How to grow luxury
brands fast.
Doug James
MD Honey.co.uk
Stuart Gates
Associate Director
Levercliff
You would think that, with all the talk of hard times from here
until the seas freeze over, the one sector that would really suffer would be gifting, the passing of apparently frivolous and unnecessary products from one person to another.
But some trends are up. At one end, top end London stores
are showing serious profit returns. At a more modest end,
people are spending 15% more on a bunch of flowers than
they did three years ago and sales of chocolate selections
are expected to rise by 17%.
This is not a coincidence. In hard times, people seek
compensatory gifts or self-gifts to make up for other, more
expensive treats being unattainable. There are, of course,
still a few whose natural habitat is Kensington and
Notting Hill and have no money concerns. They need
not concern us today. There will always be people that travel first class!
We are defining luxury as the frivolous, unnecessary
purchase. Unnecessary from a practical point of view,
that is, but highly necessary from an emotional point of view.
But, like any market, there are no easy pickings.
Say luxury and you think of art for art’s sake.
Not a bit of it. You still need rigorous segmentation
and targeting. Get it right and opportunities lie
in several areas.
Self Gifting
A small compensatory gift will ease the pain when you can’t
go out to dinner, can’t buy that dress, have to shop carefully.
Home Gifting
You only have to look at the increasingly desperate 2 for 1 offers
from the restaurant chains to know that there’s a shift to eating in.
Many have discovered that you can have a great and indulgent
evening in for a fraction of the cost of eating out.
Ego Gifting
We all have egos and there are great opportunities to profit
from markets that set out to flatter. It only succeeds, however,
if the aura round the offer is powerful. Think Fortnum’s,
then think Aldi.
Tourist Gifting
Tourists are people and many of those people have taste.
And money. With the weaker pound and the increase in BRIC
tourists, there are great opportunities to create something
definitively British but classy. We just wish someone would
tell the 2012 Olympic shop.
The key to success is to remember that it’s personal, between
you and the customer, between the customer and the recipient.
If everything about your product and your service reflects this,
you can make a lot of money.
Honey - Commercial Brand Partners:
Commercial Planning, NPD Innovation, Branding, Design, Digital and Marketing.
6 DBA Design Effectiveness Awards in 3 years, makes Honey the UKs most successful new agency ever!
doug@honey.co.uk
+44 (0)20 7354 4150 honey.co.uk
Ride the Storm: Navigating Through Unstable Periods / Katerina Rudko (Belka G...
Honey Gifting Doug James Packaging Innovation Seminar 2011
1. ww Doug James MD Honey [email_address] Stuart Gates Associate director Levercliff
2. ww Before we get to the interesting stuff, a bit of legal info about ownership: Copyright Honey 2011. Which means that unless permission is agreed in writing from Honey, no part of this presentation maybe reproduced, distributed, shared or posted on any media, forum or format. During the course of the presentation, visual material from a variety of sources e.g. images and illustrations from Google images have been use. All copyright, trademarks and image rights for these images reside with the originator or brand owner. Therefore the images cannot be reproduced, distributed, shared or posted on any media, forum or format with out their written permission. Trademark, copyright, and image rights of Honey 2011 & or each individual brand owner, refer to page 2 of this document
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18. Sales up 34% Trademark, copyright, and image rights of Honey 2011 & or each individual brand owner, refer to page 2 of this document
19. Sales up 162% Trademark, copyright, and image rights of Honey 2011 & or each individual brand owner, refer to page 2 of this document
20. Sales up 200% Trademark, copyright, and image rights of Honey 2011 & or each individual brand owner, refer to page 2 of this document
21. Sales up 240% Trademark, copyright, and image rights of Honey 2011 & or each individual brand owner, refer to page 2 of this document
22. Sales up 43% Trademark, copyright, and image rights of Honey 2011 & or each individual brand owner, refer to page 2 of this document
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Editor's Notes
There are plenty of signs energy in the market. Some, of course, driven by tourism but all with a bedrock of buoyant sales
In hard times, people seek compensatory gifts or self-gifts to make up for other, more expensive treats being unattainable. Let’s see how these break down…
Sounds simple but, like all success, it starts with a clear idea of who your targeting and why they should buy it. It’s a crammed market and you have to be rigorous about this bit.
Firstly, there are, of course, still a few whose natural habitat is Kensington and Notting Hill. They need not concern us today. They are not real people. We are defining luxury as the frivolous, unnecessary purchase. Unnecessary from a practical point of view, that is, highly necessary from an emotional point of view.
A small compensatory gift will ease the pain when you can’t go out to dinner, can’t buy that dress, have to shop carefully.
You only have to look at the increasingly desperate 2 for 1 offers from the restaurant chains to know that there’s a shift to eating in. Many have discovered that you can have a great and indulgent evening in for a fraction of the cost of eating out
We all have egos and there are great opportunities to profit from markets that set out to flatter. It only succeeds, however, if the aura round the offer is powerful Just compare Fortum’s vouchers with Aldi vouchers!
With the weaker pound and the increase in BRIC tourists, there are great opportunities to create something definitively British but classy. And I wish someone would tell the 2012 Olympic shop!
With the weaker pound and the increase in BRIC tourists, there are great opportunities to create something definitively British but classy. And I wish someone would tell the 2012 Olympic shop!
At the heart of anything to do with luxury gifting lies the need to show that the gift is personal. A bit of foil and ribbon is not enough - that just says ‘I couldn’t be bothered so I got you this’.
And, by the way, this is the stuff that the big players are pulling out of because it doesn’t fit their business model
Here’s how we applied this thinking together at Harrods
Here’s how we applied this thinking together at Harrods
Here’s how we applied this thinking together at Harrods
Here’s how we applied this thinking together at Harrods
Here’s how we applied this thinking together at Harrods
Here’s how we applied this thinking together at Harrods
Here’s how we applied this thinking together at Harrods
![ww Doug James MD Honey [email_address] Stuart Gates Associate director Levercliff](https://image.slidesharecdn.com/honeygiftingdougjamespackaginginnovation2011-111010030145-phpapp02/85/Honey-Gifting-Doug-James-Packaging-Innovation-Seminar-2011-1-320.jpg)
