14/11/2009 20:20FT.com / Reports - Philantrophy: Cautionary tale in creating a caring face

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Philantrophy: Cautionary tale in creating a caring faceBy Lucie GreenePublished: November 13 2009 15:55 | Last updated: November 13 2009 15:55

Next month, Bulgari’s 11-city touring jewellery exhibition, Between Eternity and History, willculminate with a star-studded auction at Christie’s in New York with the aim of raising €10m($15m) for Save the Children’s Rewrite the Future campaign.

Bulgari’s collection of baubles has toured cities including London, Rome and Beijing, with lavishparties in each, supported by celebrities including Julianne Moore, Benicio Del Toro, BenStiller, Sting, Willem Dafoe and Jason Lewis. Bulgari is the latest in a string of fine jewelleryand watch brands aligning themselves with philanthropic projects.

Charity has become a tried and tested way to ease consumer malaise at spending onconspicuous luxury, while reinforcing brand credentials as caring and responsible. But as thetidal wave of bracelets, bags, bangles, auctions, and sombre celebrity campaigns continues, isthe audience becoming cynical?

Montblanc’s story is a cautionary tale. Last month the company caused internationalcontroversy with the launch of a $23,000 18-carat gold-and-silver pen to commemorate the140th anniversary of Mahatma Gandhi’s birth. Montblanc was accused of exploiting Gandhi –liberator, champion of egalitarianism and simple living – to enter the lucrative Indian luxurymarket. Lawsuits were reportedly filed to try to stop distribution of the pen. Despite the projectreceiving endorsement from Tushar Gandhi, the Mahatma’s great grandson, and Montblancdonating $146,000 to build a shelter for rescued child labourers along with $200-$1,000 fromeach pen sale, criticism was widespread.

The choice of Gandhi has been widely acknowledged to be misjudged. Whether Montblancwould have suffered the same fate in an uncrowned landscape is debatable though. Earlier thisyear, Carolina Bucci designed a line of bracelets for Global Action for Children, the charityfounded with a grant from the Jolie-Pitt Foundation. Baume & Mercier and Jaeger-LeCoultrehave both embarked on charitable ventures recently. Swiss watchmaker Longines has teamedwith Andre Agassi and Stefanie Graf to raise funds for causes; TAG Heuer has upped itscharitable involvement through brand ambassador Leonardo DiCaprio.

Gandhi aside, Montblanc has also been working since 2004 with Unicef, the United Nationschildren’s agency. Last year it launched charity bangle 46664, commemorating NelsonMandela’s 90th birthday and his 27 years in jail.

Mainstream luxury brands have also been leaping on charitable bandwagons. Last month,Gucci paired with singer Mary J Blige to launch the Mary J Blige Center for Women inYonkers, New York, aimed at educating and empowering local women; Jimmy Choo createdProject PEP, a range of handbags, in aid of the Elton John Aids Foundation; Naomi Campbellpaired with Louis Vuitton on the launch of a handbag in support of the White Ribbon Alliance.

“If too many brands start doing charity initiatives, it can lose credibility,” says Graham Hales,managing director at Interbrand, a branding consultancy. “You shouldn’t overplay it so peopledisengage. If it becomes predictable, you get to the point where message has no impact.”“With all these, there is a risk of looking not genuine,” warns Ilaria Alber-Glanstaetten, chiefexecutive at Provenance, a luxury consultancy. “The consumer isn’t foolish. It can seem likemarketing spin and make people doubt motives. Its all about credibility.”

There is no doubt that charities need all the help they can get. Charities have seen a hugeknock to their revenues from mass audiences. In the UK alone, donations have fallen 11 percent in the past year. According to the Charities Aid Foundation (CAF) and the NationalCouncil for Voluntary Organisations (NCVO), donations dropped by £1.3bn ($2.2bn) between2008 and 2009.

Martin Raymond, director of the Future Laboratory, believes charitable work will become anessential activity for every luxury brand. “The consumer will expect it as a standard activity,” heexplains. “High net worth consumers are changing. They’re younger, they’re in they’re 40s,they’re ethically minded and, increasingly, they’re women. This is a great way to reach them.”Which is perhaps why, despite the media backlash, Montblanc says its charitable activity willcontinue to be a cornerstone of its strategy.

“We have to continue the way we’ve been working. Its part of our brand,” says Lutz Bethge,CEO at Montblanc “We always say helping others gives success real meaning. When you aresuccessful you have to give something back to charity. People look at the [Montblanc] work andsay: That’s my brand, that’s my lifestyle, I identify with it.”

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14/11/2009 20:20FT.com / Reports - Philantrophy: Cautionary tale in creating a caring face

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