The key to luxury branding? Saying "no"

Luxury drinks brands need to learn to say “no” more in order to succeed in today’s tough retail climate, according to one of the UK’s leading brand strategists. As reported in the drinks business, Peter Cross (pictured), brand strategist at retail marketing agency Yellowdoor said: “Luxury is about saying “no”. It’s about maintaining exclusivity and scarcity. Brands who are brazen enough to take the high ground will be able to separate themselves from their competitors."

Speaking at the G.H. Mumm and Perrier-Jouët Champagne Assembly at the St Pancras Renaissance Hotel on Friday, Cross warned of the dangers of being too keen to please. “Last year, the luxury industry said yes a lot – to new markets, new categories and regional thinking – it bent over backwards to allow consumers to have it their way. But people want something even more when they can’t have it,” he said.

Cross stressed however, that retaining exclusivity is not enough. You have to have integrity, values, a story to tell, and a clearly defined place in the market,” he said, citing the economic crisis and the digital revolution as having changed the way we shop. “Luxury items have shifted from being out of reach to being accessible, and we expect brands to filter into our everyday lives. With consumer knowledge up and blogs and Twitter taken more seriously, today’s shoppers are empowered,” he warned.

Cross ended his speech by speaking of the extraordinary power of goodwill gestures. “Small gifts, like extra laces with a pair of Churches shoes, can make all the difference and inspire brand loyalty. Understanding the subtleties of selling is crucial,” he said. Meanwhile, Pierre Aymeric du Cray, global sales director of G.H. Mumm and Perrier-Jouët, spoke of moving beyond the “bling” era in Champagne.

“Consumers are less inclined to buy luxury brands as status symbols to show off with, and are instead looking for genuine brand values,” he said. “Today’s consumers want a sense of timelessness in the luxury goods they buy – something they can pass on to the next generation,” he added, citing personal customer relationships as key to success in 2012. “Consumers are looking for a sense of belonging, to feel part of the brands’ family. 2012 will be all about craftsmanship,” he said.

Fine Wine 2010, Ribera del Duero

The theme of storytelling continued with Ernie Loosen, who urged winemakers to stand for 'quality' and 'tradition' - the backbone of a brand.

He ended with the suggestion of 'marketing through the liver', and the importance for winemakers to tell a story. 'Get out there, tell the story and be the story', he passionately proclaimed.

Next up was Ryan Opaz, creator of Spanish wine blog Catavino, who warned winemakers would miss out if they weren't online. 'Consumers want to feel they matter - your biggest peril is invisibility. If you want to sell wine, you have to get online and connect'.

Backing up the importance of social media touched upon by Mark Beringer, the conference was fast becoming a technofest, with facebook, twitter and blogs all cited as the way forward for the wine world. The press even took to tweeting speakers' comments as they happened, creating up-to-the-second updates for their followers.

Michael Mondavi then took to the stage and optimistically declared that 'we are entering the platinum years of wine, full of opportunity'. Mondavi spoke of the importance of cooperation and family-run wineries. 'The future of the wine industry lies in private ownership and people with the desire to build things for the next generation, not just the first quarter’.

He also warned that restaurants will be in trouble if they carry on marking up their wines by 400%. ‘Consumers know what wine costs. Restaurants have to rethink their pricing policies. High marks ups won’t be able to survive for much longer.’

Speaking of the oversupply crisis in California, Mondavi, who imports fine wine into the US through his company Folio Fine Wine Partners, said foreign imports didn't pose a threat to the domestic market. ‘Fine wine imports are competition for California, but the only thing that will hurt California is bad winemaking in the region.’

Finally, Hunter Valley Semillon pioneer Bruce Tyrrell took to the stage and treated us to such gems as: 'The slightest bit of cork taint on a Semillon stands out like a dunny on a ridge'. Telling it like it is, Tyrrell was quick to admit that Australia is in trouble. ‘A lot of vineyards are being demolished and the coal miners are buying them up, but no great vineyards will be lost. On the one hand we’ve got the government pushing a sustainability initiative, and on the other we’ve got vineyards being turned into mining sites'.

Tyrrell spoke of Australia's need to re-engage with the fine wine market and develop consumer knowledge of regionality. Like Mondavi, Tyrrell stressed that fine wine will come increasingly from family-based wineries, or 'farmers with a face' as he dubbed them, and urged winemakers to make more use of the cellar door as a means of sharing a glass with consumers and telling your story. 'Direct communication with the consumer cuts out the middle man', he said.

Listening to all the speeches, it became clear that the future of fine wine lies in family-run wineries, not faceless corporations who only care about profit margins. For fine wine to survive, wineries have to be kept privately owned, and for them to thrive, they need to engage directly with their consumers through the cellar door and social media.

The world is getting smaller and the wine world can't afford to be left out of the online debate. The internet offers a direct route to consumers, and a chance to listen to what they have to say. Those who fail to take an interest will surely suffer. 2010 will see the democratization of wine, which can only be for the good.