Customer engagement in the
digital era: the personal luxury
goods sector
PROsumerNET Final Conference
Bruxelles, 27th May ...
Personal luxury goods
Jewellery
Cosmetics
Perfumes 
Shoes
Watches
 Leather
Ready-to-Wear
Questions
How has the personal personal luxury
goods (PLG) industry adapted to the
digital “revolution”? 

How do PLG bran...
PLG = € 200bn#
Growth driven by Asia
2012 Best Global Brands - Top 100 
Burberry
Gucci
 Hermès
Louis Vuitton
Cartier
 Prada
European Cultural and
Creative Industries Alliance
(ECCIA – formed 2012)
Secretive product & design-oriented strategies#

An industry which has defined
itself, historically, by means of…
Iconic designer stars
Clearly defined and socially influential trends
Distance
The personal touch in the store or show-room
One-way communication through advertising ,
promotion, socialite PR
Lee Radzwill
former 
Armani 
PR
(USA)
Source: The New
...
Source: http://www.opte.org/
… and the online fashion phenomena - boom and
bust, which mercifully gave the industry some
y...
In early 2009 eminent academia still wrote of
luxury and the web in terms of the #
“Internet dilemma.” To be or not to be?
Luxemosphere=the
onlineluxuryexperience
Other analysts were
more prescient:
Okonkwo’s 2010
publication was very
influential.
By then first-movers had already
experimented online and in the mobile space
Web 2.0 user experience and mobile
technologies pushed the luxury industry to
recognize the changing role of the consumer…
…And to finally enter the Information Age.
The Web 2.0 divide
Luxury Pre-
Hieratic
Exclusive
Inaccessible
Luxury Post-
Democratic
Inclusive
Accessible
Personal luxur...
Hermes
Louis Vuitton
Gucci
Cartier
Prada
Chanel
One of the brands which has
embraced digital with vigor
and used it to smartly
engineer its repositioning
strategy is the ...
Although “it is critical to never forget”
the heritage of the Burberry brand
“…our vision is to be fully digital end-
to-e...
Digital: a tool for the engagement of a wide
audience of Burberry publics
Source: Wheeler & Sillampää (1997).
Employees
Learn about collections before
they hit the runway
Wholesalers
Order in real-time during the fashion show
Customers
Customize their trench online…
Aficionados
… upload and share the look online
Anyone
Can watch the runway show live
Fans
Talk about it on social media
Enterprise infrastructure
Human resources management 
Technology development
Purchasing
Internal
logistics
Operations
Exte...
The ability of personal luxury brands to
move beyond digital customer engagement
in the pursuit of integrated value creati...
Thank you!

michela.ornati@supsi.ch
@mornati
www.oltreilcrm.com
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Michela Ornati - Customer engagement in the digital era: The personal luxury goods sector

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Customer engagement in the digital era: the personal luxury goods sector, presentation by Michela Ornati at the final conference of PROsumer.NET project on 27 May 2013 in Brussels

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Michela Ornati - Customer engagement in the digital era: The personal luxury goods sector

  1. 1. Customer engagement in the digital era: the personal luxury goods sector PROsumerNET Final Conference Bruxelles, 27th May 2013 Michela Ornati
  2. 2. Personal luxury goods Jewellery Cosmetics Perfumes Shoes Watches Leather Ready-to-Wear
  3. 3. Questions How has the personal personal luxury goods (PLG) industry adapted to the digital “revolution”? How do PLG brands engage stakeholders, particularly customers, in the digital era?
  4. 4. PLG = € 200bn# Growth driven by Asia
  5. 5. 2012 Best Global Brands - Top 100 Burberry Gucci Hermès Louis Vuitton Cartier Prada
  6. 6. European Cultural and Creative Industries Alliance (ECCIA – formed 2012)
  7. 7. Secretive product & design-oriented strategies# An industry which has defined itself, historically, by means of…
  8. 8. Iconic designer stars
  9. 9. Clearly defined and socially influential trends
  10. 10. Distance
  11. 11. The personal touch in the store or show-room
  12. 12. One-way communication through advertising , promotion, socialite PR Lee Radzwill former Armani PR (USA) Source: The New Yor Times Fashion Magazine, February 2013
  13. 13. Source: http://www.opte.org/ … and the online fashion phenomena - boom and bust, which mercifully gave the industry some years to think this new medium through. …And then came the web…
  14. 14. In early 2009 eminent academia still wrote of luxury and the web in terms of the # “Internet dilemma.” To be or not to be?
  15. 15. Luxemosphere=the onlineluxuryexperience Other analysts were more prescient: Okonkwo’s 2010 publication was very influential.
  16. 16. By then first-movers had already experimented online and in the mobile space
  17. 17. Web 2.0 user experience and mobile technologies pushed the luxury industry to recognize the changing role of the consumer…
  18. 18. …And to finally enter the Information Age.
  19. 19. The Web 2.0 divide Luxury Pre- Hieratic Exclusive Inaccessible Luxury Post- Democratic Inclusive Accessible Personal luxury goods brands have developed distinctive cross-channel luxemosphere and interactive strategies strongly reliant on storytelling techniques. A few examples
  20. 20. Hermes
  21. 21. Louis Vuitton
  22. 22. Gucci
  23. 23. Cartier
  24. 24. Prada
  25. 25. Chanel
  26. 26. One of the brands which has embraced digital with vigor and used it to smartly engineer its repositioning strategy is the UK’s historical luxury brand Burberry. In the hands of Christopher Bailey and Anna Ahrendts, it has engaged in an all-out, no means barred mission to transform itself into the quintessence of the digital business model. The Social (Media) Enterprise
  27. 27. Although “it is critical to never forget” the heritage of the Burberry brand “…our vision is to be fully digital end- to-end,” to give the customer “total access to the Burberry world,” to be “totally connected to anyone who touches” the brand (*) GO TO SALESFORCE.COM’S YOUTUBE CHANNEL – SEARCH BURBERRY. FULL LINK: http://www.youtube.com/watch?v=XErGxMYuF2M&feature=share&list=PL1EA6EA0EA38F639E In the words of Anna Ahrendts(*)
  28. 28. Digital: a tool for the engagement of a wide audience of Burberry publics Source: Wheeler & Sillampää (1997).
  29. 29. Employees Learn about collections before they hit the runway
  30. 30. Wholesalers Order in real-time during the fashion show
  31. 31. Customers Customize their trench online…
  32. 32. Aficionados … upload and share the look online
  33. 33. Anyone Can watch the runway show live
  34. 34. Fans Talk about it on social media
  35. 35. Enterprise infrastructure Human resources management Technology development Purchasing Internal logistics Operations External logistics Marketing &sales Services Is Burberry pursuing a forward-looking strategy of Integrated External Engagement Kramer, M. K., Porter, M. The Link Between Competitive Advantage and Corporate Social Responsibility. Harvard Business Review, Jan. Feb. 2007. Brown, J., Nuttali, R. Beyond Corporate Social Responsibility: Integrated External Engagement. McKinsey & Company, March 2013 ie., the embedding of multiple stakeholder concerns across the value chain and within each business decision?
  36. 36. The ability of personal luxury brands to move beyond digital customer engagement in the pursuit of integrated value creation strategies with a variety of publics might become one of the deciding factors of future competitiveness in this sector.
  37. 37. Thank you! michela.ornati@supsi.ch @mornati www.oltreilcrm.com

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