Luxury and Social Media

Suggestion of Future Social Media Marketing for Luxury Brands: VR and Luxury Social Media

Yonsei UniversityLuxury Fashion Management

Group 2 ‘Team Dream Girls’

Clothing & Textile 2015151034 Seoyoung KwonClothing & Textile 2015151019 NaeunKim

Clothing & Textile 2015151022 Hyemin Jeong Culture & Design Management 2015198026 Je In Huh

1. Introduction

1. Luxury and Social Media: Definition of Luxury and Social Media

Luxury market is going through an impressive change which had never been

found in the analogue society before 21th century has come. Thanks to the vast range of

uses and applications of social media, along with rapid development of Internet and

communication technology, luxury has become inseparable from social media.

Social media refers to websites or applications that enable users to create and

share content or to participate in social networking.1 It narrowly includes social network

services such as Facebook, Instagram, Twitter, Pinterest to some media that are

specially designed for a specific luxury brand, such as Art of Trench.2

Social media is participatory, collaborative, allows the knowledge share

between people, and is a user-empowering tool available on the Web. As an effective

use of time and resources, social media marketing gives companies better

communication grounds with the consumers to build brand loyalty beyond traditional

methods. And many research papers show that social media are the important tool for

luxury brands’ marketing. The research goal of this paper is to suggest new and fun

social media marketing with necessary elements new luxury consumers want from

luxury brands.

2. Current Issues and States

The luxury market has attained maturity, along with the gradual expansion of

the scope of its market and a rapid growth in the number of customers. Luxury

market is a high value-added industry basing on high brand assets. Due to the

increased demand for luxury in emerging markets such as China, India, and the

Middle East, opportunities abound to expand the business more than ever.3

1 Citation [Def. 1]. (n). In Oxford Living Dictionaries, Retrieved June 7, 2017, from https://en.oxforddictionaries.com/definition/social_media

2 A social network platform developed for Burburry. https://artofthetrench.burberry.com/

According to an analysis of current issues in luxury brand marketing, Luxury

brands should not hesitate stepping toward a new chance of using social media. Due

to the rapid changes in market structure and potential markets around the world,

social media marketing in luxury market is becoming essential.

3. Research Goals

This paper aims to conduct literature review and case studies based on preceding

research. This research aims to seek out effective methods for the social media

marketing of luxury brands. By analyzing trends in social media marketing of luxury

brands, and making suggestion under the research results and analysis, the paper looks

forward to provide new yet successful marketing strategies for a certain brand.

2. Literature Review

1. Literature Review

1-1. Factor Analysis of Social Media Marketing

According the factor analysis of social media marketing in an article with regard

to brand equity and consumer behavior, there five important components of luxury

social media efforts; entertainment, customization, interaction, word of mouth and

trendiness.4 Further explanations about each factor are as follows;

1) Entertainment

The first factor is entertainment. The author suggests that the process of

delivering information through luxury social media should be fun and entertaining.

2) Customization3 Kim, A. J., & Ko, E. (2012). Do social media marketing activities enhance customer equity? An empirical study of luxury fashion brand. Journal of Business Research, 65(10), 1480-1480. doi:10.1016/j.jbusres.2011.10.014

4 Social media marketing efforts of luxury brands: Influence on brand equity and consumer behavior ,Bruno Godey a, Aikaterini Manthiou a, Daniele Pederzoli a, Joonas Rokka b, Gaetano Aiello c, Raffaele Donvito c, Rahul Singh

The second factor is customization. The author assists that luxury social media

should offer customized information to the customers. This aspect could also be

considered as a degree to which consumers find it convenient to gain access to

information.

3) Interaction

Interaction emphasizes the ‘communication’ between the consumers so that the

brand can use the social media as a tool of marketing. Therefore, brands should focus on

the mutual interaction between the brand and the customers.

4) Word of Mouth

Through word of mouth, luxury social media’s characterstics and contents are

widely spread among the consumers.

5) Trendiness

Trendiness is an important factor that determines how trendy and on fashion a

certain social media’s information and posts are.

Further survey questionnaires were written based on these important factors of

luxury social media. The new factor which is necessary in luxury social media

marketing in the future could be recognized through this literature review.

1-2. Luxury Consumer Segmentation

In one of Eunju Ko’s business research papers about fashion marketing of

luxury brands, the importance of luxury value perceptions differ depending on cross-

national contexts.5 It suggests that Paurav Shukla and Keyoor Purani has provided

empirical support to the often conceptualized but not-yet-tested framework of luxury

value perceptions in a cross-national context.6 The different value perceptions includes

the contrasts between these following factors; self-directed symbolic/expressive, other-

5 Ko, E., & Megehee, C. M. (2012). Fashion marketing of luxury brands: Recent research issues and contributions. Journal of Business Research,65(10), 1395-1398. doi:10.1016/j.jbusres.2011.10.004

6 Shukla P, Purani K. Comparing the importance of luxury value perceptions in cross-national contexts. J Bus Res. 2012;65(10):1417–24

directed symbolic/expressive, experiential/hedonic, utilitarian/ functional, and

cost/sacrifice.

Also, in an article conducting an age-based group comparison, Michael Schade,

Sabrina Hegner, Florian Horstmann, Nora Brinkmann have classified luxury brand

consumers into four groups.7 When classified the customers into four groups with each

different significant factor among the four factors – social-adjustive, value-expressive,

hedonic and utilitarian – each group displayed different characteristics. First, the social-

adjustive, strongly enhanced luxury brand purchase behavior of late adolescents (16–25

years old). Second, the value-expressive, showed impacts on the luxury consumption of

young adults (26-39 years old). The other two factors, hedonic and utilitarian, were

relevant across all age groups.

Through this research, it could be inferred that hedonic and utilitarian are the

factors that should be regarded as important factors in luxury social media. Social media

is a platform where all age groups should get access to, and where it should attract

consumers from all age groups. Each of ‘hedonic’ and ‘utilitarian’ could be matched to

‘entertainment’ and ‘experience’ from the factor analysis of social media marketing

(figure 1-1).

1-3. Potential of VR Marketing in Luxury Fields

3. Research Methods

3-1. Selecting Representative 4 Luxury Brands

The selection of the four luxury brands were conducted based on an article

analyzing fashion brands’ AD image appeals through vertical SNS, published in 2014

7 Schade, M., Hegner, S., Horstmann, F., & Brinkmann, N. (2016). The impact of attitude functions on luxury brand consumption: An age-based group comparison. Journal of Business Research,69(1), 314-322. doi:10.1016/j.jbusres.2015.08.003

by Injun Shin.8 The article suggests that the most popular service recently in vertical

SNS is the Instagram.9 Also, it has implied that the Vertical Feedback is that the people

facing contents in the Instagram display ‘follow’, ‘good’, ‘comment’.10 These four

figures are chosen based on the analysis of Shin’s vertical feedback states.

8 Shin, I. (2014). Fashion Brand’s Ad Image Appeals Through Vertical SNS. Hanyang Univ.

9 Shin, I. (2014). Fashion Brand’s Ad Image Appeals Through Vertical SNS. Hanyang Univ., 10.

10 Shin, I. (2014). Fashion Brand’s Ad Image Appeals Through Vertical SNS. Hanyang Univ., 30.

Reflecting the vertical feedback from the article, 4 luxury brands – Burberry,

Gucci, Hermes and Louis Vuitton – have been chosen as representative luxury brands.

These four brands were the brands which were highly evaluated in the use of socil

network services, or the social media.

3-2. Social Media Marketing of 4 Luxury Brands

1) Burberry

Burberry is one of the most recognized brands that utilize social media best

through various media and theses. Burberry introduced Christopher Bailey's pick music

every Monday through Twitter. This was interesting because they show the cultural

value of the brand, not just the brand advertising. Burberry also has its own SNS

platform, Art of the Trench.

(1) Facebook

Burberry’s social media marketing possessed comparatively large Facebook

page fans.11 It also was a pioneer brand which was the first to broadcast live 3D

fashion show in London. Additionally, Burberry Beijing has models mixed with

holograms, creating a new and unique experience in 2011.12

(2) Twitter

11 Burberry Facebook page. https://www.facebook.com/Burberry/

12 %. (10, December 12). ‘스마트한 소통’ 나선 명품 브랜드. Retrieved from http://www.fnnews.com/news/201012121640040790?t=y

Every Monday, Christopher Bailey recommends Monday's music - Beyond

simple brand promotion, it emotionally conveys the cultural value of the brand.

Christopher Bailey: Chief executive and creative officer. A person who can be called a

symbol of a brand combines the cultural element of music with fashion by

recommending ‘music'.

(3) Instagram

There are creative contents - Promotional phrases and images to promote brand

image. Designer products and runway products appear frequently. Also, it frequently

shows celebrity endorsements. Photographs of celebrities wearing Burberry products or

runway photographs are frequently uploaded. In the case of video, the production

process which emphasizes craftsmanship is mainly posted.

(4) Art of the Trench (artofthetrench.com)

It first started in 2009. Burberry fans can wear Burberry trench coats and watch

others' costumes. It is linked with Facebook, Twitter, and popular vote and comment, direct

sales. Thanks to the popularity of the website, a large fashion event in Korea was held under

the name Art of the Trench Seoul. Interactions and participation are the unique aspects of the

Burberry’s self-produced social media – it lets consumers engage themselves to upload their

own fashion photos.

(5) Pinterest

Burberry is the first luxury brand with Pinterest. It has successfully capitalized on

Pinterest’s 100 million monthly users, as it focuses on personalization and its online

influence to push its beauty products. Nowadays, 38.5 million users of Pinterest, specializing

in hair and beauty category.

2) Gucci

Gucci’s official online platforms are Facebook and Instagram.

There are two types of categories in Gucci’s SNS; (1) image and (2) products.

(1) Image

These posts are for showing their image effectively, but they are not directly

related to advertising their products. The post is for the image is just for a forming

image and concept, not advertising products.

(2) Products

Gucci uses the color image of red. Red is the representative color that shows the

image of the brand itself. Also, it uploads images of the celebrities wearing Gucci

products via SNS posts.

Also, there is another account called Gucci Community and Gucci Korea. The

former is an account specializing in uploading products of consumers’ choices. The

latter is small, but could be seen as an attempt to localize Gucci to Korea.

3) Hermes

(1) Instagram

Hermes is also focuses on shaping and demonstrating the general concept of the

brand. They post videoclips in relation to artistic design process and Hermes’s

collections.

(2) Facebook

Most of the posts in Facebook are those promoting Hermes campaigns and video

clips of their latest collections.

(3) Twitter

Hermes advertises its stores through Twitter. It ambiguously shows artistic

aspects and brand’s symbol, promotion of stores such as Dosan Park, and exhibitions

such as Wanderland.

Hermes’s SMM seems to be one-sided, showing less communications with

customers when compared to other brands. Its social media posts present its brand

image and promotes only stores or exhibition, not the product itself. Because of this

characteristic, it is difficult to find customized information or contents from Hermes’s

social media.

4) Louis Vuitton

Louis Vuitton is a brand with a unique marketing strategy that emphasizes

sensual aspects of the brand.

(1) Facebook

Louis Vuitton recently collaborated with contemporary artist Jeff Kuns. In this

way, the product is exposed with sensuous images and photographs. Images and

photographs represent the 'image' of the product, which does not describe the product

itself or its usability. This shows that SNS marketing is used as an extension of the

image of the brand rather than the marketing for the product itself. Currently, Louis

Vuitton's Facebook page produces images and images sensibly.

As seen in the picture of last year's Louis Vuitton Facebook page, there are posts

or photos that describe the details of the product. The posts that are mainly promoting

'products'. This shift in SNS marketing is flexible and it is possible to carry out SNS

marketing as the brand wants itself to be. Especially, in the case of Louis Vuitton, SNS

marketing strategies frequently change in accordance with the concept of the season.

(2) Instagram

An interesting aspect of Louis Vuitton's Instagram, unlike Facebook, was that it

focuses on marketing through celebrities. By showing various Louis Vuitton items worn

by a variety of celebrities, consumers are increasing their desire to purchase products.

The Instagram shows a variety of content, including a snapshot of products and

celebrities.13

It could be derived from the case studies of four luxury brands that social media

marketing strategies of luxury brands can vary depending on the season, platforms, and

any other contexts. A thorough examination of different social media of luxury brands

shows that most social media lack in factors that could deliver ‘entertainment’ and

‘experience’ to luxury consumers.

3-3. Potential of VR Marketing in the Field of Luxury

1) Current Situations in VR Market13 Phan, Michel, Ricarda Thomas, and Klaus Heine. "Social Media and Luxury Brand Management: The Case of Burberry." Journal of Global Fashion Marketing 2.4 (2011): 213-22. Web.

Currently, thanks to the development of VR technology and its applications in

nearby businesses, VR consumers who desire to enjoy VR personally are increasing.

According to an online VR store, the sales of VR gadgets have increased 10 times

compared to that of last year.14 Also, another VR store has mentioned that the sales of

VR gadgets has increased more than 65% compared to the previous year, and they have

started to set a new category called ‘VR gadgets.’

Also, VR hardware market has great prospects. According to Superdata, a

specialized game market research agency, VR hardware market shows positive

prospects that VR hardware market would grow up to 17 billion dollars by 2020.15 They

predicted that the VR hardware market, which was $ 1.5 billion last year, will grow

more than double to $ 3.6 billion this year. The expansion of the VR market reflects the

consumers' psychology to vividly experience various contents through the VR device,

and it is expected that this trend will continue as the technology gradually develops.

This outlook in VR market is due to the consumers’ preferences and expectations of

experiencing various contents vividly through VR technology. Due to the technological

development of VR gadgets, this tendency seems to be continued.

2) VR Marketing in Luxury Brands

(1) Dior

Dior is at the forefront of advanced marketing campaigns, using sophisticated

tools like virtual reality and 360-video to create gorgeous, compelling advertisements.

Last October, Dior released a 360- degree video to hype their skincare line, Dior

Prestige. The video takes you inside the childhood home of Christian Dior in

Normandy, France. The 360-degree video dovetails nicely with Dior TV’s other

14 %. (2017, February 26). VR 하드웨어 시장 가파른 성장세 예고. KBS 뉴스. Retrieved from http://news.kbs.co.kr/news/view.do?ncd=3435529

15 %. (2016, May 18). 가상현실(VR) 시대 활짝…VR 기기 온라인 매출 급증. 베타뉴스. Retrieved from http://betanews.heraldcorp.com/article/632557

traditional marketing videos, but it’s alluring in its interactive, insider look into the very

heart of the brand — Christian Dior’s home.16

Also, Dior developed ‘Dior Eyes’. It’s very own VR headset with built-in 3D

sounds. Furthermore, Dior launched it in stores last June with content that allowed

viewers to explore behind the scenes at their ready-to-wear fashion shows.17 Likewise,

by suggesting a new marketing using VR, Dior has provided consumers with a new and

fresh experience as well as building their brand value.

(2) Yves Saint Laurent

16 McGrath, L. (2017, May 04). Dior, Yves Saint Laurent Lead Luxury's Virtual Reality Revolution - Curalate. Retrieved June 09, 2017, from https://www.curalate.com/blog/luxury-virtual-reality/

17 What's The True Potential Of Virtual Reality For Luxury Brands? (n.d.). Retrieved June 09, 2017, from http://luxurysociety.com/en/articles/2016/02/whats-the-true-potential-of-virtual-reality-for-luxury-brands/

YSL seamlessly integrated a campaign for their new perfume, Mon Paris, across

print, video and augmented reality by using their 360-degree camera.18

YSL’s new perfume advertisement shows a video of a couple to vividly deliver the

scent of the perfume. ‘Love-vertigo 360’ uses the 360-degree camera to make views feel

18 McGrath, L. (2017, May 04). Dior, Yves Saint Laurent Lead Luxury's Virtual Reality Revolution - Curalate. Retrieved June 09, 2017, from https://www.curalate.com/blog/luxury-virtual-reality/

close to the vivid images of Paris described in the film. Throughout the video,

consumers are informed about the sentimental content the advertisement is trying to

deliver through the video.

(3) Tommy Hilfiger

Tommy Hilfiger launched a Samsung Gear based experience which enabled

visitors to their New York store to experience their Autumn Runway presentation as if

they were ‘sitting front row at Manhattan’s Park Avenue.’19 These sorts of experiences

add to the theater and the retail experience, and give customers a reason to visit more

often and dwell for longer. The virtual reality headsets give shoppers a three-

dimensional, front-row view of the show, held at New York’s Park Avenue Armory.

19 Tabuchi, H. (2015, October 20). Tommy Hilfiger Introduces Virtual Reality Headsets for Shoppers. Retrieved June 09, 2017, from https://www.nytimes.com/2015/10/21/business/tommy-hilfiger-introduces-virtual-reality-headsets-for-shoppers.html?_r=0

Likewise, trends of the increasing luxury VR marketing draw consumers’

expectations of other innovative VR marketing strategies. Also, it is also meaningful in

that the luxury is becoming the pioneers of VR marketing.

3-4. Survey

1. Survey Methods

Based on the factor analysis of luxury social media marketing, this paper

conducted a quantitative research. The main purpose of the survey was to find out

which brand among 4 brands mentioned previously is the most adequate for further

development of the research and application of VR. Also, the survey aimed to

apprehend the consumers’ perceptions about the VR industry and VR technology in

luxury field.

2. Questionnaires

The survey questionnaires were made on behalf on the 5 factors from the factor

analysis of social media marketing of luxury brands – entertainment, customization,

interaction, word of mouth and trend. Two additional parts including ‘experience’

and ‘VR’, which are the factors that were found to be important in previous steps,

were added into the survey. The questionnaire included these following questions;

Entertainment - The contents found on this brand’s social media seem

interesting.

- It is exciting to use this brand’s social media as much as

I do not recognize time passing.

- It is fun to collect information on brands or fashion

items through this brand’s social media.

Customization - It is possible to search customized information on this

brand’s social media.

- This brand’s social media provide customized services

- This brand’s social media lively provide feed

information I am interested in.

- It is easy to use this brand’s social media.

- This brand’s social media can be used anytime,

anywhere.

Interaction - It is easy to convey my opinion through this brand’s

social media.

- It is possible to exchange opinion or conversation with

other users through this brand’s social media.

- It is possible to do two-way interaction through this

brand’s social media.

- It is possible to share information with other users

through this brand’s social media.

Word of Mouth - I would like to pass out information on brands, products,

or services from this brand’s social media to my friends.

- I would like to upload contents from this brand’s social

media on my blog or micro blog.

- I would like to share opinions on brands, items, or

services acquired from this brand’s social media with

my acquaintances.

Trendiness - It is a leading fashion to use this brand’s social media.

- Contents found on this brand’s social media are up-to-

date.

Experience - This brand’s social media provides a unique experience

as well as product-related information.

- The experience provided by this brand’s social media is

different from other brands.

- The experience of this brand’s social media is

memorable.

VR - If this brand’s social media is hosting a VR experience

event, you are willing to participate in the experience

center.

- It would be good if you could experience this brand’s

products and concepts vividly though VR.

- If this brand’s social media is constantly offering VR

content, you are willing to buy a VR device.

3. Survey Result

(1) Gender, Luxury Purchase Experience, VR Experience

90 respondents have responded to the survey. 33% of the respondents were male,

and the other 67% were female respondents.

About 9% of the respondents were those who have purchased luxury goods before,

and the other 91% have not had purchased luxury goods. Among the respondents who

have purchased luxury goods before, 50% had purchased Gucci, 25% had purchased

Louis Vuitton, and 13% had purchased Burberry, and 13% had purchased Hermes.

About 22% of the respondents have had past VR experiences, and the other 78%

have not.

Based on the survey result on page ###, Gucci’s social media had been chosen

as the best brand for the application of VR marketing for following 3 reasons; first, it

was the brand with the most people of purchasing experience. It could be regarded as

the brand with the most popularity. Second, according to the survey result, it scored the

highest in the survey questionnaires related to ‘entertainment’, which was mentioned as

an important part for successful VR marketing. Third, it had an active social media, and

had tried a variety of social media marketing strategies. Although the proportion of

luxury consumers was not big, the responds from these customers were meaningful.

Also, there were some remarkable points from the survey result.

First, regardless of whether they have past VR experiences or not, those who

have purchased luxury products before have shown favorable responses to

collaborations of luxury and VR.

Second, people who have past VR experiences were more favorable to the VR

marketing in luxury. This inferred that VR is a fun activity, which could enhance the

‘entertainment’ factor from the luxury social media marketing. However, these

favorable attitudes toward VR were not directly related to actual purchases of VR

gadgets. From this result, it could be derived that both luxury and VR could be sorted as

luxury goods, not normal goods in economic terms. Even if the VR market is increasing

year by year, the actual purchases of personal VR gadgets were still demanding for

some consumers. This tendency would be overcome by setting VR experience zones or

VR specialized stores, and providing the consumers with VR experience even when

they do not possess the gadgets for themselves.

Traditionally, luxury items had been targeting consumers above 30s or 40s.

However, since VR is a tool more familiar to younger people including 20s, using VR

technology in luxury marketing would be a great strategy to attract a variety of

consumers in different age groups.

3-5. VR Store Visit

To gain an understanding of VR before designing Gucci’s concrete VR service,

a field trip to VR Plus in Gangnam was preceded. VR Plus is a VR store located in

Gangnam, and it had a series of VR games that any people could experience.20 There

were two types of VR experience booths – active VR experience, and passive VR

experience.

20 %. (2017, February 12). [4 차 산업혁명 체험기] 강남역 VR 플러스, 롤러코스터 '낙하' · 스타워즈 액션 '재미' Retrieved from http://www.readersnews.com/news/articleView.html?idxno=69949

< Active : Rock Climbing > <Passive : Riding rollercoaster>

(1) Active Experience

There are active experience such as rock-climbing and archery. People can climb the

rock and shoot arrows using VR controller. In the case of rock-climbing, players watch

the scene of rock mountain and hands through VR cardboard. And in the case of

archery, players watch themselves shooting an arrow via cardboard.

(2) Passive Experience

Riding rollercoaster is an example. People sit down on the shaking chair and feel

just like riding rollercoaster, watching the scene of railroad through cardboard. They

also catch a safety bar as they do when they ride real rollercoaster.

4. Result and Discussions

1. Proposal of New SMM : Gucci_VR

Based on the active and passive VR experiences, this paper suggests two types

social media marketing strategies with the application of VR technology. Specifically,

this paper proposes launching Gucci_VR, the mobile application for Gucci’s VR social

media marketing. Users of this application can experience Gucci’s service in 3D

through connecting VR cardboard to their own smartphone. Gucci will connect this

application with existing social media account such as Instagram and facebook.

Therefore, this Gucci_VR will gradually become a social media platform of its own.

Gucci_VR can satisfy both hedonic and utilitarian aspects which target all age

group of luxury consumer segmentation as we mentioned previously. Also, it would

fulfill entertainment and experience efforts that is hard to be found in current luxury

social media marketings. Namely, it intends to provide new, fun and special experience,

catching utilitarian aspect as well.

(1) Gucci_VR – Showroom(Store)

Showroom service is directly related with purchase of products.

A. First, through passive service, users can watch Gucci showroom or store

via VR. They can vividly experience the store whenever they want in

anywhere, without going offline store. By showing the store attractively

through VR, Gucci can induce app users who have visited store through

VR to come offline stores. Also, customers who live far from the stores

and think that information from online malls are insufficient to decide

purchase can get vivid information from this application’s 3D scene.

Users can also check stock condition.

B. Second, there is the active showroom service. Users can pick up products

they like using VR Bluetooth controller. Like the archery VR game

provided in VR Plus, we could see ourselves shooting an arrow. If users

install 360-degree video showing their whole body on the app, they can

watch themselves with Gucci products during VR experience.21 They can

pick up some Gucci bags and select the bag which match well with them,

without visiting offline stores.

(2) Gucci_VR – Concept

Concept service shows brand image and seasonal style.

A. Passive service let customers experience Gucci’s concept. The Gucci

Garden is an online-only collection from Gucci’s creative director

Michele, filled with coiled king snakes, dancing butterflies and flora

21 Why 360 VR videos are ideal for luxury brands. (n.d.). Retrieved June 09, 2017, from http://virtualrealityvid.com/en/virtual-reality-video-production/why-360-vr-videos-are-ideal-for-luxury-brands/

pattern.22 When users work the application, they can have experience just

like being in Gucci Garden. By providing this kind of VR experience,

Gucci can much effectively convey their concept beyond simply showing

it in 2D. As the Gucci Garden video suggests, Gucci_VR would display

the 360-degree video when users wear the cardboard. Therefore, the

users will be able to enjoy Gucci Garden Collection Products lying on

the Garden, and encounter animals there.

B. Active Concept service is Avatar Contest. Users can establish their own

avatar in Gucci_VR and then coordinate the avatar with Gucci Garden

collection products. After styling products in their own style, they submit

their avatars to Gucci Avatar Contest. This contest is introduced in Gucci

Facebook, Instagram, and twitter. After Gucci select some nice ones

among the submitted avatars, followers of Gucci’s other social media

accounts vote for the best. Finally, Gucci awards gift to the winner. This

event provides customer with special and fun experience, and can

promote Gucci_VR application widely through Gucci’s social media

accounts as well.

5. Conclusions

1. Summary of Study

Through the passive and active VR service in the aspects of showroom and

concept, Gucci customers can get ‘Entertaining Experience’ and also ‘Vivid

Information about Store and Product’. New luxury consumer cherishes complete

package that offer solid value through innovation and an exceptional experience in

every element of the brand.23 Therefore, the experience provided by Gucci_VR would

satisfy new luxury consumer. Then customers who get intangible benefits from

Gucci_VR service would become loyal customers. Also, utilitarian aspects of

22 P. (2015, May 01). The Patrón Oculus Virtual Reality Experience - 2D. Retrieved June 09, 2017, from https://www.youtube.com/watch?v=cr3V4xt2710

23 L Dinnie, K. (2009). Luxury fashion branding — Trends, tactics, techniques. Journal of Brand Management,16(5-6), 413-415. doi:10.1057/bm.2008.34

showroom service can help consumers get information about store and products,

inducing their purchase. Consequently, Gucci can expect ‘Higher Brand Loyalty’ and

‘Increase of Sales’.

VR Marketing is potential and fascinating social marketing strategy for Luxury

Brand. We think that luxury brand which makes a start of innovative VR marketing

would rocket to the top brand in declining luxury market.

6. References

Citation [Def. 1]. (n). In Oxford Living Dictionaries, Retrieved June 7, 2017, from https://en.oxforddictionaries.com/definition/social_media

2 A social network platform developed for Burburry. https://artofthetrench.burberry.com/

3 Kim, A. J., & Ko, E. (2012). Do social media marketing activities enhance customer equity? An empirical study of luxury fashion brand. Journal of Business Research, 65(10), 1480-1480. doi:10.1016/j.jbusres.2011.10.014

4 Social media marketing efforts of luxury brands: Influence on brand equity and consumer behavior ,Bruno Godey a, Aikaterini Manthiou a, Daniele Pederzoli a, Joonas Rokka b, Gaetano Aiello c, Raffaele Donvito c, Rahul Singh

5 Ko, E., & Megehee, C. M. (2012). Fashion marketing of luxury brands: Recent research issues and contributions. Journal of Business Research,65(10), 1395-1398. doi:10.1016/j.jbusres.2011.10.004

6 Shukla P, Purani K. Comparing the importance of luxury value perceptions in cross-national contexts. J Bus Res. 2012;65(10):1417–24

7 Schade, M., Hegner, S., Horstmann, F., & Brinkmann, N. (2016). The impact of attitude functions on luxury brand consumption: An age-based group comparison. Journal of Business Research,69(1), 314-322. doi:10.1016/j.jbusres.2015.08.003

8 Shin, I. (2014). Fashion Brand’s Ad Image Appeals Through Vertical SNS. Hanyang Univ.

9 Shin, I. (2014). Fashion Brand’s Ad Image Appeals Through Vertical SNS. Hanyang Univ., 10.

10 Shin, I. (2014). Fashion Brand’s Ad Image Appeals Through Vertical SNS. Hanyang Univ., 30.

11 Burberry Facebook page. https://www.facebook.com/Burberry/

12 %. (10, December 12). ‘스마트한 소통’ 나선 명품 브랜드. Retrieved from http://www.fnnews.com/news/201012121640040790?t=y

13 Phan, Michel, Ricarda Thomas, and Klaus Heine. "Social Media and Luxury Brand Management: The Case of Burberry." Journal of Global Fashion Marketing 2.4 (2011): 213-22. Web.

14 %. (2017, February 26). VR 하드웨어 시장 가파른 성장세 예고. KBS 뉴스. Retrieved from http://news.kbs.co.kr/news/view.do?ncd=3435529

15 %. (2016, May 18). 가상현실(VR) 시대 활짝…VR 기기 온라인 매출 급증. 베타뉴스. Retrieved from http://betanews.heraldcorp.com/article/632557

16 McGrath, L. (2017, May 04). Dior, Yves Saint Laurent Lead Luxury's Virtual Reality Revolution - Curalate. Retrieved June 09, 2017, from https://www.curalate.com/blog/luxury-virtual-reality/

17 What's The True Potential Of Virtual Reality For Luxury Brands? (n.d.). Retrieved June 09, 2017, from http://luxurysociety.com/en/articles/2016/02/whats-the-true-potential-of-virtual-reality-for-luxury-brands/

18 McGrath, L. (2017, May 04). Dior, Yves Saint Laurent Lead Luxury's Virtual Reality Revolution - Curalate. Retrieved June 09, 2017, from https://www.curalate.com/blog/luxury-virtual-reality/

19 Tabuchi, H. (2015, October 20). Tommy Hilfiger Introduces Virtual Reality Headsets for Shoppers. Retrieved June 09, 2017, from https://www.nytimes.com/2015/10/21/business/tommy-hilfiger-introduces-virtual-reality-headsets-for-shoppers.html?_r=0

20 %. (2017, February 12). [4 차 산업혁명 체험기] 강남역 VR 플러스, 롤러코스터 '낙하' · 스타워즈 액션 '재미' Retrieved from http://www.readersnews.com/news/articleView.html?idxno=69949

21 Why 360 VR videos are ideal for luxury brands. (n.d.). Retrieved June 09, 2017, from http://virtualrealityvid.com/en/virtual-reality-video-production/why-360-vr-videos-are-ideal-for-luxury-brands/

22 P. (2015, May 01). The Patrón Oculus Virtual Reality Experience - 2D. Retrieved June 09, 2017, from https://www.youtube.com/watch?v=cr3V4xt2710

23 L Dinnie, K. (2009). Luxury fashion branding — Trends, tactics, techniques. Journal of Brand Management,16(5-6), 413-415. doi:10.1057/bm.2008.34

7. Survey

※ In the part below, the sum of all numeral degree(0~10) which each respondent has given are added.

2. Entertainment1) The contents found on this brand’s social media seem interesting.

2) It is exciting to use this brand’s social media as much as I do not know time line.

3) It is fun to collect information on brands or fashion items through this brand’s social media.

2. Customization1) It is possible to search customized information on this brand’s social media.

2) This brand’s social media provide customized services.

3) This brand’s social media provide lively feed information I am interested in.

4) It is easy to use this brand’s social media.

5) This brand’s social media can be used anytime, anywhere.

3. Interaction1) It is easy to convey my opinion through this brand’s social media.

2) It is possible to exchange opinion or conversation with other users through this brand’s social media.

3) It is possible to do two-way interaction through this brand’s social media.

4) It is possible to share information with other users through this brand’s social media.

4. Word of Mouth1) I would like to pass out information on brands, products, or services from this brand’s social media to my friends.

2) I would like to upload contents from this brand’s social media on my blog or micro blog.

3) I would like to share opinions on brands, items, or services acquired from this brand’s social media with my acquaintances.

5. Trend1) It is a leading fashion to use this brand’s social media.

2) Contents found on this brand’s social media are up-to-date.

6. Experience1) this brand’s social media provides a unique experience as well as product-related information.

2) The experience provided by this brand’s social media is different from other brands.

3) The experience of this brand’s social media is memorable.

7. VR1) If this brand’s social media is hosting a VR experience event, you are willing to participate in the experience center.

2) It would be good if you could experience this brand’s products and concepts vividly though VR.

3) If this brand’s social media is constantly offering VR content, you are willing to

buy a VR device.

8. R&R

Seoyoung Kwon- Organizing the outline and contents of the project - Finding academic literature review references and reading research papers- Searching Hermes’s social media marketing and make PPT- Searching examples of luxury VR marketing, successful cases of VR marketing- Making conclusion of the project; Making contents of Gucci_VR application after

collecting team members’ ideas

Naeun Kim- Conference about the ideas of VR marketing and conclusion- Arrangement & analysis ‘Academic’ part papers and making PPT - Arrangement & analysis ‘VR marketing status’ and ‘VR marketing for luxury

brands’ and making PPT- Searching & analysis ‘Louis Vitton’s social media

Hyemin Jeong- Analyzing academic literature references - Researching Gucci's SMM- Analyzing and organize the 4 luxury brands' social media marketing - Suggesting idea for conclusion of the presentation- Designing the mid-presentation file(ppt file) and the final-presentation file(ppt file)

Je In Huh- Overall composition, creation, supervision, and revision of the final paper - Collecting research materials and making citations for the final paper- Research analysis on the customer segmentation- Idea suggestion of the entire project- Conducting quantitative research, gathering samples (5 Factor Analysis

Survey)- Research analysis of the quantitative research (5 Factor Analysis Survey)- Research on Burberry’s social media and gathering references- Analyzing academic literature references