Louis Vuitton Incident: New Paradigm into Customer Relations in Luxury Branding and the Social Media Impact

Image source: DNA India

When luxury retail brands have built their customer experience on exclusivity and sophistication, an incident that took place in a Louis Vuitton store in Seoul, South Korea which has given people around the world a reason to discuss about the difference between customer service and arrogance. The story which went viral involved a man who asked the stores staff to count out 85 million Won which is approximately 68. 5 lakh Rupees in cash after he was insulted by the staff of the store.

The Incident

The event started when a woman went to Louis Vuitton store in Seoul for the purpose of buying a handbag. Yet, the woman complained she interacted with one staff member who she thought was so rude and even condescending at that. The woman, ends up angry out of this treatment she decided to teach the staff a lesson they will never forget. She went back to the store with 85 million won and ordered the staff to count each coin, which was most probably to finance the purchase of the object where she showed interest in earlier.But, after the excruciately long time the woman took to count the money, the lady proceeded to leave the store without purchasing anything while employees looked on and the entire experience was recorded and posted on social media.

Public Reaction

The incident immediately surfaced online and people’s reactions on the social media platforms varied. Most appreciated the conduct of the woman because she gave a stand against bad customer service, thus directing a protest against the rude disposition that most luxury brands possess. The story provoked a lot of reactions from people who feel and have undergone through such humiliating experiences of being thought that they cannot afford products that they are interest in buying in rich stores.While it is one thing to protest, there were people who saw what the woman did as overacting and complained that there were better ways of addressing the issue at hand. They claimed that the employees who were obeying store rules of the game as it were should have been subjected into such an awful embarrassment.

The Power Dynamics in Luxury Retail

This case gives one an insight into the often blurred relationship between power and powerlessness within the context of operations of luxury retail businesses. Companies such as Louis Vuitton sell not only bags and accessories, but also the image of exclusivity which they guarantee to their consumers. However, this exclusivity would create a culture where the staff members of the night clubs would most likely develop preconceived notions about the customers they have based on their initial assessment of their prospects, which could contribute to a provocation of circumstances such as the one that occurred in Seoul.Again luxury brands love to talk about the need to offer personalized services to clients but when this seems to be in a humiliating way, it can go wrong. The case of Seoul is a revelation that any customer whether dressed poorly or look substandard needs to be treated well and deserve the best service.

Broader Implications

From this event, broader effects are important which have bearings with luxuries stores or luxury retail. In a time when customers’ voices are more powerful than ever given the social media channels, incidents like these can easily blow up and negatively impact a brand. The example also raises the challenge of staff conduct in luxury customer environments especially to customers severalting from expectations in terms of beauty or purchase potential.Exclusive brands such as Louis Vuitton must always ensure that they uphold the aspect of luxury whilst at the same time ensuring that customer’s experience is welcoming and they are respected. The failure to achieve this not only costs organizations the chance to sell their goods and/or services to potential consumers but also exposes them to public relation disasters in a global and socially sensitive global society.

Conclusion

The case of Louis Vuitton in Seoul also provides lessons to the consumers and the retailers and they are. From the consumer’s perspective, it draws focus to the level of control that people have in the modern society with social media platforms. For retailers, it reinforces the need for employees to offer excellent customer relations regardless of the status of the products that they are selling which include luxury products. All the same, and at the very least, courtesy and courtesy form the foundation for any dealings over the counter, and the price does not matter.