Allison's Blog

Retail and Marketing Strategy

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Mkt 402: Luxury Market Industry 2020

The luxury fashion industry has been constistently growing in revenue earned for the past decade. There has been a shift in luxury apparel during this time, as we have seen luxury brands become more popular and common within the average shopper.  This is an interesting dynamic since we are also seeing the growth with younger shoppers. One would think this phenomenon should be the opposite--younger shoppers buying more discounted and off-brand products, and older consumers with more disposable incomes buying the luxury products. Michael Kors is a great example of a luxury brand that has shifted their brand identity, whether intentional or not, to a more downscale product by positioning themselves in department stores and casual shopping malls.  Luxury shoppers want an ambience and an atmosphere that feels upscale and aspirational when in store, rather than a cluttered, busy department store.  This is a common trend throughout many luxury brands today where the brand identity has been slightly diminished because the products have become too ‘easy’ for the average customer to buy.  As elitist as the market may sound, this is what brands like Balenciaga, Dior, Saint Laurent, have excelled at--protecting their image.  

This leaves me thinking, is it possible the “luxury” fashion industry will evolve to encompass their growing millennial target market?

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A particularly interesting advertisement from Glossier, one that challenges norms of the beauty industry and ultimately widens the brand’s potential market.

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4 Reasons Levi's New Online Secondhand Store Is Genius | The Motley Fool

The denim giant is building a repeat-business ecosystem that consumers can appreciate.

Mkt 402:  4 Reasons Levi’s New Online Secondhand Store is Genius

“Consumers are prioritizing -- and rewarding -- good stewardship of the planet's resources...” Consumer trends, especially with millennial and Gen-Z consumers, are shifting toward an earth-conscious market place. Because of this, brands have had to adapt.  As I have mentioned before, an important shift in the marketplace today is that the consumer now decides what they want to see in stores.  Since this change, companies have had to alter their marketing strategies, whether they wanted to or not.  

Levi’s attempt in particular has also added a sense of frictionless ease for the consumer, in addition to being environmentally friendly at the trends’ request.  The new branch, Levi Secondhand,  is among the first of many brands to take on a secondhand section of their regular line.  This of course comes with risk for the company, but it looks so far as though it may be paying off. This tactic works for many reasons: it looks good in a media sense as it is socially and environmentally conscious, but it also benefits Levi’s themselves as it adds foot traffic to the brick and mortar store and the digital store. This leaves me wondering how long this trend will last, and how companies can keep up environmental efforts while still growing in revenue.  

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Mkt 402: An example of line extensions 

An important move for Burt’s Bees was the company’s move and expansion into the beauty industry.  Originating from an all-natural lip balm product made from bees wax, Burt’s Bees now has an extensive line of products ranging from skin care to makeup products.  The photo featured above is a prime example of the marketing strategy that the all-natural brand has opted for.  Through such efforts, Burt’s Bees was able to grow and expand the brand by adding line extensions, as seen in one their beauty advertisements above.  Since these products are all in the same realm but may differ in shades or consistency, this would be considered a horizontal line extension.  All within the same price range, these products offer slightly different options to the consumer--ultimately a more expansive portfolio of products.  

The Burt’s Bees beauty campaign was said to have great feedback from consumers, which leads to the idea that the company would want to continue with line extensions like this advertisement of different colored lip balms. Is this success because of their line extensions, or is it based on the notion that shoppers who care about environmental factors are more loyal than the latter?

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Mkt 309: “Why Millennials Love Gucci”

Gucci is one luxury brand that has taken advantage of their popularity through social media.  Social media influencers, typically Gen-Z and millennials, are often seen marketing Gucci as a desirable, aspirational brand.  This is the whole basis behind luxury brands--their unattainability. Though still an expensive, designer brand, Gucci has found its brand identity to morph into something that appeals more to the masses.  The different accessories like sunglasses and belts are often shown off with the infamous logo of those who do not typically wear or buy other designer and luxury brands. 

From personal experience, I have watched the brand identity of Gucci transform. A Gucci belt has become almost a go-to gift item for many individuals that would not typically consider themselves a luxury shopper.  Because of this phenomenon, I feel Gucci has lost some of its appeal and value as a luxury brand.  Designers like this must maintain their “unattainable” status, and if that is lost, the brand identity changes.  Gucci has become much more common and mainstream amongst the masses.  While this is true, I still wonder if there is any bouncing back from this, in order to recapture themselves as the top-tier brand they once were. 

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Personalized retail - Wunderman Thompson Intelligence

The newest buzz in retail experience is allowing shoppers to design their own products while they wait.

Mkt 309: Personalized Retail 

One of the biggest changes in retail after the tumultuous shift to an e-commerced-based retail scene in 2020, is the notion that the consumer is the new “tastemaker”. The consumer now controls what they want to see on the market--they are in control of what they buy, rather than brands deciding that for themselves.  With that comes the desire for a personalized retail experience.  Uniqueness and quality in products is the leading demand in the market right now, and companies are quickly trying to adapt. This article features an interesting take on personalization in retail--the beauty industry trying their hand. Function of Beauty is a new company giving the customer the opportunity to pick and choose what they want in their shampoo and conditioner--even choosing the look of the container it comes in.  This idea comes at an affordable price of around $36 per set of shampoo and conditioner bottles, something well worth the benefit of a catered shopping experience.   Mentioned research by Deloitte says “34% of consumers are interested in personalized products or services, and 48% are willing to wait longer for them”.  After sensing this form consumers, brands like Adidas and St. Ives that were not initially well-versed in the customization of products are being to follow suit.  

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The path from runway to street--how trends develop to the consumer 

Trickle-down marketing 

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Importance of shopping small!