The document discusses the opportunities and challenges of luxury brands adopting an online presence, including the need to harness digital strategies while maintaining exclusivity. It covers how to design an attractive online presence through an effective website, social media presence, and customization options. The document also addresses strategies for e-tailing, integrating digital media in stores, and engaging customers both online and offline.

1. RMG 914
INTRODUCTIONTO LUXURY RETAIL
MODULE # 6

2. E-TAILING &
TECHNOLOGY RETAILING

3. INTERNET ADVANTAGES
o Global Brand Management
o Competitive Brand Management
o ConsumerWeb Analytics
o Customization
o Marketing Communication and Retailing

4. Due to craftsmanship and excellence in products many firms were reluctant
to become part of the internet
A serious challenge once on the internet was harnessing digital strategies
and media to promote the brand while safeguarding the sense of
exclusivity
CHALLENGES

5. THE INTERNET AND LUXURY BRANDS
o Ubiquity
o Speed
o Flexibility
o Mobility
o High Efficiency
o An Unlimited Space to Interact within

6. It is now seen as a necessary for luxury firms for the adaption of mass
marketing strategies and because much information about luxury brands
circulates and this format gives the brands ability to protect and defend
reputations
Earlier in existence-approached with skepticism and curiosity. It is only in
the last few years with the convergence of digital applications and mobile
technology have luxury firms firmly understood the inevitability of having
an online presence
THE INTERNET AND LUXURY BRANDS

7. The design of a successful online presence is a key aspect to gaining
profitable customer relationships and a prerequisite of understanding the
behavioural patterns of luxury consumers
Demand Side – financial and product Risks- namely payments Procedures
and the Risk of receiving Counterfeit Products
THE INTERNET AND LUXURY BRANDS

8. DESIGNING AN ATTRACTIVE ONLINE PRESENCE
Construction of an effective website is crucial
It must offer:
o Advertisement platform
o Sales platform
o Company description and essence
o Distribution of catalogues
o Customer service & entertainment
o Investor information

9. Design and Functionality are key-multi sensory – using tools such as visuals
– figures- pictures – sounds – videos and 3D presentations to create a
“webmosphere”
www.Gucci.com
DESIGNING AN ATTRACTIVE ONLINE PRESENCE

10. Many of the luxury brands have also build company pages such as:
o Facebook – luxury brands have increase by 63% in 2012
o Twitter – luxury brands have increased by 43% in 2012
o Instagram – Still newer/ up and coming for luxury brands
DESIGNING AN ATTRACTIVE ONLINE PRESENCE

11. ONLINE OPPORTUNITIES FOR LUXURY BRANDS
o Global Brand Management
o Competitive Environment Monitoring
o Customer Profiling andWeb Analytics
o Mercedes Benz – www.stars-insight.com

12. CUSTOMIZATION AND CUSTOMER ENGAGEMENT
Increasing focus on the concept of customization for the end user
o LVMH’s LouisVuitton monogram collection where consumers can
personalize with their initials of other features
o Porsche’s launch of an interactive campaign on Facebook for its 911
Carrera 4S car

13. DIGITAL MARKETING COMMUNICATION STRATEGIES
o Online advertisements has grown and is now not just confined to the
websites
o Digital commerce is now a PULL communication strategy as it is now
the consumer searching for information
o Today advertisements are created to promote brand awareness

14. DIGITAL MARKETING COMMUNICATION STRATEGIES
Examples of digital marketing communication:
o Banners
o Action – banners
o Pop-up adds
o Online videos
o Microsites
o In luxury - Microsites are used most frequently for specific events or
products and are found to be more effective in the luxury market

15. FAMOUS CAMPAIGNSTHROUGH BRANDING
o In luxury - Microsites are used most frequently for specific events or products and are found to be more
effective in the luxury market
o http://www.odyssee.cartier.com/
o http://www.campaignlive.co.uk/article/cartier-creates-epic-ad-celebrate-165-year-heritage/1120666
o http://artofthetrench.burberry.com
o OPEN WEB SITES FOR CAMPAIGNS

16. KEY POINTS
o Understand the online market and digital technologies in-depth
o Acquire the necessary skills to delineate successful online strategies
o Create a luxurious online presence
o Ensure seamless integration between online and offline strategies
o Listen to feedback
o Be active on social media

17. E-TAILING STRATEGIES
o Some luxury firms only sell through portals of Fashion E-tailers and in
doing so loose some control over image and branding
o It is essential to keep pricing exactly the same online and offline

18. TIFFANY
E tail Strategies
Tiffany & CO. has an excellent website in which jewellery is arranged by price, designer and collection and
gem.Tiffany has also created a free I phone app that allows customer to browse their own size of
engagement rings

19. DIGITAL MEDIA
APPLICATIONS IN MONO-
BRAND STORES

20. DIGITAL MEDIA AND MONO-BRAND STORES
o How to keep mono-brand stores profitable?
o One was is seamless brand images and unique customer experience online and
offline and on mobile distribution
o Integration of Media applications
o Complex and significant expense
o Other examples of mono brand stores and their digital media strengths

21. Chart 11.1 to be scanned into presentation – need to get to scanner

22. TARGETS INFLUENCING RETAIL CHOICES
o Wide assortment
o Cash points of sale
o High service quality
o Positive Store Attitude
o Fast Checkout

23. TARGETS INFLUENCING FREQUENCY OFVISIT
o Positive store attitude
o Positive store image
o Retail store digital media integration
o Digital media integration at POS

24. HOW CAN LUXURY BRANDS INTEGRATE MEDIA ATTHEIR
POS
o Service offering
o Pricing
o Product offering
o CRM
o Change management
o Controlling

25. RETAILINGVARIETIES
o Free standing stores
o Flagship stores
o Shop in Shops
o Corners
o Department store counters
o Sale in Multi brand individual stores

26. BACKGROUND ANALYSIS
o Central Business District
o Main Street
o Strip Malls
o Shopping Malls
o Free Standing Stores

27. ADVANTAGES OF
RETAIL LOCATIONS
Relative advantages of Major Retail Locations

28. CUSTOMER ENGAGAEMENT

29. TIME SPENT
o Woman with a man – 4 minutes and 41 seconds
o A woman alone – 5 minutes and 20 seconds
o A woman with a child – 7 minutes and 19 seconds
o A woman with another woman – 8 minutes and 15 seconds

31. RETAILING INDICES
o Index of attractiveness of the store
o Conversion Rates
o AverageTicket
o Average number of items purchased
o Inventory Management
o Ratio of POS to total sales
o Sales per square foot/meter
o Sales per staff
o Sell through
o Standard income statements per store

32. RETAILING INTHE LUXURY FIELD
o Store location:
o Chicken vs. Egg-better
o Different leasing systems and their costs
o American leasing systems
o Japanese leasing systems
o The French leasing systems

33. BUDGET PLANNING AND CONTROL
o SalesTargets
o Inventory Forecast
o Purchasing Plan
o Margin Controls
o Special Discounts
o Loss Prevention and Pilferage

34. THE STORE INFORMATION SYSTEM
o Computer links to head office
o Online reports – constant updates – transfers – reallocation and learning about
regional differences
o Staffing
o Training
o Evaluation and Motivation
o CRM

35. COMMUNICATION POWERTOTHE STORE
o Present the product in highlighted context
o Architecture, product and staff aesthetics
o Multi Sensory products, odors, music, decorations, lights, logos, and
advertisement propaganda
o Personnel communication
o Internal and external displays
o Selling Online

36. QUESTIONSTO
PONDER

37. Question to Ponder
Written response required by next week.
1. What kind of things are brands doing to get on the Radar of their best potentials?
■ A) Advertising in door to door flyers B) Reaching out through relevant communication platforms C) Using Mailing List and client lists. Back up your response with a few
reasons and examples.
1. What is the impact of Social Media vs Traditional Market Research? What kind of marketing do millennials respond to most frequently?
■ A)word of mouth B) Television C) Internet Advertising
■ Give some examples that you feel are relevant for your response.
1. What are the smartest marketers doing to gain greater share of “The Best “?
■ A)Research in the stores B) Building Blogs C) Creating Customer Service Portals
■ Which of the above do you feel is most correct and Why ?