1) Between 17-20% of luxury retail brands' customer intentions come from mobile devices, affecting all luxury brands globally. The impact is higher in larger luxury markets like the US, UK, France, and Japan. 2) Most luxury brands are not optimizing their mobile experiences and are abandoning a large percentage of customer intentions and requests on mobile. Basic mobile sites and lack of apps mean the experience is broken for many brands. 3) To capture the mobile opportunity, brands should take a three step approach - fix basic mobile experiences, mobilize storytelling through participative content, and create holistic value experiences across all channels including mobile. This will allow brands to engage customers and win on mobile.

1. Mobile and Luxury Retail Brands
Beyond critical mass, the opportunity for engagement
Geneva, 10th May 2011

2. Vertical Channels
Print TV Web In-Store Events...
Mobile and Luxury Retail Brands 2

3. 9th Jan 2007

4. ... and then mobile was created...
Print TV Web In-Store Events... MOBILE
Mobile and Luxury Retail Brands 4

5. 200 Million 400 Million 50 Million
iPhones Android phones iPads
Source: Apple Reports, Jan 2012; Google press releases

6. Smartphones are beyond critical mass
Million Users % Penetration 16-65
105
91
83
78
42 43
US EU5 JAPAN
Number of Users and Penetration on the 16-65 population of smartphone devices
source: Data from ITU, CIA and GSMA; Dec 2011
Mobile and Luxury Retail Brands 6

7. Mobile “extends” internet
Mobile 11 pm
PC
Traffic
1 pm
8 pm
7 am
Time
source: Google Mobile Queries Balanced- Google Think!
Mobile and Luxury Retail Brands 7

8. ... and its more than another channel
Print TV Web In-Store Events... MOBILE
MOBILE
the Über-Channel
Mobile and Luxury Retail Brands 8

9. and...
What does this mean for
Luxury Retail Brands?
Mobile and Luxury Retail Brands 9

10. Engagement Funnel
Attention Intention Interaction
Enter Stores... Talk to Assistant
Stimuli
Go to the website
Navigate
Search and Click
Mobile and Luxury Retail Brands 10

11. What proportion of “intentions” come
1
from mobile devices?
How engaging is the experience on the
2
devices the “interactions” come from?
How can Luxury Retail Brands act on the
3
opportunity and “mobilise”?

12. What proportion of “intentions” come
1
from mobile devices?

13. Mobile searches by Brand - Feb 2012
25%
23%
19.8% 19.7% 19.6%
20%
16.6% 16.8% 16.7% 16.8% 16.8% 16.7% 16.7%
15%
9.9%
10%
5%
0%
Louis Vuitton Prada Chanel Bally Hermés Gucci Fendi Burberry Dior Versace Louboutin Jimmy Choo
source: Google Adwords - Keyword Tool
Mobile and Luxury Retail Brands 13

14. Conclusions - Set 1
Between 17% and 20% of Luxury Retail Brand’s
i customer “intentions” come from mobile devices;
ii This affects all Luxury Retail Brands;
Mobile and Luxury Retail Brands 14

15. Mobile searches by Geography - Feb 2012
25%
23.65%
21.09%
20%
16.5%
15% 14.61%
10.52%
10% 9.33%
8.42%
5%
0%
US UK France Italy Germany Switz Russia
source: Google Adwords - Keyword Tool
Mobile and Luxury Retail Brands 15

16. Mobile searches by Geography - Feb 2012
50%
46.96%
45% 44.23%
40%
35%
29.86%
30%
25% 22.76%
20%
15%
10%
6.55%
5%
0%
Japan Hong Kong UAE Brazil India Korea
source: Google Adwords - Keyword Tool
Mobile and Luxury Retail Brands 16

17. Conclusions - Set 2
i Mobile is a global transformation;
ii The impact is higher in the largest luxury markets;
iii “There is nowhere to hide”
Mobile and Luxury Retail Brands 17

18. How engaging is the experience on the
2
devices the “interactions” come from?

19. How are Luxury Retail Brands doing in search results?
! !
Mobile and Luxury Retail Brands 19

20. But the experience is broken...
!
!
Mobile and Luxury Retail Brands 20

21. Some brands are getting it right
!
Mobile and Luxury Retail Brands 21

22. some Brands are over-doing it
!
Mobile and Luxury Retail Brands 22

23. ... and then came the iPad, and not much changed
!
Mobile and Luxury Retail Brands 23

24. again, some brands are getting it right
!
Mobile and Luxury Retail Brands 24

25. Conclusions - Set 3
Most of Luxury Retail Brands are abandoning a large
i percentage of their customers “intentions” and requests;
ii Most Brands are not putting the money where their clients are;
iii Brands need a framework to “make sense of it all”;
Mobile and Luxury Retail Brands 25

26. How can Luxury Retail Brands act on the
3
opportunity and “mobilise”?

27. A three steps approach
Fix the Basics
Mobile Presence
and Basic Brand
Experience
Mobile and Luxury Retail Brands 27

28. A three steps approach
Mobilise the Story-telling
Create Mobile
Fix the Basics
Participative,
Interactive,
Augmented
Brand Stories
Mobile Presence
and Basic Brand
Experience
Mobile and Luxury Retail Brands 28

29. A three steps approach
Create Value Experiences
Mobilise the
Luxury Retail
Brand holistic
experience and
value
Mobilise the Story-telling
Create Mobile
Fix the Basics
Participative,
Interactive,
Augmented
Brand Stories
Mobile Presence
and Basic Brand
Experience
Mobile and Luxury Retail Brands 29

30. Fixing the basics
Mobile Presence
and Basic Brand
Experience
Ensure you
have a well Analytics, An app is a
Optimise for
thought Analytics, continuous
mobile search;
through mobile Analytics; investment;
site;
Mobile and Luxury Retail Brands 30

31. Mobilise the Story-telling
Create Mobile
Participative,
Interactive,
Augmented
Brand Stories
...and then
Amplify the Ensure you
What is the choose what
story-telling have an
story you want mobile
with a social- outstanding
to tell? engagement
value angle execution
fits best;
Mobile and Luxury Retail Brands 31

32. Win on Mobile
Mobilise the
Luxury Retail
Brand holistic
experience and
value
Holistic Customer
Innovation,
Experience Value come
Innovation,
crosses all First at all
Innovation;
other channels times
Mobile and Luxury Retail Brands 32

33. ... next
Mobile
A path to
Win in China
Success Strategies in engaging
Chinese consumers through
Mobile Communications and Services;
Copyright © 2011 BrandEmotivity
Mobile and Luxury Retail Brands 33

34. Thank You
nuno.santos@BrandEmotivity.com
London | Paris | Singapore | Shanghai