Social media and brand's ever-increasing web presence has certainly raised brand awareness in the fashion industry but not without taking a toll. The risk of becoming too accessible and saturating the market too much is always present. We have come quite a long way since houses shunned the thought of social media as it seemed far too "common man." But, with Louis Vuitton's recent announcement that it has joined Instagram, its time for another look at whether there is value in remaining an old-school design house truly just based on luxury.
The reviews are mixed. Forbes reported this summer that social media is already recognised by executives to be the fourth-largest source of risk over the next three years, putting it on par with financial risk. It has been reported than over 75 percent of wealthy Internet users actively use social media. The question is no longer if luxury brands should utilize the web, but rather a question of how to do so.
We compared Louis Vuitton's online presence with that of its rival Hermes and we found that the two most valuable luxury design houses utilize most social media platforms. They both have Facebook, YouTube, and Instagram accounts. The distinguishing platform: Twitter. Louis Vuitton has not one but 8 different Twitter accounts, one main account and then separate accounts for the U.S., Japan, Italy, France, UK, etc. Hermes does not have a Twitter account. Another distinguishing factor, Louis Vuitton has been streaming its fashion shows on its website since 2009, while Hermes does not offer this. How much social media is just too much for luxury brands?