Michelle Cheung2

There are controversy on whether or not social media are appropriate or effective channels for luxury and premium brands to articulate their brand equity and messages to target markets. Some brand managers of those luxury brands see social media as threat more than opportunities.

The reasons why some brand managers view incorporating social media into their marketing strategies as threats are the following:

1) The idea that luxury generates value by creating distance between a brand and its consumers. That distance is necessary to create the dream associated with a brand’s core value and is commonly created through the form of scarcity, exclusivity in retail, or even being in a remote location. Social media brings brands closer to the consumers and thus, defeat the mysterious image that the luxury brand tries to maintain.

2) The idea that luxury is, by definition, reserved to an elite; social media platforms embrace diversity and democracy.

For those who embrace the use of social media in luxury brand strategies would argue that many online conversations give insights of consumer preferences, aspirations and lifestyle, and these are intrinsically related to consumption of luxury and premium brands that help express oneself. Since luxury brands are more often than other brands associated with corruption and scandals that can damage them, engaging in social media may help mitigate the risks of letting criticisms or negative feedback spread in the online community without control.

There are definitely pros and cons for luxury brands to engage with consumers through social media. Therefore, I personally can’t give out an affirmative answer on whether or not social media bring positive influence to a luxury brand. I believe it also come down to how the strategy is implemented and monitored.