Established in 2011, Daniel Wellington is a watch company named after a British traveller. With its headquarters in Uppsala, Sweden, this brand has named its watches after different cities in England. As stated on its official website, these series of minimalistic, vintage-looking watches equipped with interchangeable NATO and leather straps mainly target young audiences. Daniel Wellington, also known as DW, although designed in Sweden, is manufactured in China with internal quartz movements from Miyota, a reliable Japanese supplier (Pulvirent, How Daniel Wellington Made a $200 Million Business Out of Cheap Watches). The founder, Filip Tysander, has been able to build a $200 million business by selling these classy-looking inexpensive timepieces almost entirely from social media promotions.
Filling the void for watch brands online, Daniel Wellington owns the current decade in terms of online popularity. Through their social media approach, DW has been able to gain over 3 million followers, leaving behind top competitors in its industry. In addition to DW’s pricing, distribution, and timing to enter the watch market, it’s communication strategy is one of its major reasons for its success (This 31-year-old built a $180 million fashion empire in 5 years – here are his secrets to success – Business Insider Nordic).
How has new media worked for Daniel Wellington?
In terms of marketing, Pulvirent elaborates on the company’s novel approach on social media – working in collaboration with social media influencers, bloggers, and celebrities, to promote their brand worldwide. Working with social media stars has been observed to build a positive brand image, gaining more customers thus generating further sales (Feng et al., Cross-culture study of the use of social media in Sweden and China). Based on its foundation on public influence and how ‘noncompany actors influence customers to value the brand’ (Holt, How brands become icons: The principles of cultural branding), Daniel Wellington has been able to achieve viral branding.
With the decline in responses from customers on conventional online marketing, viral branding positions customers as an important factor in creating a brand, hence giving them the power to ‘discover’ brands.
According to Holt, companies underhandedly connect with influential customers to further develop their brand’s value. Similar to this approach, to create its brand identity, Daniel Wellington has given out free watches and special promotional coupon codes to thousands of influencers (Mediakix Team, Instagram marketing case study: Daniel Wellington watches). These influencers or brand ambassadors who have hundreds of thousands of followers act like ‘social proof’ for the product, in this case, the DW watch. Since people are attracted to products that others engage with, having social media stars onboard as brand ambassadors has pushed Daniel Wellington to gain more number of customers.
Stemming from this type of influential marketing, is online word-of-mouth, also known as e-WOM.
As the campaign progresses and influencers share their review of the product, followers are lured to turn into consumers and further spread feedback – both good or bad (Armelini & Villanueva, Adding Social Media to the Marketing Mix). E-WOM has worked in favour of DW as this organic channel has helped the brand sell over a million watches (Lee, How Daniel Wellington Sold A Million Watches In A Year Via Word-of-Mouth and referral marketing blog). Additionally, Armelini and Villanueva mention how e-WOM is easier to manage since it is interactive, unlike traditional channels like advertising. Online word-of-mouth makes it possible for all customers, past or present, to come together as a brand community and share their reviews which helps future customers base their decision to choose the brand or not. Overall, Daniel Wellington’s collaboration with influencers on Instagram has helped it build brand awareness and increase its online visibility (Leibowitz, Why your new business needs to market on Instagram). In line with its marketing strategy to collaborate with top influencers, Daniel Wellington recently added top social media celebrities including the famous Kardashian half-sister Kendall Jenner (75.9 million Instagram followers), an accomplished model Lucky Blue (2.8 million followers), and the stylish Rola (4.4 million Instagram followers) to their influencer list (PR Newswire).
Although influencer marketing has been observed as a communication strategy that combines trust with casualness, it is also sometimes perceived as a ‘in-your-face’ kind of marketing
(Montesi, Do Influencers Have a Future with Instagram Marketing?)
An influencer at the Advertising week Europe 2016 spoke of the need to educate followers about the nature of contract between an influencer and a brand (Charles, Instagram influencer hits out at ‘annoying’ blogger tactic by watch brand). Additionally, Daniel Wellington has been criticized for over-branding. The brand is known to be fussy with its Instagram influencers as they choose those who have an Instagram feed aesthetically similar to that of Daniel Wellington’s brand personality (Gilliland, Four common mistakes brands make with influencer marketing). On several occasions, this has led to more focus on the brand image than the product itself. Thus, in its approach to appear sophisticated, Daniel Wellington can ‘overbrand’, losing its initial aim of focusing on marketing their products.
Daniel Wellington is known for its Instagram feed full of professional photography that brings in the ‘glamour’ look to the brand handle. DW’s photos bring a very stylish and classy feel to Instagram users, depicting a life of luxury and adventure (Vesilind, Instagram We Love: Daniel Wellington). In her article, Vesilind goes on to point out the five different kinds of photos published on the Daniel Wellington Instagram profile which contribute in making it a huge success: gorgeous outdoor scenarios, artfully arranged ‘flat lays’ referring to the organized pictures taken from above, aesthetically pleasing pictures of humans taken from a far, pictures with subtle hints of festive seasons and finally, adorable pictures of animals. In other words, Daniel Wellington’s sophisticated Instagram feed depicts tastefully arranged art, centered on the showstopper – the Daniel Wellington watch itself. This attractive Instagram feed entices users to follow and engage with the brand.
Instagram is notably among the top social media platforms to engage with users. Thus, making it an apt platform for Daniel Wellington to interact with its followers and encourage audience engagement. Daniel Wellington has incorporated User-Generated Content (UGC) in their communication strategy. The brand makes use of this powerful tool by encouraging their followers to post their own images of Daniel Wellington products by using their branded hashtag (#danielwellington). Every day one of their customers’ photo – wearing or focusing on a Daniel Wellington watch – is chosen and republished on their own Instagram feed using #DWPickoftheDay. This motivates customers to create their own content in the form of images or videos and publish them on Instagram in the hope to be chosen as the brand’s ‘pick of the day’ (Taylor, Daniel Wellington & Instagram). This would not only validate their work as ‘creative’ but also expose their content to DW’s millions of followers. So far, Daniel Wellington’s branded hashtag campaign, combining influencers and followers, has generated over 1.2 million Instagram photos and videos. In another article, Ojeda (How To Create A Brand That Grows On It’s Own) mentions that for brands to be successful, organic growth plays a significant role. Keeping this in mind, it’s safe to conclude that Daniel Wellington has a source of high-quality user-generated photos at their disposal, making it one of most successful brands on Instagram.
Will DW’s success with Instagram last?
To summarize Daniel Wellington’s communication strategy, the brand has been highly successful in dodging paid media as the company’s CEO never invested in traditional forms of media. The brand has established itself as one of the most viral watch brand on Instagram. Daniel Wellington started out with simple platforms as owned media like its website, and social media platforms like Facebook, Twitter, and Instagram, but today, its relies on its earned media, especially on Instagram, to communicate with its most important stakeholders – its customers.
Across all its channels, Daniel Wellington’s key messaging is consistent – engaging with customers and potential customers through its social media channels, especially Instagram, where it actively encourages quality user-generated content, using Instagram influencers for ‘natural’ product placements and generating traffic through promo codes.
Despite being one of the most used apps by millennials, Instagram is found to have substantial lacking for businesses (Latiff and Safiee, New Business Set Up for Branding Strategies on Social Media – Instagram). Even though Instagram requires another platform for a customer and seller to engage in a transaction, Daniel Wellington’s communication strategy through Instagram has seemed to work to build its brand. Daniel Wellington has been recognized as an accomplished brand, however, it has been noted that brands like Daniel Wellington are the reason for the end of the Swizz watch industry. In his article, Biggs (The Swiss watch industry is doomed) criticizes the economical pricing of Daniel Wellington and how similar brands are the reason luxury Swizz brands fail to keep up. He elaborates, stating that watches today are a mere commodity, blaming Daniel Wellington for selling ‘poorly-constructed watches’, thus providing customers a low-quality watch. With a recent study revealing Instagram as the worst social media application for young people’s mental health (Fox, Instagram worst social media app for young people’s mental health), it may be possible that Instagram might not remain as popular as it is today. In which case, brands like Daniel Wellington would have to take on other social media channels to promote their products and services.
With another study revealing the decline in the sale of smartphones (Swant, 7 Internet Trends From Mary Meeker’s 2017 Report That Marketers Should Know About), Daniel Wellington would need to consider other channels to market their product since access to all Instagram features are currently available only through its mobile application. As digital media continues to grow, Daniel Wellington can possibly find itself exploring or even experimenting with other social networks or applications to grow their customer base and retain their innovative brand identity. Even though Instagram started out as an image-sharing app, with every social network moving towards video, this platform is sure to introduce advanced features as it has with its launch of the live video platform (Burgess, Instagram’s future and where Kevin Systrom goes next).
With the fast-changing social network scenario, Daniel Wellington may be expected to add and remove elements from its marketing mix. Besides their online communication strategy, Daniel Wellington’s offline presence is noticeably grown over time. Their recent Hong Kong expansion adds to their existing 34 stores worldwide. In their attempt to make the brand identity more popular on the global scale, Daniel Wellington aims to open approximately 300 stores by the end of 2018. For now, Daniel Wellington’s communication strategy seems to be working in its favour. The steps taken by the company to spread their presence offline are also considered to be quite successful with the current times. With Daniel Wellington’s founder’s investment in a new technology fund helping Swedish start-ups make a positive social impact, it can be speculated that the billionaire has a visionary approach to social entrepreneurship as well as his products (Turula, The billionaire founders of Klarna and Daniel Wellington just announced a new ‘first of its kind’ tech fund). With time, Daniel Wellington’s communication strategy that highlights its products on social media, especially through Instagram, is bound to evolve with advancements in technology.
This communications strategy evaluation was first put together as a part of my coursework for master of marketing communications at the University of Melbourne.