Luxury Plays A Big Role In Celebrity Endorsement&Nbsp; Produce Very Little Effect

The major luxury groups increasingly favor celebrity advertising endorsements, so as to brand Publicity and sales increase, and luxury executives believe that this trend has brought pressure on profit margins and brand attractiveness.

Italy jewelry dealer Bulgari has been boycotting celebrity advertising for many years, preferring to invite celebrities to participate in brand launch and other activities. However, the brand has recently started to invite celebrities to endorse, leading to a substantial increase in its advertising spending. Francesco Trapani, CEO of Bulgari, said at this week's Reuters Global Luxury Summit: "We are paying more and more attention to the celebrity effect. Celebrities enable the brand to be promoted, but our public relations budget has naturally increased."

In January this year, Bulgari launched its first star publicity campaign in major fashion magazines: film star Julianne Moore was half naked reclining on the sofa, wearing emerald earrings, carrying a camel handbag, and two white parrots. "Since then, people have come to our stores to buy Julian Moore's handbag," Trapani said

Bulgari will also release an advertisement for men's perfume in September this year, which will be performed by movie star Clive Owen. Trapani said that it is difficult to find stars who do not endorse other brands. For some big stars, various brands compete to increase the endorsement fee, and small luxury brands are difficult to compete.

　　 Louis Vuitton Louis Vuitton and Hermes took advantage of the economic downturn to seize more advertising space and intensify competition with peers.

Longchamp, a French handbag manufacturer, said that since supermodel Kate Moss designed a handbag for the brand, its sales have increased significantly. Kate Moss has been the spokesperson of the brand since 2006, but she has also appeared in commercials such as La Parisienne, a perfume owned by Yves Saint Laurent.

According to the report of www.brandchannel.com, the number of celebrity endorsements has doubled in the past decade. But analysts said it was dangerous to rely too much on celebrity effects.

James Lawson, president of Ledbury Research, a luxury market research company, said: "This marketing method has a congenital defect: if it is overused, consumers will think that the celebrity endorsement is only for money, which will damage the brand image.

He also pointed out that not all brands are suitable for inviting big stars to speak for them, especially for small brands. In addition, celebrities may lose their reputations instantly. When the media reported the extramarital affair of golf superstar Tiger Woods, Tag Heuer abandoned the spokesman.

Jean Marc Jacot, CEO of Parmigiani Fleurier, a luxury watchmaker, said, "I think celebrity endorsement is a sign that the brand is not attractive enough."