Brands Exploring New Homes: Smart or Selling Out?

H&M made an announcement several months ago: Jimmy Choo shoes and handbags would be making their way to H&M stores across the globe.

Let’s start with H&M – H&M isn’t a new retailer. The first store opened in Norway in the late 60’s. They began expanding throughout counties in Europe and then into other counties worldwide. I remember when I went to Europe in early 2000 thinking, “What an awesome store.” Looking back, I think much of the appeal had to due with the fact that there weren’t any locations in the US at the time. They are now everywhere – over 169 stores across the US.

The store showcases trendy styles, along with classic pieces that can be worn to the office – all at very reasonable prices. I have never thought of H&M as a “high-end” store” – quite the opposite actually. My impression seems to be confirmed by the company’s mission statement, “Fashion and quality at the best price.”

Now onto Jimmy Choo: Jimmy Choo is best known for his exquisite hand-made women’s shoe line worn by Hollywood’s elite, fashionistas worldwide spotlighted throughout the Sex and the City series. Of course, these shoes come with a price tag. You’d be hard pressed to find a pair of Choos for under $350. The brand is definitely associated with luxury.

So, H&M will soon be carrying a Jimmy Choo line, exclusively created for the retailer.

“We are privileged to be among the fashion greats who have been affiliated with H&M so far, and to be designing a collection appealing to fashion savvy, street smart women, and to be including some great pieces for men, too. Jimmy Choo will bring to H&M a sophisticated, fashion forward, accessible and glamorous collection – the perfect party pieces to buy now and then wear out that night!” Tamara Mellon, Founder and President, Jimmy Choo.

This type of “exclusive designer line” isn’t a new concept. Sigerson Morrison did it with a shoe line at Target. Vera Wang did it with an apparel and accessory line at Kohl’s. Even further, H&M has a history of this – they’ve already showcased lines from Stella McCartney and Madonna in their stores.

But, I have a few questions…

One: Is creating a less expensive version of a coveted brand that is associated with luxury and exclusively a smart tactic in that it is attainable by a broader audience or does “cheapen” the brand and make it less appealing to people who desire the exclusivity factor?

Two: Kohl’s reported an increase in third quarter earnings, part of this has been attributed to the Vera Wang line it carries. So, if a company brings in a designer line are they therefore dependent upon carrying this type of line to sustain growth?

On a larger scale, I was thinking of this is terms of other industries…

When a swanky, high-end restaurant creates a dollar meal, how do core customers react? Might they not be as inclined to take a client to the restaurant in fear of looking “cheap?”

What about automakers? Toyota and Lexus are both owned by the Toyota Motor Corporation, but each is completely separate under the brand umbrella – each its own unique identity, each sold at designated dealerships and each offer completely different makes and models. Would the corporation be the same if all cars were referred to as Toyotas and some were just more expensive than others? I admit, this is not direct parallel to the Jimmy Choo and H&M relationship, but something to think about perhaps….

I’d love to hear thoughts, theories and opinions about this topic…

Who “Owns” Social Media in an Organization?

The Driving Force:

I love learning through other people – reading blogs, hearing about experiences and collaborating on projects. Since social media is an arena that individuals and businesses are “figuring out” daily, I thought it would be interesting, not to mention extremely informative, to hear from some of the people that consistently provide beguiling insight in the social media realm.

These “panelists” were kind enough to make time in their busy schedules to answer several questions that I posed.

The Participants:

Chris Brogan is President of New Marketing Labsand the co-founder of PodCamp new media conference series. He is a speaker, blogger, and writer. His blog has been ranked in the Top 10 of the Advertising Age Power 150 Blogs. He is also the co-author Trust Agents.

Jason Falls is the founder of Social Media Explorer. A social media educator, strategist, public relations professional and blogger, he helps companies understand the social web and shows them how engaging consumers online can help their businesses. His blog also ranks in the Top 20 of the Advertising Age Power 150 Blogs.

Rob Hahn is the founder and managing partner of 7DS Associates – a marketing, strategy, and technology consulting firm specializing in creative solutions rooted in strategic analysis. He is also a respected marketing, technology and real estate blogger and brings a unique perspectives on social media based on his unique background.

Charlene Li, founder of Altimeter Group and co-author of Groundswell, is a graduate of Harvard Business School and was recently named as one of The Most Influential Women in Technology by Fast Company. She has also made appearances on 60 Minutes, CNN and CNBC.

Scott Monty, Global Digital & Multimedia Communications Manager for Ford Motor Company, is the strategic advisor for all organization-wide social media activities. A marketing and communications professional, he possesses experience in health care, biotech and automotive industries, working with a wide range of clients.

David Meerman Scott is the BusinessWeek bestselling author of The New Rules of Marketing & PR , which has been published in 24 languages. He is also the author World Wide Rave. David has presented at hundreds of conferences and seminars in over 20 countries on four continents.

The Conversation: Part One

Do you think one particular team must take ownership of social media within an organization, i.e. marketing, pr, web team, etc.?

Chris: No. Social media is like a phone. Everyone should have one. What you DO with it is what differentiates.

Jason: As I wrote and have indicated before, I think public relations is the department that should take responsibility for an organization’s social media. There are a number of reasons, but Kami Huyse summed it up nicely by saying, “Public Relations is great at building and maintaining relationships, as well as creating informational content.” Social media is about building and maintaining relationships and providing customers with content in its many forms.

Keep in mind, I say “take responsibility” instead of “take ownership.” Everyone in the organization owns a piece of it. Social media isn’t something that can be silo-ed off in one department. It is most effectively implemented across the enterprise with everyone taking ownership to a degree. Public relations should be responsible for training and implementing social media best practices, providing content and keeping track of/managing the relationships both internally and externally.

Rob: The only team that can and must take ownership is the Senior Leadership Team, specifically the CEO. The reason is that “social media” to me is just the application of Cluetrain principles,  and Cluetrain is such a fundamental cultural and organizational change that only the CEO can drive that kind of change.

If some team underneath takes ownership of social media, it becomes ghettoized into being just a “new communications channel” or an “interactive marketing technique” or some such and not much changes. Businesses who are doing that are just hoping that social media obeys the old paradigms of one-to-many communications rather than human-to-human relationships and conversations.

Charlene: It may start as one team because that team has something very specific to gain from participating. But there should be a plan in place on how to “spread” the engagement so that it becomes something that the entire organization does, rather than concentrated in one place. The more inclusive you can make it, the better.

Scott: If you’re a big brand, it’s not possible without Senior leadership in place. I couldn’t do what I do without the support of my VP of Communications or CEO. They understand it is important.

David: I think the right people to take ownership are those who are passionate. This is not just “marketing as usual.” You don’t just toss brochure copy out onto a blog. So it takes people and an organization with passion and who are genuinely excited about creating information online. 

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Where do you think social media “belongs” in an organization? Should one division/department maintain complete “control” or take ownership of social media initiatives?

I look forward to hearing thoughts and opinions on this topic!