract higher-educated, affluent women¹.

Still questioning social marketing, or just unsure of where to start? Let us help…

¹as reported by Pew Research Centre 

Weekly Round-Up: February 17, 2012

Twitter condemns fate of Saudi Blogger
This week, Saudi blogger Hamza Kashgari was deported from Malayasia back to Saudi Arabia - per request of the Arabian government. This controversial blogger received backlash from many social media users - including a Facebook group entitled "Saudi people want punishment for Hamza Kashgari -for negative tweets he posted about the prophet Muhammed. His return may result in abuse and possible death punishment for the young 23-year-old. The uproar caused by these tweets certainly sealed the fate of Hamza; it's crazy to think social media could condemn a person to such a fate.

Does your social media presence determine who you are?
Thanks to reports from ComScore, a Mashables article reported this week that in 2011, 16.6 percent of minutes spent on-line were spent on social media websites. The article also highlighted that while 3 out of 4 internet users have a Facebook; sites like Tumblr, Twitter and Google+ are rapidly expanding in monthly visitors. Another interesting article from this weeks news highlights what it means to have a strong social media presence, and just how important it is for you.

Take a note from these guys
This week Voltier Digtial provided insight into the top 5 companies that use social media in the best possible way. Thanks to a neat infographic, we can see just how they did it. From user friendly sharing, to successful hashtagging, many companies (say, McDonalds?) can take a lesson and learn how to better promote their company through the use of social media.


Good news for the luxury market
In business news this week, the luxury market had something to celebrate. After a long slump many luxury goods markets are projected to increase sales for the upcoming year. Claudia d'Arpizio, partner for Bain & Co. in Milan, commented "the surprise was mainly in the US and Europe." She went on to add "Luxury shame is now over."

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.

Miamore's Week In Review: Dec. 19, 2009

As a small-business owner myself, I understand: there is barely enough time in the day to address day-to-day biz activities and crises, much less keep up on the latest news on marketing and PR. So, Miamore has decided to start boiling down, each week, the most important updates upscale businesses need know about in the areas of public relations, social media marketing, branding, and the luxury & lifestyle sectors. Here's the first of our weekly summaries:

SOCIAL MEDIA

• In my “past life” as a magazine editor, my favorite art director used to say (in regard to photography): if I find it on Google, it is mine! As the number of bloggers and web activity grows, however, this isn’t necessarily the case anymore. While the usage of images isn’t generally policed very well, there are still rules and laws regarding your use of images for your blog. It’s a little like the speed limit or (for you fellow Rhodies) the new texting-while-driving laws: you might not get caught if you break the rules, but you take a risk if you do. Here is a must-read outline of how to keep your blogging on the up-and-up.
• If your company is social marketing savvy, this is a bit basic. But for those still dabbling (and wondering why/if they should) in social networking it is an excellent read.
• For newbies and experts alike: This outline includes everything (and we mean everything!) you need to know about using Facebook effectively to promote your business.

PUBLIC RELATIONS

• We would like to hug the writer of this article. If you are considering venturing into public relations with Miamore or any agency, please read this for the low-down on how to “Be a Good PR Client” (could also be titled: How to Make your PR Agency Succeed in Growing Your Business)
• Hopefully you don’t have to worry about “crisis” PR, but in case you do, here’s a very good read on how (and why!) you must be prepared.

LUXURY

• Here is the best and latest update on how big-name luxury retailers are handling (and a bit on how they are faring) this holiday season
• For the jewelry people out there, here’s a little glimmer of hope about fine jewelry trending stronger for the season.
• This is a MUST-READ for luxury brands even considering discounting. Best quote:

"Once you start discounting, or accepting deals, there's no way of getting back up," he says. "In down times, there's the impression that the simplest thing to do is discount. But when confidence returns, the consumer's going to wonder why you want to charge $48 when just a few years back you'd sell for $30. You're effectively telling people that your product was too expensive to begin with."

• For those in the travel sector, the luxury (leisure travel) market is staging a comeback, according to this AFP report, but only for true quality. Best quote:

"The bling has gone. It's all about the quality of the experience and the feeling of space."

FROM MIAMORE COMMUNICATIONS

• Time's a-ticking for this one-of-a-kind holiday gift certificate: Speaking of luxury and travel, you officially have 6 days left to purchase gift certificates that will give the special women on your list the upscale adventure travel experience of their lifetimes. Your purchase will not only be the most memorable gift you’ve ever given her, it will also support one of four charitable organizations (at no cost to you). More here.
• Music expresses (and aims to raise funding to support) the universal challenge of caring for our aging loved ones: Almost everyone has had to face the difficult moment when they realize the passage of time has taken place, and that they must take over the role of caretaker for those who cared for them. As such, we all understand the challenges of caring for our elderly loved ones. A new initiative, Life in the Years, is raising funds to support a national program for elderly foster care, through sales of a beautiful compilation CD set that features 30+ of the world’s finest musicians, from the famous Natalie Merchant to Rhode Island’s own Sue Brescia.
• StyleWeek Providence adds to agenda: This week, StyleWeek Providence added the legendary Betsey Johnson to the list of designers who are showing during Providence, RI's first annual weeklong celebration of fashion and design in June, 2010. The roster is nearly full with phenomenal established and up-and-coming fashion, accessory and jewelry designers, but a few spots are still available. Contact us if you’d like to be considered!

Are your connecting with or, unwittingly, alienating clients?

It is a rainy, chilly night on the Rhode Island coast. After a crazy week that included whirlwind travel to the jewelry industry's biggest trade shows in Las Vegas, and a lot of work on a fab new promo kit for Tomgirl Tours, I'm reaaaaaally happy for an excuse to be tucked into my cozy Victorian house in Westerly for the night. Seeing as I find cooking a great way to relax, I went to the grocery a few hours ago to get all the ingredients for my favorite Greek feast (for those New Yorkers out there: yes, you can take the girl out of Astoria, but you can't take the Astoria out of the girl... even if she has to make due with sub-par Feta. Sigh...)

Anyway, after hitting my favorite market, I realized the only missing element for a proper rainy-night feast at home was a good bottle of wine. Now, if you don't know Westerly, RI, here's the scoop: there are two really good wine shops in town. One is right on the commercial strip and very convenient to the food markets. The other closer to downtown and a bit out of the way from the groceries. Tonight, as every night when I want a good bottle... despite rain, being tired, and having a stir-crazy restless puppy in the backseat, I drove right past that "convenient" store and drove a few miles out of the way to Dick's World of Wines. Why? Well, while the other store has a great (perhaps superior) selection of domestic and international wines, I haven't set foot in there since last October. See, in October, 2008, I was preparing a special birthday dinner for a friend and needed the perfect bottle of wine. So, on that afternoon, after a looong walk on the beach with Mia, I stopped at said wine shop to find a great red to match my (if I do say: AMAZING) seafood risotto. And my experience is what has lead me to Dick's, even if out of the way, ever since.

On that October afternoon, I wandered the wine shop, (props to them for this:) an employee

 approached me and asked if he could help me find the perfect wine. As a luxury publicist (at the time, editor), I was impressed by the service and told him exactly what I was preparing for dinner, and that I was specifically looking for a red that would match. It was at this point that I felt/saw the "once over". You know: the judgement that too many purveyors of higher-end goods and services make. So, he led me to a (actually) great and very affordable French red. However, as he recommended it, he said: "This is the only one in this price range (under $15) I'd recommend." Um. Okay. At NO point did I say that something OVER $15 would break my budget. In fact, we never discussed my budget whatsoever. He made a foolish snap judgement based on my appearance. It is the biggest mistake any upscale business can make

So, that was it for me. Actually, it was a very special dinner for a very special person in my life. Granted, the wine ended up being fantastic but I would have spent much, much more than $14.99 for a bottle. But I would have felt a whole lot better had some liquor store employee not insulted me in the process. Not that I'm a gazillionaire who wants to spend hundreds of dollars on a bottle of wine, but the statement by this person was clearly a condescending judgement based on my appearance.

After 3 miles on the beach, I didn't look the part; but THAT is the point. Luxury customers--especially in this day and age, don't necessarily "look" the part. We shouldn't NEED to. Perhaps he would have kicked himself had he seen me leave the store and climb into my late-model Saab. Yes, the wine was great but, really, I don't need for a wine shop worker to pass judgement on me. And I have NO intention of dressing up in order to be treated properly in a LIQUOR store. Hello? Welcome to the 21st Century, folks.

Bottom line: since October, I've probably bought a lot of wine. But, since that date, I haven't been back to that shop. As such, they've lost a whole lot of sales. If I went back and mentioned this experience to that particular employee, he'd probably be shocked... as this is a shop that clearly focuses on customer service.

My point? Even if you are approaching and believe you are connecting with clients... are you really? Or are you, even then, making judgements that leads to a loss of sales? Indies can NOT afford to make this mistake. So, as a sip a glass of nice red (purchased at Dick's) and finish preparing my Greek feast, I wonder how many other customers for wine, and who knows how many other products and services, have had similar experiences...

Fendi Hits the (Publicity) Jackpot

Okay, I'm about a week behind the times (it's hard to keep up with the general absurdities of the world while immersed in the greatest absurdity of them all: Vegas), but I need to chime in with the other gazillion bloggers out there chirping about Fendi's new bicycle. I'm probably not the first to say this but: really?? $10,000 for a BIKE??? Let's see, in the list of things I'd spend $10,000 on, after a vacation, jewelry, clothes, artwork, extravagant dining experiences... I'd say a bike comes in... mmmm... d-e-a-d l-a-s-t. What would I do with a $10,000 bike? I'd certainly be afraid to hitch it to the back of my car; I'd never take it to the streets of New York and chance having it mangled or stolen; I don't know that I'd even ride it around Westerly for fear of dings from gravel. But, what do I know? Because Fendi reportedly sold four of the bikes at the launch party alone.

The Fendi Abici Amante Donna comes tripped out with all sorts of luxury touches (like a detachable Fendi carrying case and a leather GPS holder), but clearly this is about status. While I clearly am not a fan over-priced status symbols, I am slightly encouraged that this may be a sign of better times ahead for luxury goods and services. I also have to give Fendi props for doing what I'm constantly nagging about: thinking creatively. Had they launched yet another bag, it would have barely registered a blip in the traditional and social media. Google this bicycle, on the other hand, and find pages of blogs and news reports. The Fendi Abici Amante Donna may not be the most effective mode of transportation, but it certainly is an effective PR vehicle. 

My Point ExACTly...

This is a bit of blast from the past, but worth revisiting... an article discussing Dana Thomas's, Deluxe: How Luxury Lost Its Lustre. If you didn't read it, the title examines the state of the luxury market (circa 2007), and the shifting definition of luxury. I happened across it again this morning and found it interesting food for thought as luxury firms struggle to define themselves in today's economy: this 2-year-old warning of sorts went largely ignored and the big-brand mentality contributed greatly to the current state of the luxury industry. (The bit about Louis Vuitton being the McDonald's of luxury: "A Million Served" still makes me smirk) 

While I've never been a logo girl, in this economy, I'm even more turned off than ever by logomania. And, with questionable country of origin issues, luxe brands continuing to market to the masses, and a complete absence of any sense of design or craftsmanship, I know I'm not alone; former Gucci designer Tom Ford, has called the big luxury brands diluted. Talk about an understatement.

To quote this article in WAtoday.com:

The famous logo [Louis Vuitton] still costs an arm and a leg, yet those buying are not the aristocratic clients who coveted craftsmanship and exclusivity. Instead, they’re the new luxury-obsessed middle class consumers addicted to brands, not for quality, but for what they represent.

And, when the middle class consumer is hit by a recession, where does that leave what we've all come to accept as "luxury"? Exactly where we are right now.

Luxury isn't about overinflated prices to support massive advertising campaigns. As I say on my site, true luxury today is about quality, relationships, craftsmanship, service and creativity. This fundamental point is my mantra: there is a great need right now for those offering true luxury goods and services (usually small artisan firms and boutique upscale service providers) to understand how to effectively communicate their messages to those who seek "luxury" in this new marketplace. 

If you are in the business of trying to reach those consumers, remember: in 2009, the buzzword is substance, not status.