July 16, 2018
Chanel is developing its digital strategy. Image credit: Chanel
French fashion label Chanel is seen as the most emotionally intelligent luxury brand in the eyes of affluent U.S. consumers, thanks to two key elements of its business.
Chanel’s use of quality customer service and products as well as its emotional connection with consumers have pushed it to the top of the Luxury Institute’s 2018 Emotionally Intelligent Brand Index. The brand is closely followed by another French brand, Louis Vuitton.
"We used to ridicule politicians when they said that corporations are people too," said Milton Pedraza, CEO of the Luxury Institute, New York. "We also used to laugh at luxury brands that sold sneakers.
“Today affluent consumers across all generations, but especially millennials, think of brands as organic, living entities comprised of the purpose, values and behaviors of the people who lead them and who represent them at the front lines, across any channel," he said.
Luxury Institute surveyed more than 1,200 U.S. affluents with a minimum of $150,000 annual household income across several brand categories most consumed by luxury consumers.
Chanel ranks above
Survey takers designated both Chanel’s quality of its business and its emotional connection as 50 percent of the elements that make the brand emotionally intelligent.
Both of these elements are proving to be vital in terms of a brand’s success in the eyes of the affluent.
The fashion label scored a 7.14 out of 10 thanks to these factors. Chanel was not only listed at the top overall, but was number one in customer service experience as well.
Chanel's Haute Couture show. Image credit: Chanel
Chanel was ranked within the top 10 of many categories, except within its generosity where it slipped to number 13 in terms of giving towards employees and society as a whole.
In trustworthiness, Chanel was ranked third and seventh for empathy.
In an example of how Chanel showcases its emotional intelligence, the brand hoped to capture the attention of a younger, more diverse generation with its latest Beauty Talks interview.
Chanel’s global creative makeup and color designer Lucia Pica sat down with actress and activist Yara Shahidi to highlight a new makeup palette. Ms. Shahidi follows in the steps of other women, including Lily-Rose Depp and Keira Knightley, who have been featured in Beauty Talks (see story).
Stella McCartney rankings
Stella McCartney surprised researchers, as it was ranked number one in empathy within Luxury Institute’s index, but was only listed as number 17 in product quality.
Stella McCartney collection for Net-A-Porter. Image credit: Net-A-Porter
Its customer service was listed at number six and trustworthiness at number four.
The brand also saw the top position in generosity, which its recent campaigns have demonstrated.
Last month, Stella McCartney called on consumers to get involved in their local communities to clean up nearby beaches and rivers as part of its on going commitment to sustainability.
For World Oceans Day on June 8, the fashion label gave away its recycled Stella Trashion bags at select stores across the world. The brand hoped to inspire consumers to join local charity beach and river clean ups (see story).
"A brand today is known well beyond its products," Luxury Institute's Mr. Pedraza said. "Just as with individuals, if a brand today cannot deliver more than expertise and deeply lacks emotional intelligence, or simply has an emotional intelligence deficit that is clear to clients, it is at a distinct disadvantage in the probability of long-term success or even survival.
"Unfortunately, some brand leaders, especially in luxury, would rather delude themselves than embrace, or crave, candid customer feedback and take massive positive action."
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