Gucci hot, Prada cold, in brand temperature survey

London - A new survey by investment banking firm Exane BNP Paribas has assessed the 'brand temperature' of 38 of today's luxury companies, measuring their editorial prowess in the current zeitgeist. Gucci, unsurprisingly, comes out on top, as 'hot', and Prada and Giorgio Armani are 'cool.'

The assessment is measured by a brand's editorial credits, which on a cool scale would see brands have the same or less editorial credits in comparison to their advertising spend. Hot brands would see a higher proportion of editorial credits, surpassing that of their editorial spend. In other words the most talked about brands of the moment, Gucci, Vetements, Balenciaga, Calvin Klein, are all on the hot list.

Prada has lost its lustre

Gucci has become hot ever since it replaced its CEO in January 2015 and according to Exane its editorial value was up more than 15 percent for the first six months of the year, compared to the same period last year. Prada, in comparison, has lost its lustre as the most desirable brand, in part due to falling sales, but also in failing to maximise opportunities in the digital realm.

Burberry, Valentino and Saint Laurent were “hot but getting colder”; but as the website The Business Of Fashion.com noted these brands had significantly reduced their print spend and have moved it to digital.

The staple of luxury brands that remained hot include Louis Vuitton and Chanel, although these saw a lower growth in comparison to the advertising spend.

Gucci has been buzzword for four seasons

The fact that Gucci has managed to remain a buzzword over four seasons has helped the company achieve significant growth, which for this financial year is expected to achieve 4 billion euros in sales.

A brand's hotness is not the only measurement on the fashion barometer. According to Exane, a luxury brand has to arouse desire in consumers, which inevitably calls for a sometimes long waiting time for a desired product. Should something come along to quench the desire, a luxury brand, by permanently reinventing itself, creates the mechanisms to preserve it.

According to Promise Consulting, managing a luxury brand implies a subtle balance between a necessary brand’s exclusivity and a sufficient desirability threshold. Too much exclusivity penalizes desirability, which sees the brand position itself too “niche”. Alternatively, by becoming too desirable, the brand penalizes itself on exclusivity: in that case, the brand is too much broadcasted, becoming too visible or too accessible. Exclusivity is the guarantee of high margins, while desirability ensures sufficient volumes.

Photo credit: Gucci, source: Gucci.com