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  • 1. Excerpt from the Digital IQ Index®: Watches & Jewelry To access the full report, contact membership@L2ThinkTank.com October 29, 2013 SCOTT GALLOWAY NYU Stern Watches & Jewelry © L2 2013 L2ThinkTank.com
  • 2. Excerpt from the Digital IQ Index®: Watches & Jewelry Digital IQ Index®: Watches & Jewelry To access the full report, contact membership@L2ThinkTank.com October 29, 2013 WE ST WA RD The market for luxury watches and jewelry will breach $60 billion this year, representing 20 percent of the global luxury market.1 Over half of the growth achieved since 2009 lows is attributed to emerging markets. However, what’s old is new again as emerging markets dampen and mature markets begin to register modest, if not robust, growth. In the first half of 2013, Swiss watchmakers saw an 11 percent decrease in exports to Hong Kong and a 19 percent drop to China (their largest and third largest markets, respectively).2 Global Market for Luxury Watches & Jewelry by Region 2008–2013, in USD millions Europe North America APAC Rest of World $56,939 $50,081 $46,344 $59,511 $49,911 $62,216 3.0% CAGR 5.2% YoY growth The government crackdown on gift giving (common among politicians, industrialists, and 0.2% CAGR party officials), coupled with a controlled economic slowdown is dampening retail expansion in second and third tier cities.3 This year—for the first time in recent memory—growth rates in Europe and North 3.5% YoY growth 10.5% CAGR America will rival growth in APAC. 3.5% YoY growth Coming Home As focus returns to mature markets, luxury brands are confronting the consequences of 2008 2009 recent efforts to increase prices in those markets. In theory, weaker sales to international 2010 2011 2012 2013 Source: Euromonitor International tourists would be offset by the added incentive to shop at home.4 In practice, slowing growth abroad and weakening tourist inflows are forcing industry leaders to pivot along several fronts.5 Firms are also registering shifts in sources of organic growth within their brand portfolios. Barclays predicts the jewelry segment of Richemont (Cartier, Piaget, Van While You Were Sleeping Cleef & Arpels) will grow 15 percent—twice the rate of its watch business.7 The recent Obsession with the East coupled with increased pricing at home has created an opening for acquisitions of Harry Winston by Swatch Group (March) and Pomellato by Kering (July) “affordable luxury” brands in mature markets. Michael Kors has tripled its share of the luxury reflect the shift in focus.8, 9 watches and jewelry market since 2009, leveraging their licensing partnership with Fossil. Lastly, while the threat of Apple’s “iWatch” is largely shrugged off at SIHH and This nontraditional player has crashed the party, and is now among the top ten brands (by Baselworld, the market for wearable technology (encompassing Nike, Samsung, Jawbone, segment revenue) in the United States. etc.) is already $4.6 billion—meriting the industry’s attention, if not concern.10 1. “Market Sizes: Luxury Jewelry and Timepieces,” Euromonitor Passport, 2008-2013. 2. “Chinese tourists drive Swiss watch sales,” Malcolm Curtis, The Local, July 19, 2013. 3. “China calls time on expensive watches in face of crackdown,” James Shotter, Financial Times, May 3, 2013. 4. “Affordable Luxury Seizes Initiative in Europe,” Rob Walker, Euromonitor International, June 7, 2013. 5. “Luxury Spending in Europe Hit by Drop in Tourist Demand,” Astrid Wendlandt, Reuters, April 2, 2013. 6. “Fossil Winds Up Investors,” John Jannarone, Wall Street Journal, September 4, 2013. 7. “Jewellery sales set to sparkle,” Christophe Roulet, Haute Horlogerie Magazine, September 23, 2013. 8. “Swatch Group Completes $1 Billion Harry Winston Acquisition,” Anthony DeMarco, Forbes, March 26, 2013. 9. “Kering Acquires Pomellato,” Luisa Zargani and Miles Socha, WWD, April 24, 2013. 10. “8 Wearable Tech Devices To Watch,” Kristin Burnham, Information Week, September 23, 2013. 6 © L2 2013 L2ThinkTank.com. Circulation of the report violates copyright, trademark and intellectual property laws. 2
  • 3. Excerpt from the Digital IQ Index®: Watches & Jewelry To access the full report, contact membership@L2ThinkTank.com Digital IQ Index®: Watches & Jewelry “In what area of online marketing and distribution do you see the biggest risk exposure (reputational)?” 2012 2013 October 29, 2013 Luxury Watches & Jewelry United States: Market Share by Company 2013 $14.40B 57% 47% Top 10: 51.4% 37% 25.5% 24% 19% 5% Social Media Gray Market Counterfeit Goods 11% 48.6% 0% Other 12.3% Source: Deloitte. n=53 executives % than a quarter of the brands reviewed in the L2 Digitial IQ Index® were classified as “Gifted” or above, 2.8 2.1% 1.7% 1.0% 0.9% 0.7% 0.4% 2013 has proven a tipping point for Watches and Jewelry brands in digital. For the first time, more 0% 4. Tipping Point Tiffany & Co. Richemont LVMH Rolex Kering (PPR) Swatch Group Harry Winston Michael Kors Graff Ralph Lauren Others Source: Euromonitor International signaling increasing digital competence. Almost half of brands now support e-commerce and more than a quarter provide concierge services from product pages. In social media, notorious holdout Rolex launched an official presence on Facebook in April, leveraging unofficial communities previously maintained to capture 1.5 million fans in six months. Despite the progress, there is significant room for improvement. E-commerce remains largely an Luxury Watches & Jewelry Europe: Market Share by Company 2013 $14.70B American affair, with half the ratio of EU domains supporting online transactions. Brands continue to focus on mobile apps, ignoring that one in seven brand sites feature broken elements when 12.4% viewed on a tablet device. Digital also presents new challenges—industry executives now report social media represents a greater threat to brand reputation than the gray market.11 11.7% Digital IQ = Shareholder Value Our thesis is digital competence is linked to shareholder value. This study attempts to quantify the 46.7% 6.2% digital competence of 80 Watches and Jewelry brands. Our aim is to provide a tool for identifying 5.3% strengths and weaknesses, helping brands achieve greater return on digital investment. Like the 4.2% medium we are assessing, our approach is dynamic. Please reach out with comments that improve % % 3.1 2.4% 2.6% 2.3% Scott Galloway Professor of Marketing, NYU Stern Founder, L2 scott@stern.nyu.edu 3.1 our methodology and findings. Top 10: 53.3% Richemont LVMH Kering (PPR) Rolex Swatch Group Chopard Wellendorff Tiffany & Co. Graff Pomellato Others Source: Euromonitor International 11. “Swiss Watch Industry Study 2013: Time for the Future,” Deloitte, September 2013. © L2 2013 L2ThinkTank.com. Circulation of the report violates copyright, trademark and intellectual property laws. 3
  • 4. Excerpt from the Digital IQ Index®: Watches & Jewelry Digital IQ Index®: Watches & Jewelry To access the full report, contact membership@L2ThinkTank.com October 29, 2013 About the Ranking The Methodology 40% Site 25% Digital Marketing 20% Mobile Effectiveness of Brand Site Technology Search & Navigation Customer Service & Store Locator Product Pages E-Commerce & Checkout Alternative Path to Purchase / Concierge Services Account & Personalization Search, Display, and Email Marketing Efforts Search: Traffic, Web Authority, SEO/SEM Compatibility, Optimization, and Marketing on Smartphones and Tablets Smartphone Experience: Compatibility, Functionality, Ability to Transact Brand Presence, Community Size, Content, and Engagement Facebook: Likes, Annual Growth, Custom Tabs & Apps, Responsiveness, Engagement Tablet Experience: Compatibility, Responsiveness, UI/UX Optimization YouTube: Search Visibility, Channel Experience, Upload Views, Virality of Content Mobile Applications (iPhone, iPad, Android): Availability, Popularity, Functionality Twitter: Followers, Annual Growth, Frequency, Online Voice Mobile Search: SEO/SEM, Localization Instagram: Presence, Community Size, Engagement Email: Ease of Sign-Up, Frequency, Content, Behavioral Triggers Blog & Other User-Generated Content: Mentions, Sentiment, and Brand Activity on Industry-specific Outlets (Hodinkee, TimeZone, Watchuseek) Advertising and Innovation: Display, Retargeting, and Cross-Platform Initiatives 15% Social Media Emerging Platforms: Pinterest, Google+, Tumblr Digital IQ Classes Genius  140+ Gifted  110–139 Average  90–109 Challenged  70–89 Feeble  < 70 Digital competence is a point of competitive differentiation for these brands. Brands are leveraging a mix of e-commerce and concierge services to reach customers. Brands are experimenting and innovating across site, mobile, and social platforms. Digital presence is consistent with brand image and larger marketing efforts. Digital presence is functional yet predictable. Efforts are often siloed across platforms. Limited or inconsistent adoption of mobile and social media platforms. Sites lack inspiration and utility. Investment does not match opportunity. © L2 2013 L2ThinkTank.com. Circulation of the report violates copyright, trademark and intellectual property laws. 4
  • 5. Excerpt from the Digital IQ Index®: Watches & Jewelry To access the full report, contact membership@L2ThinkTank.com Digital IQ Index®: Watches & Jewelry October 29, 2013 Digital IQ Ranking Genius, Gifted Rank BRAND DIGITAL IQ Rank BRAND 147 4 146 4 140 BRAND 11 DIGITAL IQ 139 6 12 137 7 13 14 Chopard 15 David Yurman Enterprises 15 Richemont © L2 2013 L2ThinkTank.com. Circulation of the report violates copyright, trademark and intellectual property laws. 123 Nixon 132 Richemont 123 Richemont 133 10 124 Tourneau 133 8 125 The Swatch Group 136 8 126 Alex and Ani The Swatch Group Richemont 130 Richemont Richemont Swarovski 3 139 Fossil Group Tiffany & Co. 2 Rank Gifted Genius 1 DIGITAL IQ 17 117 Hearts On Fire Company Tiffany & Co. Swarovski Cartier Fossil Jaeger-LeCoultre Tissot Chopard David Yurman Piaget Van Cleef & Arpels Montblanc Alex and Ani Longines Tourneau Iwc Schaffhausen Nixon Hearts On Fire Pandora De Beers Hublot Omega Tag Heuer Baume et Mercier Georg Jensen Rolex Victorinox Movado Bulgari Bell & Ross Chaumet Raymond Weil Citizen Vacheron Constantin Ippolita Mikimoto Shinola Breitling Officine Panerai Birks Vestal Audemars Piguet Maurice Lacroix Harry Winston Rado Boucheron Ebel Pomellato Bulova Hamilton Oris Patek Philippe Frederique Constant Jaquet Droz Tudor Fabergé Girard-Perregaux Graff Roger Dubuis Zenith Breguet A. Lange & Söhne Shamballa Jewels Jeanrichard H.Stern Franck Muller FRED Blancpain Corum Richard Mille Ball Watch De Grisogono Glashütte Original Certina Ulysse Nardin Qeelin Marco Bicego Mido Milus Buccellati Léon Hatot 5
  • 6. Excerpt from the Digital IQ Index®: Watches & Jewelry To access the full report, contact membership@L2ThinkTank.com Digital IQ Index®: Watches & Jewelry October 29, 2013 Digital IQ Ranking Gifted, Average Rank BRAND 17 DIGITAL IQ 117 Rank 23 Pandora 19 Rank LVMH The Swatch Group 34 106 29 LVMH 99 Ippolita 35 LVMH 111 102 Richemont 108 28 103 33 Movado Group 111 DIGITAL IQ Citizen Holdings Co. 109 27 BRAND 32 Victornox 113 21 109 23 LVMH 21 DIGITAL IQ Rolex Holdings 113 19 BRAND 98 K. Mikimoto & Co. 105 35 Bell & Ross 98 Shinola Average 23 109 29 Richemont 23 37 LVMH 109 Investcorp 105 29 Breitling 105 Raymond Weil © L2 2013 L2ThinkTank.com. Circulation of the report violates copyright, trademark and intellectual property laws. 95 38 94 Richemont Tiffany & Co. Swarovski Cartier Fossil Jaeger-LeCoultre Tissot Chopard David Yurman Piaget Van Cleef & Arpels Montblanc Alex and Ani Longines Tourneau Iwc Schaffhausen Nixon Hearts On Fire Pandora De Beers Hublot Omega Tag Heuer Baume et Mercier Georg Jensen Rolex Victorinox Movado Bulgari Bell & Ross Chaumet Raymond Weil Citizen Vacheron Constantin Ippolita Mikimoto Shinola Breitling Officine Panerai Birks Vestal Audemars Piguet Maurice Lacroix Harry Winston Rado Boucheron Ebel Pomellato Bulova Hamilton Oris Patek Philippe Frederique Constant Jaquet Droz Tudor Fabergé Girard-Perregaux Graff Roger Dubuis Zenith Breguet A. Lange & Söhne Shamballa Jewels Jeanrichard H.Stern Franck Muller FRED Blancpain Corum Richard Mille Ball Watch De Grisogono Glashütte Original Certina Ulysse Nardin Qeelin Marco Bicego Mido Milus Buccellati Léon Hatot 6
  • 7. Excerpt from the Digital IQ Index®: Watches & Jewelry To access the full report, contact membership@L2ThinkTank.com Digital IQ Index®: Watches & Jewelry October 29, 2013 Digital IQ Ranking Average, Challenged, Feeble Rank BRAND 39 DIGITAL IQ 91 Rank 46 Birks Group 39 DIGITAL IQ 82 Rank 47 Vestal International 80 48 Audemars Piguet DIGITAL IQ 74 The Swatch Group 54 Kering 90 BRAND 53 Movado Group 91 41 BRAND 73 Rolex Holdings 79 55 Citizen Holdings Co. 72 Gemfields Challenged 42 89 48 Maurice Lacroix 43 79 56 The Swatch Group 87 50 The Swatch Group 70 Kering 78 56 Oris 70 Graff Diamonds Feeble 44 85 51 The Swatch Group 45 58 Patek Philippe & Co. 84 Kering 77 52 Richemont 76 Frederique Constant © L2 2013 L2ThinkTank.com. Circulation of the report violates copyright, trademark and intellectual property laws. 68 58 68 LVMH Tiffany & Co. Swarovski Cartier Fossil Jaeger-LeCoultre Tissot Chopard David Yurman Piaget Van Cleef & Arpels Montblanc Alex and Ani Longines Tourneau Iwc Schaffhausen Nixon Hearts On Fire Pandora De Beers Hublot Omega Tag Heuer Baume et Mercier Georg Jensen Rolex Victorinox Movado Bulgari Bell & Ross Chaumet Raymond Weil Citizen Vacheron Constantin Ippolita Mikimoto Shinola Breitling Officine Panerai Birks Vestal Audemars Piguet Maurice Lacroix Harry Winston Rado Boucheron Ebel Pomellato Bulova Hamilton Oris Patek Philippe Frederique Constant Jaquet Droz Tudor Fabergé Girard-Perregaux Graff Roger Dubuis Zenith Breguet A. Lange & Söhne Shamballa Jewels Jeanrichard H.Stern Franck Muller FRED Blancpain Corum Richard Mille Ball Watch De Grisogono Glashütte Original Certina Ulysse Nardin Qeelin Marco Bicego Mido Milus Buccellati Léon Hatot 7
  • 8. Excerpt from the Digital IQ Index®: Watches & Jewelry To access the full report, contact membership@L2ThinkTank.com Digital IQ Index®: Watches & Jewelry October 29, 2013 Digital IQ Ranking Feeble Rank BRAND 60 DIGITAL IQ 67 Rank 67 The Swatch Group 61 H.Stern Comércio e Indústria 77 79 © L2 2013 L2ThinkTank.com. Circulation of the report violates copyright, trademark and intellectual property laws. 36 Buccellati Holding Italia 49 The Swatch Group 38 Milus International 51 73 38 77 The Swatch Group 57 41 The Swatch Group 51 71 Groupe Franck Muller Watchland LVMH 76 De Grisogono 57 45 Marco Bicego 52 71 48 75 BALL Watch Company 59 DIGITAL IQ Kering 54 70 Kering 65 74 Richard Mille 63 BRAND Ulysse Nardin 54 68 Shamballa Jewels 65 Rank China Haidian Holdings 64 64 56 68 Richemont 63 DIGITAL IQ The Swatch Group 66 62 BRAND 80 20 The Swatch Group Tiffany & Co. Swarovski Cartier Fossil Jaeger-LeCoultre Tissot Chopard David Yurman Piaget Van Cleef & Arpels Montblanc Alex and Ani Longines Tourneau Iwc Schaffhausen Nixon Hearts On Fire Pandora De Beers Hublot Omega Tag Heuer Baume et Mercier Georg Jensen Rolex Victorinox Movado Bulgari Bell & Ross Chaumet Raymond Weil Citizen Vacheron Constantin Ippolita Mikimoto Shinola Breitling Officine Panerai Birks Vestal Audemars Piguet Maurice Lacroix Harry Winston Rado Boucheron Ebel Pomellato Bulova Hamilton Oris Patek Philippe Frederique Constant Jaquet Droz Tudor Fabergé Girard-Perregaux Graff Roger Dubuis Zenith Breguet A. Lange & Söhne Shamballa Jewels Jeanrichard H.Stern Franck Muller FRED Blancpain Corum Richard Mille Ball Watch De Grisogono Glashütte Original Certina Ulysse Nardin Qeelin Marco Bicego Mido Milus Buccellati Léon Hatot 8
  • 9. Excerpt from the Digital IQ Index®: Watches & Jewelry To access the full report, contact membership@L2ThinkTank.com Digital IQ Index®: Watches & Jewelry October 29, 2013 Key Findings Site Watches & Jewelry: Product Pages and Image Assets Product Pages & Concierge Handoff Online shoppers are 64 percent more likely to make a September 2013, n=80 51% purchase after watching a video of a product.12 Pictures of products in multiple colors, finishes, or configurations 33% can triple online sales—and 360-degree views increase 26% conversion by up to 20 percent.13 Quality also matters—70 16% percent of consumers report detailed images as an 15% 13% important factor in making a purchase decision. 14 6% Watches and Jewelry product pages largely disappoint. Although half offer close-up images, only a third present multiple angles, just a quarter provide interactive content, Zoom/Enlarge Multiple Angles of Product Product Details Interactive Images Information on Authenticity Side-by-Side Manipulate E-Magazine Comparison Object (360° View) Articles and less than a fifth have tools to compare between two or more competing options. Where product pages do succeed, customers are often left Watches & Jewelry: Alternative Path to Purchase with few options to consummate a transaction via a concierge or personal service representative. Less than 20 percent of brands provide web forms to start such a dialogue—and half September 2013, n=80 25% of these handoffs fail to incorporate dedicated phone support, 18% call-back options, or appointment booking. While concierge services provide a viable alternative to 9% 8% 6% 6% Arrange Appointment Request Call-Back Call to Purchase Item Referenced in Exchange direct e-commerce, more than half the brands that offer such functionality are already e-commerce enabled. Concierge services are being deployed to enhance the customer experience of brands proficient at selling online—not Contact Us from Product Page Email Concierge or Service Rep compensating for an acknowledged deficit. IWC concierge offers the opportunity to purchase over the phone in place of e-commerce. 12. “18 Big Video Marketing Statistics and What They Mean for Your Business,” Andrew Follett, Video Brewery, July 17, 2012. 13. “Why online retailers need product videos,” Graham Charlton, Econsultancy, November 10, 2010. 14. “Product Images: The Power and the Glory to Convert,” Mark White, Content Ping, October 8, 2011. Boucheron offers 360-degree views in the product page for some of the more detailed goods in its collection. © L2 2013 L2ThinkTank.com. Circulation of the report violates copyright, trademark and intellectual property laws. The Hublot comparison tool provides detailed stats on the differences between products. 9
  • 10. Excerpt from the Digital IQ Index®: Watches & Jewelry To access the full report, contact membership@L2ThinkTank.com Digital IQ Index®: Watches & Jewelry Key Findings Digital Marketing October 29, 2013 Watches & Jewelry: Email Marketing Email September 2013 73% A recent survey suggests email is the channel U.S. and U.K. 59% consumers most prefer for initial introduction to a product (37 percent of respondents)—double the response rate for “social media/blogs.” 15 23% 14% Opt-in 9% n=80 While 73 percent of brands provide an opt-in to an email Promote Email Marketing newsletter, just over half sent a marketing message (beyond an automated welcome note) within a six-week window of Via Newsletter Opt-in 78% 55% initial sign-up. Behavioral email tactics are more scarce. Only five brands (Alex and Ani, Ippolita, David Yurman, Montblanc, and Tissot) send abandoned-cart emails. Data suggests these trigger Easy Sign-Up Ability to (One Field Required) Customize Newsletter 40% 9% Follow-Up n=58 Welcome Note Sent emails result in open rates 61 percent higher and click Security Confirmation Required First Correspondence Within 30 Days Content Personalized 3% Abandoned Responsive Cart Trigger Design rates 117 percent higher than “business as usual” mailings (baseline: 31 percent open rate, 5 percent click rate).16 Since September, open rates for email on mobile devices hit 48 percent (55 percent for retail)—highlighting the importance of tailoring content to small screens.17 While 2.42 1.98 1.98 Fossil Swarovski Ippolita Frequency (weekly) 1.40 1.37 Alex and Ani David Yurman Top 5 more than 80 percent of brand marketing received had a “view in browser” option to ensure device compatibility, only two brands (Pandora and Girard-Perregaux) have invested in responsive email design—which optimize display for desktop, tablet, and smartphone mail clients.18 Pandora is one of only two brands experimenting with responsive design emails. Examples of abandoned cart notification emails are rare across the Index. 15. “Mind the Digital Marketing Gap,” Economist Intelligence Unit (EIU) & Lyris, June 2013. 16. “Q1 2013 North American Email Trend Results: Open Rates Rise as Consumers Interact with email via Mobile Devices,” Epsilon, July 2, 2013. 17. “Email Open Rates on Mobile Devices Top 48%,” Joel Book, ExactTarget, September 3, 2013. 18. “Responsive email design: 10 great examples,” Andrew King, Econsultancy, September 19, 2013. © L2 2013 L2ThinkTank.com. Circulation of the report violates copyright, trademark and intellectual property laws. 10
  • 11. Excerpt from the Digital IQ Index®: Watches & Jewelry Digital IQ Index®: Watches & Jewelry To access the full report, contact membership@L2ThinkTank.com October 29, 2013 Key Findings Social Media Social Stats A recent survey of Swiss watchmakers found that 88 Watches & Jewelry: Social Media Adoption percent of industry executives view social media as Percentage of Brands with Official Presence by Platform 2010–2013 “important.” However, 47 percent also said that social platforms pose a reputational risk for the brand—up from 19 percent from 2012 and outpacing gray market goods as the “biggest online risk” faced by brands.19 Despite perceived risk, participation on Facebook, 2010, n=29 96% 96% 89% 79% 93% 85% 2012, n=47 2011, n=35 2013, n=80 89% 85% 74% 74% 71% YouTube, and Twitter has become virtually ubiquitous, and 71% 53% adoption of emerging platforms—specifically Pinterest and 45% 43% 41% Instagram—continues to grow. In the battle between these 53% 45% new platforms, Instagram is the clear winner in terms of both 17% 14% audience and engagement. While Swarovski’s 1.6 million followers on Pinterest inflate the average community size on that platform, the median N/A N/A Facebook YouTube Twitter N/A N/A Pinterest Instagram N/A N/A Google+ N/A N/A Tumblr community size on Instagram is nearly seven times that found on Pinterest (3,800 vs. 567 followers). Furthermore, 15 brands have accumulated more than 10,000 followers on Comparative Metrics by Platform Instagram, while only four brands have done so on Pinterest. 2012–2013 Instagram also demonstrates eight times the engagement Average Engagement Rate rates registered on Pinterest. 2.50% 2.00% Average Community Size 1.50% 1.00% 0.50% 0.00% 0% 400% 800% 1200% Average Annual Growth 19. “Swiss Industry Study 2013: Time For the Future,” Deloitte, September 2013. © L2 2013 L2ThinkTank.com. Circulation of the report violates copyright, trademark and intellectual property laws. Size Growth Engagement 61,472 +33% 0.14% 358,479 +88% 0.25% 21,103 +147% 0.09% 28,620 +402% 2.32% 29,695 +1,116% 0.29% 11
  • 12. Excerpt from the Digital IQ Index®: Watches & Jewelry To access the full report, contact membership@L2ThinkTank.com Digital IQ Index®: Watches & Jewelry October 29, 2013 Key Findings Mobile Tablet Experience Site Configuration on Tablets In March, an analysis of global traffic revealed that the September 2013, n=80 share of monthly page views captured by tablets (8 percent) had eclipsed that of smartphones (7 percent).20 iPads also register 3.5 times the conversion rate observed on iPhones (2.96 percent versus 0.84 percent), leaving many brand Smartphone Experience 1% Tablet Experience 5% Tissot’s product gallery reformats when the device orientation changes. managers to reassess their mobile priorities.21 Advances in mobile optimization on the smartphone have been slower to surface on tablet devices, where 94 percent of brands rely on unmodified desktop sites. Fourteen percent of desktop sites exhibit broken elements (typically 94% Adobe Flash components), and 10 percent demonstrate Desktop Experience sizing or alignment issues. In addition, content that does load on tablets is rarely optimized. Less than half of the sites support touch-and-swipe features, only a quarter optimize selection menus for touch input, and just a sixth have distinct UX elements depending on the device orientation (landscape versus portrait mode). Tablet Experience: Features and Functionality September 2013, n=80 41% Breitling has users swipe through the different models of a collection to see details. 30% 26% 16% 5% Touch & Swipe Support Swipe-able Product Galleries Optimized Dropdown Menus Optimized for Both Landscape & Portrail Mode Galleries Adapt to Orientation Change (Fluid Grid) 20. “Tablets trumpt smartphones in global website traffic,” Tyler White, Adobe Digital Marketing Blog, March 6, 2013. 21. “Ecommerce Quarterly: EQ1 2013,” Monetate, 2013. © L2 2013 L2ThinkTank.com. Circulation of the report violates copyright, trademark and intellectual property laws. 12
  • 13. Excerpt from the Digital IQ Index®: Watches & Jewelry Digital IQ Index®: Watches & Jewelry To access the full report, contact membership@L2ThinkTank.com October 29, 2013 Table of Contents Click logo to return here. Click screen shots with this icon to view online! Click to jump to: 5 Methodology 6 Digital IQ Rankings 6 Genius 7 Gifted 8 Average 9 Challenged 10 Feeble 13 Key Findings 1 3 Biggest Winners and Losers 1 4 Distribution 1 5 Enterprise Site 1 6 E-Commerce 1 7 Europe 1 8 Product Pages & Concierge Handoff Digital Marketing 1 9 Email 2 0 Search Social Media 2 1 Social Stats 2 2 Facebook 2 3 YouTube 2 4 Top 10 Communities by Platform Mobile 2 6 Smartphone Experience 2 7 Tablet Experience 2 8 App Experience © L2 2013 L2ThinkTank.com. Circulation of the report violates copyright, trademark and intellectual property laws. 29 Flash of Genius 29 30 31 32 33 34 35 37 Piaget: Phased Investment Shifts to Mobile Longines: Fan Acquisition: Trot-Gallop Rolex: “Daytona Experience” Jaeger-LeCoultre: “Reinvent Yourself” Chopard: My Happy Sport: Personalization Tiffany & Co.: Ziegfeld Collection & The Great Gatsby Index Leaders: Who Won Christmas? Fossil: Reaping Rewards from Replatforming 38 L2 Team 39 About L2 13
  • 14. Excerpt from the Digital IQ Index®: Watches & Jewelry Digital IQ Index®: Watches & Jewelry To access the full report, contact membership@L2ThinkTank.com About L2 October 29, 2013 ? 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. Upcoming Events L unch :   BE A U TY October 31, 2013 · New York City L unch :   FA S H I O N R esearc h Digital IQ Index®: The definitive benchmark for online competence, Digital IQ Index® reports score November 14, 2013 · New York City brands against peers on more than 600 quantitative and qualitative data points, diagnosing their digital November 22, 2013 · Milan strengths L unch :   FA S H I O N & Beauty and weaknesses. November 26, 2013 · Paris L2 Collective : Series of benchmarking reports designed to help member brands better understand November 27, 2013 · London resources, human capital, budgets, and priorities supporting digital strategies. Br eakfast:   Y ear in r eview EVENT S November 22, 2013 · New York City Forums: Big-picture thinking and game-changing innovations meet education and entertainment. L 2 F o r um ® 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 November 6 & 7, 2013 · New York City Upcoming Research D igital I Q I nde x ® Rep o rt: Beauty Fashion Sportswear Home Care 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 Organizational Strategy engagements. MEMBER SHIP For membership info and inquiries: membership@L2ThinkTank.com © L2 2013 L2ThinkTank.com. Circulation of the report violates copyright, trademark and intellectual property laws. 14
  • 15. © L 2 2013 L 2 ThinkTank.com Reproductions Prohibited This report is the property of L2 Think Tank. No copyrighted materials may be reproduced, redistributed, or transferred without prior consent from L2. L2 reports are available to L2 Members for internal business purposes. A Think Tank for DIGITAL INNOVATION 51 East 12th Street, 2nd Floor New York, NY 10003 L2ThinkTank.com info@L2ThinkTank.com Excerpt from the Digital IQ Index®: Watches & Jewelry To access the full report, contact membership@L2ThinkTank.com