Imagine the whirlwind of confused feelings, granted the choice between a Chanel or Hermès bag.

Which would you choose? Where am I, and is this a dream? Most of us might think this way.

Curious about the factors influencing consumers’ minds encountering such decisions, I immediately reached out to someone who would be able to offer a voice as a player in the marketing field of the luxury fashion industry.

Fortunately, Young Mi Cho, the CEO of THEad., agreed to an online interview that provided an in-depth scope of what type of strategies are used by marketing agencies today.

With Ms. Cho, I discussed the two well-known marketing strategies for luxury brands: active and anti-marketing.

Active marketing is a continuous effort to engage in beneficial opportunities to promote the company.

Brands that use this strategy have a prominent marketing department and focus on increasing their total sales.

This strategy is the standard for most businesses.

On the contrary, anti-marketing is a strategy that defies traditional marketing techniques.

Because there is no need to focus intensively on marketing issues, the brands are able to concentrate more on product quality.

Ms. Cho provided insight into how a global corporation like Chanel would execute upon this type of marketing strategy.

She stated that “Chanel is a French high fashion brand that employs active marketing to engage and energize its clientele. It passionately advertises its products in couture magazines including Elle, Vogue, and Harper’s Bazaar, well-known magazines that would cost an arm or a leg for start-ups to even dream about approaching.”

Chanel uses mannequins and product displays to attract window shoppers.

This point-of-sale approach engages the consumer directly by presenting their product as a desirable good, ready to be bought upon first viewing.

Chanel additionally employs global celebrities to model for the brand. In their own fashion shows, Chanel creates organic marketing moments—words of influential people via social media—increasing its sales.

When questioned about optimizing sales and avoiding inventory loss, Cho stated that “aggressive and active behavior is necessary.”

In contrast to the active marketing of Chanel, the anti-marketing strategies of Hermès focus on a minority of VIP clients.

Ms. Cho added that “a company like Hermès actually acknowledges that they do not pursue promotions, with zero budget for marketing.”

Some might think they do not even care about luring customers.

Their window displays do not isolate their product; instead, they are used as a canvas for expressing artistic sense, demonstrating the feelings and ideas their clients are eager to experience by purchasing their product.

Cho described the strategy of Hermès as focusing on the brand’s main values of “exclusivity, scarcity, craftsmanship, and heritage.”

Because there is a long waiting list of VIP clients, there is no need to lure shoppers.

Ms. Cho concluded that “instead, Hermès focuses on forming close, long term bonds and relationships with their client base.”

Active marketing and anti-marketing strategies are opposites, with advantages that serve as the disadvantage of the other.

Active marketing lures clients, increasing sales.

The revenue of Chanel increased from $8.7 billion in 2016 to $12 billion in 2019 as a result of powerful, active marketing.

However, the scarcity and exclusivity of the product faltered, lowering the reputation of the brand among luxury consumers.

Anti-marketing shows different results. As a result of valuing exclusivity, supply is limited, decreasing total sales.

However, clients are able to feel pride in the value of their purchase.

Also, the high barrier for entry elevates the brand value greatly. Cho described this ambiguity, stating, “Marketing is an organism. It evolves vibrantly as time passes, depending on the preferences and behaviors of consumers.”

The decision of purchasing a Chanel bag or a Hermès one will greatly depend on the consumer’s personality.

Which would you choose in a fantasy scenario? Do the marketing strategy and elite status of the bag matter? Or is it just the design and price?

All of these questions are what we ask ourselves when we make purchases, whether they be cars, jewelry, or purses. Make a choice.

Minso Kim
Grade 9
The American School In Japan