Mrs. Michelle Obama, First Fashionista, Drives $2.7 Billion
First Lady Michelle Obama's sense of fashion has been widely discussed since she emerged on the national stage. But until now, no one has analyzed the marketing and economic impact of the brands she decides to wear or even mention. But a professor at the New York University, Stern School of Business estimates the value of any given appearance by Michelle Obama at $14 million.
Further, the stock prices of 29 public companies — whose clothes she wore in a total of 189 public appearances from November 2008 to December 2009, saw a combined spike in their added value of $2.7 billion dollars. The impact according to professor David Yermack is unprecedented.Mrs. Obama boosts the stock price of these brands immediately, significantly, and with a long lasting effect. Three factors come together to drive her market mover influence. The first is technology. The speed of the internet and social interaction allow information about her choices to reach millions of consumers faster than ever. Second is her position. As a public figure, she's not being compensated to endorse a brand. In fact, her value on the brands, exceeds that of celebrity endorsements and spokespersons for the brands. Third is authenticity. Michelle Obama was a fashion trendsetter before arriving at the White House. Her style has even passed to her children. Consumers translate this to mean she is being genuine and knowledgeable about the world of fashion.
As a marketer, entrepreneur, or company how are you utilizing these three factors in developing your brand? What's the value you bring to the marketplace. And are you positioned to handle the "Michelle Obama Effect"?
I'll be reviewing some of these issues in my upcoming workshop "Building Brand You" at the Let Us Talk Wealth Symposium being held in Philadelphia. I hope to see you there. Or drop me a line with your thoughts.