Digital Luxury trends

1. Industry Digital Trends
Keeping up with changing customers

2. To identify and communicate on-going
understanding and awareness of competitor
activity and relevant industry trends
Scope

3.  Digital is influencing almost 20% of total luxury sales;
 More than 45% of luxury purchases are influenced by what shoppers find in
the digital universe;
 Over 59% of visits come from smartphones and tablets (41% come from
desktop);
 The largest share of visitors to luxury brand sites are age 55+ but much
younger consumers (age 18-24) are the next largest demographic;
 Social media accounts for nearly 7% of traffic to luxury brands, with the
majority coming from Facebook (search engines and social media are the
two most important traffic sources. Third source is email);
Sources: Altagamma-McKinsey Online Observatory, PM Digital Trend Report: Luxury Brands Online 2014
Findings

4.  Omni-channel marketing to offer an immersive experience whether in-
store, on social media or a website (to bridge digital and physical);
 Mobile commerce and initiatives based on geolocation, camara, push
notifications (LV Pass app that scan LV campaign images in order to
access behind the scene content, featured product info, exclusive videos
and images and store locator);
 Social commerce (Twitter Buy for Burberry, Like2Buy on Instagram for
Nordstrom);
 Initiate a meaningful conversation with younger target (Burberry acoustic,
Ralph Lauren social media involvment);
Sources: Altagamma-McKinsey Online Observatory, PM Digital Trend Report: Luxury Brands Online 2014
Implications

5. Omnichannel strategies
Best practices

6. Best practices
The goal is to bring the digital experience of the
website in a physical space (flagship store in Regent
Street):
 Full-length screens which changes between
displaying content to live streaming fashion shows
and sometimes into mirrors;
 RFID chips attached to some product which display
content related video when it comes close to the
mirror in the dressing room;
 500 hidden speakers and 100 screens to dive in the
brand environment;
 Employees equipped with iPads to let the customer
access its account and check the whish list
“Find a boutique” tab on product
pages to put the user on a path to
purchase the product in a brick
and mortar store
iBeacon technology for location-
based marketing and payments

7. Best practices
In-store online inventory visibility to empower its customers
Memory Mirror technology deployed in its Walnut Creek, CA, that
capture images and videos of clothing customers try on and integrate
with the existing retail space.
Main features:
 Allow customers to see outfits on a 360 degree view;
 Save each item so they can be reviewed afterwards;
 Allow the social sharing of each item;
 Let the staff send personalized recommendations to customers
directly from the mirror;

8. Best practices
Nordstrom has started using Pinterest to highlight products in their stores.
Handbags and women shoes popular (most pinned or reviewed) on Pinterest
are displayed with a red tag in their stores

9. Mobile strategies
Best practices
To engage users thanks to device features like camara,
GPS, push notifications

10.  Product Personalization: let the user create a personalized product (tiffany,
chopard, LV)
 Virtual Outfit/make-up trial (Sephora, Burberry, Macy’s)
 QR code/image scan from a print campaign to access exclusive products, store
locator, behind the scenes
 Loyalty programs to engage users and let them access loyalty point info and
redemption tools on the go and on demand by leveraging location-aware push
notification (discounts, promotions, offers)
 Live stream/exclusive live event access
 Whish list and personal page
 Entertainment (games, music, etc)
 Mobile payments based on NFC technology
Mobile Strategies: how to engage users?

11. Mobile Best practices 1/2
Integrating online and offline
commerce, Louis Vuitton’s Pass app
allows purchase of featured products
and includes a store locator.
The app allows users to scan print
advertising campaigns and access
exclusive content.
Michael Kors’ MK360 app allows users
to experience the brand’s Jet Set
Collection debut in Shanghai, China,
giving them 3D visuals of the runway
show, a tour of the festivities in the city
and the event

12. In February 2014 Gucci previewed an
upcoming major app revamp called
Luce that will allow users to interact with a
runway show and scan print images to
access more content and product info.
The current app shows featured products
that users can either wish-list or buy.
Mobile Best practices 2/2
Hermes Tie Break app includes
informative and entertaining content like
tie tying how-to’s, arcade games and
cartoons, as well as a gallery of
autumn/winter 2014 tie patterns

13. Social Media strategies
Best practices

14. SM Best practices: UGC and online buzzing
The Art of the Trench invited Burberry
trench coat enthusiasts to post their
selfies to a campaign site that
leveraged social media sharing and
partnerships with major fashion bloggers.
The campaign allowed viewers to vote
and comment on their favorite images,
share them with friends, and to click
through to the e-commerce site to
purchase items that caught their eye.
#diorjadore social campaign to create
online buzz around the video teaser
distributed on Dior site and social
channels to anticipate the new parfum
campaign featured by the actress
Charlize Theron

15. SM Best practices: social commerce
Burberry social commerce
leveraging Twitter’s new social
shopping button on its mobile app.
Burberry is one of the beta partners
that will be testing this new feature
Nordstrom launched the Like2buy button on
Instagram to turn the social channel into a
shopping heaven for its users. Clicking on
the picture will take the user to the website
where product details and reviews are
available. The user can then purchase the
items through a secure page set up by the
company.

16. Thanks
afruz_besharati@yahoo.it