Prestige100 mobile2012

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Prestige100 mobile2012

  1. 1. Mobile IQ© L2 2012 L2ThinkTank.com January 11, 2012 SCOTT GALLOWAY NYU Stern
  2. 2. register now Mobile Clinic Welcome Scott Galloway Founder, L2 Digital Omnivores: Key Insights Into Today’s Connected Consumer Mark Donovan SVP Mobile, comScore, Inc. Mobile is Dead, Long Live Mobile Andy Weissman Partner, Union Square Ventures The Game Changer on the Path to Purchase Jeremy Arnon Strategic Partner Development, Google Q&A Session Evolving Strategy for Creative Execution in Mobile Nuri Djavit Partner & CEO, Last Exit HTML5: Going Web vs. Going App Jason Baptiste Cofounder & CEO, OnSwipe Lessons from “The Collection” MZ Goodman & Simone oliver New York Times Influencing Real Life Networks Tanuj Parikh Business Development Manager, GroupMe Insights from Prestige 100® : Mobile IQ MAUREEN MULLEN & Colin Gilbert Research & Advisory, L2 Q&A Session Welcome Scott Galloway Founder, L2 The Mobile Landscape in Europe Jeremy Copp VP, Mobile, Europe, comScore, Inc. Evolving Strategy for Creative Execution in Mobile Kent Valentine Engagement Director, Last Exit Retail … Forever Transformed Chuck Goldman Chief Strategy Officer, Apperian, Inc. Case Studies & Best Practices in Prestige Mobile Patrick Sarkissian CEO & Founder, Sarkissian Mason Q&A Session The Google Mobile Platform Robbie Douek Head of Mobile Sales & Operations, Google France L2 Mobile Research Maureen Mullen & Colin Gilbert Research & Advisory, L2 Hugo Boss: A Case Study Markus Aller Teamleader, Online Media, Hugo Boss Joachim Bader Managing Director, CLANMO GmbH Q&A Session nyc ParisJanuary 19, 2012  NYU Stern January 24, 2012  Palais Brongniart register now Module 1: Module 1: Module 2: Module 2:
  3. 3. © L2 2012 L2ThinkTank.com 3 Want to know more about your brand’s Mobile IQ? CONTACT US Mobile IQ In the fourth quarter of 2010, more smartphones were shipped than PCs for the first time.1 By 2015, more users will access the Internet wirelessly via a mobile device than from a wired Ethernet connection.2 Over the next five years, m-commerce sales are set to quintuple.3 On the year’s biggest shopping day, Black Friday, online retail traffic from mobile devices comprised 14.3 percent of page views, up from 5.6 percent last year, and mobile sales ballooned to 9.8 percent of online sales, up from 3.2 percent last year.4 Throughout the past decade, analysts have relentlessly predicted “The Year of Mobile.” It now looks as if we are in the fledgling innings of a mobile era. Game Changer The introduction of the iPad in April 2010 has escalat- ed the mobile opportunity. Tablets register e-commerce conversion rates of four to five percent versus three percent on traditional PCs.5 The user demographics for the iPad and other tablets illuminate the opportunity for prestige brands: 20 percent of individuals with $1 million or more in investable assets own a tablet and spend 50 percent more time on the device than on their smartphone.6 APPeal Prestige brands have been prudish with mobile. The mobile strategy for most brands has been dominated by blind investments in iOS apps that lack utility and “stickiness.” Seven in 10 brands in the Index maintain at least one iOS app, but less than a third of all apps produced are commerce-enabled. Use of features such as notifications, geolocation, and language specification is more limited. Less than a fifth of brands have developed a distinct, iPad-specific experience. M-Commerce We believe the game will be won or lost via develop- ment and optimization of robust, device-agnostic mobile commerce sites. Although two-thirds of brands currently maintain a mobile site (the majority launched within the past year), only 67 percent of these sites are commerce- enabled. Furthermore, use of such marketing tactics as mobile- optimized search marketing, cross-platform mobile promotion, and mobile display advertising is scant. Mobile:End of the Beginning 1. “Smartphone Shipments Surpass PCs for the First Time. What’s Next?” Chloe Albanesius, PC Magazine, February 8, 2011. 2. “IDC: Mobile Internet to Pass PCs by 2015,” Mark Hachman, PC Magazine, September 12, 2011. 3. “Mobile Commerce Forecast: 2011 to 2016,” Sucharita Mulpuru, Forrester, June 17, 2011. 4. “Shoppers Research Deals via Mobile and Online Ahead of 2011 Black Friday Sales,” Miranda Miller, Search Engine Watch, November 28, 2011. 5. “Tablets: Ultimate Buying Machines,” Dana Mattioli, Wall Street Journal, September 28, 2011. 6. “Why Millionaires Love Steve Jobs (and the iPad),” Robert Frank, WSJ Blog: The Wealth Report, August 25, 2011.
  4. 4. © L2 2012 L2ThinkTank.com 4 Want to know more about your brand’s Mobile IQ? CONTACT US Mobile IQ Scott Galloway Founder, L2 Clinical Professor of Marketing, NYU Stern Iconic, but Immobile While more than half the brands in the Index maintain both an app and a mobile site, 16 percent of brands have yet to produce either. Icons such as Hermès, Patek Philippe, Bottega Veneta, and Marc Jacobs rely exclusively on their traditional site experience, which in some cases proves inaccessible on mobile devices. Mobile competence may be a crystal ball for a brand’s global prospects. Ground zero for growth in prestige exists in emerging markets among a burgeoning middle class who are increasingly turning to a small screen to learn about and ultimately purchase prestige brands’ products. Mobile IQ = Innovation’s Canary in the Coal Mine Our thesis is that competence in mobile is inextricably linked to shareholder value in the prestige industry. Key to managing and developing a competence is an actionable metric. This study attempts to quantify the mobile and tablet competence of Prestige 100® brands. Our aim is to provide a robust tool to diagnose strengths and weaknesses and help managers achieve greater return on incremental investment. Like the platforms we are assessing, our methodology is dynamic, and we hope you will reach out to us with comments that improve our investigation and findings. You can reach me at scott@stern.nyu.edu. Regards, 52% Both 70% Mobile App 66% Mobile- Optimized Site 16% Neither prestige 100® mobile investments (December 2011) 2010 2011 2012 2013 2014 2015 2016 3 6 10 14 19 25 31 BILLIONSOFDOLLARS mobile commerce sales FORECAST 2010–2016 United States (Source: Forrester, June 2011) cagr: 39%
  5. 5. © L2 2012 L2ThinkTank.com 5 Want to know more about your brand’s Mobile IQ? CONTACT US Mobile IQ Methodology mobile sites: Mobile-Optimized Sites: • Technology • Navigation & Search • Social Media Integration • Customer Service • Product Page • Account & Check-Out Mobile Applications: Availability: • iOS (iPad Differentiation) • Android • Blackberry • Windows Phone Series 7 • Symbian mobile marketing: • Mobile SEO on Google & Bing • Email: Mobile Compatibility & Cross-Promotion of Mobile Properties • SMS: Sign-Up & Activity innovation & integration: • Integration: Promotion of Mobile Efforts on Site, Facebook, and Twitter • Geolocal: Presence & Activity on Foursquare • Innovation: Mobile Ad Campaigns, QR Codes, Mobile Wallet Support, etc. 30% 15% 40% 15% Mobile IQ Classes IQ Range Class 140+ GENIUS Mobile competence is a point of differentiation. Brands pursue a device-agnostic app/site strategy, embrace m-commerce, and consciously integrate mobile across wider digital footprint. 110–139 GIFTED Brands demonstrate high-quality, high-impact approach to mobile within a select dimension, sometimes at the expense of a wider mobile offering. 90–109 AVERAGE Efforts are siloed and inconsistent. Mobile presence suggests explicit preference for site versus app strategy or is primarily concentrated in low-cost entry platforms (e.g., geolocal). 70–89 CHALLENGED Limited mobile investment reflects low prioritization relative to other digital efforts. <70 FEEBLE Investment does not match opportunity. App Store Performance: • Ratings • Comments • Update Frequency • Language Support Functionality: • Navigation • Pathway to Purchase • Personalization • Phone Feature Utilization Tablet Experience: • Compatibility • Ability to Transact • HTML5 Support
  6. 6. © L2 2012 L2ThinkTank.com 6 Want to know more about your brand’s Mobile IQ? CONTACT US Mobile IQ Brand Ranking Rank Brand Category Parent Mobile IQ Class Description 1 SEPHORA Retail LVMH 164 Genius Long-standing, sustained, iterative investment in mobile pays off 2 NORDSTROM Retail Nordstrom, Inc. 156 Genius New mobile app leapfrogs peer efforts with firm link between in-app and in-store experience 3 MACY’S Retail Macy’s, Inc. 155 Genius Active SMS program and Xmas app experience add unique elements to strong mobile portfolio 4 NET-A-PORTER Retail Compagnie Financière Richemont S.A. 143 Genius Unique apps for local promotions, store exclusives, and spinoffs complement strong mobile site 5 BLOOMINGDALE’S Retail Macy’s, Inc. 135 Gifted Engaging, offer-centric mobile site overshadows generic iPad catalog app 6 L’OCCITANE EN PROVENCE Beauty & Skincare L’Occitane International S.A. 133 Gifted Both mobile app and site feature weak aesthetics, but excel in functionality 6 TIFFANY & CO. Watches & Jewelry Tiffany & Co. 133 Gifted “What Makes Love True” mobile app demonstrates strong geolocal aptitude 8 NEIMAN MARCUS Retail Neiman Marcus Group 125 Gifted Differentiated app approach on iPhone (“Gifts”) vs. iPad (“Catalog”) works to its advantage 9 INTERCONTINENTAL HOTELS & RESORTS* Hospitality InterContinental Hotels Group plc 119 Gifted Presence across four of the five mobile app platforms; “Concierge Insider Guides” iPad app provides unparalleled local insights for 100+ global properties 10 ESTÉE LAUDER Beauty & Skincare Estée Lauder Companies, Inc. 115 Gifted “Illumination” iAd campaign and high-functioning mobile site compensate for one-dimensional apps 11 AVEDA Beauty & Skincare Estée Lauder Companies, Inc. 113 Gifted New “My Style” app invites users to upload personal hairstyle while mobile site provides exclusive offers for mobile customers 12 RALPH LAUREN Fashion Ralph Lauren Corporation 112 Gifted Digital innovator demonstrates balanced investment across mobile app, mobile site, tablet experience, and mobile advertising 13 SAKS FIFTH AVENUE Retail Saks, Inc. 111 Gifted Strong iPad catalog app compensates for low-impact mobile site RetailBeauty & Skincare Watches & Jewelry HospitalityFashion
  7. 7. © L2 2012 L2ThinkTank.com 7 Want to know more about your brand’s Mobile IQ? CONTACT US Mobile IQ Brand Ranking Rank Brand Category Parent Mobile IQ Class Description 13 YVES SAINT LAURENT Fashion Gucci Group (PPR) 111 Gifted New mobile site brings fashion label in sync with advanced, beauty-centric apps 15 DAVID YURMAN Watches & Jewelry David Yurman, Inc. 104 Average Mobile site launched in November is a welcome replacement for aging iPhone app 16 DIANE VON FURSTENBERG Fashion Diane Von Furstenberg 102 Average M-commerce does not carry over from site to app; instead promotes exclusives like Signature Skin iPhone covers, the App Wrap dress, and DVF-endorsed music 17 ERMENEGILDO ZEGNA Fashion Ermenegildo Zegna Holditalia S.p.A. 101 Average Singular focus on iPad virtual store, which is consistently promoted across all digital properties 17 MANDARIN ORIENTAL hotel group Hospitality Jardine Matheson Group 101 Average “Cities by MO” provides expansion content for “MOHotels” app depending on user’s destination or interest 17 RITZ-CARLTON* Hospitality Marriott International, Inc. 101 Average Simple, streamlined mobile site and “World Concierge” campaign on Foursquare compensate for disappointing apps 20 FOUR SEASONS HOTELS AND RESORTS Hospitality Four Seasons Hotels, Inc. 100 Average Industry leader in Foursquare followers, with tips for 83 properties 20 GUCCI Fashion Gucci Group (PPR) 100 Average Sophisticated, technologically advanced “Gucci Style” app immerses user in brand-curated content that extends well beyond the clothes 22 BURBERRY Fashion Burberry Group plc 99 Average Second highest-scoring mobile site in Fashion enables brand to compete without investing in apps 22 CLINIQUE Beauty & Skincare Estée Lauder Companies, Inc. 99 Average Early adopter of in-store iPad kiosks and one of only three beauty brands with an active SMS campaign 22 JW MARRIOTT* Hospitality Marriott International, Inc. 99 Average Universal “Marriott International” app allows booking at JW properties and provides external links to strong mobile web assets 25 PARK HYATT* Hospitality Hyatt Hotels Corporation 98 Average Cross-brand “Hyatt” app allows booking at Park Hyatt hotels; parent’s mobile site provides extensive photo galleries of Park Hyatt properties 26 CLARINS Beauty & Skincare Clarins S.A. 94 Average Strong search elements on mobile site; fragrance release (Thierry Mugler Angel) proves a fan favorite in the app store RetailBeauty & Skincare Watches & Jewelry HospitalityFashion
  8. 8. © L2 2012 L2ThinkTank.com 8 Want to know more about your brand’s Mobile IQ? CONTACT US Mobile IQ Brand Ranking Rank Brand Category Parent Mobile IQ Class Description 26 GIORGIO ARMANI Fashion Giorgio Armani S.p.A. 94 Average Touch-enabled mobile site compensates for unfocused, fragrance-centric app store offering 26 OMNI HOTELS & RESORTS Hospitality TRT Holdings 94 Average Mobile app and site do little to go beyond the basics 29 TORY BURCH Fashion Tory Burch LLC 92 Average Mobile store finder features Foursquare integration; no apps 30 BERGDORF GOODMAN Retail Neiman Marcus Group 91 Average “Shoe Salon” app and Foursquare Mayor specials prevent brand from falling too far behind fellow retailers in absence of mobile site 31 COACH Fashion Coach, Inc. 90 Average Mobile users greeted with in-store signage that unlocks exclusive information on Kristin collection 31 SOFITEL* Hospitality Accor 90 Average Leverages “Accor Hotels” app and parent’s mobile site to its advantage, but these assets dilute Sofitel brand 33 CHANEL Fashion Chanel S.A. 89 Challenged Fashion and accessories elements of mobile site still prove inaccessible, forcing strict reliance on apps 33 CONRAD HOTELS & RESORTS* Hospitality Hilton Worldwide 89 Challenged Unique app development for “Conrad” brand that proves interoperable with Hilton Honors account 33 DOLCE & GABBANA Fashion Dolce & Gabbana Industria S.p.A. 89 Challenged “Fashion Channel” replicated across both mobile site and apps, but stops short of m-commerce 36 ORIGINS Beauty & Skincare Estée Lauder Companies, Inc. 88 Challenged Mobile site features extensive user reviews of products but provides no way to submit one’s own opinions on the go 37 CARTIER Watches & Jewelry Compagnie Financière Richemont S.A. 87 Challenged Multiple iPad apps and strong universal “Cartier Bridal” app, but mobile shopping experience leads to Call an Advisor 37 FAIRMONT HOTELS & RESORTS Hospitality Fairmont Raffles Hotels International 87 Challenged President’s Club participation allows guests to share stories, with user photos appearing alongside official property images 39 CALVIN KLEIN Fashion PVH Corporation 86 Challenged CK One augmented reality experience available on three of the five mobile platforms assessed RetailBeauty & Skincare Watches & Jewelry HospitalityFashion
  9. 9. © L2 2012 L2ThinkTank.com 9 Want to know more about your brand’s Mobile IQ? CONTACT US Mobile IQ Brand Ranking Rank Brand Category Parent Mobile IQ Class Description 40 WESTIN HOTELS & RESORTS* Hospitality Starwood Hotels & Resorts Worldwide, Inc. 85 Challenged Innovative ad campaign in Weather Channel iPad app takeover; eight property-specific apps with limited functionality undercut superior utility of “SPG” cross-brand app 41 LOUIS VUITTON Fashion LVMH 84 Challenged Innovative tie-in between Amble app and Foursquare does not save dead-end mobile site experience 41 M·A·C COSMETICS Beauty & Skincare Estée Lauder Companies, Inc. 84 Challenged Strong video content and M·A·C Artist profiles only exist on mobile site, not the app store 43 LANCÔME Beauty & Skincare L’Oréal Group 82 Challenged Advanced user-generated content element of mobile apps only partially compensate for lack of mobile site 43 ST. REGIS* Hospitality Starwood Hotels & Resorts Worldwide, Inc. 82 Challenged E-Butler app provides guest-specific functionality that goes beyond the basic guest services book 43 WALDORF ASTORIA* Hospitality Hilton Worldwide 82 Challenged Brochure-ware app mitigated by functional mobile site leveraging Hilton Honors system 46 KIEHL’S Beauty & Skincare L’Oréal Group 81 Challenged Clean mobile site navigation provides outlet for browsing but not buying (Call to Order) 46 LE MÉRIDIEN* Hospitality Starwood Hotels & Resorts Worldwide, Inc. 81 Challenged Heavy reliance on “SPG” app for mobile bookings; property-specific app limited to Dubai 48 BARE ESCENTUALS Beauty & Skincare Shiseido Company, Limited 80 Challenged “Be a Force of Beauty” campaign incorporated QR codes tied to model’s bio, look, and associated beauty products 49 RAYMOND WEIL Watches & Jewelry Raymond Weil S.A. 79 Challenged December launch of official app rounds out mobile investment 50 AUDEMARS PIGUET Watches & Jewelry Audemars Piguet Holding S.A. 76 Challenged Comprehensive promotion of mobile footprint on site as brand extends app experience to Android 50 RELAIS & CHÂTEAUX Hospitality n/a - Global Fellowship 76 Challenged App “Guides” provide novel path to property discovery, but R&C remains the only hospitality brand without a mobile site 50 SHANGRI-LA HOTELS AND RESORTS Hospitality Shangri-La Asia Limited 76 Challenged Tokyo and Manila property apps do not extend to wider resort portfolio; mobile site allows for limited property exploration RetailBeauty & Skincare Watches & Jewelry HospitalityFashion
  10. 10. © L2 2012 L2ThinkTank.com 10 Want to know more about your brand’s Mobile IQ? CONTACT US Mobile IQ Brand Ranking Rank Brand Category Parent Mobile IQ Class Description 53 HUGO BOSS Fashion Valentino Fashion Group S.p.A. 75 Challenged Site and apps still lack m-commerce, but do include innovative features like color matching via camera image 53 JAEGER-LECOULTRE Watches & Jewelry Compagnie Financière Richemont S.A. 75 Challenged “My Reverso” app provides user the freedom to visualize custom engraving before reaching out to a concierge 55 SWAROVSKI Watches & Jewelry Swarovski AG 73 Challenged SCVNGR hunt in London demonstrates willingness to experiment beyond the app store 56 JUMEIRAH Hospitality Jumeirah Group 71 Challenged Emirates Towers property claims sole app; iPad defaults to mobile site designed for smaller screen 57 MORGANS HOTEL GROUP Hospitality Morgans Hotel Group 69 Feeble Sections of mobile site (City Guides) revert back to main site; iPad defaults to mobile optimized site designed for a smaller screen 58 PHILOSOPHY Beauty & Skincare Coty Inc. 68 Feeble Strong gift finder and navigation filters differentiates mobile site 58 VALENTINO Fashion Valentino Fashion Group S.p.A. 68 Feeble Encyclopedic iPad app lacks personalized features, but mobile-optimized shopping portal hints of progress 60 OMEGA Watches & Jewelry The Swatch Group, Ltd. 66 Feeble Parallel mobile app/site designs feature comprehensive search tools 61 SMASHBOX Beauty & Skincare Estée Lauder Companies, Inc. 65 Feeble Innovative product QR codes direct users to video tutorial by makeup artist Lori Taylor; recently optimized email marketing for mobile screens 61 VAN CLEEF & ARPELS Watches & Jewelry Compagnie Financière Richemont S.A. 65 Feeble Mobile placeholder site offers access to catalog and store locator, circumventing flash-heavy site 63 HUBLOT Watches & Jewelry LVMH 64 Feeble 360-degree product views, augmented reality features, and video content in app do not distract from aging mobile site 63 ROSEWOOD HOTELS & RESORTS Hospitality New World Hospitality 64 Feeble One of only two hospitality brands without an app store presence 65 BULGARI Watches & Jewelry LVMH 61 Feeble Brand replicates all product-specific apps across iPhone and iPad without customization; “Bulgari Touch” site lacks m-commerce RetailBeauty & Skincare Watches & Jewelry HospitalityFashion
  11. 11. © L2 2012 L2ThinkTank.com 11 Want to know more about your brand’s Mobile IQ? CONTACT US Mobile IQ Brand Ranking Rank Brand Category Parent Mobile IQ Class Description 66 BENEFIT cosmetics Beauty & Skincare LVMH 59 Feeble August test of in-store iPad kiosks demonstrates increasing innovation in mobile space beyond HTML5 site 67 THE PENINSULA HOTELS Hospitality Hongkong and Shanghai Hotels, Limited 58 Feeble Mobile site requires guest to call or email reservations desk, forcing reliance on buggy app 67 ROLEX Watches & Jewelry Rolex Holding S.A. 58 Feeble Strong demand for third-party reference apps demonstrates (missed) opportunity beyond mobile site and tablet e-magazine 69 BARNEYS NEW YORK Retail Istithmar PJSC 57 Feeble Remains the only retailer in the Index to shy away from the app store; no longer redirecting to mobile site 69 MONTBLANC Watches & Jewelry Compagnie Financière Richemont S.A. 57 Feeble Strong app presence and product specific-promotions do not compensate for lack of a mobile site 71 CHOPARD Watches & Jewelry Chopard Holding S.A. 56 Feeble App presence focused exclusively on “Happy Diamonds” collection; mobile site features simple photo gallery 72 HARRY WINSTON Watches & Jewelry Harry Winston, Inc. 52 Feeble “Harry Winston Timepieces” app has limited functionality; HTML5 enables solid tablet experience 73 ELIZABETH ARDEN Beauty & Skincare Elizabeth Arden 51 Feeble Mobile site for Prevage line of skincare products only 74 TOD’S Fashion Tod’s S.p.A. 50 Feeble Limited mobile site and heavily promoted iPad apps are all about presentation, not functionality 75 ALFRED DUNHILL Fashion Compagnie Financière Richemont S.A. 49 Feeble E-magazine iPad app tests mobile aptitude by mirroring “Day 8” microsite 76 SHISEIDO Beauty & Skincare Shiseido Company, Limited 48 Feeble App store experience caters exclusively to Chinese market 77 BOBBI BROWN Beauty & Skincare Estée Lauder Companies, Inc. 47 Feeble Mobile-friendly email marketing demonstrates awareness of mobile consumers, despite the lack of mobile apps/site 77 DE BEERS Watches & Jewelry LVMH 47 Feeble Lack of a mobile site and apps partially offset by move to HTML5 RetailBeauty & Skincare Watches & Jewelry HospitalityFashion
  12. 12. © L2 2012 L2ThinkTank.com 12 Want to know more about your brand’s Mobile IQ? CONTACT US Mobile IQ Brand Ranking Rank Brand Category Parent Mobile IQ Class Description 79 IWC SCHAFFHAUSEN Watches & Jewelry Compagnie Financière Richemont S.A. 44 Feeble Best-in-class quarterly e-magazine content does not include comments/ratings 79 MARC JACOBS Fashion LVMH 44 Feeble Popularity on Foursquare compensates for continuing lack of mobile apps/site 79 PANDORA Watches & Jewelry Pandora A/S 44 Feeble Mobile app with updatable catalog and gift finder make up for the absence of mobile site 82 CHLOÉ Fashion Compagnie Financière Richemont S.A. 43 Feeble Mobile site provides look book, but no m-commerce functionality; no apps 83 VERSACE Fashion Gianni Versace S.p.A 40 Feeble Lack of a mobile site and apps partially offset by move to HTML5 84 BOTTEGA VENETA Fashion Gucci Group (PPR) 39 Feeble Catalogs featured on main site require Flash player, but email marketing is mobile friendly 84 NARS Beauty & Skincare Shiseido Company, Limited 39 Feeble Full HTML5 site provides a strong asset from which to build a mobile-specific experience 84 TAG HEUER Watches & Jewelry LVMH 39 Feeble Mobile site is relegated to in-site map; multiple apps pulled from iTunes store during study period 87 CHRISTIAN DIOR Fashion Christian Dior S.A. | LVMH 37 Feeble App presence only partially compensates for frustrating mobile browsing experience 88 PRADA Fashion Prada Group 35 Feeble Site browsing experience proves untenable on mobile device 89 VACHERON CONSTANTIN Watches & Jewelry Compagnie Financière Richemont S.A. 34 Feeble “Snow Golf” makes for a poor outing in an industry obsessed with apps 90 SK-II Beauty & Skincare Procter & Gamble 32 Feeble Flash fail on site; meanwhile, app store presence caters exclusively to Korean market 91 FENDI Fashion LVMH 31 Feeble Aging mobile site resembles brochure-ware RetailBeauty & Skincare Watches & Jewelry HospitalityFashion
  13. 13. © L2 2012 L2ThinkTank.com 13 Want to know more about your brand’s Mobile IQ? CONTACT US Mobile IQ Brand Ranking Rank Brand Category Parent Mobile IQ Class Description 92 SALVATORE FERRAGAMO Fashion Salvatore Ferragamo S.p.A. 29 Feeble Seamless tablet experience has yet to migrate to the phone 93 PIAGET Watches & Jewelry Compagnie Financière Richemont S.A. 28 Feeble The brand’s two product-specific apps have not been updated since August 2009 and August 2010, respectively 94 HERMÈS Fashion The Hermès Group 26 Feeble No app, no mobile site 95 ALEXANDER MCQUEEN Fashion Gucci Group (PPR) 25 Feeble Flash fail on homepage, but online store functions 96 BALENCIAGA Fashion Gucci Group (PPR) 24 Feeble Whatever you do, don’t pinch and zoom 97 OSCAR DE LA RENTA Fashion Oscar de la Renta, Limited 22 Feeble Flash fail exacerbates lack of mobile site/apps 98 BACCARAT Watches & Jewelry Baccarat Crystal 17 Feeble Flash fail; relies on Neiman Marcus to facilitate m-commerce 99 MOVADO Watches & Jewelry Movado Group, Inc 13 Feeble Site browsing experience proves untenable on mobile device 100 PATEK PHILIPPE Watches & Jewelry Patek Philippe S.A. 8 Feeble Please Note: the “next generation” doesn’t use Flash RetailBeauty & Skincare Watches & Jewelry HospitalityFashion *Hospitality brands that leverage mobile assets maintained by a parent company and/or shared by sister brands (reward programs, booking systems, etc.) receive credit for those components
  14. 14. © L2 2012 L2ThinkTank.com 14 Want to know more about your brand’s Mobile IQ? CONTACT US Mobile IQ Dispersion Almost half the brands in the Index register as “Feeble”—demonstrating widespread underinvestment in mobile by a considerable portion of the prestige sector. The disparity between the Index leader (164 IQ points) and the Index laggard (8 IQ points) suggests that this “mobile gap” is more the result of nonparticipation than subpar performance. With a median score of only 76, the majority of brands are just beginning to make mobile investments, while a select few early investors are pulling away from the pack. Key Findings MOBILE IQ DISTRIBUTION % of Brands per Mobile IQ Class mobile IQ <70 David Yurman Diane Von Furstenberg Ermenegildo Zegna Mandarin Oriental Ritz-Carlton Four Seasons Hotels & Resorts Gucci Burberry Clinique JW Marriott Park Hyatt Clarins Giorgio Armani Omni Hotels & Resorts Tory Burch Bergdorf Goodman Coach Sofitel mobile IQ 90–109 mobile IQ >140 Sephora Nordstrom Macy’s Net-A-Porter mobile IQ 110–139 Bloomingdale’s L’Occitane en Provence Tiffany & Co. Neiman Marcus InterContinental Hotels & Resorts Estée Lauder Aveda Ralph Lauren Saks Fifth Avenue Yves Saint Laurent GIFTED mobile IQ 70–89 Chanel Conrad Hotels & Resorts Dolce & Gabbana Origins Cartier Fairmont Hotels & Resorts Calvin Klein Westin Hotels & Resorts Louis Vuitton M·a·c Cosmetics Lancôme St. Regis Waldorf Astoria Kiehl’s Le Méridien Bare Escentuals Raymond Weil Audemars Piguet Relâis & Chateaux Shangri-La Hotels & Resorts Hugo Boss Jaeger-LeCoultre Swarovski Jumeirah Morgans Hotel Group Philosophy Valentino Omega Smashbox Van Cleef & Arpels Hublot Rosewood Hotels & Resorts Bulgari Benefit The Peninsula Hotels Rolex Barneys New York Montblanc Chopard Harry Winston Elizabeth Arden Tod’s Alfred Dunhill Shiseido Bobbi Brown De Beers Iwc Schaffhausen Marc Jacobs Pandora Chloé Versace Bottega Veneta Nars Tag Heuer Christian Dior Prada Vacheron Constantin Sk-Ii Fendi Salvatore Ferragamo Piaget Hermès Alexander McQueen Balenciaga Oscar de la Renta Baccarat Movado Patek Philippe AVERAGE CHALLENGED FEEBLE GENIUS 10% 4% 23% 19% 44%
  15. 15. © L2 2012 L2ThinkTank.com 15 Want to know more about your brand’s Mobile IQ? CONTACT US Mobile IQ In the Company of Genius: Sephora Key Findings 15 While there are four Genius brands in the Prestige 100® , Sephora exists in a class of its own. The brand’s mobile site feature product videos organized by content type and filterable by brand. Other key features include a GPS-based store locator, shopping list creator, order history/tracking, and a section for mobile- exclusive offers. Sephora’s iPhone app and mobile site share the same basic look and feel, with the latter offering additional features such as a “Beauty Advice” section, “Try It On”—a tool that allows the user to adjust skin tone and nail polish color on a virtual hand, and barcode scanning functionality to augment in-store shopping. The brand’s iPad app features how-to videos with a side-by-side mirror powered by the device’s camera, allowing users to see their own faces while following makeup application instructions. Mobile Site Homepage iPhone App “Try It On” Tool iPad App Home Screen Mobile Site Product Ratings Mobile Site Video Library
  16. 16. © L2 2012 L2ThinkTank.com 16 Want to know more about your brand’s Mobile IQ? CONTACT US Mobile IQ Mind the Gap Although each of the five industries reviewed contributes at least two brands to the top 20 of the Index, retail stands apart. Of the 14 brands that achieved “Genius” or “Gifted” status, half were retailers. Hospitality plays runner-up to retail, hovering just below “Average.” Catering to a peripatetic customer set, hospitality brands have been among the first to actively invest in mobile platforms. However, many investments from the 2009 timeframe are beginning to show their age—more than 15 percent of hospitality apps have not been updated in the past 12 months. Key Findings 180 140 110 90 70 0 Retailn= 9 Hospitalityn= 20 Fashionn= 29 W atches & Jewelryn= 24 Beauty & Skincaren= 18 AVG IQ 126 Disparity 107 AVG IQ 86 Disparity 62 AVG IQ 77 Disparity 101 AVG IQ 65 Disparity 90 AVG IQ 58 Disparity 125 GeniusFeebleChallengedAverageGifted Mobile IQ Distribution BY INDUSTRY (December 2011) RetailBeauty & Skincare Watches & Jewelry HospitalityFashion
  17. 17. © L2 2012 L2ThinkTank.com 17 Want to know more about your brand’s Mobile IQ? CONTACT US Mobile IQ Good Genes In line with our industry-specific observations, parent companies with a portfolio in retail or hospitality typically perform above average in terms of Mobile IQ. Of the larger and more diversified parent companies, Estée Lauder is the only organization for which the portfolio’s average score skews toward the upper range of the disparity. Six of the seven Estée Lauder brands register a mobile site score above the Index average, demonstrating consistent performance in one of the four dimensions. Key Findings 180 140 110 90 70 10 M acy’s Inc.n= 2 Neim an M arcus Groupn= 2 Valentino Fashion Group S.p.A.n= 2 LVM Hn= 9 Com pagnieFinancièreRichem ontS.A. n= 10 GucciGroup (PPR)n= 5 L’OréalGroupn= 2 Starwood Hotels& ResortsW orldwiden= 3 M arriottInternational,Inc.n= 2 Hilton W orldwiden= 2 Estée LauderCom panies,Inc.n= 7 AVG IQ 145 Disparity 20 Disparity 34 Disparity 2 Disparity 7 Disparity 133 Disparity 115 Disparity 87 AVG IQ 108 AVG IQ 100 AVG IQ 72 AVG IQ 66 AVG IQ 63 AVG IQ 60 GeniusFeebleChallengedAverageGifted Disparity 68 AVG IQ 87 Disparity 1AVG IQ 82 Disparity 5AVG IQ 83 Disparity 7 AVG IQ 86 Mobile IQ Dispersion by Ownership Organizations with More than One Brand Represented in Index (December 2011) RetailBeauty & Skincare Watches & Jewelry HospitalityFashion
  18. 18. © L2 2012 L2ThinkTank.com 18 Want to know more about your brand’s Mobile IQ? CONTACT US Mobile IQ Mobile Commerce vs. Mobile Experience In 2011, seven percent of all U.S. Internet traffic came from mobile devices. Many Prestige 100® brands are catching on to the growing importance of robust, multifunctional mobile sites. While Google estimates that just 21 percent of its advertisers have mobile sites, two-thirds of brands in the Index maintain them, and 67 percent of those sites are m-commerce enabled.7 However, participation in m-commerce does not fully capture the quality of the mobile experience. In aggregate, across every category measured, mobile sites examined consistently failed to replicate key features and functionalities found on the main sites including videos, product search, and user ratings. Key Findings 7. “Google’s Battle for the Mobile Web,” Michael Boland, Search Engine Watch, November 25, 2011. main sites vs. mobile sites Prevalence of Basic Features (December 2011, N=66) E-/M- Commerce Enabled Store Locator Video Product/ Property Search Multiple Languages Order/ Reservation Tracking User Ratings Facebook “like” API 67% 67% 23% 44% 20% 14% 9% 30% 82% 82% 79% 74% 41% 41% 27% 26% = MAIN SITE = MOBILE SITE
  19. 19. © L2 2012 L2ThinkTank.com 19 Want to know more about your brand’s Mobile IQ? CONTACT US Mobile IQ iWorld In mid-December 2011, the millionth app was released in the mobile marketplace.8 Approximately 15,000 apps are currently released every week, a pace of development that exceeds every competing form of media. Seventy percent of Prestige 100® brands have produced apps for mobile devices. Development efforts are skewed heavily toward the iOS platform. Every brand that supports an app has developed for the iOS platform and average nearly three unique apps for Apple devices. While this investment does not map to device market share (Gartner estimates that Android represented 52.5 percent of smartphone sales in the third quarter of 2011), it does reflect Apple’s demographic advantage.9 Key Findings 8. “One Million Mobile Apps, and Counting at a Fast Pace,” Shelly Freierman, New York Times, December 11, 2011. 9. “Gartner Says Sales of Mobile Devices Grew 5.6 Percent in Third Quarter of 2011; Smartphone Sales Increased 42 Percent,” Press Release, Gartner, November 15, 2011. 10. “Android vs. iPhone: Battle of the Mobile Operating Systems,” Amanda Green, Hunch, August 15, 2011. Android 22% Symbian 16% Blackberry 7% Windows Phone 7 2% iOS 70% 196 67% 60% 50% 37% 27% 18% According to Hunch data released in August, compared to Android users, iOS users are:10 Have an Annual Household Income of $200k or more Have an American Express card Have visited more than five countries Have a graduate degree Live in a city Be women more likely to... Prestige 100® APPLICATIONS Across Smartphone Platforms (December 2011) # of Apps per Platform % of Brands in Index
  20. 20. © L2 2012 L2ThinkTank.com 20 Want to know more about your brand’s Mobile IQ? CONTACT US Mobile IQ Tablets: iOpportunity Apple ended the first half of 2011 with nearly a 70 percent share of the global market for tablets.11 As a product class, tablet devices have proven a boon to m-commerce. Tablet shoppers demonstrate a conversion rate of four to five percent compared with three percent on a PC.12 Even when compared directly to smartphones, 25 percent of “dual owners” surveyed by Ipsos demonstrate a preference to purchase on sites while using a tablet.13 Despite the evidence underscoring the growing need to cater to tablet users, prestige brands have been slow to adapt. Although 37 percent of all brands have a presence on both the iPhone and iPad, only 16 percent have created a unique experience for iPad users rather than simply replicating the same app across both devices. Development of iPad-specific site experiences also lags. While 66 percent of brands maintain a mobile site, only seven have an iPad-specific experience. Furthermore, 11 percent of brands in the Index are redirecting to their mobile site on the iPad, often failing to take advantage of the uptick in potential conversion. Of the 82 percent of brands that default to the PC site, eighteen percent lack full functionality because of the lingering presence of Adobe Flash components, which iOS does not support. Key Findings Tablet Experience Site Optimization for Safari Browser on iPad (December 2011) Loads iPad Site Loads Mobile Site Loads Completely Broken Site Loads Partially Broken Site 64% 9% 9% 11% 7% Loads Site 62% iPhone 45% iPad Both = UNIQUE IPAD CONTENT = REPLICATED ON BOTH DEVICES 37% 16% 21% Device-Specific app Development for iOS Platform (December 2011, N=100) 11. “Media Tablet and eReader Markets Beat Second Quarter Targets, Forecast Increased for 2011, According to IDC,” IDC, Press Release, September 14, 2011. 12. “Tablets: Ultimate Buying Machines,” Dana Mattioli, Wall Street Journal, September 28, 2011. 13. eMarketer, “Tablet Owners Most Active in M-Commerce,” October 19, 2011.
  21. 21. © L2 2012 L2ThinkTank.com 21 Want to know more about your brand’s Mobile IQ? CONTACT US Mobile IQ Brochure-Ware While iPhone apps dominate, sophistication lags across the Prestige 100® . The majority of brands have failed to adopt platform-specific functionality that keeps the user experience “sticky.” Less than a third of apps provide integration with the iPhone’s GPS and native mapping software. Adoption of other features is even further behind: 17 percent of apps include iOS notifications, only 16 percent incorporate the phone’s camera, and a mere five percent utilize the three-axis gyroscope (the internal component that detects the de- vice’s orientation in space and translates the user’s movements via tilt, shake, and other motions). Key Findings Rich Media & Interactivity 51% 31% 17% 16% 9% 5% Video ContentGPS SupportNotifications Cam era Augm ented Reality Gyroscope Social Media Integration 40% 39% 19% 16% Sharing viaEm ailViaFacebook ViaTwitter Linksto SM Brand Pages Personalization 28% 35% 22% 7% 5% 14% In-App AccountSign-InBookm arking Search In-App LanguageSwitching UnlockableContent M ini-Gam eElem ents iOS Apps Prevalence of Basic Features (December 2011)
  22. 22. © L2 2012 L2ThinkTank.com 22 Want to know more about your brand’s Mobile IQ? CONTACT US Mobile IQ Language Barriers Within the U.S. iTunes Store, only 27 percent of the 196 apps reviewed provide support for more than one language, and only 14 apps provide trilingual support for English, French, and German. According to data from App Annie, the U.S. accounts for 28 percent of the download market for free iOS apps.14 France and Germany are among the top-five non- English-speaking markets for apps, together representing seven percent of the download market. Unlike Asian markets, content within the European iTunes Stores closely mimics that of the U.S. For instance, in the French iTunes Store 87 percent of Prestige 100® brands produce mirrored content with no perceptible alteration. Only 23 percent of the apps have French language support (versus 96 percent with English language support) and only 21 percent have changed the description of the app to more effectively cater to a French audience. Key Findings 14. “The Importance of Localization in App Stores,” App Annie, November 9, 2011. English Multi-Lingual French German Spanish Italian Portuguese Chinese Japanese Korean 90% 27% 19% 19% 11% 10% 8% 7% 3% 8% (Lack of) Localization Language Support for Apps Posted to U.S. App Store (iOS) (December 2011)
  23. 23. © L2 2012 L2ThinkTank.com 23 Want to know more about your brand’s Mobile IQ? CONTACT US Mobile IQ The Impact of Public Opinion In May, ABI Research reported that the iTunes Store ranking algorithm would begin taking into account qualitative information such as user reviews and frequency of usage.15 This additional wrinkle in iTunes SEO has put newfound emphasis on garnering high ratings and significant user reviews in addition to downloads. The speed with which these apps have garnered a positive reputation is reflected in their relative standing in the App Store. In December, Nordstrom had the highest placement among the five Prestige 100® brands appearing on the Top-200 Free iPhone Apps listed in the Lifestyle category (#13). Similarly, Marriott had the highest placement among the six Prestige 100® brands appearing on the Top-200 Free iPhone Apps listed in the Travel category (#26). Key Findings 15. Chantal Tode, “Changes to iTunes app ranking algorithm will have wide impact: experts,” Mobile Marketer, May 5, 2011. Top 10: Most Comments Received (iOS APPS) (January 2012, N=108) SEPHORA: Sephora to Go CLARINS: Thierry Mugler—Angel MACY’S: Macy’s iShop NORDSTROM: Nordstrom MARRIOTT INTERNATIONAL, INC.: Marriott International HILTON WORLDWIDE: Hilton STARWOOD HOTELS & RESORTS: SPG Mobile App BERGDORF GOODMAN: Today’s Shoe INTERCONTINENTAL HOTELS GROUP: Priority Club Rewards LANCÔME: Lancôme Make-Up 0 100 150 200 250 300 350 50 400 285 264 215 167 138 115 111 98 231 220
  24. 24. © L2 2012 L2ThinkTank.com 24 Want to know more about your brand’s Mobile IQ? CONTACT US Mobile IQ iOS Apps: User Sentiment Number of Ratings vs. Number of Stars Received (December 2011, N=102) Nordstrom Giorgio Armani Acqua for Life Tiffany & Co. Engagement Ring Finder Gucci Style Marriott International Clarins Thierry Mugler Angel CLARINS: Thierry Mugler Angel (v1.2) Nordstrom (v1.2) Marriott (v1.4) Release Year Ratings Stars Comments # of ratings submitted Note: Horizontal axis (# of ratings submitted) is graphed on a logarithmic scale. August 2011 336 215 September 2011 264 264 The volume of ratings and comments associated with an app is largely a function of the time elapsed since release. Only three Prestige 100® apps released in the past year appear on both the top-10 lists for overall comments and a favorable combination of quantity vs. quality of ratings: November 2011 302 220
  25. 25. © L2 2012 L2ThinkTank.com 25 Want to know more about your brand’s Mobile IQ? CONTACT US Mobile IQ Email Optimization During the second half of 2011, mobile email open rates increased 34 percent, with consumers opening 23 percent of all emails on their mobile devices.16 Although 78 percent of Prestige 100® brands engage in email marketing, only 24 percent have links to mobile-optimized versions of their email content, and 55 percent opt to provide links to plain HTML versions. Low-hanging fruit abounds. Within their marketing emails, just 18 percent of brands with mobile sites have links to their mobile properties and only 19 percent of the brands with mobile apps include download links to the corresponding app store. Key Findings 16. “Mobile, Webmail, Desktops: Where Are We Viewing Email Now?” Return Path, research study, December 2011. Mobile Optimization of Email Marketing (December 2011) 2% 11% 13% 24% 53% 78% Active Em ailM arketing Linkto Plain W eb Version ofEm ail Linkto M obile-Optim ized Version ofEm ail Linkto Apps Linkto M obile-Optim ized Site Linkto OtherM obile Properties Regular, Non-Mobile- Optimized Email Html-Based Email In Mobile Browser Plain-Text Mobile- Optimized Email
  26. 26. © L2 2012 L2ThinkTank.com 26 Want to know more about your brand’s Mobile IQ? CONTACT US Mobile IQ Check-in Only five percent of Americans use geolocal apps at least once a month, but these active users represent a high-value demographic. They skew younger, register higher income, and are twice as likely to share product information.17 Prestige 100® brands registered high check-in growth at retail locations and local properties across the six cities L2 examined during the study period (New York City, San Francisco, London, Paris, Milan, and Tokyo). Across all cities, total check-ins generated by the 94 brands with a detectable Foursquare presence increased by nearly 30 percent, from 540,000 to 700,000 over a four-week period. Nonetheless, only 27 brands in the Index maintain an official Foursquare page, five of which were classified as “zombie” accounts (i.e., no recent activity registered from the associated brand). Key Findings 17. “Marketing Via Geosocial Apps: Why and How,” Melissa Parrish, Forrester Research, December 6, 2011. 0 20 40 60 80 100 120 140 160 180 LouisVuitton M arc Jacobs Gucci (inthousands) M acy’s Bloom ingdale’s HugoBoss M ·A·C IndexAverage FourSeasonsHotels and Resorts ToryBurch Lancôm e 170,357 65,923 49,918 38,244 32,191 31,367 20,098 18,412 15,797 11,330 8,699 M organsHotelGroup M acy’s 142,229 62,417 48,827 36,159 31,727 30,899 22,612 21,782 18,066 17,077 7,080 Bloom ingdale’s Sephora InterContinentalHotels NordstromBarneysNew York SaksFifth Avenue LeM eriden IndexAverage W estin Hotels and Resorts = New York City = Maintains Foursquare Brand Page = San Francisco = International Top 10: Foursquare Brand Followers (December 2011) Top 10: Foursquare Location Check-ins (December 2011)
  27. 27. © L2 2012 L2ThinkTank.com 27 Want to know more about your brand’s Mobile IQ? CONTACT US Mobile IQ Searching On The Go Fourteen percent of global monthly Google searches for Prestige 100® brands originate from mobile devices, which is significant given that non-computer devices account for less than seven percent of traffic in the U.S. and less than five percent of traffic among the EU5 (France, Germany, Italy, Spain, and the U.K.).18,19 Paid mobile search is rapidly growing in importance. In October 2011, mobile accounted for approximately 15 percent of all clicks and 13 percent of all impressions on Google. During December, it is estimated that those figures rose to 25 and 20 percent, respectively.20 Despite strong evidence for the need to customize traditional SEM/SEO efforts for mobile platforms, few Prestige 100® brands appear to be taking proactive steps. Of search returns rendered on a mobile device, only 13 percent of brands have links to any element of their mobile presence on the first page of Google returns. Fewer than 25 percent include customer service or contact info. Just over a third of the brands have store locators and/or maps returned in their results. Key Findings 18. “Smartphones and Tablets Drive Nearly 7 Percent of Total U.S. Digital Traffic,” comScore press release, October 10, 2011. 19. “Smartphones and Tablets Drive Nearly 5 Percent of Digital Traffic in EU5,” comScore press release, October 26, 2011. 20. “Mobile Paid Search Share to Skyrocket in December; Remains a Significant Bargain,” James Beveridge, Performics blog, November 22, 2011. Average Global Monthly Searches for Prestige 100® Brands Desktop/Laptop vs. non-PC Devices (Source: Google AdWords, November 2011) 86% 14% Locations map from the organic results 17% of Aveda’s Global Monthly Searches originate from mobile devices, which the brand capitalizes on with mobile-specific SEO. Sponsored ad links to mobile site First curated result features links to the location finder and account access = NON-PC DEVICE = dESKTOP/LAPTOP
  28. 28. © L2 2012 L2ThinkTank.com 28 Want to know more about your brand’s Mobile IQ? CONTACT US Mobile IQ Cross-Promotion Mobile efforts often sit in isolation from the overall digital footprint of Prestige 100® brands. Only 28 percent of the brands in the Index are developing mobile apps promote them on their main sites. In contrast, 82 percent of the brands link to their Facebook pages and 66 percent to their Twitter accounts. Only three brands maintain custom tabs on Facebook dedicated to mobile properties. Within a sample of 50 consecutive wall posts, 20 brands linked to their iOS app pages in the iTunes Store, four linked to their apps in the Android marketplace, three linked to their mobile sites, and nine linked to other mobile-related properties like Foursquare and Instagram. Within a sample of 100 consecutive tweets, just 13 brands linked to their iOS apps in the iTunes Store, one linked to its app in the Android marketplace, three linked to their mobile sites, and 12 linked to other mobile- related properties. Key Findings Site-Specific Promotion of Social Media Efforts vs. Mobile Efforts (December 2011, N=70) 66% 82% 39% 28% Mobile Apps Promotion of mobile apps on Sephora’s homepage
  29. 29. © L2 2012 L2ThinkTank.com 29 Want to know more about your brand’s Mobile IQ? CONTACT US Mobile IQ Flash of Genius Augmented Reality Goes Mainstream In March 2011 Calvin Klein began a global campaign designed to relaunch “CK One” as a lifestyle brand for the digital generation. The 360-degree campaign spanned television, print, billboard, online advertising, social media, and mobile. The mobile component of CK One encouraged users to find, reveal, and watch locked multimedia content by scanning print material and billboards—effectively bridging the traditional media and digital media components of the campaign. The supporting technology leveraged image recognition instead of QR codes to enable discovery. The campaign yielded 117 million impressions of the augmented reality print ads. The cross- platform campaign was optimized for iOS, Android, and Symbian devices. Locked Content Billboard Augmented Reality Ads Print Augmented Reality Ads Reveal, Find, Watch
  30. 30. © L2 2012 L2ThinkTank.com 30 Want to know more about your brand’s Mobile IQ? CONTACT US Mobile IQ Flash of Genius Mobile Pick Me Up In November, Nordstrom launched a new app catapulting the brand to mobile leadership in the competitive retail category. The app’s built-in barcode scanner allows customers to determine whether a particular product is available at a local Nordstrom, including in- store pickup. A calendar of upcoming events at preferred stores further bridges the online/ offline connection. Lastly, “Style Profile” provides users with the ability to browse a curated product selection. The Nordstrom app has already accumulated nearly 200 comments in the iTunes Store. Style Profile guides you to collections of distinct looks Buy, Bookmark, Share, or… Pick-Up In-Store Upcoming Events at “My Stores” bridges in-app and in-store experiences
  31. 31. © L2 2012 L2ThinkTank.com 31 Want to know more about your brand’s Mobile IQ? CONTACT US Mobile IQ Flash of Genius Mirror, Mirror on the Device Virtual makeup apps have become table stakes in the beauty industry, making differentiation increasingly difficult. YSL’s ColorMirror app, released on the iPhone and iPad in October, successfully pulls away from the pack, providing enough functionality to meet the needs of both makeup enthusiasts and professionals. The app showcases all available shades and colors for nearly 40 products in 12 categories. With advanced layering and opacity options, this toolbox provides the user with freedom to experiment on a virtual model or an imported photo. The sixty-five- point biometrics ensures imported images are optimized to work precisely with the paintbrush tools. Most importantly, the app steadily builds an informative basket of items used to create a unique look for offline purchase. Biometric recognition of user image Blank Canvas Infinite combinations of featured YSL beauty products Before/After comparison Shopping list of products used to create unique looks
  32. 32. © L2 2012 L2ThinkTank.com 32 Want to know more about your brand’s Mobile IQ? CONTACT US Mobile IQ Flash of Genius Mobile as Media Platform Since late 2010, IWC has been porting the quarterly edition of its Watch International magazine, conceived by German design studio Ringzwei, to the iPad. The content found in these digital issues is diverse, spanning sporting events, celebrity profiles, technical innovations, and examples of cutting-edge design. This e-mag distinguishes itself from others in several ways. It features superior, consistent design that mimics the aesthetics showcased in the company’s redesigned site (launched February 2011). Furthermore, it has several compelling interactive elements: additional content is unlocked by changing the orientation of the device, content is easily shareable, and entries to sweepstakes are solicited from readers within the app itself. Watch International e-mag (issued quarterly) Intuitive navigation, bookmarking, and social sharing APIs Select product promotion tied to themes explored in each issue
  33. 33. © L2 2012 L2ThinkTank.com 33 Want to know more about your brand’s Mobile IQ? CONTACT US Mobile IQ Flash of Genius Multiplatform Brands in the Index struggle with multi-platform app development. Through the Priority Club Rewards app (shared with numerous sister brands), prospective guests can book rooms at InterContinental properties on iOS, Android, BlackBerry, and Windows devices. InterContinental Hotels Group (IHG) produces seven additional apps for iOS, including the innovative Concierge Insider Guides. This iPad app provides exploration of more than 120 global hotels. Each property has an introductory video from the resident concierge, insider tips, shopping and eating destinations, and an interactive map highlighting local points of interest. The app pushes users to check room availability and to make a reservation through a web-based agent. These investments appear to be paying off. IHG’s revenues from mobile booking in 2011 are expected to exceed its previous forecast of $130 million (up from $38 million in 2010 and $2.5 million in 2009).21 21. Karen Jacobs, “InterContinental sees mobile bookings sales rising,” Reuters, December 21, 2011. Discovery of 100+ properties Insider Tips pertaining to destination Interactive map with which to plan travel itinerary Introduction to Resident Concierge with push to reservation system
  34. 34. © L2 2012 L2ThinkTank.com 34 Want to know more about your brand’s Mobile IQ? CONTACT US Mobile IQ Flash of Genius See the French Sites French beauty brand L’Occitane demonstrates several best practices across the Index. It remains the only beauty brand and one of only 19 brands in the Index with multiple language settings on its mobile site. The site’s persistent navigation and search utility highlight L’Occitane’s commitment to m-commerce. During the 2011 holiday season, L’Occitane introduced a Gift Finder tool to help users determine appropriate gifts based on gender, ingredients, and price. In addition, L’Occitane was one of only seven brands to offer an FAQ section and one of only eight brands to offer feedback on mobile site functionality. Inclusion of email, Facebook “Like” and Tweet APIs allow users to share their favorite products. L’Occitane’s simple but highly functional mobile homepage Robust gift-generating tool—introduced for the holiday 2011 season Includes customer service, Facebook “Like” API, and links to social media
  35. 35. © L2 2012 L2ThinkTank.com 35 Want to know more about your brand’s Mobile IQ? CONTACT US Mobile IQ Flash of Genius Tablet Rasa The vast majority of brand sites (91 percent) are viewable on Apple’s iPad tablet, which as of October 2011 accounts for 97 percent of all U.S. tablet impressions.22 Considerably few, however, have developed an iPad or tablet-optimized experience. Salvatore Ferragamo, which was criticized for not developing a mobile site in conjunction with its banner ads on the New York Times’ iPhone app last fall, has developed a robust iPad site that seamlessly reflects the aesthetic and most of the functionality of the fashion brand’s main, nonmobile site.23 Although that site is run with Adobe Flash, Ferragamo’s iPad offering looks, feels and acts like ferragamo.com. The former’s m-commerce experience mirrors the latter’s e-commerce experience, including a scroll- through slideshow of related items on the bottom of each product page. ferragamo.com main site with Flash elements Ferragamo’s iPad-specific experience replicates main site functionality 22. Terrence O’Brien, “iPad accounts for 97 percent of U.S. tablet traffic online,” Engad- get, June 24, 2011. 23. Kayla Hutzler, “Ferragamo misses the mark with mobile New York Times ads,” Luxury Daily, Septem- ber 26, 2011.
  36. 36. © L2 2012 L2ThinkTank.com 36 Want to know more about your brand’s Mobile IQ? CONTACT US Mobile IQ Flash of Genius “Wipe Away Your Weather” The market for mobile ads is quite fragmented. The total U.S. market in 2011 was a mere $630 million ($3.3 billion globally), albeit growing at 43 percent annually.24 Moreover, no single platform has established dominance, with the top three domestic players—Google, Millennial Media, and Apple—splitting 58 percent of mobile display ad revenue.25 This landscape affords broad opportunity for experimentation and innovation by brands. In October, Westin sponsored The Weather Channel’s redesigned 3D iPad app. Users could browse properties and book rooms without leaving the confines of the app.27 Most notably, the advertisement began by taking over the home screen with virtual bad weather to match local conditions (e.g, rain or snow), then encouraged users to “Wipe Away Your Weather” to reveal appealing Westin getaways. Weather Channel’s Redesigned iPad App Westin’s “Wipe Away Your Weather” Campaign 24. Press Release, “Gartner Says World- wide Mobile Advertis- ing Revenue Forecast to Reach $3.3 Billion in 2011,” Gartner, June 16, 2011. 25. Emily Steel & Jessica Vascellaro, “A Rare Apple Com- promise,” Wall Street Journal, December 13, 2011. 26. Rimma Kats, “Westin Hotels & Re- sorts bolsters mobile bookings via TWC iPad Sponsorship,” Mobile Commerce Daily, October 24, 2011.
  37. 37. © L2 2012 L2ThinkTank.com 37 Want to know more about your brand’s Mobile IQ? CONTACT US Mobile IQ Flash of Genius Shoes About Town Bergdorf Goodman’s Today’s Shoe app has been around for two years—an eternity on the iTunes Store. In late August, the brand released the third version of the app, incorporating several requested features: sort by designer, shopping cart, and social sharing. While these features are welcome additions, the wider efforts of the digital team deserve equal praise. Instead of releasing the new and improved app in a vacuum, Bergdorf timed the upgrade to coincide with a parallel digital effort, all building up to the re-launch of the physical Shoe Salon on Two. On September 12, Bergdorf introduced the Instagram-powered Shoes About Town map, which displays user submitted, geo-tagged images of footwear over a stylized map of Manhattan. In this instance, Bergdorf demonstrated a mobile strategy that integrated disparate efforts, experimented with an emerging platform, and revitalized an aging asset. Blog post announcing app upgrade “Shoes About Town” powered by Instagram launched September 12, 2011 New and improved iPhone app launched August 30, 2011
  38. 38. © L2 2012 L2ThinkTank.com 38 Want to know more about your brand’s Mobile IQ? CONTACT US Mobile IQ SCOTT GALLOWAY Clinical Professor of Marketing, NYU Stern Founder, L2 Scott is a Clinical Professor at the NYU Stern School of Business where he teaches brand strategy and luxury marketing and is the founder of L2, a think tank for prestige brands. Scott is also the founder of Firebrand Partners, an operational activist firm that has invested more than $1 billion in U.S. consumer and media companies. In 1997, he founded Red Envelope, an Internet-based branded consumer gift retailer. In 1992, Scott founded Prophet, a brand strategy consultancy that employs more than 120 profes- sionals in the United States, Europe, and Asia. Scott was elected to the World Economic Forum’s “Global Leaders of Tomorrow,” which recognizes 100 individuals under the age of 40 “whose ac- complishments have had impact on a global level.” Scott has served on the boards of directors of Eddie Bauer (Nasdaq: EBHI), The New York Times Company (NYSE: NYT), Gateway Computer, eco-America, and UC Berkeley’s Haas School of Business. He received a B.A. from UCLA and an M.B.A. from UC Berkeley. COLIN GILBERT L2 Colin is a strategic consultant with more than three years of experience working at the nexus of the public and private sectors. Serving as a principal at the Civitas Group in Washington, D.C., he helped lead research, advisory, and due-diligence engagements for a range of clients spanning technology start-ups, defense contractors, and government agencies and specialized in matters pertaining to cloud computing, cybersecurity, and online privacy. Colin received a B.A. in History from Stanford University and an M.P.A. from the London School of Economics. While completing his graduate studies abroad, he worked with Accenture to construct case material used to demonstrate the versatility of the firm’s Public Service Value (PSV) methodology. Maureen Mullen L2 Maureen leads L2’s research and advisory practice where she helped develop the Digital IQ Index® . She has benchmarked the digital marketing, e-commerce, and social media efforts of more than 300 brands across pharma, auto, luxury, specialty retail, beauty, and the public sector. Maureen also has led digital strategy consulting engagements for a variety of Fortune 1000 clients. Before joining L2, Maureen was with Triage Consulting Group and led managed care payment review and payment benchmarking projects for hospitals, including UCLA Medical Center, UCSF, and HCA. Maureen has a B.A. in Human Biology from Stanford Univer- sity and an M.B.A. from NYU Stern. JON WEINBERG L2 Jon Weinberg began his career as a strategist and copywriter at The Moderns, a boutique Manhattan-based branding consultancy, where he worked with clients ranging from start-ups to Fortune 1000 corporations. While there, he managed digital strategy for both the firm and its clients. Jon received an A.B. in Government with a secondary in Near Eastern Language and Civilizations from Harvard University, where he served as an associate editor for the Harvard International Review. CHRISTINE PATTON L2 Christine is a brand and marketing consultant with more than 15 years of experience creating brand identities and marketing communications for aspirational and luxury brands. As creative director of L2, she leads the translation of the L2 brand across all touchpoints, with a particular focus on the visual packaging of L2’s research. She began her career at Cosí, where she developed the brand and oversaw its evolution from concept through growth to 100 restaurants. Since then she has provided creative direction for a wide array of clients, including the launch of Kidville and CosmoGIRL! magazine. Christine received a B.A. in Economics and Journalism from the University of Connecticut and an M.B.A from NYU Stern. Jessica Braga L2 Jessica, a freelance art director, specializes in identity, iconog- raphy, event graphics, and invitations. She began her career in fashion, designing textiles and prints at Elie Tahari’s studio in New York City, and then focused on the Elie Tahari brand aesthetic and consistency in design across its many developing disciplines. Desiring to explore other facets of design, she went on to become the art director of a small, prestigious design firm in Chelsea, where she focused on event graphics, digital and print collateral, and brand aesthetics for companies both large and small. Jessica holds a B.F.A. in Graphic Design, and an A.A.S. in Illustration from Rochester Institute of Technology. Aaron Bunge L2 Aaron is a freelance graphic designer who specializes in print design, branding and identity, packaging, and web design. His approach is both aesthetic and functional, characterized by clear, intelligent design appropriate to the project at hand. He began his career tailoring projects for the Chinese, Australian, and U.S. mar- kets across multiple design disciplines and in multiple languages. Aaron has a B.F.A. in Graphic Design from Iowa State University. TEAM
  39. 39. L2 is a think tank for digital innovation. We are a membership organization that brings together thought leadership from academia and industry to drive digital marketing innovation. Research Digital IQ Index® : The definitive benchmark for online competence, Digital IQ Index® reports score brands against peers on more than 350 quantitative and qualitative data points, diagnosing their digital strengths and weaknesses. EVENTS Forums: Big-picture thinking and game-changing innovations meet education and entertainment. The largest gatherings of prestige executives in North America. 300+ attendees Clinics: Executive education in a classroom setting with a balance of theory, tactics, and case studies. 120 –180 attendees Working Lunches: Members-only lunches led by digital thought leaders and academics. Topic immersion in a relaxed environment that encourages open discussion. 40–80 attendees MBA Mashups: Access and introduction to digital marketing talent from top business schools. consulting Advisory Services: L2 works with brands to garner greater return on investment in digital initiatives. Advisory work includes Digital Roadmaps, Social Media Strategy, and Site Optimization engagements. MEMBERSHIP For membership info and inquiries: membership@L2ThinkTank.com UPCOMING Research Digital IQ Index® Reports: Hospitality Broadcast Media Magazines upcoming member benEfits Members Site: In the first quarter L2 will launch real-time tracking of digital metrics (vs. peers). Prestige 100® Reports: Brazil, Russia, India, China Facebook IQ UPCOMING EVENTS   L2 Clinic  Mobile  01.19.12 New York City  01.24.12 Paris  L2 Lunch  Identifying Facebook Super Fans  02.23.12 New York City  L2 Clinic  Mobile in APAC  03.02.12 Shanghai   L2 Lunch  Google+ vs. Facebook  03.06.12 Paris
  40. 40. A Think Tank for DIGITAL INNOVATION 51 East 12th Street, 2nd Floor New York, NY 10003 W: L2ThinkTank.com E: info@L2ThinkTank.com © L2 2012 L2ThinkTank.com

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