In a world where cultural boundaries are the channel of communication of diversity, for luxury brands is essential to incorporate different cultures in their cross-cultural marketing strategies (Kapferer and Bastien,2012).
For a long time, luxury fashion brands have been scrutinised for a lack of diverse delegates, both on advertising and runways (Mintel,2019). Diversity is not only about body size; where luxury brands have fallen short is in the inclusion of individuals of varying skin tones and ethnicity backgrounds (Mintel,2019). Ethnicity diversification in brands is vital due to the demand present from second and third generation of immigrants who have better educational opportunities and hold more economic power (Euromonitor, 2015). The majority of this market is principally generation Z and millennials who are expected to account for almost half (45%) of the market by 2025. This demographic expects to be supported with social issues but not only superficially but it must also be demonstrated with policies that are present in the brand, this may mean hiring staff from minority backgrounds (Canvas, 2019). Hiring in the management system people from all over the world delivers diversity- a broader perception of understanding various cultures (Danziger,2019). New hires are a step in the right direction but it is not the end of inclusivity if the brands want to diversify and appeal to younger generations. The ultimate goal is to create an environment where all individuals feel comfortable and have the opportunity to be hired, not only for entry level jobs but also for managers and board members to have the opportunity to speak up and have a say on the brand (Mintel, 2019).
Gucci Changemaker
In February, 2019 Gucci has announced the launch of a multicultural programme design to hire inclusively within key functions and leadership positions of the group, including the design office, and will invest in educating all of its 18,000 employees around the world “to achieve a much higher level of global cultural awareness” (Zargani,2019). Tirado, leader of diversity and equity at Gucci stated “Diversity is on the agenda of many companies, but Gucci has now assumed a leadership role in the industry through the breadth of initiatives it is undertaking and the prioritization it has placed on it as a part of the overall business” (Fashionista,2019).Despite the fact of hiring people from different ethnicities and backgrounds, according to Mintel (2019) international report on Luxury Goods Retail shows that diversity is also shown through digital world. Into their Technology factor contributes to enhance the young generation through social media which is common in higher education. The chief diversity officer at the fashion institute of technology, Ronald Milon has stated that significant pressure has been placed on companies to incorporate social media into their brands in order to diversify just as its been done in education (Garette, 2019). Is through social media that Gucci announced the action plan of promoting diversity and inclusion awareness within the company (Garette,2019). Therefore, according to McKisney & Company (2019) brands which illustrate diversity within executive terms are a third more likely to perform better that the competitors. Having gender diversity on executive teams, specifically, to be consistently positively correlated with higher profitability across geographies in the data set, are the bulk of strategic and operational decision which play in the financial performance of a company. Gucci took action by increasing the opportunities available to underrepresented individuals creating full time employment which creates a more diverse workspace.
The schools that will provide the training required will be located in New York (Harlem); Nairobi, Kenya; New Delhi; Beijing; Hangzhou, China; Seoul; Tokyo; Beirut; London, and Dubai (Zargani,2019). The decision to open schools worldwide has been made not only because of the advancement of social media and a shift in culture, but as well due to the political landscape that has had an impact on a society with mixed ethnicities (Kent,2019).
Hence, brands like Gucci, serving globalised markets must be philanthropic and cultural conscious about the new generations (Kent,2019).
References:
- Danziger P. (2019)Luxury Brands Need More Diversity to Prevent More Culturally Insensitive Mistakes ,Forbes[Internet] 3rdMarch, Available from https://www.forbes.com/sites/pamdanziger/2019/03/03/dolce-and-gabbana-gucci-burberry-caught-being-culturally-insensitive-diversity-isnt-the-fix/#5e7afe67125d[Accessed 13 of December 2019]
- Euromonitor,(2015) Cultural Diversity and its Impact on Global Consumer Markets [Internet] Available from https://www-portal-euromonitor-com.yorksj.idm.oclc.org/portal/analysis/tab[Accessed 12 of December 2019]
- Fashionista, (2019) Gucci’s Concrete Plan Towards More Diversity Involves Immediate Design Hires, Fashionista [Internet] 30thJuly, Available from https://fashionista.com/2019/02/gucci-diversity-initiatives[Accessed 13thDecember 2019]
- Garett B. (2019) Gucci Names Its First-Ever Diversity Head After Blackface Controversy, Forbes [Internet] 2ndAugust Available from https://www.forbes.com/sites/briannegarrett/2019/08/02/gucci-names-its-first-ever-diversity-head-after-blackface-controversy/#62940755e29d [Accessed on 12 of December 2019]
- Kapferer J.N., Bastien V. (2012) Luxury Strategies, Break the Rules of Marketing to Build Luxury Brands2ndEdition
- S (2019) Fashion’s Long Road to Inclusivity [Internet] Available from https://www.businessoffashion.com/articles/intelligence/fashions-long-road-to-inclusivity[Accessed 15 of December 2019]
- McKinsey & Company (2018) Delivering Through Diversity [Internet] Available from https://www.mckinsey.com/business-functions/organization/our-insights/delivering-through-diversity [Accessed on 11 December 2019]
- Mintel,(2019) Why More Luxury Brands are Focusing on Diversity [Internet] Available from https://www.mintel.com/blog/retail-market-news/why-more-luxury-brands-are-focusing-on-diversity [Accessed 13 of December 2019]
