Industry Digital Trends Keeping up with changing customers

To identify and communicate on-going understanding and awareness of competitor

activity and relevant industry trends

Scope

Digital is influencing almost 20% of total luxury sales;

More than 45% of luxury purchases are influenced by what shoppers find in

the digital universe;

Over 59% of visits come from smartphones and tablets (41% come from

desktop);

The largest share of visitors to luxury brand sites are age 55+ but much

younger consumers (age 18-24) are the next largest demographic;

Social media accounts for nearly 7% of traffic to luxury brands, with the

majority coming from Facebook (search engines and social media are the

two most important traffic sources. Third source is email);

Sources: Altagamma-McKinsey Online Observatory, PM Digital Trend Report: Luxury Brands Online 2014

Findings

Omni-channel marketing to offer an immersive experience whether in-

store, on social media or a website (to bridge digital and physical);

Mobile commerce and initiatives based on geolocation, camara, push

notifications (LV Pass app that scan LV campaign images in order to

access behind the scene content, featured product info, exclusive videos

and images and store locator);

Social commerce (Twitter Buy for Burberry, Like2Buy on Instagram for

Nordstrom);

Initiate a meaningful conversation with younger target (Burberry acoustic,

Ralph Lauren social media involvment);

Sources: Altagamma-McKinsey Online Observatory, PM Digital Trend Report: Luxury Brands Online 2014

Implications

Omnichannel strategies

Best practices

Best practices

The goal is to bring the digital experience of the

website in a physical space (flagship store in Regent

Street):

Full-length screens which changes between

displaying content to live streaming fashion shows

and sometimes into mirrors;

RFID chips attached to some product which display

content related video when it comes close to the

mirror in the dressing room;

500 hidden speakers and 100 screens to dive in the

brand environment;

Employees equipped with iPads to let the customer

access its account and check the whish list

“Find a boutique” tab on product

pages to put the user on a path to

purchase the product in a brick

and mortar store

iBeacon technology for location-

based marketing and payments

Best practices

In-store online inventory visibility to empower its customers

Memory Mirror technology deployed in its Walnut Creek, CA, that

capture images and videos of clothing customers try on and integrate

with the existing retail space.

Main features:

Allow customers to see outfits on a 360 degree view;

Save each item so they can be reviewed afterwards;

Allow the social sharing of each item;

Let the staff send personalized recommendations to customers

directly from the mirror;

Best practices

Nordstrom has started using Pinterest to highlight products in their stores.

Handbags and women shoes popular (most pinned or reviewed) on Pinterest

are displayed with a red tag in their stores

Mobile strategies

Best practices

To engage users thanks to device features like camara,

GPS, push notifications

Product Personalization: let the user create a personalized product (tiffany,

chopard, LV)

Virtual Outfit/make-up trial (Sephora, Burberry, Macy’s)

QR code/image scan from a print campaign to access exclusive products, store

locator, behind the scenes

Loyalty programs to engage users and let them access loyalty point info and

redemption tools on the go and on demand by leveraging location-aware push

notification (discounts, promotions, offers)

Live stream/exclusive live event access

Whish list and personal page

Entertainment (games, music, etc)

Mobile payments based on NFC technology

Mobile Strategies: how to engage users?

Mobile Best practices 1/2

Integrating online and offline

commerce, Louis Vuitton’s Pass app

allows purchase of featured products

and includes a store locator.

The app allows users to scan print

advertising campaigns and access

exclusive content.

Michael Kors’ MK360 app allows users

to experience the brand’s Jet Set

Collection debut in Shanghai, China,

giving them 3D visuals of the runway

show, a tour of the festivities in the city

and the event

In February 2014 Gucci previewed an

upcoming major app revamp called

Luce that will allow users to interact with a

runway show and scan print images to

access more content and product info.

The current app shows featured products

that users can either wish-list or buy.

Mobile Best practices 2/2

Hermes Tie Break app includes

informative and entertaining content like

tie tying how-to’s, arcade games and

cartoons, as well as a gallery of

autumn/winter 2014 tie patterns

Social Media strategies

Best practices

SM Best practices: UGC and online buzzing

The Art of the Trench invited Burberry

trench coat enthusiasts to post their

selfies to a campaign site that

leveraged social media sharing and

partnerships with major fashion bloggers.

The campaign allowed viewers to vote

and comment on their favorite images,

share them with friends, and to click

through to the e-commerce site to

purchase items that caught their eye.

#diorjadore social campaign to create

online buzz around the video teaser

distributed on Dior site and social

channels to anticipate the new parfum

campaign featured by the actress

Charlize Theron

SM Best practices: social commerce

Burberry social commerce

leveraging Twitter’s new social

shopping button on its mobile app.

Burberry is one of the beta partners

that will be testing this new feature

Nordstrom launched the Like2buy button on

Instagram to turn the social channel into a

shopping heaven for its users. Clicking on

the picture will take the user to the website

where product details and reviews are

available. The user can then purchase the

items through a secure page set up by the

company.

Thanks

afruz_besharati@yahoo.it