Are designer brands like Gucci and Hermes really targeting the poor? Does this market demographic excite these luxury fashion houses? The answer may surprise you. Luxury fashion leaders like Hermes and Gucci have often been identified with the wealthy and famous. Yet, recently, their focus has shifted to target a wider range of consumers, including low-income shoppers. Read on to learn more about how designer brands are targeting the poor.
1) The Unintended Effects of Luxury Brand Advertising
Luxury brand advertising is pervasive in many parts of the world, and it’s impossible to ignore its influence. The industry is increasingly focused on defining what luxury means and what a luxury lifestyle looks like. But it’s important to consider the unintended effects of these campaigns.
For one, luxury brand advertising can be a double-edged sword. On one hand, luxury products may provide a sense of status, accomplishment and security. On the other, they can create a false sense of entitlement and foster a materialistic attitude. Although these messages can be empowering to people, there are some less desirable outcomes, too.
- The Widening Wealth Gap: Luxury brand advertising perpetuates the idea that having expensive things is a symbol of success, and this can create pressure among individuals to acquire material possessions in order to appear successful. This can add to the existing wealth gap in society, because only the well-off can afford these items.
- A Focus on Image: Luxury brand advertising can also encourage consumers to focus more on appearances than intrinsic values. Brands are often selling an image and lifestyle, rather than just a product. This obsession with looks and surface-level elegance can lead to a false sense of pride and accomplishment.
2) How Hermes and Gucci are Catching the Eye of the Impoverished
In an effort to break into previously under-served markets and expand their customer base, iconic fashion brands Hermes and Gucci have been exploring opportunities to reach out to the impoverished.
- Affordable Luxury – By creating items that pay homage to their famous craftsmanship but are offered at more accessible prices, Hermes and Gucci have been able to make luxury fashion open to a wider range of customers.
- Charity Initiatives – Both brands have also been involved in a number of charity initiatives to help raise money for those in need. This has not only raised their profile but has proved beneficial to those living in poverty.
Through their affordable luxury items and charitable initiatives, Hermes and Gucci have provided customers with access to opulence that would otherwise not be available to them. By targeting their outreach efforts, these fashion powerhouses are catching the eye of the impoverished and appealing to their sense of style.
3) Why Targeting the Poor Could be the Next Luxury Brand Strategy
When considering luxury branding, cultivating a sense of exclusivity is key to success. But what if luxury brands chose a different path – one that focused their attention on addressing the basic needs of those less fortunate?
It could be argued that the current definition of luxury is only valid for those who are of affluent means and have no interaction with those who are living in poverty. By refocusing their targets, luxury brands can tap into a new feeling of exclusivity by catering to those who are less fortunate. Branded products and services can become seen as a must-have item, exclusive to those who cannot otherwise afford it.
Here are just a few ideas luxury brands could pursue:
- Provide blankets, mattresses or other items to the homeless during colder months.
- Provide fresh produce and meals to those in need.
- Donate high-end products to shelters in need.
- Sponsor schools to help students in poverty access a better education.
By using this kind of marketing strategy, luxury brands can build an emotional bond with their customers. Empathy and care for the less fortunate can become associated with luxury, creating a deeper connection for customers and a meaningful narrative for the brand.
4) Is this Exploitation or Smart Brand Marketing?
In the age of social media, brands and companies use all sorts of strategies to get their message out, capture attention, and increase sales. But some experts are now asking, what are the boundaries between smart and savvy marketing, and plain out exploitation?
There’s no doubt that, in certain arenas, the outcomes of projects featuring children and adolescents can come across as exploitative or immoral. And it’s easy to understand why – vulnerable populations can be taken advantage of quickly and easily, with no task too big for the unscrupulous players. However, in the wider context of brand marketing, we need to ask what constitutes exploitation, and where the limits are.
- Exploitation: Exploitation is typically characterized as any form of exploiting a vulnerable population or person, such as children, for the benefit of someone or a company.
- Smart Brand Marketing: Smart Brand Marketing is typically characterized as strategies and tactics used by brands to increase their reach, sales, and overall success.
Designer brands may have a price tag that caters to the wealthy, but the reach of these labels is far beyond mere monetary means. With their clever marketing tactics and innovativeness, critically acclaimed labels like Hermes and Gucci are actively challenging the status quo and targeting those who are often overlooked in society. In the end, it is these very efforts which ultimately de-define the meaning of luxury and exclusivity, acknowledging that coveted fashion is attainable for everyone – and that designer brands do not discriminate.
