Posts Tagged ‘diversity luxury marketing’

Luxury Brands’ Charitable Fascination with Africa is building Critical Mass

Monday, December 20th, 2010

It is always wonderful to see the luxury brand industry look beyond its usual demographic and give back to those less fortunate. Interestingly, many luxury brands have turned their charitable efforts international, focusing on Africa. Undoubtedly one of the world’s poorest and underdeveloped continents, it is no wonder that it is a popular charity recipient. Speaking of popular, these luxury brands are partnering with celebrities to popularize their charitable interests.

Earlier this year, Jimmy Choo partnered with the Elton John AIDS Foundation to support the Simelela Rape Center in South Africa, donating 25% of all proceeds from a specially created collection called Project PEP (post-exposure prophylaxis) to the center. Another example of such philanthropic efforts is Gucci’s partnership with the United Nations Children’s Fund (UNICEF). In 2004, UNICEF established the “Schools for Africa” Initiative in association with the Nelson Mandela Foundation and the Hamburg Society to promote education for underprivileged children in Sub-Saharan Africa. As part of their contribution to the “Schools for Africa” Initiative, Gucci donates 25% of the retail price of a special edition “Gucci for UNICEF” handbag during a year-long campaign. Gucci and UNICEF began their partnership in 2005 and since then, Gucci has donated over $9 million toward education, healthcare, and clean water programs for children with HIV/AIDS in Africa. This year, Gucci donated $1 million to celebrate 6 years of partnership and the launch of their new Children’s Collection. Gucci is currently UNICEF’s largest donor to the “Schools for Africa” Initiative.

Jennifer Lopez and her twins Emme and Max, showcasing the Gucci Children’s Collection

Jennifer Lopez and her twins Emme and Max, showcasing the Gucci Children’s Collection

Louis Vuitton has also set its magnanimous sights on Africa by joining forces with Edun, the fashion line created by U2 frontman Bono and his wife Ali Hewson. Edun was created in 2005 to raise awareness for Africa’s creative potential and to encourage fashion houses to do more business there. For their 2010 Core Values Campaign shot by Annie Leibovitz, Louis Vuitton featured the couple against an Saharan-esque landscape with Ali carrying a Louis Vuitton/Edun collaboration duffle bag, accessorized with a bag charm hand-made in Kenya. Proceeds from the sale of the bag went to TechnoServe in Africa for the Conservation Cotton Initiative.

Ali Hewson and Bono

Ali Hewson and Bono

Louis Vuitton/Edun “Revalation” Duffle with “Masai” Bag Charm

Louis Vuitton/Edun “Revalation” Duffle with “Masai” Bag Charm

Certainly these luxury companies will improve the lives of countless Africans through their various charitable partnerships and their relationship with Africa seems here to stay.

Yet the luxury brands’ commercial focus is significantly lacking toward African Americans. A consumer group that has well over $100 billion in purchasing power. No doubt that the Africa fascination and focus will appeal to Africans living in the United States as well as African Americans. However, demonstrating a higher awareness of their affluent minority consumers here in the United States (perhaps through using more models of color in their advertising and advertising in the media outlets that serve them) would bring the luxury brands a public response that is just as positive.

Italian Vogue’s “All Black” issue from 2008, which paid tribute to some of fashion’s top black models, highlighted this race issue and captured the attention of the fashion industry stateside. Gucci’s choice of Jennifer Lopez as their latest spokesperson is hopefully an indicator of an emerging trend in the luxury brand industry.

Source:

UNICEF. “Gucci Announces Donation to UNICEF’s ‘Schools for Africa’ Initiative.October 19, 2010.

LOUIS VUITTON, “Ali Hewson and Bono Star in Louis Vuitton’s Core Value’s Campaign.” September 27, 2010.

IS THERE A VALID BUSINESS CASE FOR DIVERSITY MARKETING IN AN ECONOMIC RECESSION?

Thursday, May 28th, 2009

Emphatically, I say, “YES!”

I’m sure you’ve heard the American proverb, “He who has the gold makes the rules!”

As we near the end of the second quarter of 2009, marketers would be wise to follow this bit of astute wisdom as they assess their remaining advertising budgets.

Of course, first you’ll need to discover the gold-holding rule-makers: I will tell you they are the affluent ethnic consumers.

Being the savvy marketer that I’m sure you are, it’s likely you’ve read the articles identifying ethnic consumers as viable new prospects. What I’m not seeing much information disseminated about is the affluent segment – not the middle class – but the truly affluent sub-segments within this consumer group. They are a largely ignored and under-served market segment who are patiently awaiting the right marketing approach from you.

The key to your approach is to never make the mistake of marketing to affluent ethnic consumers from your perspective and asking them to come to you. This sub-segment has made their own rules, and they are highly influential in today’s marketplace. Deliberately cater to them by getting on their turf, seeing through their eyes, and speaking their language. You must go to them, and serve them on their terms, in order to build lasting and meaningful relationships. I’m sure their $282 billion in purchasing power is something you want to harness.

Here are a few tips for luxury marketers, or any marketer, to plan a successful target marketing strategy:

• Identify and utilize appropriate ethnicity-based traditional and non-traditional media outlets in your advertising.
• Partner up with membership-based ethnic organizations.
• Consider instituting a Diversity Advisory Board in your company.
• Hire a more diverse workforce.

Now is not the time to cut back marketing expenditures; instead, correctly divert them toward this sub-segment, and I guarantee you will see better ROI in the way of stronger loyalty, broader word-of-mouth, and fresh revenue streams in addition to your general market initiatives.

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Diversity Affluence in the News

Sunday, January 18th, 2009

View our recent press in NJ Biz: Deep Ethnic Pockets Continue to be Untouched

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