Last month, David Jones parted ways with long-time ambassador Miranda Kerr nine months before her contract was due to expire, replacing her with swimsuit model Jessica Gomes.
While the move came as a shock, it had apparently been brewing for some time. According to the Fairfax's Andrew Hornery, Kerr wanted double her million-dollar contract while simultaneously demanding better conditions.
At the same time, research indicated Kerr's Hollywood lifestyle meant young Australian women no longer related to the supermodel, reported the paper. Myer is also rumoured to be reviewing its long-term contract with Jennifer Hawkins.
Could the era of celebrity ambassadors be drawing to a close? Or in tough times, do retailers more than ever need a recognisable face to connect with consumers?
AdNews put the following question to two brand experts: "What does David Jones lose with the departure of Miranda Kerr? Are retailers relying too heavily on celebrity marketing rather than addressing business issues to turn their fortunes around?"
Jaid Hulsbosch
Director
Hulsbosch
A successful fashion ambassador is not just a pretty face. Values, ethics, grace and charisma all help the package. Miranda Kerr’s unrenewed contract is a hard loss for David Jones. For now the brand must concentrate on retaining the equity Kerr built up over her five-year relationship, which is likely to prove a hard task for relatively unknown swimsuit model Jessica Gomes.
This is a good opportunity for David Jones to revisit and tighten up the business’ overall marketing and communications strategy. The David Jones brand is likely to suffer this time around but if management is smart, and haven’t put all their eggs in the swimsuit model basket, they’ll understand the implications of Kerr’s departure on the brand and have plans in place before the public backlash begins.
Dom Walsh
Managing Director
Landor Associates
I believe that retailers are relying too heavily on celebrity marketing to build their brands. Celebrity marketing is a difficult course to navigate – we only need to look at Lance Armstrong and Tiger Woods to realise that dealing with celebrities has its challenges. David Jones should not be reliant on Miranda Kerr to build its brand. When associating with a celebrity, you need to ensure that the celebrity brand is giving something back to your brand.
In the case of David Jones, I think the association has done more to build the Miranda Kerr brand than it has to build theirs. In a marketplace where retailers are struggling, it's obvious to me that David Jones doesn't need another celebrity. David Jones needs to innovate around in-store experience, service delivery, product and online channels. With the likes of Zara, H&M and Gap hitting our shores, it's time that Mr David Jones becomes the celebrity.
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