Why luxury brands should be more worried about influencers (ANALYSIS)

Luxury brands from the most diverse luxury sectors have been recognising the growing importance of social media but, post pandemic, lines have become more and more blurry. Established print magazines and daily newspapers now all have a presence online featuring not only regular content but some generating additional content. Online magazines have been expanding beyond their websites to apps and social media channels too. Even some experienced old-school journalists have taken to social media channels too. But, probably, the biggest growth has come from the segment of influencers and content producers.

Actors, performers, artists, sports stars have already been influencers in their own right but nowadays, some, have intentionally boosted their social media for both increased visibility and financial gain. Models, private trainers (fitness trainers) but also good looking commoners have been using their social media channel beyond their initial scope of work. More than half of influencers today also have an active account in OnlyFans, even if only few display their profile publicly. The once porn associated adult platform, has been improving its image especially since an increasing number of public figures display an OnlyFans normality even if they do share adult content.

A large number of followers has been and remains one of the few legit criteria of choice for luxury brands, but purchasing followers and likes has also become a reality which is no longer disputed. Followers can be ‘’officially’’ bought by investing in various paid options offered by the social media channels themselves and there is a guaranteed algorithm of growth. One can go from 1.000 to 1 million followers in a matter of days. But the actual credibility of the influencers has become more and more challenging to prove.

During this week’s Venice Film Festival, models have taken to the stage posing as celebrities, most of them wearing luxury branded products are attires, some of them posting on the same day a photo shoot with a mass market fashion brands which also took place in Venice. Represented by the same agency, the group of models was accommodated at the same luxury hotel and had the same instructions as to the content they must feature, in a ”live” broadcast style. Some of the models were fitness trainers, two of them claim to be dentists, one of them an artist – but all of them have an active OnlyFans account.

Nevertheless, producing credible, quality, relevant, desirable and consistent content has remained of the essence to gain recognition and establish a strong networking among the brands seeking exposure. For the luxury industry, few luxury sectors such as watches, cars or yachts benefit from dedicated specialist influencers who are also often connoisseurs and who tend to focus on each sector.

Although traditional fairs and exhibitions in these sectors have drastically changed, some of them disappearing, the information channels have remained the same. By expertly reviewing a particular product (quality of manufacturing, performance, finishes, materials, innovations, durability, sustainability etc), paying a visit to the manufactures / ateliers of the brands or attending an event (exhibition, trade) but also auction, a good number of specialist influencers have been earning credibility and establishing solid relationship with the major luxury brands from the respective sectors.

Yet, there is a growing trend of secondary luxury watches market influencers has been emerging. Commanding millions of Instagram and TikTok followers, these new watches influencers who are mainly based in New York’s Diamond District seem to have been radically changing the experience of buying or selling a luxury watch by proposing a simplified, easy option of purchase – no more waiting lists, no more stock issues, no more counterfeit pieces (they resort to specialist authenticators) – all major luxury watches brands are suddenly available.

In a fast paced daily race filmed almost like a live broadcast, these new watches influencers compete with each other presenting discounted prices for a brand new sealed watch with all ‘papers’’ (invoice, certificate of warranty etc) – with or without original packaging; used watches depending on model, features and the year of manufacturing (usually in very good condition) with or without ‘papers’; used watches with no papers and no packaging.

Watches are usually sold via WhatsApp but sometimes to customers who visit the booths on the 47th street block complex. These Influencers often feature on each other’s social media channels trading watches between themselves based on their requests but also opportunity – showcasing a client. The influencers with the largest following on social media channels offer daily prize draws to engage new followers – usually a Rolex watch.

Besides the ‘’no papers’’ trade which should raise eyebrows for all parties involved including authorities, these influencers have been considered ‘’legit’’ and the high adrenaline purchasing experience seem to be drawing more and more customers. What is probably most intriguing is that none of these influencers are showcasing a luxury environment as some would expect – most of them have a ‘’booth’’ which is like a shop in shop (no separating walls, no windows) but some of them ‘’sell’’ from the street.

While credibility, consistency and desirability remain a common thread, other luxury sectors such as luxury fashion is facing even more complex challenges. Specialist Hermès influencers have been emerging who have been transitioning from an exclusive social media presence to opening with their own physical boutiques – mainly based in Dubai, London and Istanbul. One such specialist influencer, who has a physical boutique presence in both London and Dubai is selling mostly Hermes bags – from brand new Hermes bags with original packaging and ‘’papers’’ to used Hermes bags (mainly in a very good condition) with no papers – nevertheless, all Hermes bags are guaranteed to be authenticated by the influencers based on product serial numbers, materials, finishes etc.

The Hermès influencer has been sharing several daily ‘’customers’’ who come to the shop to ‘’trade in’’ their bags – in most cases, after an ‘’expert’’ evaluation, the fake customer is offered two amounts – to be paid out on the spot and a higher amount if the amount is paid when the product will have been sold. Besides the inherent questions about the sourcing of these bags, the shopping experience is to say at least striking – no waiting lists, no scarcity, wide availability of models (including very rare skins).

In a most recent video by this Hermes influencer, a customer is featured bursting into the boutique saying she must buy a bag to match her dress for an event she was attending the same evening. In a matter of seconds, she was presented with approximately 10 impeccable Hermes Birkin and Kelly bags of different red colours (shades), skins and finishes to match the red dress she was wearing.

When it comes to luxury hotels, things get even more complicated than for the other luxury sectors. The chorus of influencers has been growing at a much higher speed, to include influencers from other luxury sectors, too – after all, who wouldn’t enjoy a complimentary luxury hotel stay while they are minding their business in each respective destination. For many of these influencers, a media stay at a luxury hotel or resort is an opportunity to take advantage of a complimentary stay.

Many of these influencers have also become ”content producers”, so that they can fully ”justify” a complimentary stay at a luxury hotel or resort. But where is the authenticity or genuineness when it comes to a luxury hotel experience? How can credibility be maintained? Luxury hotels should pay attention and make sure that the target audience of the influencer matches the target of the respective luxury hotel – in terms of geographical coverage but also in terms readership profile. A large audience (followers) does no longer suffice!

For the time being, the recipe is very simple. Some of these luxury influencers provide some generic statistics on their reach and traffic, 99% on their social media accounts (Instagram and TikTok) and besides posting photography and video content, they now also write a few descriptive words in their posts – obviously, all coverage and all comments regardless of the actual experience of their stay, are guaranteed to be entirely positive and laudative. This is actually what many luxury hotels also expect. No other coverage is tolerated by some luxury hotels and even by luxury groups at a group level.

Hotels do not expect any feedback or comments. And a possible second stay is almost guaranteed should there be no negatives related to the stay. Even if the property may be in need of renovations or improvements in terms of service, influencers are not expected to provide any feedback. More and more influencers whose main source of income has become OnlyFans can now afford a discounted media rate, therefore, many of them do no longer seek an entirely complimentary stay. This also gives them access to such stays during higher occupancy periods when normally a complimentary stay is not usually granted.

Mention must be made that this does not refer to the majority of the influencers, nevertheless, there is an alarming increase in the number of these influencers who may actually pose serious challenges to luxury hotels. Hoteliers must take early measures to ensure such influencers do not pose a risk for the image of the respective property. More strict criteria should be implemented when selecting or approving certain influencers and they should research how the hotel or the resort is a backdrop to the coverage.

Oliver Petcu

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