The Danger of Brand “Hibernation”
A well-known voice recently suggested that luxury fashion brands should “go into hibernation” during this current crisis.
In his editorial, he builds a decent case for why.
But he misses the big picture.
Yes, the luxury fashion business has been hit harder than most.
In fact, wealthy people tend to do best in a crisis. Their daily lives are usually the least affected.
Yes, as a group, such consumers are generally pulling back right now. It’s human nature to do so in times of fear.
And yes, as a group, their spending will take time to come back… perhaps longer than the market as a whole.
But it’s also dangerous and outdated to think of your customers as a homogenous group. Because you’re not selling to a group; you’re selling to individuals.
Your best customers are people who know and love your brand.
But they aren’t going to keep on loving you if you pull back hard.
Instead, they will go find brands willing to serve them through the crisis.
A business mentor of mine recently reminded me that, “when everyone’s going left, you should go right.”
At this moment, going right means sticking through it for your customers. Capitalising on targeted opportunities.
Yes, cut back expenses as much as you possibly can. Use government programs. Negotiate with landlords. Produce less.
But don’t run and hide.
Otherwise, as you sleep, the brands with the courage to stick around will scoop up your business.
Coronavirus "Sur-Thrival" Series
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