Il digitale avanza nel mondo luxury!!!

1. Digital Luxury Experience®
Altagamma Index
Understanding the online customer behaviour
and
the online brand performance.

2. The Observatory is a unique point
of view on Digital Luxury
Web and social media Consumers/companies
187 Worldwide luxury brands >1,500 Consumers interviews in
main Western markets and
8 Product categories (fashion, China
high-end furniture, jewelry
and watches, food and > 70 Questionnaires to
Company beverages, hospitality and Altagamma members
Public
data data cars)
> 450 Web sites
Digital 7 Countries analyzed (USA,
data Italy, UK, France, Germany,
China, Japan)
150 Millions social media and
blogs scanned
50 Performance indicators
2

3. Despite being still marginal, the online
luxury market is growing at 20% p.a.
EUR billions
11.0
Representing 20%
2.6% of the
luxury market
4.5
0.7
1.2
0.8
1.0 0.8
Mono Off price Event Full price Dept store Total on-line Total
brand luxury 2015E
market
Multi-brand E-market places
2010
1 Apparel, accessories, jewelry, and watches
2 Size of total luxury market 172 EUR billion 3
SOURCE: Fondazione Altagamma; Expert interviews; broker reports, filled questionnaires
from Altagamma member companies

4. As well as knowing how online
influences offline in the luxury market …
Percent of total respondents, N = 1,500
67
"For luxury items
bought in stores in
the last 12 months, 50
did you do any
research online?"
63
4
SOURCE: Online survey, conducted over 1,500 respondents in June 2011, based on luxury consumer panel

5. … and offline influences online as well
Percent of total respondents, N = 1,500
70
"For luxury items
bought in stores in
the last 12 months, 59
did you do any
research in-store?"
59
5
SOURCE: Online survey, conducted over 1,500 respondents in June 2011, based on luxury consumer panel

6. Blogs and social media are increasingly
important in online research, especially in
emerging markets like China
Percent of total respondents, N = 1,500
Mono-brand 68
Magazine website 50
Multi-brand 45
Fashion blog 37
Department store 40
Facebook1 26
"When you research YouTube 19
specific luxury items
online, what are your
main sources of
information?" Fashion blogs Facebook1
27 20
27 26
58 33
1 In China considered social networks as Xiaonei 6
SOURCE: Online survey, conducted over 1,500 respondents in June 2011, based on luxury consumer panel

7. By 2015 China is surpassing the US
in terms of online retail turnover
Online retail market size
USD billions
371
326
165
67
2010 2016E
7

8. The Customer Decision Journey in a digital
environment entails a new language and new KPIs
Awareness Consideration Loyalty
Unique monthly Average time per visit Monthly visits
visitors per visitor
Page views
Likelihood to
Bounce rate Per visitors
retweet/post
Brand search volume Google page rank Affinity to
competitors’ site
Unpaid search visibility
Buzz volume
Paid search reach Sentiment
8

9. Fashion and cars performances are
significantly higher than other categories
Awareness Consideration Loyalty
Volume traffic Time spent Buzz volume
Visitors/ on the site Thousands of
EUR million revenues Seconds messages
Fashion 2,194 357 46,174
High-end furniture 448 393 550
Jewelry and watches 377 402 4,746
Food and beverages 383 307 2,115
Hospitality 470 350 323
Cars 3,899 380 115,415
Yachts 94 403 475
Other 423 392 1,733
9

10. Digital Luxury Best performers /1
Awareness Consideration Loyalty
Apparel
Accessories
Jewelry
Watch
10

11. Digital Luxury Best performers /2
Awareness Consideration Loyalty
Living,
bedroom,
bathroom
Kitchen and
table
Lighting
11

12. Digital Luxury Best performers /3
Awareness Consideration Loyalty
Food
Beverages
Hospitality
12

13. Digital Luxury Best performers /4
Awareness Consideration Loyalty
Cars
Yachts
13

14. Social networks friends of luxury
brands will more than double in
the next year
Millions of Facebook friends of Digital Luxury Observatory panel
Annual growth rate
99.6
+136%
42.0
May 2011 May 2012e
14
SOURCE: analysis on Facebook

15. The most quoted brands on
social media
Social media presence Buzz volume
Apparel
Accessories
Living, bedroom
and bathroom
15

16. Social media performance of
luxury brands
Facebook friends Videos views Followers
Thousand Thousand Thousand
Fashion 537,578 790,832 38,396
High-end
furniture 3,795 121,718 1,832
Jewelry and
watches 87,318 231,886 2,583
Food and
12,167 18,309 289
beverages
Hospitality 3,229 9,222 1,166
Cars 918,913 5,434,972 15,085
Yachts 1,094 42,329 420
Other 4,906 594 N.A.
SOURCE: Team analysis, Facebook, YouTube, twitter
16

17. • Fondazione Altagamma supports its companies by suggesting:
– Think and act multi-channel, as customers are behaving
more and more multi-channel
– Improving performance requires mastering new tools, new
performance management systems and appropriate skills,
talents, and organization structures
– Digital Luxury customers requires high quality interfaces
(Web sites, social media) to fulfill a new customer
experience: not only shopping, but also researching,
exchanging ideas and experimenting
17