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Creating Exclusive Social Acceptance

One lever that brands utilizes addresses the human drive to feel accepted by others. For it to be most desirable, it should feel within reach but not be immediately accessible. One example would be Hermes in the game of exclusive acceptance. The Hermès sales associates create hurdles for eager Birkin fans to jump over until they finally receive a stamp of approval via a coveted bag. You cannot simply walk in and buy the bag regardless of how much money you have. The sales associates have to deem you “worthy” of the bag, which you may achieve through purchasing other Hermès products over years and years while patiently displaying both loyalty and passion for the brand.

Acquiring a Birkin bag becomes a symbol of acceptance – acceptance into an exclusive group of people who embody wealth and class as defined by the French luxury house.

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Luxury Brands & Counterfeits

Louis Vuitton is one of the most beloved luxury brands by counterfeiters:( One rationale is that: It’s distinctive and eye-catching (and not so expensive) logo print bags. The fabric on the majority of these bags (especially those of high demand among mass / accessible customer segment) is not leather. So not so hard to replicate at a low cost. These logo bags appeal to the some audiences who loves the perceived premium image that LV brings and doesn’t have the budget or willingness to pay for the real item.

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Predicting Diffusion

The product I think may have the lowest likelihood of product diffusion / adoption is the Silver Screen Takes on Germs. Here are some rationales

Cost of customer education: Consumers know little about the benefits of silver and the cost associated with education is very high especially for a new name in this highly competitive market with all the dominant incumbents. Building customer trust with a new name is even harder on products we use on our body.

Inability to scale: Price is the key consideration for bandage buyers as the products are relatively commoditized. How to mass produce the bandages at a competitive price is the key challenge for this young and small company. There are so many costs associated from regulatory approval, sales, marketing, distributions, etc. that a company at this scale is not able to optimize and remain competitive on the pricing to ensure sustained profitability.

[armit24]

AI-Enabled Virtual Try-On in Fashion

Many fashion brands and platforms (e.g., Farfetch, Amazon, Pandora, Cartier) invested in AI-enabled features such as virtual try-on to improve customer experience, with the goals to instill better fit and aesthetics confidence and customer satisfaction when purchasing higher priced items online, and thus reduce returns as a result. Despite the good intention, there are many frictions and risks I have encountered as a customer myself when using this feature. For example, when the technology itself has not developed to ensure a smooth real-time use, visualization, configuration of the product, it actually create more barriers and steps between gaining the interest and making the purchase.

Often times, the technology relies on the surrounding environment of the customers to ensure this is a delightful experience - such as lighting, good wifi connections, how they look and feel at that moment during try-on (especially for jewelry, glasses, beauty products, etc.). If these conditions are not in place, the features may draw customers away from the purchase simply because 'i dont look good in that'. This actually hinders the impulse buying that many brands would like to see customers have for their brands and products.

Another drawback to using virtual try-on is the perceived lack of privacy. Some people feel uncomfortable having their body / face measurements taken or being seen in clothing or items that may not be appropriate for public viewing.