Macy’s Net Jumps 50%, Beats Analysts’ Estimates on Celebrity Brands Sales
And, as an agency that specializes in developing and promoting similar proprietary brands for major retailers, we’re not surprised. Consumers continue to demonstrate a healthy acceptance of brands off the beaten national-name path, especially in certain categories where the quality of these products has risen to, or exceeds, the level of the best nationally-branded ones. Apparel, perhaps surprisingly, being one we’ve found at MSI for two specific breeds of shoppers these days: price-conscious heads of households looking for a trusted endorsement on lower-priced items, and those confident, low-budget “fashionistas” who know a look they want and see themselves, not the name on the label, as the authors of their own style.
For retailers, these celebrity-endorsed brands offer a sort of instant equity that a totally new name, logo or packaging can’t, as well as long-term, savings over developing a brand from the ground-up…If done properly. Indeed, for every Martha Stewart success there are countless other ill-conceived, half-hearted or sloppily-executed efforts that wind up costing more in wasted time and money. So identifying, integrating and supporting the right personality is key. To that end, there are essentially two types of celebrity-endorsements to consider as we see it, each with its own strengths and weaknesses. The first of these is the hoary traditional ‘Paid Celebrity Endorser’: a typically shorter-term tactic to bolster some specific facet of a brand (i.e. contemporize an old one, elevate a pedestrian one, etc.) by association with a popular personality who owns this attribute; the paid relationship is obvious to all, with no further connection to the brand than a paycheck and some contractual use. For those over 40 think Susan Anton, or Steve Martin’s ‘Be somebody!’ drink umbrellas in The Jerk.
The other more interesting (and I’d submit, sound) model is the increasingly prevalent ‘Celebrity Brand’ in which an actual, differentiated entity is established that: a) evokes a certain sensibility that imbues a product or line with new value, b) aligns with the retailer’s own brand and its core shoppers’ attitudes and c) is built upon the celebrity endorser’s personality, but ultimately stands for something in and of itself (e.g. “style on a budget”) that can be owned and managed to over time. Such is the actual relationship that it may even include the celebrity’s design or product input, if they have the credentials for it ideally.
Jessica Simpson brand shoes, clothing and accessories are avilable at Macy's
Queen Latifa Fragrances are also available at Macy's
Again, there is no ‘better’ model per se, simply two different ones I hope to have made a case here for distinguishing between the two. But from where we stand, the
latter partnerships do offer greater potential for long-term ROI, new store traffic around desirable exclusive items, and the addition of a real asset to a retailer’s portfolio—versus a catchy ad or two to cover up its deficiencies.
Watch their star continue to rise in days ahead…We will be here.
