Do You Drop? Luxury Players Now Join In On These Exclusive Product Promotions

Do You Plan on Using Drops for Your Product Promotions?  Luxury players are really getting in on this channel.  Check here how to keep drops fresh- and out of the hands of those that engage just to over-buy and resell precious limited edition merchandise.

It started with online flash sales.  That was easy.  It was electronic.  Promote the heck out of it and add a count-down clock with some limited inventory and –whammo– an e-commerce retailer had a fantastic limited time offer event.  It created a sense of urgency while offering scarcity.

Barney everybody cheering
Attended @Barneys The Drop LA Turnout  and Enthusiasm Was Impressive! 

But wait.  Brands also wanted to offer buzz and control their messaging.  Niche cult fave Supreme keeps its anticipation way high among fans with an entire strategy based on drops.

“In many ways, if you think about it, drops operate on the same principle as does home shopping or bidding on Ebay.  These are all timed events and once product is gone or the promotion is over thats it. ”                                       says The Christine Report

Change has arrived.  The luxury players with mainstream availability are now getting in.  Moncler, the must-have luxe winter outerwear brand describes a recent concept for their Drop called the “Genius Project”.   Its as much a drop as it is an art installation.

Moncler Genius Project Installation
Moncler Drop as Art Installation courtesy @Moncler

Luciano Santel, executive director of Moncler explains their approach: “The amount of business we plan to develop under the Genius Project is not particularly significant as compared to the rest of our business,” Santel said. “But…strategically, from the brand, from the communication point of view, from the design, from the product, it is an extremely important project.” 

Burberry also recently announced they are also engaging in drops.  The changes mark “the beginning of a new way of conversing with our customers across product, communication and experience,” says a brand spokesperson……

Drops, as cool as they are, have two major challenges.

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Just as technology has enabled brick and mortar to leverage the promotion of their drop, it also inevitably produces the dark side.  Those with the tech know-how unleash bots to scoop up excess merchandise beyond the normal capacity of a single consumer.  Then, that merchandise gets resold online for many, many times over the original price.

Defeating the bots created extra promotional opportunities for Nike.  They developed additional human interaction requirements via gamification.  In recent coverage by Draper’s Online, they described the successful drop for the SB Dunk Hi Momofuku sneaker in collaboration with restaurateur David Chang.  Participants had to locate multiple Nike posters placed around NYC that featured 3D capabilities.  Via their smartphone, up popped a full interactive model of the shoe which then they could go on and purchase.

David Chang
David Chang with Nike’s SB Dunk Hi Momofuku courtesy @Nike

 

Secondly, Don’t Create Drop Dreary Consumers.

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Don’t Over Saturate With Too Many Drops or Too Much Sameness

 

 

Too many drop events can create a level of over-saturation and remove the interest.  As in Moncler, keeping the edge on creativity is key.  The gamification of drops and other more sophisticated engagements will also come into play with more interesting technology applications.  Luxury brands are also increasing the exclusivity factor. For example, Louis Vuitton is doing drops with little to no promotion and keeping it extremely fresh- as word only gets out the old fashioned way- peer to peer and mouth to mouth.

Every brand will have to evaluate for themselves the value of drops, can they manage them properly and will the sales enhance relationships with their customer or just cannibalize them?  Keep the drops real, but also keep them away from the bots!

It’s 4pm Tuesday, Do You Know Where Your Content Is?

location, location, location

 

 

stylish millennial
Millennial Style

Its 4pm on Tuesday, do you know where your content is? What’s your strategy for attracting the fashionable Millennial?

 

Your website. It’s your masterpiece. You have toiled endlessly on it so you can capture as many users and stickiness as the heavens allow. Well, how is that working for you? Traffic slowed, stalled or timed out?

Well, fuggetaboutit. There is a new way. Don’t worry, your masterpiece is still important and will still be your standard of excellence.

So fuggetabout what exactly? Well, remember how all the masters of best practices say its all about content, content, content? Yes, this is still true. But, now it’s also really about location, location, location.

location, location, location

 

You need both, actually. If you are in the media business and want to win and win big, especially with Millennials, then follow the paths of Refinery 29, Dazed and i-D. These folks are the new paradigm of best practices.

How are these companies doing? Check out these numbers:

  • Refinery29 launched in ’05 now has 25 million unique monthly users
  • Dazed Media with 3.5 million unique monthly users has LVMH as a partner in one of its entities, Nowness
  • i-D, acquired by Vice Media in 2012 went from 200,000 to now 6.5 million unique monthly users

Read more on this @ The Business of Fashion.

To understand this new paradigm, check out the graphics below and look at it this way. Brands want to be as accessible to their customer as possible and drive as much sales out of it too. So instead of just constantly trying to funnel the consumer to a website, the brand now funnels itself to the consumer.

The Answer-achieve scale with specialized content in each environment.  Make each environment it’s own destination.

It is not just about website and landing page effectiveness anymore, it is all about your brand image curated to your customer’s delight everywhere and anywhere they find you.

Blog 6 No Longer Works JPeg

The analogy is this. Just as your brand has its flagship website, you probably also have a flagship brick and mortar retail location. But, your same brand also is found in many other stores. If it were simply enough to have a single branded store then there would be no need for other retailers.

Blog 6 Correct Model of Content Distribution

Consumers want choice and they want it in the environment of their choosing. Any of the best brands be it Apple or Louis Vuitton or Nike know they must be present and curated at a location and in the manner their customer expects.

 You will find Nike in one of their gorgeous company stores and you will also find it in a Foot Locker.

Nike Found in Footlocker Stores
Nike Found in Footlocker Stores

 

 

location, location, location
Nike Store

 The user experience is completely different.

Brands have to look at third party sites as their key retail partners. Just like each retailer has its own image, so does each site. Content must be customized to meet its customer’s expectations and suit each site. Content designed for Facebook will not be the same as curated for Snapchat as it is for Instagram.  Yes, it’s a lot of work to manage all that content. But so is managing all those retail locations.

 

So, its prime time for your content-do you know where it is?

It should be in front of your targeted Millennial.

That’s exactly where they expect it to be.

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Christine C. Oddo is the author of The Christine Report blog and founder of Madison Luxe Group; a beauty and luxury product retail sales and digital strategy agency.

Inquiries to christine@madisonluxegroup.com