‘Brand Purpose’ in fashion and luxury brand management: A must or an opportunity?

Abstract

In contemporary brand management practices, the definition and effective marketing of a so-called Purpose is commonly considered as mandatory to achieve a competitive advantage and eventually a superior financial performance. Such practices are particularly common in the fashion and luxury industries. Through the analysis of appropriate business literature, marketing researches and relevant case histories, the author rejects this popular belief, first, because many brands are perfectly successful, even without any Purpose (which should not be confused with corporate communications strategies), its identity having been successfully built around other worthy values; moreover, not necessarily, customers always prioritize Purpose-driven brands in their purchases, particularly if commanding higher prices and during recessions. A well-designed and effectively marketed Brand Purpose surely offers opportunities (i.e. strong and resilient emotional connections with targeted customer segments, including high spending luxury buyers and communication opportunities and visibility of brand leaders and spokespersons) but also implies risks (i.e. ideological values are by definition controversial, therefore such strategies could hurt part of the clientele of brands with broad target audiences, and negative reactions from some governments or from the public opinion in different cultural environments). Finally, and more crucially, managers should be aware that Purpose-centred brands are constantly overexposed towards the media, their target customers and the public opinion, and their stakeholders are more and more demanding, scrutinizing their practices and expecting impeccable consistency; therefore, just ‘building’ a narrative without consistent underlying practices will likely be ineffective, if not counterproductive.