Luxury Fashion

INNOVATIONS
IN
FASHION
AND
DIGITAL

LEADERS
IN
THE
FASHION
CATEGORY.

| 1

Summary

! L2
Digital
IQ
Index
ranked
Burberry,
Ralph
Lauren
and
Kate
Spade
as
the
top
luxury

brands
in
digital
competence,
measuring
their
Site,
Digital
MarkeMng,
Social
Media,

and
Mobile.

! Burberry,
Ralph
Lauren
and
Kate
Spade
have
each
shown
a
focused
digital
effort
by

delivering
a
consistent
user
experience
as
well
as
content
across
all
channels
to

boost
mobile
and

e-‐Commerce
traffic
while
conMnuing
to
drive
customers
to

complete
their
experience
in-‐store.

! MoMvaMon
for
this
shiT
in
aUenMon
is
due
to
shiTing
aVtudes
in
affluents,
who
are

enthusiasMc
about
their
mobile
devices,
specifically,
Apple
mobile
devices.

! Luxury
brands
can
no
longer
be
hesitant
to
be
the
first
in
a
parMcular
media
space.

These
brands
are
being
leT
behind
very
quickly
as
their
audience
is
eager
to
engage

while
sMll
feeling
exclusive
and
empowered.

| 2

L2
Digital
IQ
Index®:
Fashion
2012
|
Burberry
Again
Tops
Digital
Rankings

! The
Digital
IQ
Index®:
Fashion
study
ranks
the
digital
competence
of
brands
across

four
dimensions:
Site,
Digital
MarkeMng,
Social
Media,
and
Mobile.

! “E-‐commerce
is
now
the
new
must-‐have
accessory
for
fashion
brands,”
-‐
ScoU

Galloway,
NYU
professor
and
cofounder
of
L2.

! For
example,
Coach
has
implemented
e-‐commerce
and
digital
into
the
overall
business

by

integraMng
back-‐end
retailing
and
the
user
experience
between
brick-‐and-‐mortar

and
online.
Users
can
go
online,
see
in-‐store
inventory,
purchase
a
product
on

coach.com
and
pick
it
up
at
the
store
hours
later.

! A
quarter
of
searches
relaMng
to
fashion
brands
come
from
a
mobile
device.

! For
Galloway,
the
biggest
digital
disappoints
in
fashion
are
Hermès
and
Prada.

! At
#63
on
Interbrand’s
“Best
Global
Brands”
List,
Hermès
is
topped
by
Louis
VuiUon

(17),
and
Gucci
(38).

! This
is
likely
because
Hermès
oﬄine
businesses
are
so
strong.

http://www.wwd.com/media-news/digital/burberry-again-tops-digital-rankings-6383987
| 3
http://www.wwd.com/media-news/fashion-memopad/value-quotient-6377808
http://www.l2thinktank.com/research/fashion-2012/

The
4
Pillars
of
Digital
MarkeIng
for
Luxury
Brands

! Experience

! The
best
way
luxury
brands
can
Mp
the
scales
in
their
favor
is
to
provide
unique,
compelling

experiences.
Burberry
reported
that
by
switching
the
majority
of
its
markeMng
budget
to
digital

experiences,
it
enjoyed
a
29%
increase
in
revenue.

! Exclusivity

! Digital
markeMng
offers
perhaps
the
most
elegant
opportunity
to
control
and
enhance
a
brand’s

exclusivity.

! High-‐tech
markeMng
makes
luxury
brands
appear
cuVng-‐edge
—
that
leads
directly
to
exclusivity.

! Engagement

! Engagement
is
synonymous
with
story,
and
story
sells.
Tiffany
&
Co.
reported
a
20%
upMck
in
sales

aTer
the
public
and
press
alike
lauded
the
company’s
What
Makes
Love
True
microsite
and

Engagement
Ring
Finder
mobile
app,
two
digital
markeMng
elements
that
communicate
Tiffany’s

powerful
brand
story
about
realizing
true
love.

! EmoMon

! A
luxury
brand
must
determine
its
emoMonal
value
first,
and
construct
its
physical
and
digital

manifestaMons
to
express
and
extract
that
specific
emoMon.

| 4
http://mashable.com/2011/11/29/luxury-marketing-digital/

eMarketer|
Luxury
MarkeIng:
RecreaIng
the
One-‐on-‐One
Experience
with
Mobile

! Luxury
marketers
feared
mobile
apps
would

open
their
doors
to
the
masses.

! What’s
changed?
Affluent
consumers,
who

are
enthusiasMcally
using
their
mobile

devices.

! Affluents
are
making
purchases
on
their

smartphones
with
some
regularity.
Nearly

two-‐thirds
of
affluent
smartphone
owners

have
made
at
least
one
purchase
with
their

device,
according
to
the
Luxury
InsMtute

survey.
27%
said
they
make
purchases

monthly
and
17%
make
purchases
weekly.

! For
wealthy
consumers,
mobile
oTen
means

Apple’s
iOS.
Luxury
marketers
should

prioriMze
apps
designed
to
work
on
the

iPhone
and
iPad.

http://totalaccess.emarketer.com/Reports/Viewer.aspx?
| 5
R=2000998&ecid=367a9932812b457785187426316289c7

4
Luxury
Brands
seen
leading
the
digital
revoluIon
|
The
New
MarkeIng
Buzz

! Louis
VuiUon
launched
an
all-‐digital
iniMaMve,
“The
Louis

VuiUon
Express”
campaign,
posMng
daily
videos
and

images
taken
by
photographer
and
blogger
Todd
Selby
as

he
traveled
from
the
brand’s
home
base
in
Paris
to

Shanghai
for
its
fashion
show.

! Guess
by
Marciano
made
headlines
with
the

announcement
of
collaboraMng
with
renowned
Swedish

fashion
blogger
Elin
Kling,
who
represents
the
target

market
for
the
high-‐end
brand
and
appeals
to
the
Guess

customer
demographic.

! Gucci’s
new
Fall/Winter
2012
interacMve
video

highlighMng
men
and
women’s
luxury
accessories
like

belts,
bags,
and
shoes.
Consumers
can
shop
and
access

product
informaMon
by
clicking
the
highly-‐idenMﬁable

Gucci
brand
icons
throughout
the
ﬁlm.

! Dolce
&
Gabbana
partnership
with
fashion
blogger
Bryan

Boy,
making
videos
of
him
working
various
jobs
at
Dolce
—from
geVng
his
ID
card,
being
a
recepMonist,
and
a

bartender.

http://www.adpunch.org/luxury-brands-digital-engagement-the-new-marketing-buzz.html
| 6 http://www.louisvuittonexpress.com/eng_US/day-12-shanghai

Burberry
Digital
Strategy
|
Burberry.com

! Burberry
revealed
that
it
spends
over
60%
of
its
markeMng
budget
to
digital
media:

three
Mmes
more
than
the
market
average.

! The
company
did
a
live
stream
of
their
London
Fashion
Week
runway
show
for

their
spring/summer
2013
collecMon.

! Users
could
view
the
show
on
Burberry’s
website
in
real
Mme,
as
well
as
exclusive

content
through
updates
on
Burberry’s
TwiUer,
Instagram,
and
Facebook.

! Once
the
show
began
on
the
live
stream,
the
leT
side
bar
oﬀered
opMons
to
shop
the

runway
look
and
the
right
bar
streamed
Instagram
photos
and
updates
containing

informaMon
of
the
songs
playing.

| 7 http://www.thedrum.com/news/2011/09/01/burberry-devotes-60-marketing-budget-digital#XUlguWEXfyrCiB5B.99

Burberry.com
|
InteracIve
eCommerce
with
a
taste
of
London

! Burberry
Bespoke:
Users
can
create
a
trench
coat
to
their
personal
speciﬁcaMons,
share
their
design
via

Facebook,
TwiUer,
or
email,
chat
live
with
a
Burberry
Consultant,
or
request
a
one-‐on-‐one
appointment
at

Burberry’s
Regent
Street
store.

! Burberry
Experiences:
Watch
the
latest
product
campaigns
-‐-‐
short
cinemaMc
videos
set
in
London,
with
links

to
interact
with
or
“Quick
Shop”
the
featured
products.

! Burberry
AcousIc:
A
series
of
music
videos
featuring
London-‐based
English
arMsts
performing
acousMc

versions
of
their
hit
songs.

! Burberry
Heritage:
InteracMve
Mmeline
telling
the
company’s
story,
and
product
and
publicity
photo
sMlls

daMng
back
to
1856.

! Burberry’s
mobile
site
oﬀers
a
consistent-‐albeit
stripped
down-‐experience,
allowing
users
to
view
the
enIre
product

collecIon,
watch
product
videos,
and
share
their
favorite
items
through
social
media
and
email.

| 8

Burberry
|
Engagement:
ArtOfTheTrench.com

! “Art
of
the
Trench
is
a
living
document
of
the
trench

coat
and
the
people
who
wear
it.”

! The
project
is
a
collaboraMon
between
Burberry
and

some
of
the
world’s
leading
image
makers,
such
as

ScoU
Schuman
(The
Sartorialist)
&
Magnum

photographers.

! Users
are
invited
to
submit
portraits
of
themselves

wearing
the
Burberry
trench
coat
directly
to
the
site

or
through
the
Instagram
app
on
their
iPhone

! Art
of
the
Trench
can
also
act
as
a
Lookbook
on
how

to
wear
the
trench
coat.

! Users
can
sort
images
by
popularity,
gender,
styling

and
trench
color,
and
connect
through
Facebook
to

“Like”
the
photo
and
leave
a
comment.

| 9

Burberry
|
Social
Networks

! Burberry’s
social
media
pages
are
rich
with
video
and

photo
content:

! TwiXer:
Tweets
of
exclusive
pics
from
photo
and
video

shoots
to
nearly
1.3
million
followers.

! YouTube:
Hundreds
of
videos
including
tutorials
and

videos
featuring
Burberry’s
CEO
Angela
Ahrendts
and

CCO
Christopher
Bailey.
Over
44,000
subscribers
and
16.9

million
views
makes
this
one
of
the
most
acMve
of

Burberry’s
social
networking
pages.

! Editorial
and
street
photos
from
around
London
make
up

the
majority
of
posts
on
Facebook,
along
with
a

consolidated
video
library
for
fans.
For
its
13.8
million

fans,
Burberry’s
content
promotes
hundreds
of

thousands
of
conversaMons
(295,000+
“talking
about

this”).

! AcMve
Timeline
banner
shows
the
actual
Mme
in
London
to

promote
the
Britain
watch
collecMon.

! Burberry’s
Tumblr
acts
as
a
feed
to
document
their
Art
of

the
Trench
project.

| 10

Ralph
Lauren
Digital
Strategy
|
E-‐Commerce
&
Web
Experience

! For
the
2012
fiscal
year
ended
March
31,
Ralph
Lauren
reported
Web
sales
grew

about
30%.

! The
web
accounted
for
14.8%
of
total
sales
compared
with
about
13.3%
in
fiscal
2011.

! E-‐Commerce
sales
increased
59%
in
Europe
&
30%
in
US.

! At
RalphLauren.com,
users
can
shop
and

interact
with
the
brand
through
style

guides,
RL
Magazine,
and
custom
environments
to
show
off
certain
brands
such
as

the
Rugby
CollecMon.

! Consumers
can
explore
the
“World
of
Ralph
Lauren,”
including
the
GiT
Vault,
Car

CollecMon,
Home,
Watches
&
Jewelry,
Restaurants,
and
the
Flagship
stores.

! Together,
the
pieces
formed
what
David
Lauren
calls
"merchantainment,"
the

blending
of
commerce
and
content.

! The
goal
is
to
sell
the
idea
of
the
Ralph
Lauren
lifestyle.

| 11
http://www.fastcompany.com/1769043/ralph-laurens-13-billion-bet

Ralph
Lauren
|
RL
CollecIon
iPhone
App

! Ralph
Lauren
CollecMon
iOS
app

! Geared
toward
aﬄuents,
the
app
allows

users
to
experience
the
RL
CollecMon,
with

no
direct
link
to
shop.

! Preview
styles
&
accessories,
watch

runway
show
highlights,
and
browse
the

Lookbook,
Ralph
Lauren
TV
video
library

and
Watch
&
Jewelry
Co.
sites.

! Explore
the
luxury
lifestyle
content
behind

the
“World
of
Ralph
Lauren”
in
RL

Magazine.

! Explore
Ralph
Lauren’s
iconic
Ricky
bag
in

a
full
360-‐degree
view.

! USA
and
InternaMonal
locaMon-‐based

global
Store
Locator
looks
to
bring
users
to

complete
their
experience
in-‐store.

| 12

Ralph
Lauren
|
Mobile
Web

! m.RalphLauren.com
oﬀers
a
full

mCommerce
experience
with
a
look

consistent
with
the
full
site.

! OpportuniMes
to
explore
the
“World

of
Ralph
Lauren”
content.

! Browse
content
in
RL
Magazine,
the

most
recent
videos
at
Ralph
Lauren

TV,
or
the
RL
Style
Guide
for
the

latest
trends
and
RL
Classic
pieces.

! m.Rugby.com
focuses
on
RL’s
Rugby

brand
for
a
younger
demographic.

! “Make
Your
Own”
feature
to
make

and
order
custom
clothing.

! “Social
Club”
-‐-‐
Connect
with
RL

Rugby
on
Tumblr,
Facebook,
TwiUer

&
Pinterest.

| 13

Ralph
Lauren
Takes
Over
New
York
Times
iPad
App

! Much
of
the
Times’
iPad
app
was
free
to

access
for
almost
two
weeks.
For
the

second
year
in
a
row,
Ralph
Lauren
did
an

ad
takeover
of
the
app.
The
free
access
it

provides
was
to
some
of
the
secMons
the

wearers
of
Polo
would
be
interested
in:

Sports,
Fashion,
Travel,
Home
&
Garden,

and
T
Magazine.

! The
sponsorship
was
Med
to
the
Olympics

and
featured
ads
with
U.S.
Olympians,

which
partnered
well
with
the
Times’

special
Olympics
secMon.

! The
package
included
video,
features
on

Olympic
athletes,
and
an
e-‐commerce

opMon.

| http://www.niemanlab.org/2012/08/you-can-thank-ralph-lauren-for-free-access-to-the-new-york-times-ipad-app-well-some-of-it
14

KateSpade.com

“We
really
wanted
to
engage
with
our
girl.
Of
course
commerce
is
important,
but
it’s
not

only
about
commerce.
Engagement
drives
commerce.
The
more
engaged
a
girl
is
with
the

brand,
the
more
valuable
she
is
to
us.”
-‐
Craig
LeaviU,
CEO,
Kate
Spade

! Experience
the
brand
at
KateSpade.com

! “Behind
the
Curtain,”
Oﬃcial
Kate
Spade
blog:

Browse
columns
on
Campaigns
&

CollaboraMons,
Featured
products,

Kate
Spade
Shops
around
the
world,
and
the
people

inside
the
Kate
Spade
oﬃce.

! “Fathom
for
Kate
Spade,”
Partnership
with
Fathomaway.com:
Explore
downloadable

City
Guides
from
New
York
to
TahiM:
See
where
to
Sleep,
Eat,
Drink,
Shop
and
Explore.

Guides
include
an
iMnerary,
packing
list,
and
cheat
sheets.

| 15
http://mashable.com/2011/11/29/kate-spade-ceo-craig-leavitt-interview/

Kate
Spade
|
Social
Engagement

“Tory
Burch
and
Kate
Spade
have
effecIvely
built
their
businesses
with
robust
e-‐commerce
sites
that
are
a
big
growth
channel

for
them
—
if
not
the
most
significant
channel
for
their
business,”
Maureen
Mullen,
L2
Director
of
Research
&
Advisory.

“We
are
really
fortunate
that
we
had
already
developed
an
authenMc
voice
and
persona
for
our
brand.
The
Kate
Spade
girl

aspires
to
lead
an
interesMng
life
—
to
engage
in
the
arts
and
literature
and
travel
and
adventure.
We
talk
about
those
things
on

social
media
because
that’s
who
she
is,
and
she
wants
to
hear
about
what
her
peers
are
doing.
It
feels
very
very
natural
for
us.”

-‐
Craig
LeaviU,
CEO,
Kate
Spade

! Kate
Spade
has
leveraged
social
media
to
build
a

lifestyle
brand:

! Facebook
Exclusive:
Find
out
about
limited
ediMon
products

available
online.

! Facebook
“What
do
you
think?”:
Browse
and
“Like”

products,
or
read
and
write
reviews
for
your
favorite

products.

! Kate
Spade
NY
YouTube
Channel:
Features
seasonal

campaign
videos
and
behind-‐the-‐scenes
videos
with

designers
from
campaign
shoots,
events,
and
the
office.

! TwiXer:
Daily
tweets
about
contests
and
new
content
with
a

personal
touch
and
a
consistent
voice
throughout
with

Tumblr,
Instagram
and
Pinterest.

http://www.wwd.com/media-news/digital/burberry-again-tops-digital-rankings-6383987
| 16
http://mashable.com/2011/11/29/kate-spade-ceo-craig-leavitt-interview/

Bergdorf
Goodman
|
Social
and
Mobile
Experience
with
Instagram

! Bergdorf
launched
its
Shoes
About
Town
map

where
consumers
can
send
pictures
of
their
shoes

to
the
brand.
The
images
were
put
on
a
large
map

of
New
York
so
that
consumers
can
see
the
shoes

all
over
New
York’s
ManhaUan.

! “Using
the
Instagram
iPhone
app,
photograph

your
shoe
in
its
natural
territory,
hash-‐tag
it
with

#BGShoes
and
enable
Instagram’s
geotag
so
your

shoes
have
a
place
in
or
surrounding
ManhaUan.

Those
photographed
will
appear
on
our
interacMve

map
of
shoe
fanaMcism
and
may
even
ﬁnd
a
place

on
the
walls
of
our
store.”
–
5th
at
58th
Bergdorf

Goodman
blog.

! These
images
are
posted
on
Bergdorf’s
Facebook

page
and
its
TwiUer
feed.

| 17 http://www.luxurydaily.com/bergdorf-goodman-is-2011-luxury-marketer-of-the-year/

Bergdorf
Goodman
|
Mobile
effort
to
drive
in-‐store

! The
retailer
used
another
locaMon-‐based
mobile
effort
by
taking
out
a
banner
ad
in

“Words
with
Friends.”

! Bergdorf
alerted
consumers
to
an
in-‐store
event
to
meet
shoe
designer
Nancy
Gonzales

and
connected
the
banner
ad
to
Facebook
so
that
consumers
could
RSVP

! Bergdorf
uses
Facebook

to
post
a
monthly
“What
I’m
wearing
today”
feature
that

tracks
five
consecuMve
ouyits
of
an
employee.
Consumers
can
comment
on
the

images
and
are
directed
to
the
Bergdorf
Web
site
where
they
can
buy
the
items.

! Bergdorf
exclusive
iPhone
app
“Today’s
Shoe”

! Purchase
shoes
instantly,
share
to
Facebook
&
TwiUer,
expedited
delivery
and

complimentary
returns.

! Product
changes
every
day.

| 18 http://www.luxurydaily.com/bergdorf-goodman-is-2011-luxury-marketer-of-the-year/

Hermès
Digital
Summary

! The
Hermes.com
Online
store
oﬀers
a
simple,

segmented
experience.

! Product
catalogs
do
not
have
a
centralized
page
to

browse
through
any
item
category.
Users
must
click

through
each
item
to
browse
the
enMre
line.

! Separately,
the
world
of
Hermès
website
is
an

aUracMve
mulMmedia
adventure.
Users
can
explore

an
interacMve
grid
with
pop-‐out
pages
featuring

products,
arMsts,
photographs
and
narraMve

content.

! Hermès
on
Facebook
promotes
photo
and
video

content,
products
and
events
that
garner
hundreds

of
“likes,”
but
liUle
conversaMon
due
to
the
direct,

maUer-‐of-‐fact
delivery
of
the
content.

! Hermès’
YouTube
boasts
over
1.2
million

views.

Most
viewer
content
is
cinemaMc
in
nature,
rather

than
product
focused.

| 19

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