Influencers Marketing is rapidly becoming a new ‘buzzword’ and a vital element of the marketing mix. Using social media influencers help brands to engage with young audiences and sell more goods and services. Moreover, It offers a solution to the cultural shift from mass messaging to intimate exchanges by putting the brand message in the hands of individuals. Their trusted voices reach an interested audience.
Though proving return on investment from influencer partnerships is becoming more challenging, most brands are positive about the results, particularly when influencers have been used for product launches and content distribution. The latest Marketing Week survey revealed that brands are finding it more difficult to find the face to fit the brand and planning to increase their budgets for influencer marketing: 59% of respondents expect their budget for influencer marketing to increase in 2016, with 11% stating the rise will be ‘significant’.
According to the white paper, “Five Luxe Trends for 2016” by 2035, Millennials will have the potential to become the largest spending generation in history. Millennials’ influence will be felt by 2020 as the oldest Millennials (let’s call them “Millennial+”) are beginning to enter their peak earning years and will have disposable income for luxury experiences.
This time we picked five recent examples of how iconic brands are using influencer marketing strategy to diversify their audiences and gain credibility of younger generation.
ADIDAS & KANYE WEST
Did you know that most recently, an individual picked up a pair of Kanye’s light brown adidas YEEZY Boost 750s on eBay for a cool $10,099 USD, when the sneaker originally retails for $350 USD?
Josh Luber, CEO of Stock, explained in the interview to Highsnobiety:“Ordinarily when a shoe is selling for thousands of dollars on the secondary market, it’s because it’s very rare, and in the past year, there were 100 or 200 sold,” reveals “For the Yeezys, there’s literally thousands of pairs being sold on the secondary market, and they’re still selling for thousands of dollars.”
West, who has collaborated with Adidas on the limited Yeezy Boost trainers, has “elevated the brand in the US and beyond”. Adidas’ chief executive Herbert Hainer, speaking on an analyst call said: “The collaboration with Kanye has elevated our brand perception in the US and beyond. It has really set the stage for strong double digit growth for 2016.The sports brand narrowly beat analyst expectations in its fourth quarter as it increased sales by 15% to €4.167bn on a net loss of €44m – analysts had predicted sales to hit €4.167bn.
Source: Marketing Magazine
ESTEE LAUDER & KENDALL JENNER
The company’s focus on social-media marketing has helped its makeup sales, which rose 7% in the latest quarter, or double that in constant currency. Mr. Freda credited reality star Kendall Jenner’s posts on social media for bringing younger customers to the Lauder brand. The New York-based company has increasingly focused on its online and digital presence, especially as online sales are expected to grow nearly 30%. Chief Executive Fabrizio Freda mentioned online sales growth is especially strong in China, Estée’s third-biggest market after the U.S. and U.K. In addition to selling on the websites of major retailers, the company has worked to offer services—such as live video chats with beauty advisers—that mirror those in the stores.
BMW & GIGI HADID
This month BMW released its “digital-first” campaign for the new BMW M2 Coupe. The smallest BMW high-performance coupe to wear the legendary "M" badge, is getting a major marketing push from 20-year old supermodel Gigi Hadid.A new YouTube video featuring the supermodel in a "shell game" with the M2 grabbed more than 3 million views in less than a week. Smart move from BMW pairing up with one of the trendiest stars in the world right now. Car lovers are now being asked to guess on the website which car she is in or by using the Twitter hashtag #eyesongigi. The automaker is hoping it will benefit from her social media presence of 15.2 million subscribers on Instagram and nearly 1.76 million followers on Twitter.
PUMA & RIHANNA
Strong demand for the shoes it launched in partnership with singer Rihanna helped drive better-than-expected sales growth in the fourth quarter as sales rose a currency-adjusted 11.5% to €879m, while earnings before interest and taxation edged up to €10.9 million.
The German sports brand said: "A key partner in strengthening our women’s business is our women’s creative director Rihanna, who stole the show at New York Fashion Week earlier in February, when she launched a complete collection of footwear and apparel styles of her Puma by Rihanna Collection and FENTY label. Clearly the female market segment has been growing and outpacing the overall sports market. In addition, women have a much more profound impact on the entire sports industry. Athletic wear is turning into fashion as women have increasingly combined sportswear and sports-inspired pieces into their daily outfits.”
MARKS AND SPENCER & ALEXA CHUNG
The new boss of M&S, Steve Rowe, stepped in to the chief executive’s and has promised to make turning around fashion sales his number one priority. Unusually, for a chief executive, he will take personal charge of the clothing and side of the business. The first major initiative of his era has been to hire Alexa Chung to ‘curate’ a collection called Archive by Alexa, which is about to go into the high street. Marks & Spencer is hoping Alexa Chung will deliver a ‘Twiggy effect’ to bolster falling fashion sales.
The style icon has become a style icon for cool teenagers and twentysomethings who would like her clothes and social life. The clothes chain revealed a fall of 2.7per cent in clothing and home sales in the first three months of this year.
Clothing business is struggling to find its place in a marketplace where its core middle-aged female shopper has moved on, thanks to the expansion of fashion-forward chains such as Zara and H&M. The high street grande dame has managed to grow its clothing business in only one three-month period during the past five years and appears to have lost its sense of identity. (Guardian)