Digital technology is transforming the luxury goods industry. Nearly 60% of luxury sales are now digitally influenced, as consumers research and shop for luxury brands online. Younger consumers especially expect seamless omnichannel experiences from brands across physical and digital channels. To attract new customers and drive growth, luxury brands must adopt a digital mindset and strategy that integrates digital technologies throughout their business, from marketing to customer insights to distribution.
Retail Environment: US Retail Revolution
1. Retail Revolution Is Happening: Store Openings and Closures
2. All-Channel Universe Will Require Adaptation
Top 8 Global Retail Trends
1. Corporate Innovation Is the New R&D
2. Store as a Platform
3. Wellness as the New Luxury
4. Consumers Want to Be Part of a Community
5. Personalization and Customization
6. Resale Is Thriving While Retail Is Struggling
7. Demographics Suggest Opportunity in Plus-Size Apparel
8. Silver Economy: Aging Population Will Impact Retail
As we break in 2021, the learnings of the past year have sorted core truths from gimmicks, particularly in the retail landscape. See how, in many ways, it is the backbone of our commerce that has emerged most vital.And why establishing frameworks which withstand the litmus test of uncertainty have become the most important ingredient in a business’s continued success.
Retail Environment: US Retail Revolution
1. Retail Revolution Is Happening: Store Openings and Closures
2. All-Channel Universe Will Require Adaptation
Top 8 Global Retail Trends
1. Corporate Innovation Is the New R&D
2. Store as a Platform
3. Wellness as the New Luxury
4. Consumers Want to Be Part of a Community
5. Personalization and Customization
6. Resale Is Thriving While Retail Is Struggling
7. Demographics Suggest Opportunity in Plus-Size Apparel
8. Silver Economy: Aging Population Will Impact Retail
As we break in 2021, the learnings of the past year have sorted core truths from gimmicks, particularly in the retail landscape. See how, in many ways, it is the backbone of our commerce that has emerged most vital.And why establishing frameworks which withstand the litmus test of uncertainty have become the most important ingredient in a business’s continued success.
Luxury retail trends and customer experience in a digital era. A perspective on the customer experience of the future, case studies from leading retailers today and the implications for business corporate strategy, retail stores, employees and HR.
For more on Retail, Digital, Employee and Customer Experience connect with Deloitte Digital Southeast Asia @DeloitteDigi_SG. We’re always happy to talk.
From strategy to delivery, Deloitte Digital combines cutting-edge design with trusted business and technology acumen to define and deliver tomorrow’s business, today. Deloitte Digital is committed to helping clients unlock the business value of emerging technologies.
The power of Chinese e-consumption is unstoppable despite the slowing economy and is estimated to reach 9.6 Trillion RMB by 2020. This sheer magnitude alone is the main reason why we are now taking a spotlight on China’s E-commerce industry.
The goal of the survey was to establish an industry benchmark for digital marketers
at luxury companies. Results to this study, revealed in this report, determine
spending trends and marketing successes, as well as areas in need of further
development and investigation in the luxury market.
An event hosted in London, UK by Digital Jungle (www.digitaljungle.agency) to outline the key facts on the Chinese social and digital landscape. Additionally, Digital Jungle CEO & Founder, Dr. Mathew McDougall provided practical ideas and tips for brands looking to enter this market from a brand and eCommerce perspective. Mr Roy Graff, Digital Jungle's UK Managing Director provided the audience with Chinese insights related to the tourism and inbound marketing.
As China continues to grow rapidly, there is a swell in outbound travel and shopping. In 2018 there will be an estimated 154 million outbound travelers from China - and another 248 million shoppers who buy overseas, online
from China.
This presentation outlines these growing movements and how global brands and destinations can market to Chinese audiences.
Marketing to China must take into account the unique characteristics of Chinese audiences who are highly social (social media rules), predominantly mobile and have incredibly high preference for mobile payments (mobile wallet over cash/credit).
Marketing to China also requires adapting language, messaging and systems to mesh with a different view of the world. Smart global brands who address these issues put themselves in a good position to succeed with the 400 million+ Chinese who are expected to travel overseas by 2030.
Đại dịch COVID-19 đã có tác động lớn đến hành vi của người tiêu dùng, với một số nhà phân tích dự đoán rằng các nỗ lực giảm thiểu và đóng cửa toàn cầu đã thúc đẩy sự dịch chuyển khỏi các cửa hàng thực và hướng tới mua sắm trực tuyến.
樂You probably know about the N°1 e-commerce festival in China: 11.11, but do you know about the second largest?
It's 618 (June 18th), here are a few insights, and if you interested in a full report about this year festival, let me know in the comments ⬇
618 campaign in China was initially launched by Jingdong for its anniversary in 2010. Every June is the anniversary month of JD; and, the promotion and discount reach a peak on 18 June.
This year, besides traditional e-commerce players represented by Tmall and JD, Douyin and Kuaishou, the top2 short video platforms, also joined the game.
螺 Over 578 billion yuan of total GMV on Tmall, JD, and PDD, with 250,000 brands participating (x 2.5 more than last year)
️On Douyin, the post-00s accounted for the largest number of new users during the 618 promotion period, with a year-on-year increase of 392.1%. Young consumers’ emergence prompts brands and platforms to adjust their marketing strategies like using virtual influencers
Consumers' demand for improving the quality of life is increasing, and they are more and more accustomed to getting premium, imported, personalized, and diversified products/services on e-commerce platforms.
#china #chinamarketing #chinatrends #chinabusiness #chinaecommerce #ecommercemarketing #digitalcampaigns #digitalmarketing #jd #tmall #618 #douyin #kuaishou #ecommerce
Beauty market in China report by daxue consulting-double v consultingDaxue Consulting
China has become the world’s second largest beauty market since 2019 and more Chinese beauty brands start to rise in the market. In order to study the 2021 C-beauty trends that brands don't want to miss, we work with double v consulting to investigate the market strategies of four of the top C-beauty brands, 1) Perfect Diary 2) Florasis 3) HomeFacial Pro 4) Winona.
GP Bullhound Research / Online Fashion / May 2013Melih ÖZCANLI
GP Bullhound Research Online Fashion
INDEPENDENT TECHNOLOGY RESEARCH
SECTOR UPDATE / MAY 2013 /
by MANISH MADHVANI & SASHA AFANASIEVA
THE GP BULLHOUND BANKING TEAM
GP Bullhound is a research-centric investment bank headquartered in London.
This reports looks into the latest trends in the online fashion market, following on from our first research coverage of the sector in October 2008. The first section provides an overview of the development of the market. We then look at the changing behaviour of consumers online and how apparel sites are addressing this with new engagement methods. The next section assesses how the supply chain has been impacted by new online fashion business models. The fourth section examines new business models that have established differentiating ways to engage with the consumer, while the next assesses new B2B business models. In the sixth section, we reveal our views on the latest investment and exit trends in the online fashion segment. Finally, we profile some of the most promising players in the space.
One in three goods crosses national borders, and more than one-third of financial investments are international transactions. And in the next decade, global flows could triple, powered by rising prosperity and participation in the emerging world. In a new McKinsey Global Institute (MGI) report, "Global flows in a digital age: How trade, finance, people, and data connect the world economy," scenarios show that global flows could reach $54 trillion to $85 trillion by 2025.
Luxury retail trends and customer experience in a digital era. A perspective on the customer experience of the future, case studies from leading retailers today and the implications for business corporate strategy, retail stores, employees and HR.
For more on Retail, Digital, Employee and Customer Experience connect with Deloitte Digital Southeast Asia @DeloitteDigi_SG. We’re always happy to talk.
From strategy to delivery, Deloitte Digital combines cutting-edge design with trusted business and technology acumen to define and deliver tomorrow’s business, today. Deloitte Digital is committed to helping clients unlock the business value of emerging technologies.
The power of Chinese e-consumption is unstoppable despite the slowing economy and is estimated to reach 9.6 Trillion RMB by 2020. This sheer magnitude alone is the main reason why we are now taking a spotlight on China’s E-commerce industry.
The goal of the survey was to establish an industry benchmark for digital marketers
at luxury companies. Results to this study, revealed in this report, determine
spending trends and marketing successes, as well as areas in need of further
development and investigation in the luxury market.
An event hosted in London, UK by Digital Jungle (www.digitaljungle.agency) to outline the key facts on the Chinese social and digital landscape. Additionally, Digital Jungle CEO & Founder, Dr. Mathew McDougall provided practical ideas and tips for brands looking to enter this market from a brand and eCommerce perspective. Mr Roy Graff, Digital Jungle's UK Managing Director provided the audience with Chinese insights related to the tourism and inbound marketing.
As China continues to grow rapidly, there is a swell in outbound travel and shopping. In 2018 there will be an estimated 154 million outbound travelers from China - and another 248 million shoppers who buy overseas, online
from China.
This presentation outlines these growing movements and how global brands and destinations can market to Chinese audiences.
Marketing to China must take into account the unique characteristics of Chinese audiences who are highly social (social media rules), predominantly mobile and have incredibly high preference for mobile payments (mobile wallet over cash/credit).
Marketing to China also requires adapting language, messaging and systems to mesh with a different view of the world. Smart global brands who address these issues put themselves in a good position to succeed with the 400 million+ Chinese who are expected to travel overseas by 2030.
Đại dịch COVID-19 đã có tác động lớn đến hành vi của người tiêu dùng, với một số nhà phân tích dự đoán rằng các nỗ lực giảm thiểu và đóng cửa toàn cầu đã thúc đẩy sự dịch chuyển khỏi các cửa hàng thực và hướng tới mua sắm trực tuyến.
樂You probably know about the N°1 e-commerce festival in China: 11.11, but do you know about the second largest?
It's 618 (June 18th), here are a few insights, and if you interested in a full report about this year festival, let me know in the comments ⬇
618 campaign in China was initially launched by Jingdong for its anniversary in 2010. Every June is the anniversary month of JD; and, the promotion and discount reach a peak on 18 June.
This year, besides traditional e-commerce players represented by Tmall and JD, Douyin and Kuaishou, the top2 short video platforms, also joined the game.
螺 Over 578 billion yuan of total GMV on Tmall, JD, and PDD, with 250,000 brands participating (x 2.5 more than last year)
️On Douyin, the post-00s accounted for the largest number of new users during the 618 promotion period, with a year-on-year increase of 392.1%. Young consumers’ emergence prompts brands and platforms to adjust their marketing strategies like using virtual influencers
Consumers' demand for improving the quality of life is increasing, and they are more and more accustomed to getting premium, imported, personalized, and diversified products/services on e-commerce platforms.
#china #chinamarketing #chinatrends #chinabusiness #chinaecommerce #ecommercemarketing #digitalcampaigns #digitalmarketing #jd #tmall #618 #douyin #kuaishou #ecommerce
Beauty market in China report by daxue consulting-double v consultingDaxue Consulting
China has become the world’s second largest beauty market since 2019 and more Chinese beauty brands start to rise in the market. In order to study the 2021 C-beauty trends that brands don't want to miss, we work with double v consulting to investigate the market strategies of four of the top C-beauty brands, 1) Perfect Diary 2) Florasis 3) HomeFacial Pro 4) Winona.
GP Bullhound Research / Online Fashion / May 2013Melih ÖZCANLI
GP Bullhound Research Online Fashion
INDEPENDENT TECHNOLOGY RESEARCH
SECTOR UPDATE / MAY 2013 /
by MANISH MADHVANI & SASHA AFANASIEVA
THE GP BULLHOUND BANKING TEAM
GP Bullhound is a research-centric investment bank headquartered in London.
This reports looks into the latest trends in the online fashion market, following on from our first research coverage of the sector in October 2008. The first section provides an overview of the development of the market. We then look at the changing behaviour of consumers online and how apparel sites are addressing this with new engagement methods. The next section assesses how the supply chain has been impacted by new online fashion business models. The fourth section examines new business models that have established differentiating ways to engage with the consumer, while the next assesses new B2B business models. In the sixth section, we reveal our views on the latest investment and exit trends in the online fashion segment. Finally, we profile some of the most promising players in the space.
One in three goods crosses national borders, and more than one-third of financial investments are international transactions. And in the next decade, global flows could triple, powered by rising prosperity and participation in the emerging world. In a new McKinsey Global Institute (MGI) report, "Global flows in a digital age: How trade, finance, people, and data connect the world economy," scenarios show that global flows could reach $54 trillion to $85 trillion by 2025.
We've analyzed tons of disruptive players when we were writing our book on Digital Transformation. We discovered 7 similarities and call them "The 7 Metaphors of Digital Disruption". We saw that all the disruptors score high on these drivers of transformation while traditional players have trouble with these metaphors. The new players are attacking you on every level.
How can you defend your business from these new players in your market? You should learn how they operate and try to implement (elements of) the business models of disruptive companies.
We've made a presentation that guides you through ten business models of hyper disruptors that we found inspiring. We hope you do too. Please let us know your thoughts about it!
McKinsey Global Institute Report - A labor market that works: Connecting tale...McKinsey & Company
This presentation offers highlights from a new report by the McKinsey Global Institute, "A labor market that works: Connecting talent with opportunity in the digital age".
From shopping to social media, online platforms have transformed major segments of the global economy. They now are about to do the same for labor markets around the world. MGI examines the stubborn disconnect between people and jobs and the potential for online talent platforms to unlock real economic value over the next decade by creating better, faster matching between workers and available work opportunities.
Read the report in full:
http://mckinsey.com/Insights/Employment_and_growth/Connecting_talent_with_opportunity_in_the_digital_age
Digital Europe: Pushing the frontier, capturing the benefitsMcKinsey & Company
What is the speed at which digital is and will change our world?
How is Europe performing in digital compared to the United States? Where is the progress? And where is the paralysis?
What some of the challenges and risks of digital – its potential to divide business and society – between the highly digitized: the “have-mores,” and the “haves:” those who are not able or willing to adapt fast enough.
And what is our share our vision with you for how Europe needs to capture the huge digital prize. What can start-ups, companies, public authorities – everyone in this room – do, to make it happen?
www.digitalistmag.com – People, businesses, and societies are interacting in ways previously unimagined, reinventing business models and forever altering how the world economy operates. To adapt, thrive and innovate in this new Digital Economy, it is imperative that organizations understand the opportunities and threats that will impact the future of business.
This presentation is a compilation of 99 facts, quotes and predictions on the major innovations and transformations that are defining the Digital Economy, future of work, new customer experience expectations, and need for resource optimization. Each fact represents a key insight, and suggests an opportunity to focus and change to become a more viable, sustainable and growing future business.
The 2017 Accenture Technology Vision report showcases the top five disruptive IT trends and innovations shaping the business landscape in 2017 and beyond. Take action today and shape technology to fit your needs.
Learn more at www.accenture.com/technologyvision
McKinsey Global Institute's latest report shows how soaring flows of data and information now generate more economic value than the global goods trade. Here are the key charts and graphs that tell the story. For the full report, visit http://bit.ly/digiflows.
The Future Of Work & The Work Of The FutureArturo Pelayo
What Happens When Robots And Machines Learn On Their Own?
This slide deck is an introduction to exponential technologies for an audience of designers and developers of workforce training materials.
The Blended Learning And Technologies Forum (BLAT Forum) is a quarterly event in Auckland, New Zealand that welcomes practitioners, designers and developers of blended learning instructional deliverables across different industries of the New Zealand economy.
Digital Survivors—Death of the Retail CultureAccenture
The landscape of retail players and consumers has been drastically reshaped and the end-to-end consumer value chain is expected to transform beyond recognition in just two to five years. With online commerce growing at four times the rate of the overall industry, many traditional retail giants have made significant investments—upwards of $70 billion USD—in digital channels.So, why do their market caps continue to decline?
Integrated Marketing Communications Campaign:
- Proposed brand positioning, product offerings, and detailed implementation methods for a client's new business venture
- Completed for the course ADV4800 at the University of Florida
- The team for which I was the Group Lead/Account Executive won Best Strategic Plan
Digital Marketing and "Virtual Touch" TechnologyCharmian Solter
The reach and effectiveness of digital marketing caused a decline in the usage of traditional marketing channels, including face-to-face interaction, paving the way for “virtual touch,” social media platforms, video marketing, and real-time chat applications to address consumer demand for authenticity and engagement in today’s digital marketplace.
A general report that looks at the communication and marketing trends happening in the market. Report covers both technology factors and consumer trends, and how these two areas are converging like never before.
5 big bets to drive growth in 2024 without one additional marketing dollar AND how to adapt to the biggest shifting eCommerce trend- AI.
1) Romance Your Customers - Retention
2) ‘Alternative’ Lead Gen - Advocacy
3) The Beautiful Basics - Conversion Rate Optimization
4) Land that Bottom Line - Profitability
5) Roll the Dice - New Business Models
The What, Why & How of 3D and AR in Digital CommercePushON Ltd
Vladimir Mulhem has over 20 years of experience in commercialising cutting edge creative technology across construction, marketing and retail.
Previously the founder and Tech and Innovation Director of Creative Content Works working with the likes of Next, John Lewis and JD Sport, he now helps retailers, brands and agencies solve challenges of applying the emerging technologies 3D, AR, VR and Gen AI to real-world problems.
In this webinar, Vladimir will be covering the following topics:
Applications of 3D and AR in Digital Commerce,
Benefits of 3D and AR,
Tools to create, manage and publish 3D and AR in Digital Commerce.
Most small businesses struggle to see marketing results. In this session, we will eliminate any confusion about what to do next, solving your marketing problems so your business can thrive. You’ll learn how to create a foundational marketing OS (operating system) based on neuroscience and backed by real-world results. You’ll be taught how to develop deep customer connections, and how to have your CRM dynamically segment and sell at any stage in the customer’s journey. By the end of the session, you’ll remove confusion and chaos and replace it with clarity and confidence for long-term marketing success.
Key Takeaways:
• Uncover the power of a foundational marketing system that dynamically communicates with prospects and customers on autopilot.
• Harness neuroscience and Tribal Alignment to transform your communication strategies, turning potential clients into fans and those fans into loyal customers.
• Discover the art of automated segmentation, pinpointing your most lucrative customers and identifying the optimal moments for successful conversions.
• Streamline your business with a content production plan that eliminates guesswork, wasted time, and money.
Is AI-Generated Content the Future of Content Creation?Cut-the-SaaS
Discover the transformative power of AI in content creation with our presentation, "Is AI-Generated Content the Future of Content Creation?" by Puran Parsani, CEO & Editor of Cut-The-SaaS. Learn how AI-generated content is revolutionizing marketing, publishing, education, healthcare, and finance by offering unprecedented efficiency, creativity, and scalability.
Understanding
AI-Generated Content:
AI-generated content includes text, images, videos, and audio produced by AI without direct human involvement. This technology leverages large datasets to create contextually relevant and coherent material, streamlining content production.
Key Benefits:
Content Creation: Rapidly generate high-quality content for blogs, articles, and social media.
Brainstorming: AI simulates conversations to inspire creative ideas.
Research Assistance: Efficiently summarize and research information.
Market Insights:
The content marketing industry is projected to grow to $17.6 billion by 2032, with AI-generated content expected to dominate over 55% of the market.
Case Study: CNET’s AI Content Controversy:
CNET’s use of AI for news articles led to public scrutiny due to factual inaccuracies, highlighting the need for transparency and human oversight.
Benefits Across Industries:
Marketing: Personalize content at scale and optimize engagement with predictive analytics.
Publishing: Automate content creation for faster publication cycles.
Education: Efficiently generate educational materials.
Healthcare: Create accurate content for patients and professionals.
Finance: Produce timely financial content for decision-making.
Challenges and Ethical Considerations:
Transparency: Disclose AI use to maintain trust.
Bias: Address potential AI biases with diverse datasets.
SEO: Ensure AI content meets SEO standards.
Quality: Maintain high standards to prevent misinformation.
Conclusion:
AI-generated content offers significant benefits in efficiency, personalization, and scalability. However, ethical considerations and quality assurance are crucial for responsible use. Explore the future of content creation with us and see how AI is transforming various industries.
Connect with Us:
Follow Cut-The-SaaS on LinkedIn, Instagram, YouTube, Twitter, and Medium. Visit cut-the-saas.com for more insights and resources.
The digital marketing industry is changing faster than ever and those who don’t adapt with the times are losing market share. Where should marketers be focusing their efforts? What strategies are the experts seeing get the best results? Get up-to-speed with the latest industry insights, trends and predictions for the future in this panel discussion with some leading digital marketing experts.
Everyone knows the power of stories, but when asked to come up with them, we struggle. Either we second guess ourselves as to the story's relevance, or we just come up blank and can't think of any. Unlocking Everyday Narratives: The Power of Storytelling in Marketing will teach you how to recognize stories in the moment and to recall forgotten moments that your audience needs to hear.
Key Takeaways:
Understand Why Personal Stories Connect Better
How To Remember Forgotten Stories
How To Use Customer Experiences As Stories For Your Brand
Digital marketing is the art and science of promoting products or services using digital channels to reach and engage with potential customers. It encompasses a wide range of online tactics and strategies aimed at increasing brand visibility, driving website traffic, generating leads, and ultimately, converting those leads into customers.
https://nidmindia.com/
How to Run Landing Page Tests On and Off Paid Social PlatformsVWO
Join us for an exclusive webinar featuring Mariate, Alexandra and Nima where we will unveil a comprehensive blueprint for crafting a successful paid media strategy focused on landing page testing.With escalating costs in paid advertising, understanding how to maximize each visitor’s experience is crucial for retention and conversion.
This session will dive into the methodologies for executing and analyzing landing page tests within paid social channels, offering a blend of theoretical knowledge and practical insights.
The Pearmill team will guide you through the nuances of setting up and managing landing page experiments on paid social platforms. You will learn about the critical rules to follow, the structure of effective tests, optimal conversion duration and budget allocation.
The session will also cover data analysis techniques and criteria for graduating landing pages.
In the second part of the webinar, Pearmill will explore the use of A/B testing platforms. Discover common pitfalls to avoid in A/B testing and gain insights into analyzing A/B tests results effectively.
In this presentation, Danny Leibrandt explains the impact of AI on SEO and what Google has been doing about it. Learn how to take your SEO game to the next level and win over Google with his new strategy anyone can use. Get actionable steps to rank your name, your business, and your clients on Google - the right way.
Key Takeaways:
1. Real content is king
2. Find ways to show EEAT
3. Repurpose across all platforms
A.I. (artificial intelligence) platforms are popping up all the time, and many of them can and should be used to help grow your brand, increase your sales and decrease your marketing costs.In this presentation:We will review some of the best AI platforms that are available for you to use.We will interact with some of the platforms in real-time, so attendees can see how they work.We will also look at some current brands that are using AI to help them create marketing messages, saving them time and money in the process. Lastly, we will discuss the pros and cons of using AI in marketing & branding and have a lively conversation that includes comments from the audience.
Key Takeaways:
Attendees will learn about LLM platforms, like ChatGPT, and how they work, with preset examples and real time interactions with the platform. Attendees will learn about other AI platforms that are creating graphic design elements at the push of a button...pre-set examples and real-time interactions.Attendees will discuss the pros & cons of AI in marketing + branding and share their perspectives with one another. Attendees will learn about the cost savings and the time savings associated with using AI, should they choose to.
AI-Powered Personalization: Principles, Use Cases, and Its Impact on CROVWO
In today’s era of AI, personalization is more than just a trend—it’s a fundamental strategy that unlocks numerous opportunities.
When done effectively, personalization builds trust, loyalty, and satisfaction among your users—key factors for business success. However, relying solely on AI capabilities isn’t enough. You need to anchor your approach in solid principles, understand your users’ context, and master the art of persuasion.
Join us as Sarjak Patel and Naitry Saggu from 3rd Eye Consulting unveil a transformative framework. This approach seamlessly integrates your unique context, consumer insights, and conversion goals, paving the way for unparalleled success in personalization.
Most small businesses struggle to see marketing results. In this session, we will eliminate any confusion about what to do next, solving your marketing problems so your business can thrive. You’ll learn how to create a foundational marketing OS (operating system) based on neuroscience and backed by real-world results. You’ll be taught how to develop deep customer connections, and how to have your CRM dynamically segment and sell at any stage in the customer’s journey. By the end of the session, you’ll remove confusion and chaos and replace it with clarity and confidence for long-term marketing success.
Key Takeaways:
• Uncover the power of a foundational marketing system that dynamically communicates with prospects and customers on autopilot.
• Harness neuroscience and Tribal Alignment to transform your communication strategies, turning potential clients into fans and those fans into loyal customers.
• Discover the art of automated segmentation, pinpointing your most lucrative customers and identifying the optimal moments for successful conversions.
• Streamline your business with a content production plan that eliminates guesswork, wasted time, and money.
How to Use AI to Write a High-Quality Article that Ranksminatamang0021
In the world of content creation, many AI bloggers have drifted away from their original vision, resulting in low-quality articles that search engines overlook. Don't let that happen to you! Join us to discover how to leverage AI tools effectively to craft high-quality content that not only captures your audience's attention but also ranks well on search engines.
Disclaimer: Some of the prompts mentioned here are the examples of Matt Diggity. Please use it as reference and make your own custom prompts.
The digital marketing industry is changing faster than ever and those who don’t adapt with the times are losing market share. Where should marketers be focusing their efforts? What strategies are the experts seeing get the best results? Get up-to-speed with the latest industry insights, trends and predictions for the future in this panel discussion with some leading digital marketing experts.
2. The Boston Consulting Group (BCG) is a global
management consulting firm and the world’s
leading advisor on business strategy. We partner
with clients from the private, public, and not-for-
profit sectors in all regions to identify their
highest-value opportunities, address their most
critical challenges, and transform their enterprises.
Our customized approach combines deep insight
into the dynamics of companies and markets with
close collaboration at all levels of the client
organization. This ensures that our clients achieve
sustainable competitive advantage, build more
capable organizations, and secure lasting results.
Founded in 1963, BCG is a private company with
85 offices in 48 countries. For more information,
please visit bcg.com.
3. September 2016
Olivier Abtan, Christine Barton, Federico Bonelli, Hannes Gurzki, Antonella
Mei-Pochtler, Nicola Pianon, and Miki Tsusaka
Digital or Die
The Choice for Luxury Brands
4. 2 Digital or Die
AT A GLANCE
Already, nearly six out of ten luxury sales are digitally influenced. Digital initiatives
have become mandatory in order to recruit young customers, but they are also an
increasingly important way to appeal to older consumers. Digital gives luxury
brands new ways to understand their customers better than ever.
Luxury Is No Longer In-Store Only
Today, luxury sales require a presence in both the physical and the online worlds.
Fully 86% of millennials and 75% of baby boomers and older people who buy
luxury brands are ready for omnichannel interactions, ranging from e-commerce to
digital in-store experiences. If brands are to provide consistent customer experienc-
es across many different paths to purchase, they must ensure much more integra-
tion across departments.
Needed Now: A Digital Mindset
Luxury brands can benefit from shifting to a digital mindset in their approaches to
strategy, consumer insight, products and services, marketing and branding, distri-
bution channels, ecosystems and partnerships, organization and capabilities, and
operations and infrastructure.
5. The Boston Consulting Group 3
It may not be widely recognized as such just yet, but digital technology is proba-
bly one of the best things to happen to luxury brands in a long time.
Digital is happening fast and forcefully, whether brands are ready for it or not. It
enables new products and services. It opens up opportunities to create personal-
ized offers and provide bespoke services to many more customers. Its distribution
channels widen the playing field for luxury brands, allowing them to reach consum-
ers not reached before and to engage with customers online in markets where a
brand has no stores. In the US alone, consumers anticipate spending 20% to 35% of
their total outlays online in the next few years, according to research by The Boston
Consulting Group. (See The Reciprocity Principle: How Millennials Are Changing the
Face of Marketing Forever, BCG Focus, January 2014.)
But not all brands are there yet. In fact, luxury lags other consumer sectors when it
comes to understanding and applying digital technologies. Disney, Nike, Nord-
strom—these are just a handful of the household names that have mastered digital.
For more than a few luxury brands, then, the issue really is do or die: the speed of
technology development is endangering their current business models faster than
you can say “celebrity-chef-catered safari.”
The Hard Reality of Digital Everything
Luxury brands are up against tough growth challenges. In the previous decade, their
growth was all about consumer spending and new store openings in emerging mar-
kets—notably in China. But today China has more luxury stores than its consumers
have demand, and consumer spending has cooled. Nor are consumers in any other
nation about to make up the shortfall in growth rates.
The upshot: luxury brands must find new sources of growth—particularly in con-
sumer groups that they typically have not reached before. Digital can make a trans-
formative difference in their ability to reach and retain such customers. Luxury
goods and services are now sought, sampled, and purchased in very different ways
than they were in the past; consumers expect efficient e-commerce, engaging and
exciting interactions on social media, and multiple channels through which to inter-
act with brands.
But for many luxury firms, digital is a hard new reality. They cannot control what,
when, and how vociferously consumers talk about their brands on social media.
They can do nothing about the ubiquity of information or the instantaneous price
Luxury lags other
consumer sectors
when it comes to
understanding and
applying digital
technologies.
6. 4 Digital or Die
comparisons it enables. They have to confront the new tension between their tradi-
tional world of exclusivity and the web world of access for everyone.
Moreover, brands cannot delay the move toward more virtualized interactions with
consumers; although consumers will still want to interact physically with luxury
products, they see virtual experiences as a path to more immediate gratification. So
brands should likewise value digital technologies as a way to extend and individual-
ize their services far beyond the store.
The fact is, digital is an inevitable, inescapable business shift. New research from
BCG indicates that already today, almost six out of ten luxury sales are digitally in-
fluenced. (See Exhibit 1.) The research (a survey of approximately 10,000 consum-
ers in ten countries plus interviews with industry leaders) also found that online
commerce, which now accounts for 7% of the global personal-luxury market, will
grow further to make up 12% of that market by 2020.
Furthermore, digital is changing the very shape and composition of the luxury sec-
tor. It has already birthed new products, novel business models, and new channels.
The Apple Watch Hermès is a good example of new partnerships brought about by
digital. Birchbox, whose subscribers receive a box of selected beauty products each
month, helped pioneer a new business model in luxury. And Net-a-Porter, in creat-
ing a global online luxury retailer and fashion magazine, illustrates how digital is
reshaping distribution channels.
Consumers’ expectations are rapidly being raised by moves like these—and by a
host of innovative digital initiatives coming from the wider world of consumer goods
and retail brands with which consumers interact every day. Near-instant feedback,
the ability to order quickly and easily online, the push for faster and faster delivery—
these are just some of the factors that affect consumers’ purchase decisions today.
Luxury consumers have especially high expectations, and brands that fail to keep
up with what consumers want now will quickly lose competitive advantage. Their
42%
41%
9%
8%
Store only
Researched online,
purchased offline
Checked at the store,
purchased online
Online only
DIGITALLY
INFLUENCED
58%
Source: BCG analysis.
Exhibit 1 | Already, Almost Six Out of Ten Luxury Sales Are Digitally
Influenced
7. The Boston Consulting Group 5
leaders must understand how digital is changing their markets. Gone are the days
when luxury revolved around traditional marketing and face-to-face interactions ex-
clusively at the store. (See Exhibit 2.) Not only does the business of luxury now in-
clude e-commerce and social media, but it requires brands’ executive teams to en-
sure much more integration across a brand’s once-separate departments.
Not the Consumers (or Channels) You Thought You Knew
For evidence of how urgently luxury brands need to shift in the digital direction,
look no further than the demographics. Millennials (loosely defined as those in
their middle twenties to early thirties) are quickly becoming a huge group of con-
sumers—more than 2.3 billion strong, making up about 32% of the world’s popula-
tion. And since millennials and other young consumers will be tomorrow’s buyers
of luxury goods, it’s important to track their attitudes and behaviors.
It’s no surprise that these consumers have markedly different values than their
parents and grandparents. BCG’s study shows that they place a much higher pre-
mium on experiences than on things—the upscale safari rather than the watch or
the car—reinforcing the idea that brands must think beyond products. Younger
consumers also stand apart in how much the web is part of their shopping behav-
ior and how much they share their opinions online: 60% rate products on the web,
60% upload content about products and services, 45% check prices via mobile
(even while in the store), and 43% look for promotions online (likewise while in the
store).
OMNICHANNEL
PRE-2000 2000–2005 2005–2010 2010–2015 PRESENT FUTURE
Physical/Retail
• Experience and access in-store only
TODAY
Informational (Digital 1.0)
• For example, corporate websites
Transactional (Digital 2.0)
• For example, e-commerce shops
Social (Digital 3.0)
• For example, social media and virtual communities
Mobile (Digital 4.0)
• For example, geolocalization
Virtual (Digital 5.0)
• For example, augmented
and virtual reality
Source: BCG analysis.
Exhibit 2 | Luxury Brands Will Do More and More Business Across Many Channels
8. 6 Digital or Die
But younger consumers are by no means the only ones pulling luxury brands to-
ward digital. Fully 75% of baby boomers and older people who buy luxury brands
say they are ready for omnichannel interactions, compared with 86% of millennials.
In some markets—notably Japan and Russia—BCG found that older generations
are the heaviest online shoppers for luxury goods and services. In fact, digitization
now affects all consumer segments. Overall, more than 40% of consumers expect to
be able to have two-way interactions with brands—at the very least, sharing feed-
back and opinions and, when necessary, speaking with online service reps and get-
ting instant replies to their questions. The consequence for brands: they can no lon-
ger rely on “push” marketing alone.
Our study also showed big geographic variations in the digital “maturity” of luxury
consumers. The US and UK are the furthest along: at least two-thirds of luxury
shoppers in these two countries bought their last product online, researched it on-
line and purchased it in a store, or viewed it in a store and then bought it (or a simi-
lar model) online. Interestingly, Italy and France, the two nations most closely asso-
ciated with luxury fashion, still strongly emphasize the in-store experience. In
France, for instance, only 31% of the shoppers surveyed said that they researched
their last luxury purchase online and bought it in a store, compared with 47% who
did so in the US and Brazil and 46% who did so in Japan.
At the same time, consumers are ready for omnichannel interactions with luxury
brands; our research indicates that fully 80% of consumers actively expect this. (See
Exhibit 3.) Omnichannel does not just mean the option of shopping online rather
Not negotiable/
very important
Somewhat
important
Average:
44%
Not important
% of respondents % of respondents
HOW IMPORTANT IS IT THAT A BRAND CAN BE
REACHED THROUGH DIFFERENT CHANNELS?
WHAT DO YOU EXPECT WHEN DEALING
WITH MULTIPLE CHANNELS?
Omnichannel
index1 86% 84% 75%
Millennials Generation
X
Baby boomers
and elderly
14
40
46 44
40
16
25
39
36
Integrated
delivery service
Same promotions
and rewards
Consistent
brand image
Integrated CRM
Same product
assortment
31
24
22
13
10
Source: BCG 2015 survey of 10,000 consumers in ten countries.
1
The index is the percentage of respondents for whom the ability to reach a brand through different channels is somewhat important or very
important.
Exhibit 3 | Luxury Consumers—Including Older Shoppers—Want an Omnichannel Experience
9. The Boston Consulting Group 7
than in stores, even though e-commerce is indeed surging in most luxury sectors in
many countries. Rather, it means a customer experience that is seamlessly integrat-
ed across all touch points. Shoppers want integrated delivery service (31% of those
surveyed), the same promotions and rewards regardless of channel (24%), and a
consistent brand image (22%), among other factors.
In most cases, the omnichannel world that luxury brands now confront means
many more touch points between brand and customer, making the path to pur-
chase more variable and individualized. (See Exhibit 4.) Channel switching is com-
mon among many segments of the luxury-buying population. Millennials are not
the only ones comparison shopping in the store, capturing QR codes, and sending
photos to friends to solicit their opinions.
Moreover, every touch point contributes to—or detracts from—the customer’s over-
all perception of the product or service being offered. If a luxury product shows up
in oddly irrelevant digital channels, or if additional information about the product
is difficult or awkward to obtain online, those experiences will diminish the desir-
ability of the product itself.
Of course, putting the spotlight on omnichannel does not mean ignoring websites.
As the importance of brands’ sites declines (only 29% of consumers surveyed in 2015
who shopped online purchased from a brand website, compared with 38% in 2014)
and that of online marketplaces and department stores grows (up 5 and 3 percent-
age points respectively, over the same 12 months), it is imperative that brands find
PHYSICAL
IN THE STORE
PHYSICAL AWAY
FROM THE STORE
DIGITAL
IN THE
STORE
Store
device
Customer’s
device
DIGITAL
AWAY
FROM
THE
STORE
Onthe
go
At
home
• Precision targeting
• Integrated customer view
• Omnichannel orchestration
CAPABILITIES NEEDED
Customer sees a new article
of clothing on social media
REWARD
AND RETAIN
INSPIRE
CUSTOMERS
MAKE
THEM AWARE
HELP
THEM DECIDE
SELL THEM
THE PRODUCT
DELIVERY/
SUPPORT
Customer tries on clothes
and receives style advice
from store personnel
Customer checks in at
the store via mobile app
Customer uses mobile phone
to pay for the purchase
Customer uses a branded
app at the store to locate
matching products
Aer leaving the store,
customer posts a picture
of the purchase on social
media website
Sales representative
chats with the customer
en route to the store
Customer uses app to
connect to the nearest brand
store and reserves a limited-
edition article of clothing
Customer receives
personalized thank you
message from the store
Source: BCG analysis.
Exhibit 4 | Today’s Omnichannel World Typically Involves Many Touch Points
10. 8 Digital or Die
new ways to improve their websites, using them to make the brand more engaging
(with continually updated content, for instance) and ensuring that their customers
have equally good experiences on the websites of the brand’s partners.
The Urgency of Reaching New Consumers
More and more leading luxury brands are recognizing the urgency of the digital
push. They are beginning to see that digital activism is essential if they are to ap-
peal to tomorrow’s luxury consumers. While it is true that, overall, the industry’s
embrace of digital lags that of other consumer sectors, some brands are mastering
mobile and social media, continually experimenting, learning from those experi-
ments, and putting the best lessons into practice.
Few brands have pushed as far and as fast as Burberry, which a decade ago shifted
its entire business strategy to digital. Burberry makes full use of technology to en-
sure a rich experience both online and at the store. It is a master of social media
marketing and storytelling, as proven by more than 42 million followers across 20
global platforms. Recent partnerships with Snapchat, Google, DreamWorks Anima-
tion, Instagram, and Apple TV have allowed the company to interact with its audi-
ence globally.
Burberry was one of the first players to turn runway shows into digital happenings.
The company uses the buzz around the events to animate its customer base, inter-
act with and strengthen relationships with customers, and woo new ones.
Burberry is not alone in its digital drive. Saks Fifth Avenue has its successful
#SaksAtTheShows campaign, which streams live videos on the retailer’s site and
uses artful watercolor illustrations to convey its signature style. And Louis Vuitton
has been winning plaudits for its digital customer experience and for engaging with
consumers through its City Guides travel app.
The Need for a Digital Mindset
So what must the leaders of luxury brands do differently now? First, they have to
accept that managing the customer’s total experience of the brand is what counts
today. They must then understand the impact that digital already has, and will have
increasingly, on their businesses. There are eight areas in which they need to act on
that understanding, shifting from a mindset that sees digital as threat to one that
sees it as an opportunity.
Strategy. The leadership team must gain a thorough understanding of how digital
technologies affect and drive the company’s business model. Designing a digital
strategy—or, more accurately, redesigning the business strategy with digital in
mind—means moving from a mindset of control to one of agility. Leaders must take
a flexible approach to strategy that allows the company to react nimbly to custom-
ers’ fast-changing needs. As noted earlier, Burberry has done this and excelled.
Consumer Insight. Executives must understand how their companies can leverage
big data to better know their customers, apply the insights gained across the entire
More and more
leading luxury brands
are recognizing the
urgency of the
digital push.
11. The Boston Consulting Group 9
value chain, and create personalized customer experiences. They can build the
necessary capabilities using big data analytics tools such as Infegy Atlas and
Brandwatch—software designed to reveal how people truly feel about topics
being discussed on social media.
This approach shifts the emphasis to discovering patterns and deriving insights
from numerous potentially unrelated data sets. For example, social media listening
makes it possible to understand, on a worldwide scale, consumers’ attitudes toward
a brand and its products and to identify, within seconds and in real time, key pur-
chasing factors or customer pain points. A company that masters social media lis-
tening can then initiate countermeasures, in the case of service failures, and identi-
fy opportunities to delight customers—for example, by accommodating a valued
customer who has a sudden service request.
Products and Services. Brands’ management teams must understand how digital
products and services could enhance the company’s value proposition and the
customer’s experience.
Disney has mastered digital to enhance its offerings in real time. The company
equips visitors to its theme parks and hotels, and travelers on its cruises, with the
MagicBand, a wristband that enables a range of personalized experiences: for ex-
ample, greeting the wearer by name, opening the guest’s hotel room door, and hav-
ing the visitor’s lunch order waiting at the table. The MagicBand shows how Disney
has thought through the multiple interactions that make up the entire customer ex-
perience at its attractions.
In the luxury world, the partnership between Hermès and Apple is a nice example
of a luxury brand thinking beyond its industry and harnessing the power of a
broader business ecosystem to create additional value. This requires brands to re-
tain traditional “high touch” customer interactions while enhancing and scaling
them with technology. Partnering with a technology player could be an interesting
way for traditional luxury brands to add a digital element to their product and ser-
vice offerings without building deep technology expertise in-house. For technology
companies, such partnerships can be a great opportunity to enhance their products
with the aura of a luxury brand.
Marketing and Branding. The marketing chief must have the job of leveraging new
technologies to build the brand online and enhance traditional campaigns with
more precise targeting. This entails a shift from simply targeting consumer seg-
ments to creating offers for individual customers—on the basis of data from the
CRM system, for example. A detailed understanding of customer values, preferenc-
es, and behaviors, drawn from purchasing patterns and other interactions with the
brand, makes it possible to better anticipate customer needs and initiate personal-
ized conversations. This means more than the straightforward selling of products; it
involves building emotional connections with customers based on shared interests
and broader opportunities for interaction. It could mean, for example, an exclusive
invitation to a “money can’t buy” event or a personal note from the brand’s rela-
tionship manager offering helpful advice on how to service the product or enjoy it
in new ways while on vacation.
Social media listening
makes it possible to
understand, on a
worldwide scale,
consumers’ attitudes
toward a brand and
its products.
12. 10 Digital or Die
Distribution Channels. Can the management team orchestrate seamless customer
experiences across channels? Does every employee know what it takes to deliver
those experiences consistently and repeatedly? What will it take for customers to
experience comparably high levels of service at every touch point? A basic proof
point is whether customers can easily exchange at a physical store a product bought
online. If that simple benchmark cannot be met reliably, the management team
must find ways to ensure tight collaboration across disparate business functions,
from product development to customer service.
Sephora has mastered omnichannel with an array of online and mobile products
that create a rich, engaging customer experience. For example, there is My Beauty
Bag, a digital shopping list that augments the shopper’s online and in-store pur-
chase history with a product wish list. And the Sephora app enables augmented re-
ality via in-store displays and with Pocket Contour and Sephora Virtual Artist.
Ecosystems and Partnerships. The leaders of luxury brands must think in terms of
ecosystems and ask which companies would make the best partners. It is crucial to
have a clear partnering strategy and to actively manage relationships with a broad
set of online players, such as Google, Facebook, and Instagram. One example that
luxury brands can learn from is the digital ecosystem created by Nike—personal-
ized products and mailings and cooperation with digital players such as Spotify that
enables the company to connect with consumers online and offline.1
Organization and Capabilities. The wrong way to go digital is to set up separate
digital units that work in isolation. The right way is to weave digital thinking and
actions into the structure and processes of the whole company. The key is to
support digitization and experimentation by shifting the organization’s mindset
from knowing to learning—for example, by combining a top-down design approach
with a customer-centric test-and-learn delivery model; by aligning staff incentives
with, say, online purchases; or by ensuring the right mix of creative top-down
decision making and customer-focused execution.
Digital capabilities represent the “how” part of the equation: building the skills
base, institutional knowledge, and business processes so that digital becomes part
of “the way we do things.” That, in turn, means determining which capabilities
must be acquired externally and how digital talent can be continuously identified,
trained, managed, and retained.
Operations and Infrastructure. The CEO must ensure that the company has the
capabilities to scale up quickly when a digital experiment strikes oil. It’s the CEO’s
job to push for constructive answers to questions like these: Do we collect and use
accurate and actionable data that can deliver consumer insights in real time? Do
we have all the necessary data and IT infrastructure to manage our supply chain
and inventory in real time? Are we using predictive modeling to guide our business
decisions in real time? What level of automation is right for us today—and five
years from now? Do we have data security standards that consumers can trust?
Nordstrom was a pioneer in rethinking its operations and infrastructure, systemati-
cally transforming its back-end activities to enable digital ways of doing business. At
A basic proof point is
whether customers
can easily exchange
at a physical store a
product bought
online.
13. The Boston Consulting Group 11
the same time, the company leveraged new digital capabilities while empowering
its employees to be even more customer-centric.2
One example: the retailer inte-
grated its order management and warehouse systems across offline and online
channels in order to improve the experience of its customers, making it much easi-
er for them to check in-store availability, pick up items from and return them to
stores, and get live advice on Nordstrom’s website.
Luxury brands will be successful only by keeping the customer front and cen-
ter. With that as a prerequisite, brands must press forward, urgently, with digital
initiatives. They can no longer look to emerging markets for dependable growth.
Digital tools, skills, and mindset are the oxygen that will enable them to anticipate
and respond rapidly to the expectations of tomorrow’s consumers.
There are many digital moves that brands can make quickly and at low cost. But
they must realize that a complete embrace of digital requires nothing less than a
companywide transformation effort encompassing all business areas and all em-
ployees. That level of commitment calls for careful, top-down orchestration across
the entire business to ensure one brand voice no matter how, when, and where the
customer interacts with the brand.
The choice is clear. To embrace digital fully and strategically is to set a course for
renewed growth and more predictable prosperity. To ignore it is to signal to stake-
holders that they should put their faith—and funding—elsewhere.
Notes
1. “How Nike and Spotify Joined Forces to Connect Online with Offline Through Music,” Marketing
Week, August 8, 2016.
2. “Why Nordstrom‘s Digital Strategy Works (and Yours Probably Doesn’t),” Harvard Business Review,
January 14, 2015.
14. 12 Digital or Die
About the Authors
Olivier Abtan is a partner and managing director in the Paris office of The Boston Consulting
Group and the global leader of the luxury, fashion, and beauty topic. You may contact him by e-mail
at abtan.olivier@bcg.com.
Christine Barton is a senior partner and managing director in the firm’s Dallas office. You may
contact her by e-mail at christine.barton@bcg.com.
Federico Bonelli is a principal in BCG’s Milan office. You may contact him by e-mail
at bonelli.federico@bcg.com.
Hannes Gurzki is a consultant in the firm’s Berlin office. You may contact him by e-mail
at gurzki.hannes@bcg.com.
Antonella Mei-Pochtler is a senior partner and managing director in BCG’s Vienna office. You
may contact her by e-mail at mei-pochtler.antonella@bcg.com.
Nicola Pianon is a senior partner and managing director in the firm’s Milan office. You may con-
tact him by e-mail at pianon.nicola@bcg.com.
Miki Tsusaka is a senior partner and managing director in BCG’s Tokyo office. You may contact
her by e-mail at tsusaka.miki@bcg.com.
Acknowledgments
The authors thank Nicolas de Bellefonds, Peter Burggraaf, Joël Hazan, Youllee Kim, Vincent Lui,
Amitabh Mall, Pierre Mercier, Gillian Moore, Sophie Salaire, Sergey Sushentsev, and Alessandro
Zanotti for their contributions to this report. They also thank John Kerr for writing assistance and
Katherine Andrews, Gary Callahan, Kim Friedman, Abby Garland, Gina Goldstein, Kelli Gould, and
Sara Strassenreiter for editing, design, production, and marketing.
For Further Contact
If you would like to discuss this report, please contact one of the authors.