Innovation

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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Appealing to China’s High-end Buyers

Isaac Mostovicz writes that that luxury brands now have to go above and beyond to target China's luxury consumers...

Innovative new ideas are the key to winning the heart of China’s luxury buyers, according to this article in The Australian.

Luxury internet-retailer Yoox has teamed up with Fed-Ex to launch a service that will see delivery men wait on the doorsteps of luxury consumers whilst they try on their purchases and decide if the product is worth keeping, or if they want to send it back.

To stand out in this competitive market, luxury brands now have to go above and beyond in terms of marketing and products. Examples of this include giving customers private driving lessons with F1 drivers, hosting star-studded fashion events and instant-messaging fashion advisors to help with questions of size and fabric.

These examples are all part of a larger trend of offering special perks and exclusive services to China’s consumers, as they become sophisticated world leaders in luxury consumption.

Luxury Homes in Spain says of this article...

China is eager to proove to the world that it is the top luxury goods consumer and it certainly is the country to watch out for in the coming years, as its economy booms.

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Hotels set the benchmark in luxury living

Isaac Mostovicz writes that that hotels remain a potent symbol of luxury and aspiration...

A recent BBC documentary “Time Shift: Hotel Deluxe” set out how luxury hotels meet the needs of all forms of wealth, from aristocrats to rock stars, through impeccable service and remaining at the cutting edge. Luxury hotels are a breeding ground of innovation; for example, they were the first places to have en-suite bathrooms, a trend which rapidly caught on in the private property sector.

The programme suggests that to understand luxury, we need look no further than luxury hotels, such as the Savoy, the Ritz, the Dorchester, which are synonymous with wealth and style around the globe. Even during the recession, new hotels were springing up – six in London – providing a case-in-point of their durability and continued relevance to luxury lifestyles.

When these hotels were first launched in their current incarnation, 150 years ago, these were for the few rather than the masses. Most people could not afford to visit them, and so they remained a symbol of aspiration. Although luxury hotels are now more accessible, as more people possess disposable incomes, the pull of what the programme dubs “clubability”, or meeting like-minded people, remains substantial; “your hotel says more about you than your cash ever can.”

But now that luxury hotels are de rigueur, what is next? The new super hotels, such as those in Dubai and the US which charge up to £20,000 a night provide a playground for the super rich, and these new hotels are just as exclusive as luxury hotels were in their beginnings.

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