digital

Luxury Brands Need To Become Digitally Competent, Study Finds

Isaac Mostovicz writes that though luxury brands are taking steps to become more digital, there is still a lot more work to be done if they are to truly compete in a global market place...
L2, the think tank for digital marketing innovation, have carried out a study into the digital aptitude of European luxury fashion brands.
The study found that a third of brands did not support e-commerce despite predicted growth in this sector over the next three years, with those who did support it gaining on average 35 Digital IQ points higher than those who did not. It found that only a third of the brands provided mobile experience, with one on five on the brand websites not loading on a smartphone. Less than half of the brands surveyed were participating in paid search.
As Scott Galloway, L2 founder said:
“Digital could be the differentiator for brands that become iconic, and those that become irrelevant. Establishing direct relationships with end consumers through e-commerce and social media provides an opportunity for European niche fashion brands to punch above their weight class.”
It also found that brands head-quartered in the UK registered higher ‘Digital IQ’s’ than those from other countries, with Italy and France still lagging behind.
Interestingly, none of the brands surveyed received a ‘genius’ grading.
This demonstrates that, although luxury brands are taking steps to become more digital, there is still a lot more work to be done if they are to truly compete in a global market place, particularly in key growth areas such as China that demand a strong level of digital and online presence from brands.
The top ten brands were:
1. Agent Provocateur
2. Ted Baker
3. Stella McCartney
4. Superdry
5. Moncler
6. Moschino
7. Lanvin
8. Emilio Pucci
9. Jean Paul Gaultier
10. La Perla
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Affluent Consumers, the Interet and Luxury Marketing

Isaac Mostovicz writes that that with luxury consumers embracing online shopping, there is a stronger need for brands to maintain an insightful online presence than ever before...

Unity Marketing have carried out a report on “Affluent Consumers and How They Use the Internet, Social Media and Mobile Devices“.

Their key finding was that luxury consumers passionately enjoy the online shopping experience, and that those affluent consumers shopping online were those spending the most in support of their lifestyles.

The report also reported that:

  • Virtually all affluents using the internet; 80 percent of which use social media
  • Affluents who shop online are luxury brands’ best customers and best prospects
  • Affluents value internet shopping for its convenience, ability to shop 24/7 and its time saving aspects
  • Only 11 percent of affluents surveyed liked shopping in store more than online
Luxury consumers value on-line shopping for its convenience and speed

Luxury consumers value online shopping for its convenience and speed

The report predicted that in the next year, we will see more of social media being used to connect with luxury brands. As it stands, social media is used socially, not commercially.

The report concluded by stressing that there is a need for luxury brands to invest in understanding the needs, desires and motivations of their target consumers.

Luxury Activist says of this article...

The funny thing is that for many years, Luxury Brands thought that Internet was a cheap communication channel. Then, they changed their minds because unfortunately it is the Distribution and Retail stores who became cheap. So hopefully Internet ables Brands to communicate on the right way. We can also see the tremendous efforts that Brands made in terms of content. They are really good now.
LA

Isaac Mostovicz says of this article...

I have learned to communicate using “cheap” channels many years ago when I was looking to market some superior diamonds in Japan. The help I got from De beers was a list of glossy magazines where publication costs a fortune and I was not convinced at all. I found out that my target audience reads the gossip columns in three trash newspapers. It was easy to ask those three ladies writing the gossip columns to mention us. It was for free!
It is all about thinking on ourselves or on our customers…

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A digital opportunity for luxury brands

Isaac Mostovicz writes that luxury brands must increasingly consider the diverse media habits of their target market...

A new report from the Luxury Institute, a global body looking to provide a voice for the high net-worth consumer, found that wealthy individuals 35 years of age and younger are avidly consuming a wide range of new media on smartphones and tablet computers, and quickly losing the television, radio and print newspaper consumption habits of their parents.

With more Generation Y consumers watching online video (78%) than those who regularly read a printed magazine (76%) or newspaper (68%), the case for luxury brands to extend their online presence is continuing to be made.

“This is clearly a tipping point, with the rising generation of wealthy consumers consuming media in vastly different ways than anyone did just a decade ago,” Milton Pedraza, CEO, the Luxury Institute, said.

Furthermore, with 70% of respondents in possession of a smartphone, and 23% an Apple iPad, it’s clear that luxury brands need to consider their mobile marketing strategy as carefully as their broader online and social.

As I have previously discussed, online marketing and social media are certainly tools that luxury brands are beginning to explore, but this report further corroborates why engaging with consumers through digital channels can be particularly fruitful.

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