BrandWatch by Michel Gutsatz

"A Drink That's Hard to Swallow" by Virginie Michelet

The other day I decided to try out some new drinks. Not in a consumerist spirit (such a retrograde attitude from me?  Perish the thought!), but because, while having lunch at an EXKI restaurant, I spied a few bottles in an attractive design that I wanted to buy, but had not had the time. EXKI, for those who do not know them yet, are the Belgian restaurants that offer bio/health fastfood, very much in tune with the current vogue, all this with a friendly atmosphere, half restaurant, half lounge.  In short, a concept that attracts more and more followers, just like certain drinks such as "smoothies", or even the "Innocent" brand, which have learnt to cater to the consumers that we are, and not those that Big Business assumed we were. The consumers that we are, are people who like to be spoken to openly and pleasantly, as one would to normal adults and not three-year old children, with simplicity and of simple things, with simple products that will not scour the stomach to begin with, then make one bloat like a balloon, and end up by giving us cancer!  As far as the consumers they assumed we were are concened (here, fortunately, it is now slowly becoming evident to the myopic eyes of thousands of companies that they had been wrong), consumers of the past, it was quite the opposite of course: those children who were fed heaps of nonsense with ready-made discourses, endless paradoxes and, above all, a quality of products where one could not read the labels without becoming either paranoid, or blind (they were written in such small type and there was a multitude of ingredients). 
 Anyhow, I do not know why I talk of the past, but you will see that my story about these new drinks (here we are, back on track!  Thank you for your patience!) is quite pertinent.

Strass or "bling me"

Rhinestones have found a place of honour. We are leaving behind the holiday season, occasions where you traditionally have to glitter under the lights, and rhinestones were everywhere.  They have become an indispensable element in the panoply of people who determine fashion tendencies.  The word "strass" (rhinestones) appears in 1746 when the Strasbourg jeweller, Georges Frederic Strass (1701-1773) invented a transparent glass paste, which, with a percentage of lead that could exceed 50%, has a high refractive index giving it a glitter akin to that of a diamond. It has been used since then for making costume jewelry that imitates gemstones.
Traditionally used for costume jewelry and chandeliers, the glass now pervades our daily lives.  With the help of technology, rhinestones are sewn, pasted, set.  They are applied to clothing, and even directly to the skin in the form of tattoos or on the nails.
One of their most innovative and surprizing uses is the "grillz" which comes from the world of rappers. It is simply a decoration of teeth, dentures which can be decorated with diamonds, silver, gold and, of course, rhinestones. The use of these small crystals then rapidly extended to accessories, handbags, shoes, sunglasses, mobile phones, bottles and watches ranging from 20 Euros, handcuffs for Valentine's Day. 
It is only a step away from personal objects to household objects.  Several furniture pieces and lamps include rhinestones. Chairs, sofas, frames for photographs, cups, cutlery, pots, game consoles, CD players and even bathroom furniture like the superb porcelain sanitary bowl encrusted with crystals, proposed by Swarovski at 75 000 Euros.
At the 2009 Tokyo Motor show, Mercedes offers an SL 600 trimmed with 300,000 Swarovski crystals.  To be a little more discrete, one may prefer to fix them only on the wheels or the dashboard.
It is such a strong trend that it touches areas where previously competition was of a purely technological nature.  

The body of the Pentax K-m digital SLR camera launched last September, is covered with thousands of red, white and black crystals giving the most beautiful effect and clearly positions the product to cater to a feminine clientele. In the same register, the Olympus Mu 1040 is less conspicuous. 

The reasons for this frenzy are manifold:

MPreis: Yes a supermarket can be beautiful!

"I believe, in general, that the influence of aesthetic sensation on the state of mind is severely underestimated. I am certain that things perceived by the eye can depress just as much as they can create huge feelings of wellbeing".  It is in these words that Hansjoerg Molk, CEO and owner of the Austrian MPreis supermarket chain explains the reasons which led them to work with 30 architects, famous or not, to design their stores in the Austrian Tyrol.
 
The result is breathtaking (the complete set of pictures can be viewed here): this is the best example of what a functional and aesthetic vision can bring to commercial architecture. This choice is really a commercial "world vision":

• the choice of price positioning: the integration of the word "preis" in the name of the company vouches for it;
• the choice of strong regional integration, calling upon local producers and developing responsible positioning;
• the choice to offer what is "beautiful" in a commercial environment that traditionally is absolutely bleak;
• the choice of architects (such as Dominique Perrault) to work  on commercial projects they often avoid;
• the choice to convey the functional "best practices" from one architect to the other - to ensure the optimal design of stores from a commercial point of view: to this end, MPreis set up an architecture cell  that allows this transmission from one site to another.

 
I invite the management of our shopping centers and distribution brands to go for more than a "study tour" in the Tyrol: I invite them to make the strategic choice of what is beautiful. It is in times of crisis that the real strategies come to the fore: stop competing on the question of prices! Give hope to the consumers by offering them a vision modern and aesthetic of commercial life! Copy the MPreis approach!

The Casino Innovation

During the conference I conducted in October 2008 at Beyond Beauty (partly mentioned here in my note of 11th October), I was surprised at the lack of courage of most French retailers where their private label cosmetic strategies are concerned. I mentioned, in particular, the pragmatism of American brands like Target or CVS, which do not hesitate to initiate co-branding strategies with well-known designers or dermatologists:

• Target has several lines of makeup signed by American and Australian make-up artists (Sonia Kashuk / Jemma Kidd (JK Jemma Kidd) / Napoleon Perdis (NP Set) / Petra Strand (Pixi by Petra)) and their own brand of hair products signed by a famous hairdresser: Umberto Savone (Umberto).
• CVS initiated an exclusivity strategy with a dermatologist - to launch a Doctor Brand for the mass-market: "Skin Effects by Dr. Jeffrey Dover".

 

Casino has proved me wrong: this month they are launching a new line of hair care signed "C Expert by Eric Roman". Building on the reputation of this hairdresser colorist, the company has subscribed to American modernity and has finally dared a co-branding strategy. Bravo! I would, however, strike a cautionary note: why use the codes of men's products for a women's line (grey, dark blue, red..)? Casino has taken a risk: will not the consumer think it is a men's line placed by mistake in the women aisle? I myself have been misled: in a first version of this post I described it as .. am men's line!  Let us wish Casino good luck with this innovative launch!

"Luxury Unveiled" or how Luxury Brands Communicate in an Innovative Way

Most often than not, luxury brands use the very traditional channels of communication, from advertising in magazines to "institutional" films. Their use of the Web is also very conventional still: very few brands know, unlike Hermès (see my post of 10 November 2008), how to build dreams on the Internet. There is a media they use very rarely, considering it has too much of a "mass market" connotation: the television. However, a few recent cases lead me to believe that far-reaching changes are in preparation.

The first example comes to us from the USA: Many cosmetic brands have grasped the importance of tele-shopping and made it THE vector for entering a large market. Thus Caudalie was launched through QVC and in December 2006 Home Shopping Network signed a partnership with Sephora USA to create a monthly live programme from the 5th Avenue store.

A second example is also as promising: in 2006, six luxury brands (Cartier, Chanel, Swarovski, Vertu, Zegna and Dunhill) agreed to create a series of programmes in a standard TV format (45 minutes) broadcast at prime time. "Luxury Unveiled" has a very specific purpose: to initiate the emerging markets - from Russia to China – to luxury and its brands. Broadcast in 30 countries on 50 television channels, each of the "episodes" of the series features customers of the brand mentioned in the episode. It is through them, with their viewpoints, their remarks and amazement, that the spectators discover each brand. These "customer-witnesses" even attend privileged creative moments: for example, the creation of a very beautiful jewel. Their reactions and their status as customers allow each and everyone to identify with them and really take part in the dream.

I think this combination of documentary and entertainment is promising: it is an initiation into luxury and weaves a very emotional relationship between the brands and the viewers for whom this (fascinating) world is both a discovery and a desire.

Brands and Musicians a Fruitful Relationship

“Le Monde” of 24 December featured a fascinating article (the title of which I allowed myself to borrow) on the new relationships that are being formed between certain brands and musicians: true partnerships are being created that allow both parties to innovate in a musical world that is quite inflexible.

1.    Brands are producing albums AND creating real events around the launch of the albums: musicians who create original songs for the Converse centenary, Cassius creating a "jogging mix" for Nike, and Procter & Gamble offering the latest album of "Kool and the Gang", "Still Kool", with the 90 dose packs of Bonux laundry soap without a change in price (consumers buying smaller sizes of laundry soap may download a free song from the Universal catalogue). On this occasion a private concert, an exhibition and a competition were held: it was therefore more than just a "sponsorship" or a simple "product placement".
2.    The brand becomes a real financial player in the category. I refer you to my note of 5th July 2008 in which I analyzed the music strategy of Starbucks in the USA: brands and trademarks have realized that music is one of the socio-economic tendencies of our society and the proximity to consumers is through it today.
3.    An opportunity for the major record companies to regain control by creating "Broadcast to Brand" divisions in the company: it is a new metier that could take the form of real internal agencies, comprehensive service providers for brands and trademarks.
4.    The musicians have access to a new distribution channel: at a time when trends in music are changing radically (drop in CD sales and growth of "free" and "peer to peer"), the question of distribution of music products and related revenue has become crucial.

We are witnessing a major innovation:

• When AC / DC gave Wal-Mart exclusive distribution rights to its latest album, after a week Wal-Mart announced that it has sold 780 000!  "Black Ice" immediately became the first album of the group to be ranked at the top of the U.S. charts. Of course the purists screamed: "Youngsters will never go to Wal-Mart to buy this CD!!".  The results are out: Wal-Mart is seeing a spectacular increase in record and derived product sales AND AC / DC gets exceptional exposure in the No. 1 music market, the USA.
• When the dance music group Groove Armada signed an agreement with Bacardi offering it the exclusivity on its concerts for one year, the brand became an organizer of concerts (which is entirely consistent with its positioning).

All this seems very promising, we are witnessing a real revolution of the "music" category which is regularly presented as a disaster and which is, in fact, constantly reinventing itself.

Concierge, did you say Concierge?

A few days ago, at Christmas time, I went to the Printemps Haussmann: a welcome counter catches my eye. A desk bereft of any human presence during a very busy period. Odd. Then I see a display containing black leaflets, very elegant. I take one.

"Just give us a call, PRINTEMPS CONCIERGE, available 24/24, 365 days a year, anywhere in the world, organizes the evening of your dreams on just one hour, solves your daily problems, fulfils your last minute desires...

PRINTEMPS CONCIERGE is at your disposal on the first floor of Printemps de la Mode.

TARIFF: Subscription 1 500 € / year "

This is a remarkable initiative to the credit of Le Printemps. It is the result of the upscale / luxury repositioning strategy implemented since the purchase of the department store by Maurizio Borletti. In this perspective, the Printemps strives to change from a distribution logic to that of a specific brand and to offer a new original identity based on a distinctive "shopping experience".

I have often stressed here on the new consumer expectations when it comes to personalizing the relationship with the brand and in matters of exclusive services – thus giving them a strong sense of recognition, even uniqueness. In this sense, the various initiatives of Le Printemps (the Personal Shoppers / Le Concierge / the Printemps Card Supreme) are all ways to serve this new strategy.

So, why do I now also attribute a "Black Mark" to the Printemps?

Milonga - Do You Know It (Yet)?

In this dawn of 2009, I invite you to discover a specialized distribution brand that I think has a very bright future: Milonga, whose motto is "Faites la Musique"("Make Music").

It is a combination of 5 attributes that I believe are key factors for success:

1. Its category, music,is at the core of one of the important trends of our time: the success of the iPod is here to testify to it.
   
2. A store concept conceived from a universe standpoint (and not by type of music), so instead of a clash between classical music and rock, we discover the universe of the piano, the guitar, drums, etc.
   
3. Each store has a combination of ALL types of music: both classical & rock, jazz & electronics ... we find them all there, united in the same spirit, without barriers and without restriction. This approach is in phase with an epoch where a breaking down of barriers is one of the major trends.
   
4. ALL levels of interest are catered to: the novice as well as the professional musician. It is a question of including, not excluding – much like the Apple Stores where we find, side by side, the Genius Bar and the Studio (see post of June 23, 2008).
5. The company is a promoter of living music: music classes ("Campus – Ecole de Musique" / "Campus School of Music<"), the promotion of musicians ("Le Tremplin Milonga" / "The Milonga Springboard").
   

Within a period of 7 years this distributor has become a leader in its category with 15 stores and shops-in-shop in the Cultura stores (the group of which Milonga is a part).  I believe that its concept of "Democratizing music" is sound: its creators do not hide the fact that their model was Decathlon, nor that they wish to build a brand that is as significant in their field. Milonga reassures me in my belief that today the real retail innovations are found in specialized distribution.

A Gourmet Cognac

In early 2008, Remy Martin launched a new cognac in test markets, Germany and Great Britain.  "Coeur de Cognac" is the result of a very interesting study that the brand carried out in order to take into consideration the changing expectations and tastes of consumers.

The constatation, shared by all brands of cognac is simple: cognac sales are gradually decreasing in their traditional European markets. "Too strong … too masculine … too segmental … a topic of conversation for experts or the initiated".  Where Chinese and African-American consumers see a strong symbol of social status or conspicuous consumption to share socially, European consumers see a digestive product to be consumed at home.

Remy Martin thus chose to create a "new" cognac, more "fruity", with a lower alcohol content, allowing new consumers access to new taste experiences. To quote Pierre Trichet, Cellar Master: "In its aroma, we have sought to highlight the fruity side of ripe summer fruit. On the tongue, we worked on a smoothness and softness that minimizes the presence of alcohol. With Coeur de Cognac, we succeeded in obtaining this sensation of roundness and sensuality that lines the mouth, akin to when we bite into a pear or a ripe apricot".

How does one promote such a product? Should we stick to the traditional advertising of cognac where the merits of the region, the complexity of the flavours are vaunted? How can these aromas, this gourmandise, this sensuality be evoked? How can evocative images be found for a consumer who has no idea, a priori, of the signification of the words like "roundness", "fruity notes," or "woody notes"?

Remy Martin's choice was radical.

The brand has chosen two standpoints that are very innovative:

1. Transport the consumer to a world that he is fully familiar with - and whose vocabulary is very similar to that of wine and spirits: pastry.
   The focus of the consumer on the product is thus "shifted" by taking him to familiar ground – he is reassured and the images evoked in him are positive.
2. Ask a reputed Pastry Maker to imagine HIS "Coeur de Cognac", in this case, Pierre Hermé.
   A renowned creator is associated with the new product - but leaving aside the sempiternal list of fashion designers whose world has no place here.  

The result is sumptuous and it completely renews the image of the category: it makes one eager to savour these tastes and transforms cognac into a gourmet product – a very, very tempting one. Bravo!

2009, the First Year of the 21st Century

Since I created this blog I have maintained that consumers are not fooled by false promises or fake innovations. They are no longer the willing victims of a marketing they now decode with ease.  Strengthened by an increasing level of knowledge, using the Internet as a tool for sharing information, they will certainly raise their level of expectations:  2009 will see them even more careful.

In such a context only brands and trademarks that follow their vision and constancy to the ultimate limit will succeed: thereby giving the act of spending a meaning, and reassuring the consumer.

Of course this process of laying it bare will be long, sometimes painful, and will take much more than a year.  But we are seeing, it seems to me, a sea-change, one of those changes that signify the birth of a century: much like the 19th century was born from the convulsions of the Napoleonic era and the 20th from the butchery of the 1st World War, the 21st century will undoubtedly arise from the rubble of the financial crisis.

I wish that you all will be actively engaged in this sea change and turn 2009 into a wonderful year!