Information Technology Reference
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fine-tune the approach in relating to them by speaking to them in the man-
ner and language that they desire. The social web could also be an avenue
for luxury brands to interact with clients on a creative level. For example,
the members of a social network could be reached out to for a product
co-creation project or a concept-testing exercise or even ideas generation,
which would eventually produce satisfaction among them through the feel-
ing of being recognized and invited into a more intimate relationship with the
brands. The social web could also provide a means of channeling customiza-
tion or personalization of products and services to the members of a specific
online network who may appreciate this offering. Improving client relations
doesn't simply end with the better understanding of client needs, but using
this understanding and the social web platform to enable more intimate rela-
tions with clients. In addition, the social web allows luxury brands instantly to
inform clients or potential clients of the latest developments and events in the
world of the brand. Twitter is a typical example of this instant communication
mode that enables consumers to be in tune with the brand in real-time.
7. The social web enables creativity in products and services. Since the
social web is a platform for collaborative interactions, it is one of the
most suitable media for brands to experiment in product concepts or even
go as far as collaborating on co-creation and entire design of products
with clients. This could be through interactive contests with members of
social web platforms or simply by drawing inspiration from the content of
exchanges and discussions of the members of online communities.
8. The social web is also useful for gauging public opinion on various issues
and determining how they would react to a certain matter. This could be par-
ticularly relevant for luxury brands in trend analysis and product design. A
closer look at the conversations about luxury that take place on websites like
Facebook, My Space or even the short 140-character updates on Twitter could
provide luxury brands with insights that a trends analyst may not be able to.
The dark side of the social web
As much as the social web has substantial benefits, it also exposes luxury
brands and consumers to several risks and disadvantages that could have
far-reaching adverse effects on both brand performance and perceptions.
Several of these risks are linked to the structure of the social web and oth-
ers have emerged as a result of the behavioral patterns that have borne out
of usage by consumers. Yet other risks are directly linked to the manner in
which the luxury business operates, including the need to maintain a certain
distance from the public. In addition, the high expectations of the social web
to change everything since its emergence has also led to dashed hopes since
this has yet to happen. Several parties and companies viewed the social web
as the channel that will change their business performances but have been
