Influencer marketing and the luxury marque

Eight years ago, I was pondering the meaning of “authority” on the web. Fast forward to 2016 and the language has moved on. It is no longer about authority but about influence. Brands, including some luxury brands, are engaging in “influencer marketing”.

The web is awash with “advice” for luxury brands on the criteria for choosing the right influencers; these include relevance, reach, engagement, previous brand endorsements, and that old chestnut called authority.

But should luxury brands engage in influencer marketing at all?

I have no doubt there are some, who were influenced into buying a Breitling because of John Travolta, a bonafide and accomplished pilot and a 2007 inductee into the Living Legends of Aviation. Travolta was the face of Breitling until in 2012, Breitling shocked many by picking David Beckham. Beckham is a famous former ace footballer but now mostly a celebrity model, who reportedly turned down Calvin Klein but later appeared in Giorgio Armani and H&M ads — for underwear.

How are Breitling’s brand values aligning with this new choice of influencer? What aspirational quality or relatable values is the brand projecting with David Beckham? Notwithstanding his sporting prowess, Beckham is a peculiar and unimaginative choice of influencer for a brand that, since 1884, has been known for engineering innovation driven watches.

IMG_3407During the AW16 shows in Milan, Gucci’s Alessandro Michele officially invited — and collaborated with — Trevor Andrew whose love for Gucci had made his “Gucci Ghost” persona well known and gained him a huge following on Instagram (31K at the time of writing). Andrew bought his first Gucci watch at age 17 with the money he earned snowboarding. Gucci wasn’t giving him money to talk Gucci all this while (for the various shades of disclosure between bloggers and luxury brands, read this). He is no ordinary influencer for Gucci to engage with. He has his own creative lens on things, including to his music — he is a man of many talents — with a rip-mix-burn approach he puts to practise and that resonates with web users. Web culture has indeed moved on from the early binarity of creator v consumer, to co-creation and hacking.

Does Andrew resonate with Gucci’s brand values? They are, after all, rooted in the Italian and Florentine heritage and craftsmanship. Where does Andrew fit in? Perhaps with Gucci’s fashion leadership and success with authenticity? Andrew is authentic, creative, successful with his own style of craftsmanship. There is synergy perhaps, and Gucci put its money where its mouth is by producing a collaborative collection with Andrew.

Both brands Andrew and Gucci have influence over their audiences.

But in the collaboration, who influenced whom? It is hard to tell. It is more like a circle of virtuous mutual influence! This kind of serendipity, overlaid with a strategic twist is not available to all luxury brands.

Luxury brands are currently torn between many dualities. The democratic nature of the web, versus the exclusive, aspirational image of a luxury brand. The reality of who is spending the money now, versus the need to build relationships with the potential customers of the future. Even the heritage claim becomes difficult to ride on, when the brands are addressing markets with their own heritage vastly more expansive and richer than the luxury marque’s own.

Amid all this, the question — should a luxury brand engage in influencer marketing at all?

My considered answer to that is No.

A luxury marque is, at its core, a Veblen good. Influencer marketing — including the lazy marketer’s option of celebrity endorsement, never mind their tenuous relationship with sales — on the other hand is an attempt to get in on the bandwagon effect (economists call it “interpersonal effects on utility”). Influencer marketing, given all the variables in the mix including the influencer’s own “brand” and its values, is cognitive dissonance-inducing in the luxury brand discourse.

“But, but what about the young generation and our engagement with them?,” some might ask.

The clue might lie in a 600 year old brand that somehow survived and thrived.

With the old fashioned idea of always being the keeper and regaler of the brand story, the craftsmanship story, the collection story. Even the influencers it has worked with in recent times are now collaboratively embedded in its glorious historicity.

When it comes to influencer marketing, true luxury marques need to remember just this:

Don’t borrow someone else’s influence. Be the influence.

Towards a multidisciplinary future

Last week, I attended a workshop on movement building for social change.

One of my breakout groups was discussing “shared purpose”. I used the word “asymptote” to make the point that with the best shared purpose, we need to know we only make dents and some progress, and although we never fully bring about the exact change in the exact format we want, the movement gets closer and closer to our purpose over time. It caused some mirth in my breakout group.

Later in the morning, I caught myself likening the ideal scenario of the broadening of the appeal of our vision, our purpose, our movement to “fractalisation“. Both terms were, in my view, efficient, succinct, and the best explanations for what I was aiming to say.

The giggles caused by both set me thinking about the other terms with very specific meaning normally used in maths, physics, communication theory, political science, economics that I often use in specific discussions in business. Some are from secondary school maths and physics, the others from further education. A non-representative list of such words would include vector, variable, f(X), non-trivial, calculus, parametric, SNR (signal to noise ratio), transmission error, attenuation, but also words such as equity which may need to be understood in context.

I asked some of my friends, accomplished in law, business, design and academia, if they found the use of secondary school maths and physics terms odd in a business setting with educated colleagues.

A few admitted they did not know some of the terms. Some friends said they would use plainer words. Another said as a data scientist, she aims not be misunderstood. Yet another, who is the most well-informed social justice aware person I know, pointed out that oversimplification can run the risk of the person oversimplifying being seen in devalued terms. And finally, one friend encouraged me to “go Gurl!” because she is of the view that these terms can often explain business models, industrial design, UX, customer behaviour and other insights well.

I then ran a poll on Twitter and an encouraging 56% of respondents said they understand those terms, and a full 19% said that they would mock such a person.

What the Twitter survey found

What the Twitter survey found

Interesting discussions followed.

Do we mock out of fear instead of curiosity, or do we mock for broader social acceptance rather than standing out as a nerd?

Do we use specific terms to look impressive, or do we actually know what they mean?

Do we use these terms to establish superiority, or to create a shared understanding in the group, explaining with patience and genuine empathy when asked, to move the discussion forward?

Is such language isolating and credentialist, or broadening and embracing of diversity?

Before you dismiss this as an academic navel-gazing exercise, I should add this thinking was propelled by a digital insights event I attended earlier in the week. A futurist on the panel said multidisciplinarity was the future (she also had other predictions about future careers).

If we are to get to that multidisciplinary future, are we really serving ourselves, building our movement, making the right strides toward it, if we like to keep precise terms in their own disciplinary silos behind tightly drawn boundaries?

Why are we not asking to be explained by — and indeed why are we mocking — those, who let these specialty-confined words loose in other contexts, where they may fit and may indeed enrich the shared understanding of what we are building?

History shows that innovation does not always come from those deeply embedded in the specialist disciplinary networks they belong to. It comes from those who are on the edges of their discipline(s), bumping against the others on the edges of their discipline(s), or looking above the parapet to peek into what others are doing, and forming multidisciplinary teams to have a crack at a problem that one discipline alone cannot solve.

Whether leading a team, building a startup, or growing a business. what are you doing to bring that multidisciplinary thinking on board?

How are you building your movement towards the future?

Luxury watches and tech: who is driving whom?

Luxury products, it seems, are being trampled over by technology-enabled products enticing luxury customers.

Apple created its own version of ceramic enforced gold. The real number of the Apple watches in gold casing shipped remains a mystery although an estimated total of 10M pieces are expected to have shipped by the end of 2015.

Apple approached Hermès, the 600 year old luxury marque for a collaboration. Possibly so Apple could open a new market for itself and Hermès could make its mark on tech savvy luxury buyers.

Hermès, however, is an odd choice, seeing as it is far from being the top luxury watch maker and seller. Apple gets to borrow Hermes’s aura, their channel and possibly their customer base — Hermès does not market aggressively to its masstige customer while its prestige customer may or may not like being sold to — and Hermès gets to sell some fabulous leather straps to Apple. The collaboration looked like Apple is driving it.

Meanwhile out of Rolex, Omega and Breitling, the top 3 luxury watch marques, only Breitling has dipped its toe in the smartwatch waters. With its Breitling B55 Connected.

Brietling’s vision is to make the phone subservient to the watch, to enhance the watch. To wit: “In creating its first connected chronograph, Breitling has applied a new philosophy placing the smartphone in the service of the watch so as to enhance its functionality and conviviality. The instrument of the future.” The Breitling B55 Connected builds on the earlier launch of B50, which is an an electronic multi-function chronograph movement, with analogue and digital displays. The idea was to serve pilots — Breitling’s primary audience, but also its aspirational audience — better and to pave the way for other developments.

A few others have made their first moves too. Gucci unveiled a high fashion version of Will.I.Am‘s smartband. Will.I.Am’s role as the creative innovation lead in Intel’s wearables business is not widely known. He is not afraid to fail or experiment. Movado has teamed up with HP to create an Android and iOS compatible watch – the Movado Bold Motion – which uses Bluetooth connectivity and vibrations and visual cues to upcoming important things, all while looking stunning as Movado watches do. At Baselworld 2015, Bulgari unveiled its Diagono Magnesium Concept watch. The watch uses WISeKey’s NFC chip to unlock an application that can store encrypted data on the cloud and communicate with other devices within its range. The data is reportedly secure in an underground bunker in the Swiss Alps. Um, ok. WISeKey’s technology works with both Android and iOS. Then there is Tag Heuer’s Connected, which runs Google Wearable OS, and the order numbers have just been upped significantly to serve the upcoming holiday demand.

With all these options, one wonders: What does a customer choose first — the watch or the technology platform/ OS? More to the point, will the technology platform ever drive a watch purchase?

Curious, I conducted an unscientific survey of (admittedly male) friends, who own watches each costing over £10,000. Unsurprisingly they are all eyeing the Tag Heuer and the Breitling, but not as their main watches.

“Look, I need the battery to last weeks not 6h. I sometimes have two flights to catch in a day and a tight meeting schedule in between.”, said one.

Another said, “As I become more senior, I am less interested in being available to all messages and people all the time. I need time to reflect, uninterrupted by pings and notifications, and as far as I can tell that is all smart watches are doing right now.”

“Whatever it is, I ain’t changing my mobile phone for a god-damned watch. Something will come along that suits me and does not ask me to suit it. Capiche?”, said another. Ooh, burn.

So, if the smart watch is not the main watch, is the connectedness spiel just another nice-to-have and not really a need-to-have feature?

What does that mean for the market that can actually afford luxury smart watches?

Who understands this subtlety of customer behaviour in the luxury market?

It sure ain’t Apple. Or HP. Or even WISeKey.

The luxury brand, on the other hand, owns the customer relationship and understands their customers’ behaviour and quirks. The brand also gets to choose which tech to use, and may choose technologies that are OS-agnostic so as to serve all of their existing customers. The brand, if not inclined to investing in development by itself, could always reach out to wearable companies such as Olio Devices, which were among the first to understand that the customer doesn’t want to change her phone OS, based on the watch she covets.

So, back to — who is driving whom as far as luxury watches and tech go?

Tech may have started it all but tech isn’t driving the conversation in this space any more.

As luxury goes, consumers rule, and luxury brands are expectedly showing a more subtle understanding of the consumer than tech players may assume.

PS: I am an all-in Apple ecosystem user.

Four For Friday (32)

I occasionally play a game with my friends, where I rapidly say some words aloud and they respond with the first visual image that pops up in their minds. It is a rough version of the IAT and some fascinating conversations result from there.

With the word “creativity”. I hear responses ranging from names of luxury brands, to activities such as drawing or fashion design, to adjectives people associate with “creative people”. It is common though astonishing to me how so many people think creative people are different from them in ways they could not articulate.

This week’s readings are all about creativity.

While it is evident that announcing a creativity department does not help organisations, managing creative people has always been tricky. Not least when research finds how creative people are likelier to have dubious ethics.

However, being creative also has an undeniable dark side—one that can be very costly for companies if left unchecked. Research has shown that while creative people are adept at coming up with new ideas, they can also be more likely to engage in morally questionable behaviors. In a set of studies, Francesca Gino at Harvard Business School and Dan Ariely at Duke University found that creative thinkers are better at rationalizing dishonesty than uncreative thinkers. “Thinking outside the box” can lead to acting unethically.

The explanation sounds simple but worth pondering over.

The idea that creativity is rare leads to a sense of entitlement; if you are creative, you see yourself as more deserving than others. Leaders reinforce this when they don’t hold creative people to the same rules as those who are less creative, or when they give them special treatment.

Can we all be creative? Are we all already creative and just don’t know how to give expression to it? Here is an interesting perspective on broken sleep as a creative window. The whole essay is worth reading.

Night also triggers hormonal changes in our brains that suit creativity. Wehr has noted that, during night-waking, the pituitary gland excretes high levels of prolactin. This is the hormone associated with sensations of peace and with the dreamlike hallucinations we sometimes experience as we fall asleep, or upon waking. It is produced when we feel sexual satisfaction, when nursing mothers lactate, and it causes hens to sit on their eggs for long periods. It alters our state of mind.

Prolactin levels are known to increase during sleep, but Wehr found that (along with melatonin and cortisol) it continues to be produced during periods of ‘quiet wakefulness’ between sleeps, triggered by the natural cycles of light and dark, not tied to sleep per se. Blissfully zonked out by prolactin, our night brains allow ideas to emerge and intertwine as they might in a dream.

Wehr suggests that not only have modern routines altered our sleeping patterns, they have also robbed us of this ancient connection between our dreams and waking life, and ‘might provide a physiological explanation for the observation that modern humans seem to have lost touch with the wellspring of myths and fantasies’.

Ekirch agrees: ‘By turning night into day, modern technology has obstructed our oldest avenue to the human psyche, making us, to invoke the words of the 17th-century English playwright Thomas Middleton, “disannulled of our first sleep, and cheated of our dreams and fantasies”.’

This is an oldie but a goodie by John Hagel that I re-read this week – the manifesto for a passionate creative person.

… we celebrate the passionate and dedicated individuals in all fields who have both led us to where we are now, and are creating and shaping the future. They are explorers, pushing back the limits of our current understanding. They pioneer new ideas, discover new truths, and tirelessly innovate. They actively seek out new challenges and connect broadly with others to solve them. Though they come from every occupation and background, they are unified by the sincere belief that they can leave the world a better place than they found it.

And lest we should think all this is airy-fairy bunkum, I came across this heartening story of Cuba’s creative voices are dealing with constraints.

Very early on the second day, when we were working together to think about how our group might concoct ongoing meetings, one member, a self-described pedagogue who helps lead Cuba’s school of design, said ‘Of course all Cubans are designers. Take for example my car: it’s an old Peugeot from France with transplants, an engine from Russia, a German carburetor and a steering system from Italy. To live here, one has to be a designer.’

Constraints lead to creative solutions, something known as Jugaad in India. Making such constraint-led creative fixes sustainable and scalable is the problem definition, the chasm between creativity and innovation.

Four For Friday (31)

This week’s links on design-thinking and design come right after I shared some observations made on a recent trip to India.

Apple is giving design a bad name, writes Don Norman, who established the User Experience Architect’s Office later becoming Vice President of Apple’s Advanced Technology Group. His co author is Bruce Tognazzini, a usability expert. A long read that Norman first said in August 2015 he was writing.

Apple is destroying design. Worse, it is revitalizing the old belief that design is only about making things look pretty. No, not so! Design is a way of thinking, of determining people’s true, underlying needs, and then delivering products and services that help them. Design combines an understanding of people, technology, society, and business. The production of beautiful objects is only one small component of modern design: Designers today work on such problems as the design of cities, of transportation systems, of health care. Apple is reinforcing the old, discredited idea that the designer’s sole job is to make things beautiful, even at the expense of providing the right functions, aiding understandability, and ensuring ease of use.

So, what is the special sauce that makes one an exceptional designer?

Exceptional designers have strong human values such as empathy, respect, and honesty. These values not only influence a designer’s approach to developing products, but also their approach to working with colleagues. After all, building great products doesn’t happen in a vacuum.

Here is another twist on design. Our desire to design humans has a long and peculiar history. With a presentist lens much of it is quite squirm-inducing. But a worthy read.

Not all Americans who supported eugenics were racist and nativist. To a first approximation, everyone was a eugenicist in the early 20th-century US. But for the core of the movement, the eugenic tenet that any disability was all in the genes also put scientific teeth into laws setting racial quotas for immigrants. Reformers pressed for mandated sexual sterilisation of those deemed unfit, including the feebleminded, the criminal, the deaf, the crippled, those with venereal disease and other conditions.

Finally this eclectic collection of one hundred quotes on design caught my eye. Here is one:

Design is thinking made visual. — Saul Bass