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of input through creating, contributing and editing that focuses on uploads
rather than downloads. It has brought to the forefront unexpected features and
attitudes that encourage consumer-generated content (CGC) and is influenc-
ing the way millions view luxury brands through online conversations and dia-
logue. This phase had led the online client to expect a 360º interaction with
luxury brands through endless possibilities for interactions, collaborations,
exchanges and feedback. The level of web experience and impact of this phase
is currently high and includes the expectation of clients to be able to personal-
ize products, services, web pages and online experiences. Consumers are in
total control of the
participation
phase and are showing no signs of letting go,
and therefore brands must catch up with them or risk becoming forgotten. Just
take a look at Twitter where individuals have taken it upon themselves to create
“luxury branded” pages and feed their “followers” with information and con-
tent about the brands, some of which they have created by themselves without
the influence of the brands! Log on to Twitter.com and type in “Gucci”, “Louis
Vuitton” or “Chanel” and you'll discover several surprises. There is even a
“Fake Karl”, as in a counterfeit Karl Lagerfeld, in there.
The reaction of the luxury industry to the
participation
phase is reminiscent
of the landscape of the early days of the Internet when brands were apprehen-
sive of this new medium. Since the arrival of the social web, it's been apparent
that the general feeling among luxury brands has been that of fear and suspi-
cion arising from the possibility of losing control over the brand image online.
But the reality is that the control has already been passed on from the brands to
the clients, and luxury brands currently have no choice but to get in the game
of the social web - through the right approach - rather than pretending that it
will go away. However, several luxury brands have started to integrate online
features that encourage the two-way exchanges that clients are currently seek-
ing. These have appeared mainly in the forms of uploads (Prada), online events
(Guerlain) and personalization and buzz (Louis Vuitton). Other luxury brands
like Christian Dior, Giorgio Armani and Hublot are using the social web mainly
for publicity and buzz marketing, particularly linked to new product launches.
While the brands remain suspicious of the
participation
phase, luxury con-
sumers are currently driven by confidence garnered from controlling online
discussions and knowledge obtained from exposure to others' input, opinions
and influences. They have been empowered by the opportunity to generate
content (CGC) and adverts (CGA) as well as to create (think YouTube and
Second Life) and to co-create. The dialogues they are having online indicate
that they are passionate about luxury and seek to be connected with those
that share the same passion, without direct corporate or media influence.
The
participation
phase is a period of online exchanges and collaborations
and as a result client expectations from luxury brands include a high level of
brand intimacy that is derived from two-way exchanges on a one-to-one basis.
The fourth phase of the evolution of the Internet and luxury online is the
Virtual Life (Figure 2.3 on p. 40). This phase is characterized by a 360º total
