Showing posts with label luxury marketing japan. Show all posts
Showing posts with label luxury marketing japan. Show all posts

Friday, October 8, 2010

Fashion Magazines in Japan as sophisticated brand building tools

Fashion magazines in Japan are not an objective review of market offerings based on expert analysis nor are they about statements. They are sources of raw information expertly selected, following a set of seasonally changing rules within a given subculture – an authoritative source of information. It is a practical top-down legitimization of fashion brands, and how to coordinate and wear them.

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[note] parts of this article are heavily based on the theories and articles from W. David Marx, who assisted in uncovering many of the dynamics described in this text.

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Those with money can choose more freely which subculture they wish to belong to. Being able to choose (and afford for that matter) certain luxury products, means being able to belong or to produce the image that you are able to copy more complex social codes. Japanese consumers study magazines to be educated enough to conform to the rules of the season and interpret them according to the demands of their networks. Magazines readers want to pick an individual style out of the framework of safe and socially acceptable clothes selected with media approval.

In Japan, buying a certain magazine gives others the impression that you are interested in the specific style promoted by the magazine (mote-kei, post-gyaru, girly, high fashion, to name a few). Wearing a certain handbag brand does not define your personality in the eyes of others, but belonging to social groups, being 'oshare' (trendy, fashion-conscious) or belonging to a life-stage (mature, student). Of course, these messages are not universal and often function only in combination (a certain handbag in combination with certain clothes).

The complexity of the combinations possible and the grade of understanding them gives others who are adept at reading the signs a grade of understanding how "oshare" the wearer is or what social group she belongs to. In order to be able to judge these signs, consumers of social segments have to constantly keep themselves updated by reading magazines, blogs and other sources that "inform" them of actually practiced trends and their possible combinations. A person considered oshare by people who keep themselves informed successfully, is able to navigate safely and easily through the complex system of messages.
There is involved both a positive and a negative experience in the fashion imperative of Japan. That is the desire and feeling of belonging, and the fear of standing out or even being cast out of a group, respectively.

When the consumers follow authorities (magazines, famous brands) it decrease the amount of social choices or social situations, freeing them from having to constantly worry about being judged negatively and wear what they like in a safe context. Without a safe context living in a highly structured society like Japan may cause substantial stress. Generally speaking, the only consumer products that succeed in Japan are the ones that have been legitimized by some sort of authority. Mass media acceptance is solid proof that a brand is among the safe choices and is socially relevant.

HOW SHOULD WESTERN BRANDS USE THE MEDIA?
Brands are often not aware of the ubiquitous usage of styles for messaging and their meaning in Japan. The important thing is to understand how this system works, how foreign brands are combined with domestic styles, and how much of their original brand image is stripped away or dispersed, and replaced by perceived images of status and ownership groups.

Which group of people wears a certain brand? Which group of people usually follows this style? These images are largely formed also by the magazines that the brands choose to advertise in. Japanese consumers simply assume that if a brand advertises in a certain group of magazines (that are representing a certain style) then that brand is to be identified with the readers and styles of those magazines. Simply put, if a brand advertises in magazines for young “girly style” magazines then the readers will assume that the brand is for young girly Japanese consumers. Use a certain model for endorsements of the brand, and women who identify with the model will identify with the brand. These dynamics are also known in the West, but in Japan the categories are more clear cut and therefore allow a much clearer identification of styles and user groups. As W. David Marx has put it in one of his latest articles for Neojaponisme, "Real Harajuku Girls, For Real":

“In Japan, you can often judge a book by its cover. Consumers embrace a total, well-defined “taste culture” in which to consume, and once inside that group — usually defined by a specific magazine — they buy goods very faithfully to that culture. We should also remember that there is a certain predestination in which “taste culture” consumers gravitate towards.”

More important than the image it creates when a brand advertises in some magazines is the image that is created if a brand does NOT advertise in a certain magazine. For the readership reading that magazine, the brand will have no relevance and will not be able to change the messaging to those readers. What will remain are preconceived ideas that the consumer will receive from within networks through word of mouth.

Now it gets more complicated than this. A typical Japanese fashion obsessed girl does not read one magazine. They read between three and ten. Each magazine has a very different and distinctive image of its typical readership, set of models, set of brands it displays, and objective. Magazines are categorized into style categories, and certain styles form popular combinations with other styles (i.e. post-gyaru with high fashion). Others are on opposite sides of the spectrum, hard or impossible to align.

Brands must understand that which magazines a brand uses or does not use creates highly complex messages to different consumer groups. The effect heavily contributes to forming the brand image. Ignoring this is to leave a huge part of the development of the brand image up to chance and to dynamics within networks.

So where is the problem for Western brands using Japanese media? Most high end brands advertise selectively in high fashion magazines that give the brand legitimacy, but are not read by the majority of the young consumer audience. They place their brand’s products in magazines advertorials, where the location and style presented has nothing to do with the brand image originating from the country of origin.

Moreover, many high luxury brands advertise and select advertorials only in magazines that are perceived to have a readership of potential buying customers. As Kapferer emphasizes in his book “The Luxury Strategy”: “...don’t advertise to sell”. Luxury brands leave the complex process of building up a brand image among young consumers to chance. They miss out on the opportunity to convey the brand’s story, the narrative, and image to young consumers. Consequently the “akogare” (the looking up to) to the brand is constructed within networks, and does not originate from the brands themselves.

Depth and context are perceived as being minefields for Japanese brands. But foreign luxury brands operate within this context and are mixed in with the Japanese narrative. Broader cultural context could make adoptions of foreign brand narratives difficult. Although they do not do so, Japanese magazines could easily convey messages of heritage, and references to the history of brands or their more complex meanings and statements. Popular Japanese magazines are not interested in brand building and foreign brands do not use them as brand building tools. But if used correctly, magazines in Japan are a highly sophisticated tool for building up brand images. You have only to understand clearly the dynamics.

The life of a brand or its brand image is simply not sustainable without a deep narrative that becomes embedded in the cultural landscape. The question is how to construct a narrative that goes beyond the dichotomy of East/West status markers. How are we to create narratives with depth, intimacy, and relevance that leads to sustainable outcomes?

What we are proposing is that the way to build up a brand image is not exclusively through abstract statements, a relatively foreign concept to Japanese consumers that they readily ignore. Using magazines successfully is about becoming part of the machinery or the flow of the fashion consumption dynamic.

To illustrate: Using a half-Japanese model is a key tactic of Japanese brands. They look foreign enough to enhance the image of the clothing but close enough to the Japanese consumers to send a message of commonality. Also, half-Japanese models tend to be more extroverted, embodying “akogare” (someone to aspire to be like) not for their looks, but their attitude vis-a-vis a highly structured society that leaves women with limited choices. A model such as Hasegawa Jun embodies this “freedom of expression”. Yet foreign brands do not consider the use of half-Japanese or Japanese models for brand building, as it is still considered not appropriate for Japanese or half-Japanese models to represent a brand whose aura is originating from the West. Many Japanese consumers consider Western models as superior to Japanese ones and would lose some sort of respect for the brand as a status symbol if Western brands would use Japanese models for brand advertising. Especially women reading high fashion titles such as Vogue, Sou-en and Spur would not be fond of this. At the same time it is accepted to use Japanese and half-Japanese models in advertorials wearing items from Western brands. In this case the Japanese woman "consumes" the brand, but does not "represent" it. The statement that a Western brand should never let itself down to the point where it "allows" a Japanese woman to represent it is voiced by the majority of Japanese consumers, not by Western observers. The issue seems to be complex and deeply rooted within the roles that Western brands played in the 80s and 90s in Japan and the way Japanese women see themselves vis-a-vis the West.

Japanese magazines use Japanese models (Senzoku system) in order to create sympathy and self-association between readers and models. Japanese OLs and students for the most part have no fantastical aspirations towards the artistic side of fashion. They are happy to see themselves in the shoes of Ebi-chan. Aspiration means seeing yourself in a slightly elevated version of your own reality (standing on tip-toes, “Se no bi o suru”). A heightened version of yourself, basically.

Each magazine’s visual approach not only creates the proper environment for appreciating the clothes/bags, but submerges the reader into a slightly upgraded and aspired to version of his or her own reality. It is verily not an abstract image that creates a complicated personality association.
Magazines are a reference point offering basic information. After that you need confirmation from your networks. This is how brands can reach the tipping point to becoming legitimate. When a certain threshold is reached within a group, a tipping point might be reached. What follows then is fast and thorough adoption. We advise brands to think differently, think social, in Japan. You must look for thresholds of tipping points.

Friday, September 18, 2009

Comments on McKinsey's Japan Luxury Report

McKinsey has conducted an extensive survey among 1.500 luxury consumers and many interviews with top executives in the luxury business. The result is a report that offers some basic insights into the luxury industry in Japan and recent developments. I will try to analyse parts of the report and give my own commentaries. All my comments are (of course) open to debate and criticism. Some judgments might seem harsh or overly biased. This is on purpose. I hope to start a discussion on my point of view. I want to talk about real reasons behind the statistics and not only about facts and insights that seem "publishable".

The report can be accessed online: http://www.mckinsey.com/clientservice/retail/pdf/Japan_Luxury_report.pdf

The report starts with a few notes on the research background, without giving detailed information about exactly how it was performed and under which criteria the people interviewed were selected. I suggest a strong bias here, first, towards limiting the questioned people to the greater Tokyo area and to people readily accessible. This excludes (most probably) really rich people with high assets, people who shop within closed environments and will not participate in such surveys, etc ... Neither a time frame nor demographics are given. Further, giving each respondent the same weight means missing the point. Taking into account the heavy influence of opinion leaders on the decisions of others, trying to get a picture of changed attitudes must include the internal influence of a few on the majority. The whole report does not include any references to word of mouth dynamics within networks.

Exhibit number 4 is problematic in many ways:
1) There is no additional information on the demographics of the respondents, nor on the distribution of wealth or luxury/premium luxury consumers among the different age groups. This is highly problematic as both wealth and consumer behavior tend to change with age.
2) The question "Shopping for luxury items at department stores isn't as special as it used to be" is a pre-conceived idea that can heavily influence the answer of respondents. People who suffered from the economic downturn might project their own economic situation on the perceived "specialness" of the department store. Also, what does "special" mean in this context? Which word is used in Japanese (tokubetsu 特別?). It could mean something different for every respondent. Department stores used to have a clear distinction in the 90s between foreign brand sections and domestic products sections. The change in this dichotomy might result in the perceived changes. Also, the question itself is very ambiguous.
3) There is no information on the distibution of age groups among the respondents. No information is given on the selection process for the online survey. Also, the problem of an online survey to include high-level customers which are generally less prone to participate in these surveys seems obvious (imagine a high-class member of Mitukoshi's private membership club completeing a survey for McKinsey online). Many services created for exclusive customers in the recent years as part of customer retention/loyalty programs (similar to mileage club benefits among airlines) heavily influenced the perception exclusive customers have of the department store shopping environment. I strongly doubt that these exclusive customers would participate in an online survey. There influence as opinion leaders and social network hubs is important.
4) LUXURY AND PREMIUM. There is no clear definition given for what the two categories "high end" luxury brands and "accessible luxury brands" mean. Coach is actually referred to by Japanese consumers as being "accessible", but this has to be clarified. What about Prada, MiuMiu, Celine and all the in-between brands? I personally disagree with this over simplified dichotomy. The term "item purchased" is not defined. What exactly is purchased, in what price category. These additional informations are not additions, they are essential if you want the question to have any relevance at all. The definition of the term "luxury" is a very delicate one. If you take the definition by Kapferer and Bastien (2008) then the ability to create a social distance is what defines luxury. Premium is not luxury. A LV handbag is a product from a luxury company, but can it be still considered as a luxury product that creates a social distance? The reasons for customers to buy certain brands are very complex and the difference between a LV handbag and a Coach handbag is very complex, indeed. Chanel does not even fall in same category at all (considering price and sales chanels). The major difference of a LV bag is not so much its quality standard or whether it is considered "high end" luxury or not. It is the market penetration that gives LV a special role, triggering a double effect of attracting customers looking for a secure choice and making others refrain from buying because of its ubiquity. Also the bags of Samantha Thavasa, mentioned in the end of the report, fall into a different category, and can by no means be considered luxury products, more likely fashion items. This applies to the sales channels, the advertising strategy with extensive use of celebrities and especially the perceived quality standards.
5) DEPARTMENT STORES. When you take Isetan department store as an example, the conclusions presented do not apply at all. Isetan has not only been tremendously successful, its image is very high-class. The success of Isetan has created a whole set of books (similar to the books on the success story of Starbucks or Seven Eleven) that explore the secret behind its success ( お客様はなぜ「伊勢丹」を選ぶのか
溝上 幸伸 (著)
, among others ). Isetan is not mentioned in the section on department stores, although it might present a perfect example to prove the suceess of the implications given by McKinsey. There is no distinction made between the classic department stores such as Mitsukoshi and Takashimaya and the train station department stores such as Keio and Seibu. The clientele is different, t
he same goes for the sales developments. The problem of department stores is not so much the store concept per se, more bad management in the years following the bubble and the inability of managers to adapt to changing market environments with new management practices. This can be considered basic wisdom, being mentioned in Larke and Causton (2005): Japan. A Modern Retail Superpower. No Japanese sources are needed to make these distinctions.

What would have been interesting is a cluster analysis from the data in order to create customer groups (shopping types) complete with demographic data, similar to the Sigma milleus by SIGMA.

I know the report represents only an overview of the results, but without additional information on the demographics of the respondents, the age-group differentiation is basically meaningless.

(to be continued)


Saturday, August 9, 2008

The “New Rich” and the Premium Segment in Japan: Marketing Strategies in the Face of Changing Consumer Behavior

This is an online version of my working paper dealing with luxury marketing in Japan. It is updated regularily with comments being more than welcome. I will try to answer every comment and incorporate feedback as fast as possible. The online version includes interactive elements and comments not included in the print version. The actual PDF-file can be accessed here: Luxury Marketing in Japan.pdf (right-click to save file on hard disk).

Recent update: 13/09/2008 After several Interviews with Yamada Yu, Ypsilon Group, Masubuchi Tatsuya, Root and Partners, and meetings with Paul Goldsmith, Esprit Corp. and Kazuo Makino, Porsche Japan, parts of the paper were updated. The section on HNWI marketing in Japan (section 3.3) was enlarged.