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ProsumerNET ORNATI Customer Engagement in The Digital Era - Luxury Sector
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ProsumerNET ORNATI Customer Engagement in The Digital Era - Luxury Sector

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Plenary session, Prosumer.NET final conference, Bruxelles, May 27th 2013. Customer Engagement in the Digital Era: the Personal Luxury Goods Sector.

Plenary session, Prosumer.NET final conference, Bruxelles, May 27th 2013. Customer Engagement in the Digital Era: the Personal Luxury Goods Sector.

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ProsumerNET ORNATI Customer Engagement in The Digital Era - Luxury Sector ProsumerNET ORNATI Customer Engagement in The Digital Era - Luxury Sector Presentation Transcript

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