Last week, when LVMH announced the launch of 22 Montaigne Entertainment, a central platform connecting the company's 75 Houses with the entertainment industry, the move left viewers eager to see stories about brands from Barbie to Nike. It was more than an attempt to take advantage of someone.
It was also a survival strategy in a world where traditional forms of mass media advertising were becoming less effective.
“Most people now consume entertainment through a variety of streaming services, and many people, especially wealthier people, don't want their entertainment to be interrupted by ads,” said Anish Melwani, CEO of LVMH North America. We're paying money to do that.” “Of course, campaigns and such will continue. But it heightens the importance of having these great stories that are part of our brand's heritage.”
Audiences are still hungry for entertainment, but the way they consume it is changing. Fashion is part of a stream of content being devoured alongside trends in music, art and sports, highlighted by Louis Vuitton's casting of musician Pharrell Williams as a man. artistic director. Some of the industry's biggest names are now forging more formal relationships with the entertainment business. Last April, Saint Laurent announced a film production arm, and in September, Kering owner François Pinault's holding company Artemis bought a majority stake in Hollywood talent agency CAA.
LVMH has worked with the studio for years, resulting in projects ranging from the 2014 documentary “Dior and Me” to the new Apple TV series “The New Look,” for which Dior provided the costumes. Was born. But Melwani said the entertainment industry often doesn't know how to contact LVMH houses, and in some cases doesn't even know they're part of LVMH. Although this initiative is not actually a new department within the company, and the approval of the project still lies with his LVMH individual brands, the aim is to create a single point of contact to facilitate these relationships. is.
In support, LVMH partnered with SuperConnector Studio. SuperConnector Studio's stated mission is to help brands and entertainment “find new ways to reach consumers and drive revenue in a world where advertising has never been more popular.” Its founder is a former CAA agent. Producer John Kaplan and advertising industry veteran Jay Goodman previously worked with Nike to found Waffle Iron Entertainment, a venture that has produced sports documentaries and is in the midst of a multi-year collaboration with Apple that includes three scripted projects. have a contract.
“Everyone has put their brand advertising into lower-funnel performance marketing,” Goodman said. “Just going direct-to-consumer on the brand side hasn't really worked. He said the two industries looked at each other and said, 'It's clear that we need each other.' ™”
The challenge for both parties is to create a compelling story that delivers the benefits of an ad without feeling like an ad.
brand entertainment
Social media has made it easier for brands to connect directly with their customers without having to rely on magazines or TV for much of their messaging, but the benefits have declined over the years. Customer acquisition costs are rising, privacy measures are making it harder to target the right users, and consumers are turning a blind eye to advertising. A 2023 report from marketing data analysis firm Kantar found that 86% of viewers took action to avoid ads across TV, streaming and online.
As a result, many companies are refocusing brand marketing to build deeper emotional connections with consumers, with research showing that audiences respond more positively to branded content than traditional advertising. We know that they are more likely to respond to Goodman and Kaplan believe that entertainment provides another channel for this form of brand building.
As it happens, Hollywood is looking for intellectual property to turn into movies and TV series, and the blockbuster success of last year's “Barbie” movies further proved that stories about consumer brands have commercial appeal.
However, these projects don't have to reach “Barbie” levels of success to be valuable to the brand. Although Nike was not involved in the production, his 2023 film Air, which depicts the company's deal with Michael Jordan and the birth of the Air Jordan series, is notable regarding Nike's brand. It attracted a lot of attention and caused a rise in box office revenue. Net Promoter Score, a measure of brand favorability, according to data from information firm Morning Consult. ESPN's 2020 documentary series “The Last Dance” about Michael Jordan and the Chicago Bulls similarly boosted Jordan 1 sales.
“You won't see anything that will surprise you.” [return on investment] We are seeing positive developments in terms of long-term consumer metrics,” said Joanna Piacenza, head of industry analysis at Morning Consult.
What these entertainment projects also offer is a way for brands to monetize successful IP in one area in other areas, a strategy pioneered by entertainment giants like Disney.
“Media companies have done a great job of developing original IP, showing it on TV screens and in theaters, and monetizing it through theme parks, consumer products, video games, and live events,” said John Media. Harrison said. He is also the Entertainment Leader for EY Americas. “This is almost the opposite of taking an IP that has already been monetized through other channels that consumers are familiar with and building an original story around that IP.”
In the case of LVMH, most of its brands aren't as well-known as Nike or Barbie, so it can be difficult to get audiences interested. But entertainment provides a way to keep viewers interested. , streaming platforms make it easier to find an audience for smaller stories that appeal to niche demographics.
“Even lesser-known brands have a huge opportunity to leverage this type of storytelling to increase brand awareness, especially if their content is engaging,” Piacenza said.
“Story” in storytelling
No matter how big or beloved your brand is, there's no guarantee that your audience will enjoy the resulting product. “The New Look,” for example, received just a 57% positive rating on review aggregation site Rotten Tomatoes.
LVMH's Melwani acknowledged that there is some risk in letting someone else tell a brand's story. But luxury is a storytelling business, and while LVMH is adept at telling the house's story through its products, fashion shows and exhibitions, entertainment is not its medium, he said. For that, we need a scriptwriter and a director. Additionally, if a brand isn't excited about the storyteller's vision, they don't need to participate.
Of course, good stories usually involve conflict and tension, even when brands are on board. This means that a brand's origins aren't always portrayed in the best light.
“Brands need to be smart in how they structure these production contracts and whether there is any veto power at the end.” [power]” Harrison said. However, “Entertainment requires a fine balance between giving his partners creative flexibility and protecting what they've built in terms of brand value.”
“You also don't want to turn off the creative types you're working on,” he added.
A giant company like LVMH benefits from a number of brands with at least interesting backstories. According to renowned luxury consultant Robert Burke, Bernard Arnault is often drawn to brands with great histories. It's not hard to imagine a future project or series about Tiffany, or even Fendi, or even the champagne house Dom Perignon.
“Then you can give that audience a physical experience of your brand.” [through the product] It’s really powerful,” Burke said.
The entertainment industry also seems interested in helping.
“Our switchboards talk to every studio, every talent agency, every A-list production company, and in some cases, specific talent,” said SuperConnector's Kaplan.
What's important now is telling the right story.
Disclosure: LVMH is part of a group of investors that collectively hold minority interests in fashion businesses. All investors have signed a shareholder document guaranteeing BoF's complete editorial independence.