Okonkwo Prelims

in the highly protective luxury fashion industry. Gucci’s reason for choos-

ing him was strategic. The company wanted a manager who had a deep

insight and understanding of the customer and would effectively apply the

concept of meeting consumer needs and exceeding their expectations to the

brand. Polet was credited with the know-how of providing the desired prod-

ucts and managing effective relationships with customers. Several people

predicted that his lack of luxury experience, industry relationships and

creativity and press savvy would backfire on the Gucci brand. However, the

approach of customer orientation applied by Gucci has been effective, as the

brand has increased its brand equity, sales and profitability under Robert

Polet’s helm.

It is apparent that insight into consumer behaviour is imperative in the

luxury fashion sector and beyond. Gone are the days when products were

guaranteed to sell, provided that they were well-designed, expensive and

branded as luxury. Today’s luxury consumers are different. They have to be

surprised, tantalized, captivated, courted, pampered and constantly pleased

without end. The competitive environment of luxury goods is also increas-

ingly rife, making the quest of attracting and retaining the consumer’s inter-

est and loyalty more challenging.

There are currently two major segments of the luxury consumer popula-

tion. The first is the ‘traditional luxury consumer’ who still reveres estab-

lished brands like Hermès and Christian Dior; and the second segment

constitutes a larger proportion of luxury consumers known as the ‘new luxury

consumer’ population. This new consumer group are no longer lured by only

brand names but also cherish a complete package of products and services

that offer solid value through innovation and an exceptional experience in

every element of the brand. They know exactly what they want and are not

fooled by pseudo-luxury offerings. The luxury consumer of today has differ-

ent desires, expectations, outlook, influences and characteristics from those

of as recently as 30 years ago.

To illustrate the advanced level of the current consumer progression, an

advertising campaign of the software solutions company, Siebel, in the 24

October 2005 edition of Businessweek, had the caption ‘The Benefits of

Selling to Sheep’. It showed a graphic image of a sheep, divided into four

portions each with the following labels:

Sheep want simple things

Sheep are predictable

Sheep aren’t demanding

Sheep don’t mind being treated like sheep

The advertisement then proceeded on a cautionary note to highlight that

companies should desist from treating consumers like sheep because

consumers have evolved beyond exhibiting the attributes of sheep. The lesson

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luxury fashion branding