Why Can Gucci Beat LV To Become The Fastest Growing Luxury Brand?

Facts have proved that we can win the luxury.

Must be the best brand of digital marketing and millennial generation.

According to fashion business news, BrandZ released the world's most valuable brands list in 2018, based on consumer brand recognition and past financial data. Louis Vuitton brand value rose 41% to 41 billion 138 million dollars over the same period last year, becoming the most valuable luxury brand, ranking twenty-sixth.

Followed by luxury brands, Hermes, brand value increased 20% to 28 billion 63 million U.S. dollars, ranking thirty-ninth in the list.

It is noteworthy that in recent years, Gucci, which constantly opposed super Hermes, ranked fifty-fourth in the list with us $22 billion 442 million brand value, but increased by 66%. It is also the fastest growing brand in luxury goods.

Its success is inseparable from the professional marketing team built by Gucci CEO Marco Bizzarri and marketing manager Jacopo Venturini.

The team has set up a millennium generation advisory group called the Independent Commission, which is under the age of 30, focusing on the marketing of products from the digital perspective.

The picture shows Brand Z publishing the most valuable brand list of the year.

From the point of view of revenue, although LVMH has never disclosed the performance of Louis Vuitton alone, Luca Solca, global luxury director of Paris bank, expects Louis Vuitton to earn 9 billion 300 million euros last year, while RBC Capital Markets analysts expect 9 billion 100 million euros, that is, the distance between Gucci and Markets is 2 billion 500 million euros, the former earned 6 billion 200 million yuan last year, and Hermes is lagging behind the first two, earning 5 billion 500 million euros.

It is worth noting that BrandZ is the only tool for evaluating brand value based on consumer opinions. It is the authoritative list used to measure the influence of brands on consumers in terms of consumers' choice of the brand rather than other wishes, willingness to pay the premium for the brand and the potential purchase intention of the brand in the future. Three.

Some analysts believe that Gucci is creating a new creative mode to gain greater profit margins on the basis of controlling risks.

In addition to performance data, Brand Z global leader Doreen Wang also pointed out the key to the above brands. "Luxury brands once avoided Digitalization for fear of dilution of brand value and exclusivity, but forerunners such as Gucci have demonstrated that the situation has changed."

Digital media is becoming more and more important in enhancing the intangible value of the brand. According to a recent report by Zenith, a US advertising agency, in 2018, the whole luxury market company increased the proportion of digital advertising expenditure to the total budget from 30% in 2017 to 33%. The company also predicted that the average annual growth of digital advertising expenditure was 11.7% between 2017 and 2019.

Virgil Abloh, which has 1 million 600 thousand fans on Instagram, joins LV or adds more street elements to brand men's clothing to attract more young people.

Doreen Wang indicates that Instagram has proved to be an important way to revitalize traditional luxury brands. Gucci and Louis Vuitton have been particularly successful in using this platform, especially in attracting the millennial generation.

But Gucci is more bold and rewarding.

In fact, young consumers are highly active in the age of social media. There is no need to repeat the features. But Anusha Couttigane, a luxury retail analyst, has revealed how to maximize the effectiveness of publicity through this phenomenon. She believes that the role of social media marketing is not only "exposure" but also "dialogue".

The equal interaction atmosphere created by these platforms enables the brand to grasp the popular culture at all times and combine it with products to create a burst of money to sell the millennial generation.

Anusha Couttigane concluded, "therefore, brands such as Louis Vuitton and Gucci, which are at the forefront, need to have the ability to engage in dialogue with consumers in order to keep their heads clear."

From the point of view of content, the digital marketing master represented by Gucci just grasped the psychology of consumers' demands for individuality expression, even incorporated this group into the scope of content creation, and formed communication force by interaction.

For example, in March last year, Gucci launched the Meme cooperation project #TFWGucci, the theme of the new wrist watch series. It encouraged Meme cultural creators and artists from around the world to create a series of watch series such as Le March des Merveilles.

The name of the project, #TFWGucci, means "That Feel When...".

(when I put on the Gucci watch).

Popular explanation, Meme is the expression pack of the western world.

In this Gucci project, the Meme creators on the Internet spontaneously copy, imitate and pmit in a cool and humorous way, spreading like viruses in the Internet, forming a network subculture that is popular among young people and is moving towards the mainstream.

From time perspective, the Gucci digital creative project is very intensive, and emphasizes individualism and trafficking in emotions.

Reviewing the timeline of last year's big events in Gucci, the frequency of Gucci digital creativity projects reached almost once a month, and received good feedback results.

In February 2017, Gucci first broadcast the fashion show for men's and women's wear, and released the 2017 autumn and winter series, becoming the most talked about brand in Milan during the fashion week of Milan.

In March, Gucci launched the Meme cooperation project #TFWGucci, the theme of the new wrist watch series. It encouraged Meme cultural creators and artists from around the world to create a series of watches, including Le March e des Merveilles and so on. The highest participation photos were awarded 206918 times.

Then, at the end of March, Gucci and the A Magazine Curated By magazine launched the curator Mickey three art exhibition in Hongkong and Beijing, and opened in Taipei in May.

The three stop shows the works of female artists Petra Collins, Coco Capitan and Gia Coppola respectively.

In May, Gucci hosted the 2018 early spring series in Florence.

In the series of fashion shows that all brands compete to create, Gucci pays tribute to Florence's historical heritage by creating the brand, and thus stands out in the team that has spent a lot of money on the big show.

In the same month, Gucci released the first 360 degree panoramic VR movie "dancing freedom", and widely distributed on Instagram, Twitter and other platforms. It is another attempt to new media technology.

In July, Gucci launched a series of cooperation with Coco Capitan, and released the 2017 autumn and winter advertising blockbuster featuring science fiction movies in the same month, triggering widespread heated discussions in social media.

In September, Gucci launched exclusive tourism app, and Gucci D COR, which was launched in the same month, was also exposed to the trend of lifestyle.

In October, Gucci launched a series of collaboration with the artist Unskilled Worker.

In November, Gucci announced that it would no longer use fur materials to make any products, which again aroused public sensation.

In December, Gucci worked with Spanish artist Ignasi Monreal to launch a series of oil painting advertisements and digital marketing activities.

Unlike blindly creating new things, Gucci has spent more efforts in deepening brand image.

In January 2018, in order to celebrate the arrival of the Chinese new year, Gucci Gucci App was specially installed. Users can use the cartoon image of the creative director Alessandro Michele's Boston dog Bosco and Orso to record and share the new year's greetings and new year's expressions. IPhone X users will also experience the 3D effect.

In February 2018, the 2018 spring series of murals co authored by Gucci and Ignasi Monreal were displayed on the art walls of Lafayette street in New York and Largo La Foppa area in Milan. The exhibition period is two months.

In March 2018, Gucci launched a series of art works and slogans to share in social media to celebrate the international women's day and continue to launch the international campaign of "Chime for Change hope bell" with the artist and poet Cleo Wade.

In May 2018, Gucci launched customized services in official website and new store in SoHo District, New York. At the same time, a personalized customized App was developed using augmented reality technology.

A series of brand-new and self-contained brand image reconstruction measures have been set up in the form of art to express accurately through social media to the younger generation of consumers, making Gucci once again become the top digital index luxury brand of business consultancy L2 last year. Its creative director Alessandro Michele has also become the most popular designer in 2017, ranking first in the industry with more than 290 thousand fans and interaction volume.

The picture shows Gucci launches an art wall project jointly with Spanish artist Ignasi Monreal.

Gucci Instagram official account released 30 #TFW, totaling about 2 million times.

Unlike Gucci, Louis Vuitton chose to add youth culture elements to the product and expand the influence by digital marketing.

The luxury brand relies on cooperation with fashion brands, and the role of social media in helping traditional luxury brands to regain the attention of young consumers.

LVMH has pointed out in the earnings report that Louis Vuitton's LV x KOONS and Supreme x LV series have all received a positive market reaction, which greatly enhanced the exposure and influence of the brand in social media.

More importantly, the social media effect is finally effectively converted to purchasing power.

Earlier, the US media reported that the Supreme x LV cooperation series created more revenue than the sales of Supreme 6's physical stores and official website, which has sold more than 100 million euros so far.

The freshness of this mix of luxury brands and luxury goods directly prompted Louis Vuitton to announce the appointment of Virgil Abloh as the creative director of men's clothing in March of this year, and was also the founder of the fashion brand Off-White.

Or in order to narrow the distance from the millennial generation, Louis Vuitton showed the whole process of Virgil Abloh's first day to work on the official Instagram live broadcast to 24 million fans instead of the traditional form made by well-known photographers or creative teams.

What is intriguing is why such brands can carry out a large number of media exposure and rapid growth simultaneously. Anusha Couttigane believes that the exclusiveness of luxury goods is important, but after the irrational "show off" purchase period, the best embodiment of consumer upgrading is that consumers are becoming more socially conscious.

Digital conservative "Hermes" also launched mobile game APP recently.

"The most important factor in the success of luxury brands today is creating relevance," explains Anusha Couttigane. "Consumers buy brands because these products meet their beliefs and lifestyle needs and can attract their products to be reliable and familiar brands."

According to the research of fashion big data company Edited, in the wave of Chinese consumers, millennials and Z generation, luxury brands with historical background and mature value will become the biggest beneficiaries. Although the average price of luxury goods has increased by 15.4% in the past three years, the growth rate of the retail market in this industry will continue to exceed other categories.

Hermes, who is regarded as a digital conservative, has recently joined the Apple Corp to play a game called APP Horseshoe Pitching, which will be popular in Europe and the United States.

Although this game directly promotes product sales, it strengthens the brand culture that Hermes built up with "Harness", and spreads the attraction of young consumers at the same time because of its interest in games.

This is undoubtedly a warning for the luxury brands that only want to sell products through social media. After entering the era of digital marketing 2, the brand needs to consider the balance between business and brand tonal.

The millennial generation, accustomed to too many rigid marketing, is becoming more astute.

According to the format report, consumers are tired of the "Mask" worn by social media, and prefer brands that match their values. They hope to see that the fashion brands they are contacting are real.

Now, whether a luxury brand is young enough, one of the important indicators is the degree of digitalization of the brand. No brand wants to be marginalized in the future competition.