How to save luxury brands (and American capitalism)

Elizabeth Segran has a nice essay in Fast Company: The Decline Of Premium American Fashion Brands. What Happened, Ralph And Tommy?

As a teen, Segran admired ads by Ralph Lauren and Calvin Klein. That’s over.

Today, at 33, none of these brands interest me. They conjure up images of outlet malls.

The problem is widespread

I’m not the only one who feels that these iconic American brands have lost their luster. Many are on a downward spiral, hit by sluggish sales. Ralph Lauren is facing plunging profits resulting in the shuttering of retail stores. Coach is in a similar boat, having lost significant market share. Michael Kors recently devised a strategy of cutting back on discounts, since markdowns appear to have killed the company’s cachet. Calvin Klein and Tommy Hilfiger, which are owned by the same parent company, have seen decreasing sales in the U.S. market.

Luxury brands are, in short, a mess.

Segran consults several experts and they roll out the probable causes:

Luxury brands:

■ were pushed by Wall Street to grow
■ growth forced offshore manufacture and this created diminished quality
■ searching for larger markets lead to production overruns
■ overruns forced brands into the bargain and outlet channels.
■ finding Ralph Lauren in a discount bin at T.J. Maxx made it seem a little less luxurious

Other factors

■ new brands rose with a new, more social, sensibility, Everlane or Warby Parker

But something is missing here from this account. We are looking at a fundamental change in sensibility.

screen-shot-2016-09-15-11-10-57-amConsider the Ralph Lauren ad that Fast Company used to illustrate this essay.

Almost everything is now wrong with this image. But not one of these errors in the image is remarked upon.

Errors in the image: 

That this picture has a center to it.
(Younger consumers are social animals. They are networked creatures. They are distributed souls. Practically, for content creators, that means dump the “focus” and go for “foci.” See recent work by Fitbit and Android for the social “foci” view, and my thoughts here.)

That the center of the picture is a white male, apparently WASP and privileged.
(Do I really need to explain the rise of diversity and what it means to the models we want to see in our ads?)

That the male in question has a woman wrapped around his arm.
(This too should be unnecessary, but everyone is now a feminist. And this posture is absurdly subordinate and subordinating.)

That this woman has the strangest look on her face.
(It’s an expressive that appears to say, “This is all I want from life, to be by my man.” I mean, really.)

That there is a steely eyed friend.
(what is this guy dressed for? A trip to his place in the country, the ancestral home, all brick, beam and ‘old money made material’?)

That the surrounding group glows with youth, ethnic specificity, and privilege
(the first motive for luxury consumption used to be upward aspiration. A consumer culture fanned the hope that we too could rise in the world, into exalted social realms, away from the ordinary, “common,” “coarse,” “little” people. But this idea is now openly ridiculed.)

Attention, sellers! The single most important idea driving your market place is dying. This idea of status is dying. It is now a recipe for ridicule.

So let’s be clear. Yes, there are plenty of “internal” reasons why luxury brands are struggling. And thank you, Elizabeth, for discovering them. But there are external, cultural ones, as well.

These cultural changes are not recent. These have been in the works for several decades. And it is a perfect storm as we rethink our ideas of privilege, status admiration, upward aspiration, sexism, and the adoration of the wealth and privilege.

imagesWhat to do? How could luxury brands have prepared themselves for this cultural disruption? At the risk of repeating myself, the single simplest strategy is to hire a Chief Culture Officer. For instructions, read this book ➼.

There’s a ton of talent out there. A few names come to mind. Tom LaForge, Barbara Lippert, Steffon Davis, Ana Domb, Philip McKenzie, Sam Ford, Joyce King Thomas, Michael Brooks, Jamie Gordon, Monica Ruffo, Rochelle Grayson, Kate Hammer, Drew Smith, Rob Fields, Parmesh Shashani, Shara Karasic, Ujwal Arkalgud, Tracey Follows, Eric Nehrlich, Bud Caddell, Barb Stark, Mark Boles, Mark Miller, Helen Walters.

(For a longer list, see this Pinterest page filled with candidates.}

If only Ralph Lauren had had anyone noted above as their Chief Culture Officer. How much share holder value would have been protected? How many careers saved? How much more fun would it have been to work at Ralph Lauren?

American capitalism has become a bit of a punching bag. There are so many cultural disruptions in play. A crisis now haunts CPG and Hollywood. So that’s three of the great workhorses of the American economy. And it’s at this point when we can see a crisis running right through our economy, touching things as diverse as luxury brands, CPG brands and Hollywood pictures, that’s it is time to rethink what we’re doing.

Take a smart person with good credentials, give them resources and give them power. It’s time to make our marketing, design thinking, branding, and innovation intelligence responsive to the simple truth that’s visible to most cultural creatives and virtually every Millennial. It’s time to make the organization as responsive to culture as it is to everything else in the near environment. All other options are stupid and embarrassing.

 

Creator brands: Brands that make culture

At their most powerful, brands actually make culture. Creator brands, let’s call them.

Nike changed the way we thought about exercise, fitness, bodies and diet in the 1970s and 80s. Most of us look different and feel different for the work that came from this brand and those brilliant meaning-makers at Wieden + Kennedy.

A cluster of brands and industries after World War II helped create “mid century modernism” which in turn shaped how Americans lived and thought of themselves in a very fluid moment. Brands were minting fundamental ideas of who were we were, what we cared about, and how we lived.

In the present day, Uber and AirBnb are changing the way we think about travel and tourism. Netflix is changing the way we think about TV and storytelling.

More often, of course, brands are fellow travelers. They identify what’s happening in the culture and put themselves “in tune” with it.

Subaru and the agency Carmichael Lynch are now brilliantly in tune with culture. They continue to speak to (and speak for) a new feeling for community and family. Now that competitive individualism is in retreat, this is the way Subaru made itself a “brand of the moment.” (This is exceptional work and I hope the brand and agency are being showered with awards. And enjoy them. Principal Financial Group and agency TBWA now threatens to do still better work.)

Sometimes the brand resonates with culture in a painful, unconvincing way, as when a big processed food companies struggles unconvincingly to show us how “artisanal” they are. No one’s buying it, figuratively or literally. The brands of the consumer packaged goods world are really under challenge at the moment. It’s sad because they were so perfectly in tune in the first few decades after World War II.

Getting in touch with culture is hard. Creating culture is harder still. It’s not for the faint of heart or mind. It takes intelligence, imagination, a virtuoso control of the organization, the message, and the moment.

The rewards, on the other hand, are immense. The brand that creates culture becomes a kind of navigational satellite in our world. It becomes one of the places from which we draw our ideas of selfhood and in the Herman Miller case, the work place. Most brands are “meanings made.” Creator brands are meaning makers. They help make the meanings that in turn make us.

With this in mind, I read with interest a wonderful essay in FastCo Design by Diana Budds about Herman Miller and its plan to change our culture.  In the words of CEO Brian Walker, the firm has undertaken a

“shift from being just a contract company or just an industry brand to truly be a powerful lifestyle and consumer lifestyle brand.”

This is the language corporations use when it setting about to change culture. They talk about becoming a lifestyle brand. They are now embarked on styling life.

The trouble with this approach is that many people want to style life but they have no clue about what culture is or how to change it. And you can’t style life unless you are prepared to reckon with culture.

Too often, “lifestyle brand” means slapping a new coat of paint on the brand. Too often lifestyle branding is all “style “and no “life.” The brand remains an PET plastic soda bottle sitting on the surface of the Atlantic, incapable of any sort of real contact (thank goodness). It’s just another contribution to the detritus that flows from the land of bad marketing.

83338-Ben-Watson_edited1

The good news is that Herman Miller hired a guy called Ben Watson (pictured here with his muse, a beautiful Burmese). Ben is a designer and, at their best, designers are good at helping connect the brand to culture. The best of them have an extraordinary combination of intelligence, imagination, strategy, craft, cunning. They grasp cultural foundations and the cultural moment. They can see culture in all it’s manifestations, intellectual, aesthetic, emotional, material and emergent, and they have a way make these manifest in the brand in a way that points us in new directions, in this case away from old concepts of work and work place to new concepts of work and work place. This makes them a precious, possibly irreplaceably precious, resource. This makes them seerers where the rest of us are blind.

But it doesn’t always go well. Sometimes designers just don’t get culture. Pepsi and Tropicana hired Peter Arnell to “rejuvenate, reengineer, rethink, reparticipate in popular culture,” and Arnell promptly engaged in what BusinessWeek called a “five week world tour of trend design houses.” (More details in Chief Culture Officer, pp. 161 and following).

This is a little like asking an astronomer to look for uncharted planets only to discover that he’s spend his time touring observatories chatting up other astronomers. Yes, of course, you can learn a lot this way, but at some point you have actually have to leave the design world bubble and talk to people who aren’t wearing really cool glasses.  Anything else is threatens to deliver the provincial and parochial. Anything else is an echo chamber.

I don’t know Ben. Let me point out that there is no criticism implied or intended. For all I know, he is absolutely the most gifted “astronomer” in play and Herman Miller’s best chance to change culture. Fingers crossed! (I should say, in the interests of full disclosure, that I have done several projects for Herman Miller. For all I know Ben is drawing on my work. In which case, god speed!)

Ben has an extraordinary Nike-esque opportunity. We are in a moment of real cultural confusion. There are several big questions in play. What is “work?” What’s a “workplace?” These things used to be defined by several pretty clear distinctions: work and home, work and play, work and life, public and private, instrumental and expressive, pragmatic and recreational, men and women, hierarchical distinctions of rank, exquisitely clear divisions of labor. nice, neat boundaries of inside and outside, them and us. These cultural meridians once so helpful in defining social life are now well blurred. Blurred? They are thoroughly tangled.

Ben could bring clarity here. He could create a space that accommodates these confusions, that enables what we hope for, and helps to “edit out” what we wish to escape. Ben can made a contribution to Herman Miller and through Herman Miller to us. He can actually clarify our culture. He can humpty-dumpty us back together again. He can help make us ready for a postmodern existence.

What’s especially interesting about Budds’ essay is the attention it gives to the way Herman Miller intends to use retail and display spaces to define the brand and through the brand the rest of us. Designers control the manifestations of culture in the world. And when we give them Herman Miller spaces (and furniture) we give them something with which to work.

Will Ben transform us? Will Herman Miller become a creator brand? It depends to some extent on how well Ben and Herman Miller understand culture. And if manifestations are designers’ strength, culture is, by and large, their weakness.

Post script.

I think we are seeing public space and public events used more and more to stage the brand. Even as we avail ourselves of social media and digital content, we like to make the brand live in the “real world.” (Note to self…and anyone else who’s interested: we need a model that distinguishes all the media and messages at our disposal and shows how we can divide branding work across them.)

I was interested to see the work being done by a Canadian bank called Mojo. Here’s a photo of their interior. As a Canadian I can say with confidence that this is the first time any message even remotely like “IS U REALLY BOUT UR MONEY OR NAH” has even been by a Canadian bank.

Ember Library Mediator

Normally, Canadian banks prefer to look like this:

bank_montreal_detail2_lge.jpg (450×301)

Which to be fair is it’s own very particular symbolic statement, and in its moment superbly in tune with Canadian culture.

Thanks to Gerald Forster for the photo of Ben Watson. Gerald is the founder of Here We Go Now.

For more on culture, try this.

CCO cover 1 breathing

 

 

The ‘wicked grin’ test (a new creative measure)

How do you know when something in our culture is really good?

I think it’s when it makes us grin a wicked grin.

This is one of those: Dave Chappelle does imitation of Prince and Prince uses the imitation for his album cover. Dave becomes Prince. Prince becomes Dave becoming Prince.

For post-modernists, this is ‘signs circulating.’ Fair enough but not very interesting. It doesn’t explain why we grin wickedly.

It’s the relocation that does it. Daveness taking on Princeness. Princeness taking on Daveness as Princeness. These are meanings in motion. We grin wickedly because we can’t believe that Dave dared attempt Princeness. It’s not temerity that gets us. Dave is free to make fun of a genius like Prince. That’s the privilege of his genius.

No, what makes us grin is astonishment. How did Dave do it? How is that possible? Daveness and Princeness share a claim (and a proof) of genius, but they come from very different parts of our culture.  They are in a sense incommensurate.

And they just made themselves (for a moment, in a way) commensurate. This makes our minds happy…and our faces grin. I think it is at some level it makes our brains happy. Meanings attached to one thing now, astonishingly, belong to another. We can feel gears turning in our heads.

Dave and Prince have brought meanings together that are normally kept apart. And we thank them for this semiotic miracle by grinning our admiration, astonishment, gratitude. Who knew our culture could do that.

We make a lot of culture with acts of unexpected, unprecedented combination.  (I have tried to map this process for contemporary culture in a book called Culturematic.)

Indeed, wicked grinning should be the new objective not just of comedy and album cover design, but of branding, design and advertising. We used to slavishly obey the rules of official combination (aka genre). Now we bore people with this predictability. If the user, viewer, consumer, audience can see where we’re going, they won’t come with us. (Susan Sarandon did an interview yesterday on Charlie Rose in which she said precisely this.)

Compare a culturematic to old fashioned marketing. The ad man and woman came up with a blindingly obvious message, stuffed it into one of the mass media (3 network TV, magazines, newspaper, radio) and fired it at the target over and over again until our ears bled. Everyone just wanted the “persuasion” to stop. This was cold war torture. And the worse part of this torture was how completely unsurprising it all was.

Every thing changes when we assume that our “consumers” are clever and interesting, and, chances are, making culture on their own. This means first that they can see the grammars we are using. Second, it means that they are looking for culture to make their own, for critical purposes and creative ones.  Culture creative, assume you are talking to someone has smart as you are. Assume you are talking to someone who can do what you do. And go with the idea that we have no hope of success unless we are making content that makes people grin wickedly.

Henry Jenkins, Sam Ford and Joshua Green have invited us to embrace a new slogan: “if it doesn’t spread, it’s dead.” The idea is that a message will die unless people take an act hand in distributing it by social media. I am proposed that before we apply the Jenkins-Ford-Green test, we apply “wicked grin test.” Forget the focus groups and the audience testing. Just show your work to someone and look at the expression on their face.

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