®                                     Watches    SCOTT GALLOWAY    NYU Stern                                      & Jewelr...
november 10, 2011                  On November 10, L2 will host its third annual Innovation                               ...
Digital iQ iNDex ®: Watches & Jewelry                                                                                     ...
Digital iQ inDex ®:Watches & Jewelry                                                                                      ...
Digital iQ inDex ®:Watches & Jewelry                                                                                      ...
Digital iQ inDex ®:Watches & Jewelry                                                                                      ...
Digital iQ inDex ®:Watches & Jewelry                                                                                      ...
Digital iQ inDex ®:Watches & Jewelry                                                                                      ...
Digital iQ inDex ®:Watches & Jewelry                                                                                      ...
Digital iQ inDex ®:Watches & Jewelry                                              Want to know more about your brand’s ran...
Digital iQ inDex ®:Watches & Jewelry                                                                                     W...
Digital iQ inDex ®:Watches & Jewelry                                                                                      ...
Digital iQ inDex ®:Watches & Jewelry                                                                                      ...
Digital iQ inDex ®:Watches & Jewelry                                                                                      ...
Digital iQ inDex ®:Watches & Jewelry                                                                                      ...
Digital iQ inDex ®:Watches & Jewelry                                                                                      ...
Digital iQ inDex ®:Watches & Jewelry                                                                                      ...
Digital iQ inDex ®:Watches & Jewelry                                                                                      ...
Digital iQ inDex ®:Watches & Jewelry                                                                                      ...
L2 Digital IQ - Watches Jewelry 2011
L2 Digital IQ - Watches Jewelry 2011
L2 Digital IQ - Watches Jewelry 2011
L2 Digital IQ - Watches Jewelry 2011
L2 Digital IQ - Watches Jewelry 2011
L2 Digital IQ - Watches Jewelry 2011
L2 Digital IQ - Watches Jewelry 2011
L2 Digital IQ - Watches Jewelry 2011
L2 Digital IQ - Watches Jewelry 2011
L2 Digital IQ - Watches Jewelry 2011
L2 Digital IQ - Watches Jewelry 2011
L2 Digital IQ - Watches Jewelry 2011
L2 Digital IQ - Watches Jewelry 2011
Upcoming SlideShare
Loading in …5
×

L2 Digital IQ - Watches Jewelry 2011

2,948 views

Published on

Published in: Lifestyle, Business
0 Comments
3 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
2,948
On SlideShare
0
From Embeds
0
Number of Embeds
5
Actions
Shares
0
Downloads
83
Comments
0
Likes
3
Embeds 0
No embeds

No notes for slide

L2 Digital IQ - Watches Jewelry 2011

  1. 1. ® Watches SCOTT GALLOWAY NYU Stern & Jewelry O C T O B E R 1 8 , 2 0 11 A Think TAnk for DiGiTAL innOVATiOn© L2 2011 L2ThinkTank.com
  2. 2. november 10, 2011 On November 10, L2 will host its third annual Innovation Forum in New York City. Presented with NYU Stern School The Morgan Library of Business, the Forum will address innovation in digital marketing and implications for prestige brands in a new York City TED-style event. Speakers include CEOs, Nobel Laureates, and thought leaders from academia and industry. To register, visit: FORUM: http://L2innovationforum2011.eventbrite.com elements: • high-velocity, provocative presentations by thought leaders from industry and academia • Conversations and panels with industry icons and influencers • Just-released Digital iQ index® research bench- marking prestige brands in fashion, beauty, accessories, and retail • Trends, predictions, and best practices based on a year’s worth of L2 research • Performances by innovators in art, media, music, and technology • Countdown of the seven most innovative programs The largest gathering of in prestige prestige executives in North America To register, visit: http://L2innovationforum2011.eventbrite.com GREG LinDSAY TOM PhiLLiPS JULiAn TREASUREhosts: speakers: Author & Journalist CEO & Co-Founder Author, Sound Business Aerotropolis: The Way Media6° Chairman, The Sound We’ll Live Next Agency TAMáS LOChER ViCTORiA RAnSOM DUnCAn WATTS SCOTT GALLOWAY New speakers are being added daily. Co-Founder & CEO Founder & CEO Principal Research Founder, L2 LOOKK.com Wildfire Scientist Visit our event site for the most up-to-date list. Yahoo! Research Professor of Marketing NYU Stern JEnniFER AAkER TiM hWAnG ThOMAS LOCkWOOD PAUL ROMER GEOFF WATTS PETER hEnRY Professor, Stanford Chief Scientist, Pacific Author, Design Professor Co-Founder Dean University Graduate Social Architecting Thinking and Building NYU Stern EDITD NYU Stern School of Business Corporation Design Strategy DAViD CAREY JOhn JAnnUZZi SOniA MARCiAnO kRiSTinE ShinE JOEL WEinGARTEn MiChAEL LAZEROW President Editor Professor of Mangagement Vice President CEO & Founder CEO & Founder Hearst Magazines Lucky Magazine & Organizations Popsugar Media StyleOwner Buddy Media NYU Stern DAVE GiLBOA ShERiL kiRShEnBAUM OREn MiChELS MARC SPEiChERT CAPTAin Co-CEO & Co-Founder Research Scientist CEO & Founder Chief Marketing Officer DAViD WERnER Warby Parker Webber Energy Group, Mashery L’Oréal USA U.S. Navy Office University of Texas of Information MELiSA GOLDiE CAThERinE LEVEnE MAUREEn MULLEn JOhn TOMiCh GABE ZiChERMAnn EVP, Chief Creative Co-Founder & CEO Research & Advisory CEO & Co-Founder CEO Officer ArtSpace L2 OneStop Gamification Co. Calvin Klein, Inc
  3. 3. Digital iQ iNDex ®: Watches & Jewelry Want to know more about your brand’s ranking? COnTACT US inTRODUCTiOnDigital: It’s TimeIn our first Digital IQ Index® measuring the category in isolation, nearly two thirds of the brands are classified as Challenged or Feeble, and only two, Tiffany & Co. and Swarovski, achieved Genius and Gifted classifications (respectively). Gray market concerns, counterfeit fears, limited pricing transparency, and retailer conflict all present obstacles for organizations in this category to build and sell their brands online. However, with 67 percent ofconsumers in the EU and half of those in the U.S. indicating that they research luxury goods online before makinga purchase, do Watches & Jewelry brands really have a choice? Drive and Derive Two Ways Just 29 percent of the brands in the Index boast e-commerce Digital also provides the opportunity to reduce offline marketing capabilities. However, in a category where third-party distribu- investments. There are two ways to build shareholder value: tion is not going away anytime soon, the missed opportunities to increase perceived value and/or reduce costs. Managers tend drive potential consumers to authorized offline retail is even more to focus on the former when presented with new technology. disappointing. Less than half of the brands link to a store locator However, social media’s true promise may lie in the less roman- from the product page and just one third display product prices. tic notion of reducing (significantly) the costs of, and addiction Tiffany is the only brand to provide in-store pick-up through its to, print. Brands that establish direct relationships with their site, while TAG Heuer is the only brand to provide links to online customers via social media platforms have the opportunity to retailers. Although Watches & Jewelry brands may never do excise the publisher’s tax. significant volume directly, they can steal a page from the play- book of most automobile brands and use their sites and social media channels to push consumers to the next stage in the purchase funnel. © L2 2011 L2ThinkTank.com 3
  4. 4. Digital iQ inDex ®:Watches & Jewelry Want to know more about your brand’s ranking? COnTACT USinTRODUCTiOnDipping their toesThere are signs of life. All but three brands in the Index now The medium we are assessing is similar to our methodology inmaintain a presence on Facebook, with communities averaging that both are dynamic. We hope you will reach out to us withmore than 200,000 fans. Mobile site adoption is up from just 7 comments that improve our investigation and findings. You can percent in 2010 to 39 percent this year. In addition, brands are reach me at scott@stern.nyu.edu.slowly beginning to abandon flash-heavy sites that are difficult to navigate in favor of streamlined experiences that are moresearchable, shareable, and product-centric. SCOTT GALLOWAY Founder, L2Hubris Clinical Professor of Marketing, NYU SternWhile some industry icons move forward others continue to slipfurther behind. With a YouTube channel launch and new iPadapplications, Cartier was one of this year’s biggest winners, but stillregisters an “Average” IQ. The biggest disappointment is industry heavyweight Rolex, which has fallen from Gifted in 2009 to Feeblethis year. Hubris has infected many of the Watches & Jewelry brandswith complacency online, and their stakeholders may pay aheavy price.Digital IQ = Shareholder ValueOur thesis is that digital competence is inextricably linked toshareholder value. Key to managing and developing a competenceis an actionable metric. This study attempts to quantify the digitalcompetence of 35 global Watches & Jewelry brands. This year’sranking reflects brands’ efforts across the U.S. and WesternEurope. Our aim is to provide a robust tool to diagnose digitalstrengths and weaknesses and help brands achieve a greaterreturn on incremental investments.© L2 2011 L2ThinkTank.com 4
  5. 5. Digital iQ inDex ®:Watches & Jewelry Want to know more about your brand’s ranking? CONTACT USABOUT ThE RAnkinGS M E T h O D O LO G Y D i G i TA L i Q C L A S S E S Site: 35% iQ Range iQ Class effectiveness of brand site 140+ GEniUS FunCTIOnALITY & COnTenT: 75% BRAnD TRAnSLATIOn: 25% Digital competence is a point • Site Technology • Site Aesthetics of differentiation for these brands. • navigation, Product & Site Search • Messaging & imagery Site content is searchable, • Social Media integration shareable, and mobile-optimized. • Customer Service & Store Locator Social media efforts complement • Product Display & Content broader digital strategy. • E-Commerce & Transaction Orientation • Account Sign-Up & Functionality • innovation & interactivity 110–139 GiFTED • Global E-Commerce Footprint Brands are experimenting and • Branded Content innovating across site, mobile, and social platforms. Digital presence Digital Marketing: 25% is consistent with brand image and Search, display, and email marketing efforts larger marketing efforts. • Search: Traffic, SEM, SEO, Web Authority • Display Advertising & innovation: Text & Banner Ads, Retargeting, Cross-Platform Innovation Initiatives 90–109 AVERAGE • Blog & Other User-Generated Content: Mentions, Sentiment Digital presence is functional yet • Email: Frequency, Language, Content, Social Media Integration, Promotion predictable. Efforts are often siloed across platforms. Sites often offer Social Media: 25% limited transaction-orientation. Brand presence, community size, content, and engagement on major social media platforms • Facebook: Likes, Growth, Post Frequency, Applications, Responsiveness, Content, Global Presence 70–89 ChALLEnGED • Twitter: Followers, Growth, Tweet Frequency, Online Voice Limited or inconsistent adoption of • YouTube: Views, Number of Uploads, Subscriber Growth, Content, Interactivity mobile and social media platforms. Site lacks inspiration and utility. Mobile: 15% Compatibility, optimization, and marketing on smartphones and other mobile devices <70 FEEBLE • Mobile Site: Compatibility, Functionality, Transaction • iOS Applications (iPhone & iPad): Availability, Popularity, Functionality, iPad Differentiation Investment does not match • Android: Availability, Popularity, Functionality opportunity. • innovation: SMS, Geolocal, Other Mobile Marketing Innovation© L2 2011 L2ThinkTank.com 5
  6. 6. Digital iQ inDex ®:Watches & Jewelry Want to know more about your brand’s ranking? COnTACT USD i G i TA L i Q R A n k i n G PARenT COMPAnY: COMpagNie FiNaNCièRe RiCHeMONt S.a. OTHeR: pUBliClY tRaDeD tHe SWatCH gROUp ltD. OTHeR: pRiVatelY OWNeD lVMH Rank Brand Parent Digital IQ Class Comments A class by itself, Tiffany boasts the only m-commerce site and a flare for 1 TIFFAnY & CO. Tiffany & Co. 143 Genius cross-platform programming 2 SWAROVSKI Swarovski AG 124 Gifted Huge Facebook community, #1 Digital Marketing score and site traffic leader Compagnie Financière Bridges Grande Tradition with digital best practices and notches top score for 3 JAeGeR-Le COuLTRe 108 Average Social Media Richemont S.A. 4 DAVID YuRMAn Yurman Design, Inc. 107 Average Strong site coupled with Foursquare activity Compagnie Financière Finally commandeering its own Facebook efforts; social media traction coupled with 5 CARTIeR 106 Average Richemont S.A. iPad updates score biggest winner accolades 6 OMeGA The Swatch Group Ltd. 103 Average Content-rich iPad magazine and strongest mobile site in study Live press conferences on Facebook and top-scoring YouTube channel somewhat 7 TAG HeueR LVMH 100 Average compensate for sluggish site load 8 LOnGIneS The Swatch Group Ltd. 95 Average Leading (limited) e-commerce efforts in the watchmaker category Compagnie Financière 9 MOnTBLAnC 92 Average Launched e-commerce right after data was cut, savvy Facebook programs delight Richemont S.A. Pandora Club sign-up available using Facebook connect bolsters a community more 9 PAnDORA Pandora A/S 92 Average than 800,000 strong Mobile site absence is saved by F-commerce experimentation and Enchanted 11 BuLGARI LVMH 90 Average Garden experience 11 HuBLOT LVMH 90 Average Early innovator is hurt by anemic Facebook growth Compagnie Financière Award-winning iPad app coupled with strong Facebook growth and engagement 11 IWC SCHAFFHAuSen 90 Average keep brand ticking Richemont S.A. Audemars Piguet 14 AuDeMARS PIGueT 89 Challenged The Art of Timeless Precision needs online shopping Holding S.A.© L2 2011 L2ThinkTank.com 6
  7. 7. Digital iQ inDex ®:Watches & Jewelry Want to know more about your brand’s ranking? COnTACT USD i G i TA L i Q R A n k i n G PARenT COMPAnY: COMpagNie FiNaNCièRe RiCHeMONt S.a. OTHeR: pUBliClY tRaDeD tHe SWatCH gROUp ltD. OTHeR: pRiVatelY OWNeD lVMH Rank Brand Parent Digital IQ Class Comments Punching above its weight class with strong social presence, awaiting 15 RAYMOnD WeIL Raymond Weil S.A. 85 Challenged mobile innovation 16 CHOPARD Chopard Holding S.A. 83 Challenged Elegant efficiency needs e-commerce best practices and mobile applications 16 MIKIMOTO K. Mikimoto & Co., Ltd. 83 Challenged YouTube absence hinders IQ; strongest e-commerce presence in the Index March site launch improves IQ and threads the needle between brand and 18 De BeeRS LVMH 82 Challenged commerce; next step: social media Compagnie Financière Overachiever on Facebook and surprising #2 in Twitter followers signals 19 BAuMe eT MeRCIeR 81 Challenged Richemont S.A. digital potential Compagnie Financière 20 PIAGeT 79 Challenged Rewards and thanks Facebook fans but playing it safe on most digital fronts Richemont S.A. 21 MOVADO Movado Group Inc. 78 Challenged What about 2011 Legends? Facebook content is stale Only Android app in the study, but without a mobile-optimized site still not 22 BReITLInG Breitling S.A. 77 Challenged fully compatible 22 HARRY WInSTOn Harry Winston, Inc. 77 Challenged Needs to add sparkle to predictable digital performance Compagnie Financière 24 VAn CLeeF & ARPeLS 75 Challenged E-commerce could perhaps be the new chapter? Richemont S.A. Compagnie Financière Highest Facebook engagement rate in the study, but can’t overcome limited 25 VACHeROn COnSTAnTIn 71 Challenged Richemont S.A. mobile presence 26 BuLOVA Citizen Watch Co., Inc. 68 Feeble Needs to adopt Twitter and YouTube Department store e-commerce connection is a Genius move for this otherwise 27 BACCARAT The Baccarat Company 65 Feeble disappointing digital experience 28 ROLeX Rolex Holding S.A. 64 Feeble Biggest digital disappointment in the sector© L2 2011 L2ThinkTank.com 7
  8. 8. Digital iQ inDex ®:Watches & Jewelry Want to know more about your brand’s ranking? COnTACT USD i G i TA L i Q R A n k i n G PARenT COMPAnY: COMpagNie FiNaNCièRe RiCHeMONt S.a. OTHeR: pUBliClY tRaDeD tHe SWatCH gROUp ltD. OTHeR: pRiVatelY OWNeD lVMH Rank Brand Parent Digital IQ Class Comments Groupe Franck Muller 29 FRAnCK MuLLeR 48 Feeble Anticipating mobile app debut Watchland S.A. 29 H.STeRn H.Stern Jewelers, Inc. 48 Feeble Facebook presence weak, site even weaker Compagnie Financière 31 OFFICIne PAneRAI 47 Feeble Screensavers: Out. Social Media: In Richemont S.A. 32 BuCCeLLATI Buccellati Holding Italia S.p.A 42 Feeble Dated Graff Diamonds 32 GRAFF DIAMOnDS 42 Feeble Facebook newcomer has a lot of catching up to do International Ltd. Digital means more than a strong site experience; awaiting the social media 34 FABeRGÉ Fabergé S.A. 39 Feeble Rebirth Of (this) Icon 35 PATeK PHILIPPe Patek Philippe S.A. 36 Feeble Last place in an uncompetitive race© L2 2011 L2ThinkTank.com 8
  9. 9. Digital iQ inDex ®:Watches & Jewelry Want to know more about your brand’s ranking? COnTACT USkEY FinDinGS D i G i TA L i Q D i S T R i B U T i O n % of Brands per Digital iQ Class(Time) Standing StillIn our first-ever Watches & Jewelry Index, nearly two thirds of GenIuSWatches & Jewelry brands are classified as Challenged or DIGITAL IQ 3% tiffany & Co.Feeble and only two brands registered IQs of Genius or Gifted, >140confirming the hypothesis that the category is one of the biggest luxury laggards online. In comparison, in the digitally GIFTeDsophisticated Specialty Retail and Travel categories, both which DIGITAL IQink considerable revenue through online channels, 42 percent Swarovski 3% 110–139and 41 percent of brands, respectively, were Genius or Gifted.Meanwhile the Fashion and Beauty categories register aboutone third of brands in the Genius or Gifted ranks. Although AVeRAGeWatches & Jewelry brands are beginning to invest in social Jaeger-leCoultre Montblanc David Yurman pandoramedia and mobile, transaction-orientation and digital marketing DIGITAL IQ Cartier Bulgaricompetence (search, email, retargeting, etc.) lag other 31% 90–109 Omega Hublotindustries. tag Heuer iWC Schaffhausen longines D i G i TA L i Q A C R O S S i n D U S T R i E S % of Brands Classified as Genius or Gifted CHALLenGeD audemars piguet Movado Raymond Weil Breitling 42% Chopard Harry Winston 41% DIGITAL IQ Mikimoto Van Cleef 34% 33% De Beers & arpels 70–89 32% Vacheron Baume et Mercier Constantin piaget 6% FeeBLe Bulova Officine panerai Baccarat Buccellati DIGITAL IQ 29% Rolex graff Diamonds Specialty Travel Beauty Fashion Watches <70 Franck Muller Fabergé Retail & Jewelry H.Stern patek philippe Click icons to Download Research© L2 2011 L2ThinkTank.com 9
  10. 10. Digital iQ inDex ®:Watches & Jewelry Want to know more about your brand’s ranking? COnTACT USkEY FinDinGS In the Company of Genius TiFFAnY & CO. What Makes Love True microsite and app bring the magic of Tiffany & Co. to life through authentic One of the top sites in the love stories, curated New Index, Tiffany threads the York experiences, and film needle between brand and music suggestions. building and e-commerce.© L2 2011 L2ThinkTank.com 10
  11. 11. Digital iQ inDex ®:Watches & Jewelry Want to know more about your brand’s ranking? COnTACT USkEY FinDinGS In the Company of Genius TiFFAnY & CO. (continued) Tiffany’s Engagement Ring Finder app blends utility and shareability. One of only two brands The app allows users to in the study with an identify their ring size and Instagram account. comment on products on a private Facebook wall. Tiffany & Co. emails provide communications links to e-commerce, customer service, social Even for products that media properties, and aren’t sold via e-commerce, mobile applications. such as engagement rings, Tiffany provides pricing, payment options, and seamless handoff to an in-store consulation.© L2 2011 L2ThinkTank.com 11
  12. 12. Digital iQ inDex ®:Watches & Jewelry Want to know more about your brand’s ranking? COnTACT USkEY FinDinGS D i G i TA L i Q BY O W n E R S h i P S T R U C T U R E 170Digital IQ by Ownership StructureAn analysis of Digital IQ by ownership structure suggests that Geniusbrands held by public companies register a significant advantage online, arguably as a result of the emphasis (pressure) the Disparitymarkets place on innovation. Public companies not affiliated 78 140 Tiffany & Co.with a larger organization demonstrated the biggest DigitalIQ gains, up 11 percent year on year. Although small sample sizes prevent us from drawing conclusions, The Swatch Group Disparitynarrowly outpaced other Watches & Jewelry conglomerates 88 Gifted Swarovskiwith an average IQ of 99 versus an average of 91 across the LVMH portfolio and 83 for watch-giant Richemont. Richemont Disparityregisters a 61-point spread between the organization’s highest 110 Disparity 61 Jaeger-LeCoultreDigital IQ (Jaeger-LeCoultre) and its lowest (Officine Panerai) 8 Disparity Car tier David Yurman 18 Averagesuggesting that there are innovation silos and that brands AVG IQ Omega TAG Heuerare not sharing best practices, a trend we have seen play out 99 Longinesacross other organizations in the prestige category. 90 AVG IQ Pandora Montblanc 91 Bulgari AVG IQ IWC Schaffhausen Audemars Piguet Hublot 87 Challenged Raymond Weil AVG IQ Chopard De Beers Movado 83 Baume et Mercier Piaget Mikimoto Harry Winston Breitling Van Cleef & Arpels 70 Vacheron AVG IQ Bulova Constantin 69 Baccarat Rolex Feeble Officine Panerai Franck Muller H.Stern Buccellati Fabergé Graff Diamonds Patek Philippe 30 n= t d. n= H ad R: n= ned : t S re R M 4 Tr THE Ow THE n= ed L 2 on ciè n= .A . LV p 6 14 9 O O ou em an Gr ch in y ly Ri ie F el ch ic at bl at gn iv Pu Sw pa Pr m e Th Co© L2 2011 L2ThinkTank.com 12
  13. 13. Digital iQ inDex ®:Watches & Jewelry Want to know more about your brand’s ranking? COnTACT USkEY FinDinGS G R E AT E S T Y E A R - O V E R -Y E A R G A i n O R LO S S 2010 vs. 2011 Digital iQ Percentile Rank Cartier Hublot ChALLEnGED AVERAGE -22% GiFTED AVERAGE industry icon is finally on Facebook and introduced ipad apps on the art of watchmaking and bridal collection. Still needs significant site investments +35% Others are starting to catch up with one of the early digital content kings. earned media from 2010 World Cup isn’t a factor this year. to compete with other icons of prestige. David Yurman Piaget AVERAGE AVERAGE -27% AVERAGE ChALLEnGED Boasting the strongest site in the study, e-commerce capability is a point of differentiation this year. Making inroads +30% early innovator maintains stronger digital presence in asia than in U.S. and europe. Upgrades to site navigability and purchase handoff are necessary for it to reverse trend. with twitter launch. Jaeger-LeCoultre Rolex AVERAGE AVERAGE -30% ChALLEnGED FEEBLE Strong social sharing, mobile site launch, and Youtube channel catapults brand to #3. +30% Brand equity alone can no longer keep icon afloat. absence from social platforms is taking its toll. IWC Schaffhausen Fabergé ChALLEnGED AVERAGE -30% ChALLEnGED FEEBLE early investments in Facebook have resulted in one of the largest and most engaged communities in watches. +28% With only one brick and mortar store, online innovation is a must for this iconic jeweler. Chopard Van Cleef & Arpels FEEBLE ChALLEnGED -32% AVERAGE ChALLEnGED Mobile site launch and modest social media programming are enough to move brand up an iQ class. +27% another brand with early legacy investments, including one of the first iphone apps. limited site sophistication is becoming more and more of a liability.© L2 2011 L2ThinkTank.com 13
  14. 14. Digital iQ inDex ®:Watches & Jewelry Want to know more about your brand’s ranking? COnTACT USkEY FinDinGSSelling Is Knowing Y E A R - O V E R -Y E A R S E L E C T D i G i TA L & S O C i A L M E D i A G R O W T h E-Commerce vs. non-E-CommerceOnly 29 percent of the brands in the Index boast e-commerce (august 2010–august 2011)capability, and Longines and Movado are the only pureplay watchmakers that sell online. Concerns about pricingtransparency, retail relationships, and inventory all providesignificant challenges for brands in the online channel. However, our data indicates e-commerce capability is the e-Commerce No e-Commerce Differencestrongest predictor of digital competence across channels.When brands begin selling online, digital transitions from amarketing cost to a P&L. Brands with e-commerce capability average YOY 10% 5% 100.0%register double the traffic growth, 85 percent higher Google traffic growthsearch volume, and nearly triple the number of Facebook fans.They also demonstrate broader adoption of digital marketingtactics, such as search engine optimization and marketing andemail communication. average Monthly google Searches 1,166,200 628,904 85.4% average YOY 429% 115% 273.0% Search growth average Number of Facebook Fans 330,668 116,897 182.9% Swarovski nabbed the #2 E-commerce and #1 Traffic scores in the study.© L2 2011 L2ThinkTank.com 14
  15. 15. Digital iQ inDex ®:Watches & Jewelry Want to know more about your brand’s ranking? COnTACT USkEY FinDinGS S i T E F E AT U R E S : W AT C h E S & J E W E L R Y S i T E SDriving and Deriving 80% (august 2011) WitHE-commerce isn’t the only way to drive incremental revenue, WitHOUt 49%and there is evidence that a stronger digital presence can fuelretail sales. A recent report by Fondazione Altagamma1 indicates 34% 29%that 67 percent of EU luxury purchasers and 50 percent of 23%U.S. consumers research a product online before they visit a 3% 3%store. However, the majority of brands in the Watches & Jewelrycategory are doing little to facilitate this handoff. Although 80percent link to third-party retail locations, less than half link to Link to Store Locator Display Product Shareable Gift Finder Link to Other In-Storea store locator from the product page. TAG Heuer is the only from Product Page Price Wish List Online Retailers Pick-Upbrand that links directly to online third party retailers. Only one 20%third of the brands display the product price, and Tiffany is the List 3rd Party Locations in Storeonly brand that offers in-store pick-up. Locator 51%In Search of Search 66% 71% 77%In a category rife with gray market and counterfeit products, 97% 97%paid search represents one of the biggest missed opportunities.Less than half of the brands are purchasing their own brandkeywords and fail to come up in the top three for paid ads. Instead, G O O G L E PA i D S E A R C h R E S U LT S : B R A n D S E A R C h T E R M Sthis valuable search engine real estate is being seized by e-tailer, % of Results in Top Three Paid Adsflash sites, and discounters such as eBay and Overstock.com. (august 2011) 2010 gOOgleIn 2010, 28 percent of the brands registered a discount or 2011 gOOgleauction site in the top three paid results. That number has 45% Brand Site 48%exploded to 62 percent this year as brands continue to ignorepaid search. Not addressing paid search results is a giant “for 24%sale” sign in the world’s biggest retail window: Google. Department Store 28% 83% E-tailer / Flash Site 45% 28% Discount / Auction Site 62%1. “Digital luxury experience,” Fondazione altagamma, September 2011.© L2 2011 L2ThinkTank.com 15
  16. 16. Digital iQ inDex ®:Watches & Jewelry Want to know more about your brand’s ranking? COnTACT USkEY FinDinGSSocial Integration S O C i A L M E D i A i n T E G R AT i O nSocial media and mobile adoption has increased dramatically % of Sites With Links to the Followingin Watches & Jewelry, but many brands still do not link to their (august 2011)social and mobile properties from their brand sites, missing out WitHon valuable opportunities to build communities and increase WitHOUtinteraction. Although 70 percent of brands maintain a Twitterhandle, only 46 percent link to their account from their sites and 31% 69%only 40 percent allow products to be shared via Twitter. There Facebook Pageare more links to brands’ Facebook pages, however Facebooksharing functionality is limited and only one third of the brandsincorporate the Facebook “Share” or “Recommend” 54% 46%API and just 14 percent include Facebook “Like” functionality Twitter Accounton the product page. Data suggests that linking to socialmedia properties and incorporating product sharing featurescan provide tangible results, and the amount of traffic coming 60% 40%from and going to a brand site from social media properties YouTube Channelsignificantly correlates with Digital IQ. 66% 34% Mobile Application 83% 17% Online Forums & Communities 89% 11% Blog 94% 6% Mobile Website© L2 2011 L2ThinkTank.com 16
  17. 17. Digital iQ inDex ®:Watches & Jewelry Want to know more about your brand’s ranking? COnTACT USkEY FinDinGSStarting to Get Social SOCiAL MEDiA ADOPTiOnAlthough community sizes, especially on Twitter and YouTube, % of Brands Present on the Following Social Mediaremain small, social media adoption has exploded year-on- (September 2009, 2010, 2011) 2009year as brands get serious about establishing direct relation- 89% 2010ships with their consumers across the industry. The average 2011Facebook fan base, almost 200,000, is driven up considerably 83%by behemoths Tiffany (1.5 million) and Swarovski (1.4 million). 79%Brands are growing fast and on average add 530 new fans 74%per day. Post frequency has increased as well, with brands 71%averaging about four per week. Twitter adoption has increasedsignificantly, but communities are still small, averaging just under 5,000 followers. There is a direct correlation between thenumber of tweets a brand has sent (which can reflect frequency or be a proxy for legacy on the platform) and the number of followers. Brands are averaging less than one tweet per day, 45%suggesting that there is significant opportunity to amplify efforts 41%on the platform. On YouTube, high viewership of brand contentis rare, and more than half of the top-viewed videos are onnon-brand channels. 26% 17% Facebook Twitter YouTube© L2 2011 L2ThinkTank.com 17
  18. 18. Digital iQ inDex ®:Watches & Jewelry Want to know more about your brand’s ranking? COnTACT USkEY FinDinGS FA C E B O O k FA n R A C E BEST in TWEET Top 10 Brands: “Likes” Top 10 Brands: Followers (September 2010–September 2011) (September 2010–September 2011) Tiffany & Co. 1,513,220 222% Growth @TiffanyAndCo 32,102 456% Growth Swarovski 1,396,429 173% @baumeetmercier 14,129 86% Growth Growth Pandora 624,857 N/A* @swarovski 12,800 429% Growth Bulgari 333,070 208% Growth @Bulgari_US 11,849 284% Growth TAG Heuer 249,367 254% Growth @DavidYurman 7,284 N/A** Hublot 240,810 18% Growth @TAGHeuerOnline 5,816 312% Growth 201,214 984% IWC Schaffhausen Growth @Hublot 5,367 387% Growth Cartier 182,191 519% Growth @officialpandora 3,270 N/A* # liKeS iN: # FOllOWeRS iN: Sept. 2010 Sept. 2010 Piaget 182,132 503% Growth @vancleefarpels_ 2,892 285% Sept. 2011 Growth Sept. 2011 Baume 4,843% et Mercier 180,632 Growth @Montblanc_US 2,598 329% Growth 0 0 0 0 0 0 0 0 00 00 00 00 00 00 50 00 50 ,0 ,5 ,0 0, 0, 0, 2, 5, 7, 10 12 15 25 50 75* Data Not available** launched post September 2010© L2 2011 L2ThinkTank.com 18
  19. 19. Digital iQ inDex ®:Watches & Jewelry Want to know more about your brand’s ranking? COnTACT USkEY FinDinGS TOP 10 YOUTUBE ViDEOS Across Branded & non-Branded Channels (august 2011) Click to view videos: BRaND CHaNNel NON-BRaND CHaNNel Cartier: “Calibre de Cartier, 1,359,162 Mechanics of Passion” Hublot: “Jet Man” 939,026 Breitling: “Formation flight with the 655,147 Breitling Wingwalkers!” De Beers: “Morning Surprise” 389,195 2006 Christmas Commercial Tiffany & Co.: “True Love Grows” 377,524 Omega: “Omega Seamaster Automatic 353,646 Watch Review” Patek Philippe: “Birth of a Legend” 300,551 Pandora: “New Pandora Beads Promo” 211,644 Piaget: “Piaget Altiplano Ultra-Thin” 186,351 TAG Heuer: “Grand Carrera” 176,079 0 0 00 0 0 00 00 00 00 0 ,0 0, 0, 0, 0, 0 30 60 90 20 50 1, 1,© L2 2011 L2ThinkTank.com 19

×