20111114 luxury webinar final_upload


Published on

Published in: Business, Technology
  • Be the first to comment

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide
  • 450 million Internet users in China compared to 224 million in the US make it the largest market online. The number of Internet users are expected to rise to 740 million by 2015.
  • For many consumers interested to learn more about luxury brands, their journey begins with search
  • From there, they may read trend catching blogs to see the latest news on who wore what and where
  • She follows the YouTube tutorial instructions and applies the product for her big night out.
  • She may log into a brand site to find out what her friends like and which products were the most ‘liked’ overall
  • Then, she’ll purchase, perhaps in the store, but it’s increasingly likely that she’ll buy a product online, either through a mobile site, an e-commerce site like Amazon, or even through a Facebook shop.Estee Lauder: http://www.mobilemarketer.com/cms/news/content/10256.html
  • And of course, after purchase, the consumer is likely to either say something about his or her purchase or post a photo showing them wearing the product. In fact, IWC actually thanks each fan for submitting photos or their watches!
  • So, how can luxury brands who want to control their brand image and maintain an air of exclusivity leverage digital and social media?
  • One way is through content. Bulgari has added incredible depth to their ‘Enchanted Garden’ print and out of home campaign through photo and video content available exclusively on Facebook. This content brings the consumer deeper into a brand experience they can’t get by looking at an ad in a magazine.
  • Kate Spade has taken content curation another way by using Tumblr, the mini blogging platform, to deliver short snippets of fun, light-hearted content. The brands posts about six times a week, sharing photos, anecdotes, quotes and other small pieces for daily inspiration.
  • But it’s not always necessary for luxury brands to be their own content publishers. In the case of Burberry’s Art of the Trench campaign, the brand has solicited user-generated content to co-create an exhibition of the trench coat – a piece of apparel that has become iconic for the brand. The Art of the Trench has helped Burberry turn around its brand image and serves as a piece of cultural history for customers both present and future.
  • And of course, anyone who follows luxury brands has probably seen at least one fashion show streamed over the Web. However, in addition to making the fashion show something millions of fans can participate in, several brands have explored ways to create exclusive experiences that are only available to fans online. For example, our team at Ogilvy Paris recently worked with LV to create virtual 3-D renderings of each model that could only be accessed by viewers online and via iPads.
  • Brands with e-commerce capability register double the traffic growth, 85 percent higher Google search volume, and nearly triple the number of Facebook fans. They also demonstrate broader adoption of digital marketing tactics, such as search engine optimization and marketing and email communication.http://www.internetretailing.net/2011/11/innovative-social-media-helps-burberry-to-29-sales-growth/
  • Of the 485 million Internet users in China, 318 million access the web through their mobile phone. Many Internet users have gone from no Internet directly to mobile Internet. While prestige brand programming on mobile plat- forms has increased dramatically from 2010, it has not kept pace with the opportunity.
  • Allow products to be shared via twitter, incorporate Facebook Share, Like & Recommend APIs linking to social media properties and incorporating product sharing features can provide tangible results, and the amount of traffic coming from and going to a brand site from social media properties significantly correlates with Digital IQ.IWC Schaffhausen encourages user- generated content by enthusiastically thanking fans for their photo contributions.VacheronConstantin generates dialogue by responding to customer service queries and engaging with fan posts and uploads.Through Facebook Check-ins on their main website, Bvlgari encourages its fans to share theirshopping experience with their friends.
  • Posts soliciting user comments generated the highest interaction rates on Beauty Facebook pages. Second to questions are posts pro- viding information about products.IWC Schauffhausen encourages user-generated content by enthusiastically thanking fans for their photo contributions.
  • 20111114 luxury webinar final_upload

    1. 1. Luxury & Social Media
    2. 2. Is digital important for luxuryconsumers?
    3. 3. Luxury brands are a major player China has the largest luxury market in the world… Value of the Chinese luxury market (billion RMB) Global share (percent)Source: 2011 McKinsey Insights China Luxury Goods
    4. 4. Luxury is for the kids The majority of luxury consumers are relatively young… 73% of China’s luxury consumers are under 45Source: 2011 L2 Luxury Digital IQ Report
    5. 5. Online shopping is increasingly common …and a massive online shopping market where consumers hang out... • 60% of Chinese consumers indicate that the Internet is one of the primary sources for information on luxury goods. • 2 out of 3 Japanese women shop online • 34% of Hong Kong luxury shoppers seek information from online sources compared with 20% globallySource: 2010 China E-commerce Market Statistical Report
    6. 6. Social platforms drive purchase information …and use several social channels when searching for luxury goods information. Sources of information for luxury goods online 4.5 4 3.5 3 2.5 2 1.5 1 0.5 0 Brands official websites Vertical portals News sites Social networks BlogsSource: 2010 L2 Luxury Digital IQ Report
    7. 7. The growing importance of social media for luxury In the past year, luxury brands have seen fan numbers skyrocketSource: 2011 L2 Luxury Digital IQ Report
    8. 8. The trends continues in China Buzz on Sina Weibo grew more than 7x for Burberry over 12 months Buzz Trend on Sina Weibo from Jun 10 to May 11 LV Burberry Armani 70,000 60,000 50,000 Buzz Volume 40,000 30,000 20,000 10,000 0 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11Source: Sina Weibo
    9. 9. Luxury brands on emerging platforms Brands experimenting with Instagram enable a different type of connection • Fashion brands use Instagram to provide a sneak peak into runway shows, photo shoots, and other events. • Instagram, available exclusively for the iPhone, has almost 10 million users. • Burberry is leading the way with over 85,000 followers.Source: 2011 L2 Luxury Digital IQ Report
    10. 10. The consumer journey for aluxury consumer in digital
    11. 11. Social should be an integral part of the consumer journey Pre-Purchase Purchase Post-Purchase
    12. 12. She searches for a brand, product or trendFor women, their pursuit of luxury good begins in a search engine Hmm, I wonder what type of luxury watch I should buy?
    13. 13. She reads a variety of trend catching blogsAlmost 50% of female Chinese Netizens are active bloggers
    14. 14. She watches online tutorial videos to get the right lookMost Asians spend 5-10 hours per week watching online videos Online Video Unique Viewers (millions) China 199.4 Japan 61.1 Singapore 2.3 Malaysia 8.2 Hong Kong 3.7 India 30 Australia 10.3Source: comScore, “State of the Internet,” 2010-2011; ages 15+, home and work locations
    15. 15. She logs into a brand site to see what her friends likeSocial shopping brings social proof to the forefront Share content and connect via Facebook See what the „most liked‟ products are from your network Comment on a product and share with friends on Facebook
    16. 16. She purchases the product onlinee-Commerce, m-Commerce and f-Commerce are increasingly popular salesdrivers 90% of brand sites that register Amazon as their top destination have their own e- commerce platforms Luxury brands are experimenting with f-Commerce as some establish actual „Facebook Shops‟ Most Estée Lauder brands will have a mobile site within 2 years
    17. 17. Sharing the purchase with social networksCreating simple and creative ways for consumers to share news of their purchase
    18. 18. How to maintain exclusivity indigital
    19. 19. Creating a brand experience through contentDrawing fans into a rich experience they can only get via social media
    20. 20. Daily doses of inspirationKate Spade uses Tumblr to seed fun, engaging content
    21. 21. Allowing fans to co-create a brand iconBurberry‟s „Art of the Trench‟ has fans and bloggers redefining the trench coat
    22. 22. Taking the fashion show to new levelsCreating an exclusive experience just for fans
    23. 23. Using f-Commerce to enable customizationProviding customers an online-only opportunity to customize their purchase
    24. 24. Using Facebook to drive trialLetting fans try first and share with their friends
    25. 25. The 5 Rules of Digital inLuxury
    26. 26. 1. Digital is no longer a nice to have Brands with a strong digital footprint actually sell more 52-Week Change in Stock Price (N=44 brands, 14 public companies) 56.6 Burberry attributes a 29% rise in sales over six months to its use of social media and an investment in improving its e-Commerce Website. 23.9 19.4 12.6 8.5 0%Sources: Yahoo! Finance, 2011 L2 Luxury Digital IQ study,http://www.internetretailing.net/2011/11/innovative-social-media-helps-burberry-to-29-sales-growth/
    27. 27. 2. Factor mobile into your digital strategy Of the 485M Internet users in China, 318M access the web through a mobile phone Outside China… “Half of Facebook and Twitter users are signing in from their mobile devices… mobile users are also the most active sharers on social networks.” – Karl Heiz Land, MicroStrategy, Inc.Source: 2011 L2 Luxury Digital IQ Report
    28. 28. 3. A social media strategy is not „one size fits all‟Consider how to deliver localized content to audiences around the world LV‟s Japanese blog on Ameblo Dolce & Gabbana‟s Social Media Ecosystem
    29. 29. 4. Fans want to talk about themselves Posts soliciting user comments generated the highest interaction ratesSource: 2011 L2 Luxury Digital IQ Report
    30. 30. 5. Danger of not participatingMisconceptions and brand hijacking Armani is a brand specialized in foundation cream… Rogue Chanel fan club page on Sina Weibo with nearly 170K followers http://bbs.yoka.com/thread-447364-1-1.html
    31. 31. 5 Secret ElementsThank You! for Luxury Brands’ Online Success