Information Technology Reference
In-Depth Information
topic a test drive of the car. Its success rate has been high, particularly in the
area of downloads as well as locating dealers to arrange test drives.
It's now common knowledge that interactive mobile initiatives increase the
level of engagement between luxury brands and clients. As one of the most
responsive media of communication, it is ideal for relationship marketing
because it is personal, individual, and omnipresent, has high penetration and
is a two-way means of communication. Mobile technology has the power to
keep brand names consistently and effectively in the minds of clients. It enables
the development of personalized communications and allows brands to cap-
ture accurate customer intelligence based on behavior. Its impact can also
be measured in real time. Its low-cost and easy and quick set-up format also
means that it provides a real source of cost-effectiveness and value. All of
these benefits point to the reality that mobile technology should form a core
aspect of a luxury brand's multi-channel communications and retail strat-
egy. In addition, m-commerce, which is growing rapidly, is expected to sur-
pass wired e-commerce within 10 years. The real question at the moment is
how luxury brands may take advantage of mobile technology and adapt it to the
requirements of luxury.
The mobile debate in luxury circles so far has been whether to focus on
mobile phone devices, in other words the hardware, or whether luxury brands
should concentrate efforts on the contents, in other words the application soft-
ware. I guess the question should be rephrased as “Should we design and create
a phone and plaster our logo on it?” Or “Should we design the contents of a
phone, and include exclusive interactive information and branded content?”
While the former will provide short-term status returns (for the clients that
depend on brands to reassure them and others of their wealth status), in the
long-term it has the risk of damaging the brand's positioning. After all, the
nature of mobile phones is such that people do not have a life-long relation-
ship with them but dispose of them as technology and styles evolve. I bet you
that many who acquired the Dolce & Gabbana phone or the Giorgio Armani
phone in the last two to three years have probably disposed of them and
moved on to the new Blackberrys and iPhones. When people throw a product
with an Armani logo on it in the dustbin, it definitely does something to their
perception of the brand. The latter question, however, has the potential of
acting as a bridge in building intimate relations with clients through recogni-
tion, respect and collaboration. Providing interactive and enriching content
that informs, serves, entertains and inspires in a format that is simple and can
be shared, will serve a luxury brand better than launching telephone model
after model.
It is, however, essential to understand the type of relationship and interac-
tivity that consumers have with their mobile phones. It is also imperative to mon-
itor the evolution of mobile technology and the advantages and limitations of
existing applications and formats. For example, mobile marketing campaigns
which basically follow an SMS format are powered by 2G mobile phones
