Lessons from Chanel for Karl Lagerfeld

The passing away of iconic fashion designer Karl Lagerfeld gave rise to a very important question – What will happen to his brand now? Which makes us think, how to create a brand legacy? 

Let us first understand from a customer or rather a brand loyalist's perspective whether he or she will still have the same unshakable faith in the brand when the icon is no longer running the show. When customers become loyal to a brand, especially a renowned one like Karl Lagerfeld, they do not buy it for the design or style or aesthetics or flaunt quotient alone. There is a heavy dose of the personality of the icon that becomes the X-factor, which demands the premium as well as the loyalty. So when that icon is no longer there, the loyalty of the customers is bound to take a hit. In art, the creativity of the artist is captured on canvas and thus after the artist is gone, the prices soar. In fashion, once the icon is gone, there may be a sudden surge resulting from emotional buying by customers, but it is bound to fall soon. 

Lagerfeld was also the creative director for Chanel and Fendi. However, the dent these two fashion houses will suffer will be much lesser as compared to the legendary designer's own fashion house. It is because these fashion houses and brands are not any longer represented by faces or personalities. 

A close parallel to Karl Lagerfeld's quandary can be drawn with Apple's situation after the death of Steve Jobs. While a lot of persona was attached to the products and Jobs was the face of Apple, the company was still able to move on after a brief set back, and one critical reason was the name – Apple, not Jobs. 

Louis Vuitton did not face this danger when their creative designer Marc Jacobs moved on and started his own label. Gucci carried on successfully after Tom Ford left. But what if Tom Ford or Marc Jacobs decided to take a break from their own brands? 

This leads to a dilemma. Complete trust of the customers can't be gained without having a face to the brand. On the other hand, if there's a prominent face to a brand, what happens when it is no longer there? What should be the right portion of persona that a brand creator needs put in to leave a legacy? Here's a five-point strategy: 

1. The brand has to build an image that it is run professionally. This plays a key role in ensuring that while there is a face, the brand is run by professionals. Even after the death of Coco Chanel, the brand's legacy not only lived on but also kept growing. The brand of Alexander McQueen, on the other hand, faced a tough time after his untimely death. Apple, too, had a slight set back before it bounced back. 

2. Brands such as Rolex and Louis Vuitton, which are faceless, have an edge as their ups and downs are not personality-driven. These are more affected by the demand cycles and the right markets they tap. These brands, however, have created a persona of their own based on their elements of style. They have successfully used icons as brand ambassadors to give their brands a face, a persona and a legacy. 

3. The million-dollar questions for brand creators are when should they pour their personality into the brand and at what time should the brand start developing its own persona. While establishing the brand should always be the primary responsibility, it is also important to give professionals a free hand to run the machinery. The creator should focus on the creative side of the business.

4. Succession planning is key. A brand creator needs to open up to the idea of planning for a successor who will keep the legacy on. It is best if this successor gets some handholding from the creator so that he or she can imbibe the key elements of the brand personality so that the loyal customers do not feel cheated. 

5. It is the brand promise that makes it powerful. So the most important element for a brand to create a legacy is to keep its promises. This will help them create a history. 

Brahma is a luxury commentator and author of Dark Luxe and Decoding Luxe