Home' INSTYLE Magazine : INSTYLE SPTOCT 2016 Contents NEW LUXURY LESSONS: YOU
ARE NOT YOUR CUSTOMER.
Leslie Wexner wisdom: "Nothing is more
annoying to me than hearing a buyer say,
'I like it, but the customer won't.' I've
been shopping for over forty years, and
I've never overreached our customers.
ey stay with you if you pay them the
compliment of acknowledging their good
taste. ey will reach, in virtually every
category, if you create demand."
PUSHING AGAINST GRAVITY
e 1994 introduction of the Victoria's
Secret Miracle Bra didn't just boost the
brand's top (and bottom) line. Selling two
million within the first year (ahead of
the WonderBra launch), it was one of the
brand's first steps into higher -- New Luxury
-- pricing and profit and, more importantly,
it emotionally connected with something
that was important to its customers.
e desire? A bigger bust size.
Victoria's Secret understood that
with underwear (just like fashion and
cosmetics) you're seeking to make a
statement about who you are. Selecting
lingerie is about selecting an attitude to
express. at is priceless.
NEW LUXURY LESSONS: PRICE
IS NOT TIED TO PRODUCT.
UNTIE THE TWO.
Silverstein and Fiske wisdom: Trading up
"... is not about wanton self-indulgence,
materialist lust, or thoughtless
consumerism. It is about consumers
buying a few goods that make a difference
in their lives."
BUTTS, BOOBS AND
A Victoria's Secret product represents fun,
romance, fantasy, desire and love all in
one. Wearing their lingerie, you can be
transformed like Cinderella ... from the
ties of domestic life to one of the feathered
Angels on the catwalk.
In 1995 the brand launched its now
iconic fashion show, with legendary
supermodels strutting in lavishly jewelled
bras and feathered wings. It became a
cultural moment. In just thirteen years
Victoria's Secret had become a $1.9 billion
company, with 670 stores. By 2013 the
brand controlled 35 per cent of America's
lingerie market (according to Forbes), with
sales of over $6.6 billion.
NEW LUXURY LESSONS:
360 DEGREE BRANDING.
Leslie Wexner wisdom: " e brand
appeal lies in the luxurious experience
it gives you. e (originally vampish)
catalogue was completely overhauled
and gorgeous, elegant (and relatable)
super models were hired to grace its
pages and catwalk, to walk its talk. e
stores were revamped with fifty shades
of pink, gorgeous fitting rooms, amazing
customer experience and finally, were
filled with a continually innovative range
of products that pushed boundaries and
had consistency of fit.
FROM BUST TO BOOM
Foundation Wear for a New Luxury Brand
In their seminal book 'Trading Up: Why Consumers Want New Luxury Goods and How
Companies Create Them,' authors Michael J. Silverstein and Neil Fiske explain that New
Luxury goods cannot be created with traditional methods.
Instead, New Luxury creators follow these eight practices:
1. Never underestimate customers
2. Shatter the price-volume demand curve
3. Create a ladder of genuine benefits -- technical, functional and emotional
4. Escalate innovation, elevate quality, and deliver a flawless experience
5. Extend the price range and positioning of the brand
6. Customise value chains to deliver on the ladder of benefits
7. Use influence marketing and seed success through brand apostles
8. Continually attack the category like an outsider
New Luxury products and services are priced at a premium, but they must inspire
an emotional connection and possess higher levels of quality, taste and aspiration
than other goods in their category. In order to pay the New Luxury premium price,
customers will cut back on their spending (ie trade down) in areas they don't care as
Trading up, according to the authors, allows companies to sell products at higher prices
than conventional goods and in much higher volumes than traditional luxury goods.
THE BEST FORM OF FLATTERY
It's natural that other brands have sought
to repeat its success, but it won't happen
by simply repeating tactics. Simplistically,
it could be said that lingerie's growth was
born from genuine differentiation and
emotional engagement. But even that's not
really a sufficient explanation.
To qualify as a New Luxury brand,
Silverstein and Fiske say "... it must
connect with the consumer on all three
levels of a ladder of benefits. First, it must
have technical differences in design,
technology or both. Second those technical
differences must contribute to superior
functional performance. It's not enough
to incorporate 'improvements' ... Finally,
the technical and functional benefits
must combine -- along with other factors --
to engage the consumer emotionally."
NEW LUXURY LESSONS:
BUILD A BRAND BIGGER THAN
Leslie Wexner wisdom: "[Victoria's
Secret] didn't make any money," he said,
"but I saw ingredients in it. What if we
mixed it up differently?" As an outsider
to the lingerie category, he was free to
invent a new way of approaching the
products. He realised there was a void in
the market between high-aspiration and
high-volume brands; he saw opportunity
in both, and they spelt New Luxury.
You may not have named it as 'trading
up' to New Luxury, but if you're honest,
you trade up every day, across different
areas of your life and often for unexpected
and counterintuitive reasons.
You possibly even believe that the items
you buy help you realise your aspirations
and alleviate your stresses, but, for the most
part, you're not fooled that such things (no
matter the price) will solve your problems
or take the place of essential needs.
But none the less, thousands of
newspaper ads, catalogues, and televised
fashion shows have convinced you that
buying Victoria's Secret products will
boost your confidence and enhance
at's the real secret that's luring
Neil Osborne is an elite sales trainer
and brand coach who is unique in the
salon marketplace. He has devoted
more than 30 years of his working life
to the Salon Industry and has been
responsible for dramatically growing
brands and businesses by helping
them launch, develop and change their
sales results with his salon-specific,
results driven methods. Contact him at
e SALES CATALYST, 1300 302 859 or go
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