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 offerings 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. Use will increase as more tech-savvy
young medicos rise through the ranks, he says.
Frequently Asked Questions about this Article…
Many luxury brands avoid intense social media engagement to protect exclusivity and brand equity. As the Australian head of The Luxury Network, Lynne Wyatt, explains, luxury houses often reject the egalitarian, mass interactions of platforms like Facebook and Twitter because they don't want anything that undermines the multimillions they've invested in their image.
Mass‑market retailers use social media to lock in large customer groups and drive frequent interactions. The article notes Lorna Jane is active on Twitter, Instagram, YouTube and Pinterest and records about 40,000 Facebook interactions a week — a contrast with luxury players that limit public engagement to preserve exclusivity.
Yes. According to industry commentary in the article, heavy public engagement can threaten the carefully built prestige of premium, globally revered brands. That's why some high‑end firms limit their presence or use social channels selectively to avoid reputational risk.
Henschke treats Facebook, Twitter and Instagram as positioning and communication tools rather than direct customer‑service channels. Business development manager Elaine Millar says social media is an important piece of the communication puzzle to reach different demographics and the next generation of buyers.
Professional services have been cautious about online engagement. Kinship Digital’s general manager Raz Chorev notes these sectors are wary because of regulatory constraints and practical work patterns. Doctors in particular have been slow adopters, though the article suggests that will change over time.
The article highlights two main barriers: regulatory constraints that govern client communication, and practical time pressures—doctors, for example, spend long periods in operating suites or attending patients and aren’t at computers all day. These factors make real‑time social engagement more difficult.
Yes. A company’s social media approach can signal its target market and brand strategy — whether it seeks broad mass‑market reach (like Lorna Jane) or maintains exclusivity (like many luxury labels). Investors can use this insight when assessing marketing effectiveness and long‑term brand positioning.
Generational change is likely to increase social media use. Elaine Millar of Henschke warns that relying on the same communication methods risks losing younger buyers, and Will Milford from the AMA notes that more tech‑savvy medicos rising through the ranks will boost adoption in healthcare and related professional fields.
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