Unravelling the Threads App: The Luxury Brand Perspective
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This week, Meta launched their new app, ‘Threads’, captivating the attention of millions around the globe. While the platform has swiftly gained traction with its unique approach, luxury brands have been more cautious in embracing this new frontier. In this article, we explore the phenomenon that is ‘Threads’ and delve into how luxury brands are approaching it.
What is ‘Threads’?
Threads is Instagram’s text-based conversation app, where communities come together to discuss everything from current topics of interest to emerging trends. The app is closely tied to Instagram, allowing users to have the same username and providing seamless login access and the ability to follow accounts from their Instagram profiles.
So, how does it work?
Currently, Threads functions similarly to social giant Twitter, featuring a familiar interface and functionalities such as liking and reposting others’ comments. Users can share text posts of up to 500 characters, along with links, photos, and videos of up to five minutes in length. However, some key features such as search, hashtags, a following feed, graph syncing, and private messaging are still missing. It is expected that these features will be rolled out in the coming weeks, one for us to keep an eye on.
Monetisation and User Base
Monetisation on the platform is yet to be determined, as Mark Zuckerberg aims to reach 1 billion users before implementing such strategies. With over 60 million users already, Threads has made a significant impact in a short period.
Which luxury brands have adopted the new app?
In terms of luxury brands, it seems many have secured their handles on the platform but are not actively posting content just yet. When looking to luxury automotive for example, our research reveals that brands such as Ferrari USA, Bentley Motors, Rolls-Royce Cars, Mercedes-AMG F1, Porsche Indonesia, and McLaren have established a presence. On the other hand, luxury brands such as Lamborghini, Maserati, Bugatti, and Porsche Global are yet to join.
Notably, major fashion houses and key players in the luxury industry, including Burberry, Gucci, Chanel, Rolex, and Dior as examples of major players are yet to adopt yet another platform. This cautious approach is characteristic of luxury brands, who quite often take their time to evaluate and strategise their entry into new platforms.
Who are the Early Adopters?
In contrast to luxury brands, a pool of non-luxury brands have embraced Threads and adopted a hybrid TikTok/Twitter approach. These brands are leveraging the informal tone of the platform, using it to tease upcoming launches and exclusive content. For instance, Gymshark playfully shared, “my boss doesn’t know about Threads, imma go off on one.” Additionally, the app already features a considerable number of celebrities and influencers, as Meta intentionally filled the platform with well-known users to ensure a credible and active launch.
What potential does the newly coined ‘Twitter Killer’ hold?
As with any new social channel, the true potential of Threads in these early days remains uncertain. The platform has enjoyed a strong start, surpassing major social media platforms in history by reaching 1 million users in under 2 hours – impressive. However, it’s not uncommon for social channels to see great success at the start (e.g. Clubhouse, BeReal), with numbers dwindling after a few months with user decline. Yet, with the backing of Instagram, Threads holds the potential for long-term success. For luxury brands, it could serve as a “brand-safe” alternative to Twitter amidst the changes happening at Twitter HQ. Nevertheless, a specific strategy tailored to the platform will be crucial, rather than mere replication of content from Twitter.
We’ll be keeping a close eye on META and any Thread app developments in the coming weeks.
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