Social Media Use by Luxury Brands in Europe

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Social Media Use by Luxury Brands in Europe

Some of the most successful European luxury brands on social media platforms are Gucci, Louis Vuitton, and Chanel. Five of the best practices these best in class brands used to be successful on social media platforms are sentiment, engagement, budget, exclusivity, and cohesion. Ninety-three percent of all consumer engagement for luxury brands occur on Instagram and all three brands used Instagram.

Sentiment

  • Sentiment is an incredibly crucial factor in making a luxury brand stand out on social media. 
  • Perhaps the best in class example of sentiment usage in social media branding was done by Chanel. When launching No. 5 L’Eau perfume, Chanel invited bloggers to tour their production facilities. This led to a flourish of pictures and articles on the bloggers websites and Instagram. The bloggers were only too happy to express their thoughts and feelings about the company.
  • Of course, this type of engagement does not hurt them either. 

Engagement

  • While all three brands actively engaged with their followers, Gucci tops the list. The company did this by using the star power of millennials
  • Gucci has focused on experiences. While their #GucciGram campaign was run on Instagram, the brand asked creative individuals to provide a personal interpretation of the brands icons, motifs and other iconic designs. 
  • Gucci's campaigns have made them the number-one luxury brand on social media.
  • Both Chanel and Gucci are featured as best in class in the engagement stakes. Around 50% of all social media discussions are on about the brands Gucci, Chanel and Hermes.

Budget

  • All the top luxury brands spend big on social media. An example is Kerring, the parent company of Gucci. Kerring spends 50% of its budget on social media ($5.3 billion).
  • However, the best in class example is Chanel. According to “PYMNTS” they had the biggest spend on social media in 2018.

Exclusivity

  • All three luxury brands have a focus on exclusivity
  • Louis Vuitton, for example, targets the ultra-exclusivity niche. Exclusivity defines these brands. If all consumers had access to luxury, they no longer would be considered luxury.

Cohesion

  • Another best practice example practiced by all three brands is Cohesion. For instance, all brands made sure any of their visual products were featured across all their social media sites.
  • Louis Vuitton's cohesion strategy is featured in a case example as the best in class.

Research methodology

Discovering some of the most successful luxury brands on social media was the first step in determining the best practices and in class examples. Three of the top luxury brands on social media in Europe were found in statistics provided by research companies such as ResearchGate and social media specialists like NetBase and Digmind. The three luxury companies found are Gucci, Louis Vuitton, and Chanel and they are all in the accessories market.

From articles, use cases, and research companies, the most common best practices and best in class examples were used. It is a reasonable assumption that the best practices used by the three brands are amongst the best practices used by luxury brands on social media. The same reasonable assumption applies to the examples use for best in class. This assumption is reasonable because they are all within the top five luxury brands on social media.
Sources
Sources

Quotes
  • "Louis Vuitton, for example, targets the ultra-exclusivity niche – and it does so very well: “Certainly quality of product and price point speak to those who put luxury at a premium – but it’s the exclusivity of luxury goods that really define them. If everyone has access, it’s no longer a luxury.”"
Quotes
  • "Kering rival LVMH upped its marketing spending dramatically as well, spending 5.6 billion euros ($5.3 billion). The only company to spend more was Chanel. Louis Vuitton, which drives LVMH’s sales, has half of its marketing costs earmarked for digital media."
Quotes
  • "Branded content posted on brand pages revealed Instagram was the king of engagement for luxury goods, accounting for 93% of total interactions earned. On top of that, the average engagement rate for branded posts on Instagram during the period studied was 30%, far higher than the 2% of average engagement earned on Facebook and Twitter posts."
  • "50% of online consumer discussions were dominated by three brands: Gucci, Chanel, and Hermès. Discussions peaked for these brands due to offline activities such as product launches and fashion events, which sparked discussions among consumers and the media."
Quotes
  • "Individuals spend more time on Instagram than other similar sites, suggesting it is of importance to research this media type. Often, just the brand hashtag itself is enough to have loads of engagement. Luxury brands have already begun taking advantage of this highly visual medium. They have a large and devoted following who are active on social networks. "
  • "This result means that Instagram marketing should not only be thought of as a means of raising brand awareness and reaching new customers but also as an increasingly important and serious brand image building tool. "
Quotes
  • "In this article, the author explores the social media platforms being used by 108 fashion houses, the content they post by type, theme, format and how effective they are in engaging their followers."
  • "Matteo Altobelli is the co-founder of Tilden/Cramm, an advisory and management company devoted to helping SME’s and Startups grow their business by means of strategic analysis and management support. "
Quotes
  • "I’m not saying these iconic brands are failing in this new climate, it’s actually quite the contrary. Louis Vuitton, Tiffany & Co., Chanel and Hermes all experienced over 30 percent sales growth last year; fan favorite Gucci grew by a whopping 62 percent. "
  • "Where they really shine though, is on Millennial’s favorite site - Instagram. Their expert use of branded hashtags allowed them to coordinate some fantastic UGC campaigns. "
Quotes
  • "Vuitton and Gucci tie with regard to strong positive passion, though Vuitton takes the prize for sentiment and positive passion combined. Where Vuitton also has an edge is with the lowest negative sentiment and the lowest percentage of strongly passionate negative sentiment."
Quotes
  • "Naturally, fashion translates best into visuals. Louis Vuitton, like most fashion houses, have more followers on Instagram than any other platform, and this is something they capitalise on."
  • "For starters, they follow the golden rule: post often. Catwalk shows, ad campaigns, promo events, store openings, and instances of influencers wearing their designs are all regularly documented. What’s more, there’s a healthy mix of photos and videos. The aesthetic joy of their platforms and the variety of stills and video work hard to keep our attention."
Quotes
  • "But Chanel’s masterstroke was to give the bloggers a tour of their production facilities in the Riviera town of Grasse. Here Chanel allowed the bloggers to explore the flower fields and explained how their fragrances are made from real flowers."