Exclusive brands steer clear of egalitarian social media
But are there some sectors where intense online engagement makes bad business sense?
Luxury brands have been chary about instigating social media conversations with the masses.
The Australian head of affinity marketing organisation The Luxury Network, Lynne Wyatt, says it's part of a strategy of maintaining exclusivity that's at odds with the egalitarian interactions of Facebook and Twitter.
By contrast, mass market brands have seized on social media as a means of locking in large groups of customers. Leisurewear retailer Lorna Jane is active on Twitter, Instagram, YouTube and Pinterest and boasts 40,000 Facebook "interactions" a week.
But Ms Wyatt says luxury brands don't want the masses. "They don't do anything that undermines what they've spent multimillions building up. There's a lot on the line, especially with global, highly revered brands."
Premium winemaker Henschke, whose products range from $30 reds to the $600 flagship shiraz, Hill of Grace, has a toe in the water.
The winery views Facebook, Twitter and Instagram as positioning tools, rather than a channel for dealing directly with customers, Henschke business development manager Elaine Millar says. "We do see social media as an important part of the communication puzzle. If you just communicate in the same way with the same demographic, you lose the next generation," she says.
Enthusiasm is also tempered with caution in the professional services.
Kinship Digital general manager Raz Chorev says doctors, lawyers and financial advisers were wary of online engagement with clients because of regulatory constraints. Doctors have been especially slow adopters - for primarily practical reasons, Mr Chorev believes.
"They're not in front of a computer all day - they're either in an operating suite, or attending to a steady stream of patients and writing reports."
But the chairman of the AMA Council of Doctors in Training, obstetrics registrar Will Milford, says that will change. Usage will increase as more tech-savvy young medicos rises through the ranks, he says.
Frequently Asked Questions about this Article…
Luxury brands often steer clear of intense social media interaction to protect exclusivity and the high-end image they've invested in. As Lynne Wyatt of The Luxury Network explains, open, egalitarian platforms like Facebook and Twitter can undermine the multimillion-dollar brand positioning that global, highly revered luxury companies work to maintain.
Mass-market retailers use social media to lock in large customer groups and drive broad engagement. For example, leisurewear retailer Lorna Jane is active on Twitter, Instagram, YouTube and Pinterest and records about 40,000 Facebook 'interactions' a week — a very different, high-volume approach than the cautious stance often taken by luxury firms.
Premium winemakers such as Henschke treat Facebook, Twitter and Instagram mainly as positioning tools rather than as primary channels for direct customer service. Henschke’s business development manager Elaine Millar says social media is an important part of the communication puzzle and helps reach younger generations, even while the winery protects its premium image (from $30 reds to the $600 Hill of Grace).
Yes. Professionals such as doctors, lawyers and financial advisers are often wary of online engagement because of regulatory constraints and professional responsibilities. Kinship Digital’s Raz Chorev notes that these sectors temper enthusiasm for social media for compliance and practical reasons.
Doctors have been slower to adopt social media largely for practical reasons: many are not at a computer all day because they’re in operating suites, seeing patients or writing reports. That said, Will Milford of the AMA Council of Doctors in Training expects usage to increase as more tech-savvy younger medicos rise through the ranks.
An overly egalitarian or mass-facing social media strategy can potentially undermine what luxury brands have spent to build exclusivity. The article highlights industry concern that open, high-volume engagement risks diluting a brand’s premium positioning and the significant investment behind it.
Consumer brands commonly use platforms like Facebook, Twitter, Instagram, YouTube and Pinterest for customer engagement. The article cites Lorna Jane’s presence across these platforms as an example of a mass-market brand leveraging multiple channels to drive high weekly interactions.
Yes — a company’s social media strategy can reflect its target market and brand strategy. Investors may find it useful to note whether a company pursues high-volume engagement (common in mass-market retail) or a restrained, positioning-focused approach (typical for luxury brands and some professional services), since these choices tie to how a business manages reputation and customer relationships.
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