Excerpt from the 2012 Digital IQ Index                                     ®                                              ...
Co-hosted by:                            NYC                       FOCUS 2013                JANUARY 24, 2013 | NYU STERN ...
Inquire about your brand’s ranking: Info@L2ThinkTank.com              Excerpt from the 2012 Digital IQ Index              ...
Inquire about your brand’s ranking: Info@L2ThinkTank.com              Excerpt from the 2012 Digital IQ Index              ...
Inquire about your brand’s ranking: Info@L2ThinkTank.com              Excerpt from the 2012 Digital IQ Index              ...
GENIUS                                                                                                                    ...
GENIUS                                                                                                                    ...
Top 100 digital_luxury_brands_in_china
Top 100 digital_luxury_brands_in_china
Top 100 digital_luxury_brands_in_china
Top 100 digital_luxury_brands_in_china
Top 100 digital_luxury_brands_in_china
Top 100 digital_luxury_brands_in_china
Top 100 digital_luxury_brands_in_china
Top 100 digital_luxury_brands_in_china
Top 100 digital_luxury_brands_in_china
Top 100 digital_luxury_brands_in_china
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Top 100 digital_luxury_brands_in_china

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this is an interesting insight of Chinese market - year 2012

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Top 100 digital_luxury_brands_in_china

  1. 1. Excerpt from the 2012 Digital IQ Index ® : China To access the full report, contact membership@L2ThinkTank.om ChinaDecember 18, 2012SCOTT GALLOWAYNYU Sterndoug guthrieThe George WashingtonSchool of BusinessDistribution of this report violates copyright, trademark and intellectual property laws. © L2 2012 L2ThinkTank.com
  2. 2. Co-hosted by: NYC FOCUS 2013 JANUARY 24, 2013 | NYU STERN This half-day, three module clinic hosted at NYU Stern will look at opportunities and trends that brands will face in 2013. Topics include China, the Changing Landscape of Retail, and The Enterprise Effect. Industry experts will discuss new opportunities for prestige brands in China, brand case studies will highlight effective strategies of dealing with trends in retail and L2 will present data on how the Enterprise Effect can be a friend and a foe to prestige brands. Tentative AgendaMODULE 1: China MODULE 2: Changing Landscape of Retail MODULE 3: The Enterprise Effect(featuring) (featuring) (featuring)Scott Galloway SapientNitro presents Connected Experience: Maureen MullenFounder A Glimpse into the Highly Personalized Director of Research & AdvisoryL2 Shopping Experience L2Doug Guthrie Alisa Gould-Simon Sonia MarcianoDean Co-Founder & VP of Creative Partnerships Clinical Full Professor ofThe George Washington School of Business Pose.com Management and Organizations NYU SternVimla Gupta & Andra MielnickiVice President of Global MarketingExecutive Director of Global CommunicationsBeautyBank
  3. 3. Inquire about your brand’s ranking: Info@L2ThinkTank.com Excerpt from the 2012 Digital IQ Index ® : China To access the full report, contact membership@L2ThinkTank.om Watch the Doubt China Video Click to Play For the first time in a decade, China is a question mark for the prestige industry. A midst slowing growth and political uncertainty, luxury executives Quarterly Chinese Luxury Retail Sales Growth are questioning whether the deceleration is temporary or the YoY Fixed Exchange Rate Q2 2011–Q3 2012 beginning of the end. We continue to believe China offers more 34% upside, often linked to digital, than any other luxury market. However, there is also more complexity and barriers to realizing return: Q3 2011 • While Mainland China’s organic luxury sales growth softened to single digits,1 % 47 Q2 26 Chinese tourist spend abroad increased 58 percent in Q3 2012,2 suggesting 1 201 % Q2411 Source: Barclays Equity Research consumer demand remains robust. 0 • In the next three years, Chinese e-commerce sales are projected to triple. However, two thirds of online sales will remain on C2C channels such as 201 Q3 2 Taobao. Poor fulfillment infrastructure, security concerns, and nascent payment Q112 6 % 20 % systems pose challenges to traditional direct e-commerce businesses. 2012 21 • Pricing arbitrage continues to threaten fledging e-commerce businesses. Q2 16% U.S. and European retailers ranging from Neiman Marcus to House of Fraser ship to China and advertise products at a fraction of the domestic price. Chinese E-Commerce Transaction Volume • Sixty-one percent of Chinese high-net-worth individuals indicate the Internet Q1 2010–Q3 2012 45.6 is a primary source for brand information, more than any other channel.3 Total Online Shopping (Billion USD) 43.1 However, while digital, social media, and video platforms may be the best B2C Online Shopping (Billion USD) 36.9 36.6 31.7 places to reach Chinese consumers, the landscape is fragmented, with 28.4 25.9 26.0 players emerging and declining in importance each year. 18.3 16.3 16.23 13.6 14.35 10.75 9.98 Source: iResearch 7.26 4.08 5.02 5.91 1.49 1.93 2.62 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2010 2010 2010 2010 2011 2011 2011 2011 2012 2012 2012 YoY Percent Growth E-Commerce 81% 80% 53% 88% 92% 75% 73% 43% 41% 52% 44% YoY Percent Growth B2C E-Commerce 1. “Investor Question Series: Will political change in China be a catalyst for growth?,” Barclays, November 16, 2012. 181% 209% 233% 199% 237% 206% 178% 164% 99% 143% 124% 2. Global Blue Q3 data. 3. HuRun Report 2012.© L2 2012 L2ThinkTank.com. REPRODUCTIONS AND DISTRIBUTION PROHIBITED 3
  4. 4. Inquire about your brand’s ranking: Info@L2ThinkTank.com Excerpt from the 2012 Digital IQ Index ® : China To access the full report, contact membership@L2ThinkTank.om China: Average Time Spent vs. Percentage of Ad Spend Visible Hand 2011 2.8 Attempting to ease public concern regarding the widening wealth gap, the 2.5 Chinese government continues to place restrictions on traditional luxury advertising. Just as errant attempts to legislate tobacco companies from 40% % of Total Ad Spend Average Time Spent (Hours) television in the U.S. resulted in a surge of innovation (e.g., CRM, point of purchase investment, better packaging), the visible hand of the Chinese government has inspired a wave of innovation in digital marketing via tighter regulation of traditional media. Chinese digital marketing spend is set to double over the next three years.4 19% 18% The increased investment and online innovation will inspire consumer exploration and 0.7 purchase that may supplant traditional methods, transforming the Chinese digital 9% 0.3 ecosystem into the global role model, versus the fast follower. The Same, but Different Many viewed digital as an agent of integration into the global community. TV Internet Newspapers Magazines However, while economic integration marches on, China’s digital landscape Percentage of High Net Worth Individuals Who Claim as Source of Product Info is becoming more distinct. The “Great Firewall of China” has strengthened as 51% 61% 43% 50% government control over Internet and mobile content tightens, fostering a “Wild Source: Ipsos via Zenith Media and CMMS Summer 2011. East” mentality resulting in local entrepreneurship and innovation. In this year’s Index we saw the emergence of several forces: So.com, in a few short months, Digital IQ = Shareholder Value has captured greater market share than Google, Pinterest-like curation platforms Our thesis is that the success of prestige brands in China is inextricably Meilishuo and Mogujie are gaining traction, and Tencent-owned WeChat, a mobile linked to digital competence. This study attempts to quantify the digital messaging service, has skyrocketed to 200 million users. performance of 100 iconic brands in China. Our aim is to provide a robust tool to Underinvestment? diagnose digital strengths and weaknesses and help managers achieve greater Despite opportunity, digital investment remains modest. Brands’ Chinese sites return on incremental investment. register average load times of 24.1 seconds, four times their global peers. One in five Like the medium we are assessing, our methodology is dynamic, and we hope prestige brands host their site in China and just over half display prices in RMB. While you reach out to us with comments that improve our approach, investigation, and Sina Weibo adoption by prestige brands has reached 91 percent, and the industry findings. You can reach us at scott@stern.nyu.edu and guthrie@gwu.edu. has registered double-digit increases in mobile, social, and search engine marketing adoption, just four brands have launched direct e-commerce since 2011. Third party players, including Western retailers, are filling the void and offering brands a trusted platform. However, in exchange, brands sacrifice control and a direct relationship with Scott Galloway Doug guthrie the end consumer. Professor of Marketing, NYU Stern Dean, The George Washington Founder, L2 University School of Business Founder, Guthrie & Associates 4. “Q2 2012 Global Digital Advertising Update,” Adobe, July 2012.© L2 2012 L2ThinkTank.com. REPRODUCTIONS AND DISTRIBUTION PROHIBITED 4
  5. 5. Inquire about your brand’s ranking: Info@L2ThinkTank.com Excerpt from the 2012 Digital IQ Index ® : China To access the full report, contact membership@L2ThinkTank.om ABOUT THE RANKING The Methodology Mobile Site Android Applications 20% 30% • Compatibility of • Availability in China China Site • Popularity • Functionality • Functionality Mobile • Transaction Capability Site iOS Applications Localization of site features • Availability in China • Technology: Load Time, Hosting Location Compatibility, optimization, and • Popularity • Customer Service & Store Locator marketing on smartphones and tablets • Functionality • Product Page • E-Commerce & Checkout • Integration of Chinese Social Media • Innovation: Product Customization, BBS/Microsites, 30% Category-Specific Functionality Brand presence, community size, content and engagement SNS • Sina Weibo • Page Size & Growth Social Media g Search BBS, Social, and Baidu Buzz 0% • Post Frequency tin • Tencent Weibo • Traffic • Mentions • Reposts & Comments e rk • Kaixin 2 • Web Authority • Average Daily Searches • Renren • Tabs & Applications a • Douban • Engagement Rate ta lM nd • SEO & SEM: Email igi a Baidu, So.com, Google ia, • Frequency Video Sites D ed Advertising & Innovation • Language • Views lm ts • Youku ita effor ig g • Online & Offline Synergies • Content • Tudou • Number of Uploads ,d n • View & Subscriber Growth rch rketi • Cross Platform Initiatives • Chinese Social Media S ea a • Emerging Social Platform Integration m ail • Viral Videos Adoption (WeChat, Meilishuo em & Mogujie, iQiyi, Jiepang) Note: Brand’s were scored based on effectivenees on platforms they participate on Digital IQ ClassesGenius 140+ Gifted 110–139 Average 90–109 Challenged 70–89 Feeble < 70Digital competence is a point of competitive differentiation. Brands are experimenting and innovating Digital presence is siloed Digital efforts lack. Investment does notSuccessful multi-channel, digital campaigns; functional across their site, mobile, traditional and by dimension. match opportunity.sites that cater to local needs; strong social presence emerging social media platforms.and integration across platforms.© L2 2012 L2ThinkTank.com. REPRODUCTIONS AND DISTRIBUTION PROHIBITED 5
  6. 6. GENIUS Estée Lauder Audi Excerpt from the 2012 Digital IQ Index ® : China Chow Tai Fook Lancôme GIFTED To access the full report, contact membership@L2ThinkTank.om Volvo BMW Buick Land Rover Benefit Cosmetics Burberry Clarins Shiseido Louis Vuitton DIGITAL IQ RANKING Key Findings Sephora Chanel Jaguar Kiehl’s Shangri-La Biotherm Coach SK-II Cartier AVERAGE RANK DIGITAL IQ RANK BRAND DIGITAL IQ RANK BRAND DIGITAL IQ Herborist Mercedes-Benzgenius GIFTED GIFTED Swarovski 1 Cadillac Clinique Ferrari 5 138 11 120 Tiffany & Co. Bobbi Brown Gucci 156 Shiseido Origins Porsche Zhejiang Geely Holding Group Jaeger-LeCoultre Marriott Infiniti Armani Hilton InterContinental The Estée Lauder Companies 6 136 13 118 CHALLENGED Dior Van Cleef & Arpels Raymond Weil 2 BMW Group LVMH Westin M.A.C Cosmetics St. Regis L’Occitane en Provence Guerlain Dolce & Gabbana 152 IWC Schaffhausen 6 13 Maserati 136 118 Yue-Sai Four Seasons Hugo Boss Mandarin Oriental General Motors LVMH Park Hyatt The Ritz-Carlton FEEBLE Volkswagen Group Aston Martin Wyndham Sofitel Luxury Hotels 3 8 15 Alfred Dunhill 133 117 Bulgari Omega Rolex Longines Tata Motors Chanel Valentino Lexus Kempinski 151 Fairmont Piaget The Peninsula Hotels Bottega Veneta 9 129 16 116 Montblanc TAG Heuer Bally Hublot LVMH Tata Motors Acura Calvin Klein Chow Tai Fook Enterprises Pandora Elizabeth Arden Lamborghini Ports 1961 4 10 124 17 115 Balenciaga Waldorf Astoria Ermenegildo Zegna Chloé Givenchy Conrad Burberry Group L’Oréal Salvatore Ferragamo De Beers 142 Diane von Furstenberg Hermés Vacheron Constantin Fendi 11 18 Versace 120 113 Shanghai Tang Pradagenius GIFTED GIFTED Harry Winston Baccarat L’Oréal Clarins Group Shangri-La International Hotel Management Patek Philippe Ralph Lauren © L2 2012 L2ThinkTank.com. REPRODUCTIONS AND DISTRIBUTION PROHIBITED 6
  7. 7. GENIUS Estée Lauder Audi Excerpt from the 2012 Digital IQ Index ® : China Chow Tai Fook Lancôme GIFTED To access the full report, contact membership@L2ThinkTank.om Volvo BMW Buick Land Rover Benefit Cosmetics Burberry Clarins Shiseido Louis Vuitton DIGITAL IQ RANKING Key Findings Sephora Chanel Jaguar Kiehl’s Shangri-La Biotherm Coach SK-II Cartier AVERAGE RANK BRAND DIGITAL IQ RANK BRAND DIGITAL IQ RANK BRAND DIGITAL IQ Herborist Mercedes-Benzgifted GIFTED average average Swarovski Cadillac Clinique Ferrari 19 112 26 105 33 93 Tiffany & Co. Bobbi Brown Gucci Origins Porsche L’Oréal General Motors Volkswagen Group Jaeger-LeCoultre Marriott Infiniti Armani Hilton InterContinental 20 111 27 101 34 92 CHALLENGED Dior Van Cleef & Arpels Raymond Weil Westin Coach Estée Lauder Companies Compagnie Financière Richemont M.A.C Cosmetics St. Regis L’Occitane en Provence Guerlain Dolce & Gabbana IWC Schaffhausen 20 28 34 Maserati 111 98 92 Yue-Sai Four Seasons Hugo Boss Mandarin Oriental Procter & Gamble Fiat Marriott International Park Hyatt The Ritz-Carlton FEEBLE Aston Martin Wyndham Sofitel Luxury Hotels 22 110 28 98 36 91 Alfred Dunhill Bulgari Omega giftedGIFTED GIFTED Rolex Longines Compagnie Financière Richemont Tiffany & Co. Nissan Motor Company Valentino Lexus Kempinski Fairmontaverage Piaget The Peninsula Hotels 37 Bottega Veneta 23 107 30 97 90 Montblanc TAG Heuer Bally Hublot Shanghai Jahwa Group Estée Lauder Companies Acura Giorgio Armani Calvin Klein Pandora Elizabeth Arden Lamborghini Ports 1961 Balenciaga 24 106 31 96 37 90 Waldorf Astoria Ermenegildo Zegna Chloé Givenchy Conrad Daimler Gucci Group (PPR) Hilton Worldwide Salvatore Ferragamo De Beers Diane von Furstenberg Hermés Vacheron Constantin Fendi 24 106 32 94 37 90 Versace Shanghai Tangaverage average average Prada Harry Winston Baccarat Swarovski Estée Lauder Companies InterContinental Hotels Group Patek Philippe Ralph Lauren© L2 2012 L2ThinkTank.com. REPRODUCTIONS AND DISTRIBUTION PROHIBITED 7

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