Most Impressive Construction Leaders in Tech, Making Waves in the Industry, 2...
Havas Luxe: Luxury Confronts Digital
1.
2. LUXURY INDUSTRY GROWING RAPIDLY
• VALUED AT AN ESTIMATED $77 BILLION IN 2014, THE US
MARKET FOR LUXURY GOODS IS BY FAR THE LARGEST
GLOBAL MARKET IN THE WORLD
• GLOBAL MARKET FOR LUXURY GOODS IS ESTIMATED TO
GROW $333 BILLION BY NEXT YEAR — SPURRED BY
NEWLY AFFLUENT CONSUMERS IN ASIA & PARTS OF THE
DEVELOPING WORLD
• WITH THE RAPID GROWTH & GLOBALIZATION OF THE
LUXURY MARKET, BRANDS MUST START LEVERAGING
DIGITAL FOR NEW CUSTOMERS WHO WILL EXPECT
SUPERIOR EXPERIENCES
3. WHY IS DIGITAL IMPORTANT?
• 62% OF LUXURY SALES ARE INFLUENCED BY
BRAND DIGITAL IMPACT
• WHILE THE OVERALL LUXURY MARKET IS EXPECTED TO
INCREASE 5% BY 2018, THE E-LUXURY MARKET IS
EXPECTED TO INCREASE 15%
• 83% OF HYPER AFFLUENT CONSUMERS RELY ON THEIR
DEVICES & SPEND TIME RESEARCHING
PRODUCTS ONLINE TO HELP INFORM PURCHASING
DECISIONS
4. LUXURY INDUSTRY SLOW TO ADAPT
• LUXURY BRANDS ARE CURRENTLY ONLY REACHING
50% OF THEIR FULL POTENTIAL FOR DIGITAL
CUSTOMER EXPERIENCE
• BRANDS FEAR THAT GIVING CUSTOMERS EASIER
ACCESS TO THEIR GOODS WILL LEAD TO A LOSS OF
EXCLUSIVITY AND WILL AID COUNTERFEITERS
• BELIEF THAT LUXURY CONSUMERS ONLY OPT FOR IN-
STORE, PERSONALIZED SERVICE
5. “LUXURY USED TO BE ABOUT HAVING A SPECIFIC HANDBAG AND NOW IT’S
TAKING UBER. IT’S ABOUT SAVING TIME TO NOT HAVE TO DO MENIAL TASKS”
– SOPHIE DORAN, MANAGING DIRECTOR LUXURY SOCIETY
6. REDEFINING LUXURY CONSUMER IN A DIGITAL
AGE
PAST
EXCLUSIVITY
ONE-ON-ONE CUSTOMER
SERVICE
PRIVATE AND INACCESSIBLE
PRESENT
MOBILE AND IMPULSIVE
ON-DEMAND SERVICE &
DELIVERY
CONNECTED AND INFORMED
8. E-COMMERCE
CURRENTLY:
• 98% OF AFFLUENT CONSUMERS ARE
SHOPPING ONLINE
• 80% OF U.S. LUXURY CONSUMERS SAY THE
TOP REASON FOR PURCHASING
PRODUCTS ONLINE IS THE ABILITY TO
BUY WHENEVER IT’S MOST CONVENIENT
YET:
• AN ESTIMATED 40% OF BRANDS STILL
DON’T SELL ONLINE
9. “ULTRA-HIGH-NET-WORTH INDIVIDUALS ARE PRESSED FOR TIME. DO YOU THINK
THEY WOULD RATHER SPEND THAT TIME TRAVELING TO A STORE OR JUST
CLICKING A FEW BUTTONS AND HAVING THE PRODUCT ARRIVE AT THEIR
DOORSTEP?”
- RYAN CLARK, FOUNDER LUXURY BRANDED
10. RECOMMENDATION :
EMBRACE SELLING DIRECT TO CONSUMER ONLINE
•THE SUCCESSFUL VENTURES OF LUXURY RETAIL
PLATFORMS NET-A-PORTER AND YOOX,
WHICH HAVE A COMBINED NET REVENUE OF $1.5
BILLION, PROVE THAT CONSUMERS ARE WILLING
TO BUY LUXURY PRODUCTS ONLINE, AND AT
UNDISCOUNTED PRICES.
•BY EMBRACING E-COMMERCE, BRANDS WILL
INCREASE PROFIT BY NOT HAVING TO SELL
THROUGH AN AFFILIATE SHOP
11. MOBILE OPTIMIZATION
CURRENTLY:
• 3 OUT OF 4 LUXURY SHOPPERS OWN A SMARTPHONE
AND NEARLY HALF OWN A TABLET
• 40% OF EMAILS ARE OPENED ON MOBILE DEVICES, A
STATISTIC THAT IS HIGHER FOR LUXURY BRANDS
YET:
• MANY BRANDS ARE STILL NON-MOBILE OPTIMIZED, OFFER
LOW LEVELS OF RESPONSIVE DESIGN AND/OR FAIL TO
CARRY OVER E-COMMERCE ENABLED FEATURES ON DESKTOP
TO MOBILE
• BRANDS ARE ADVERTISING ON NON-MOBILE OPTIMIZED
MEDIA BRAND SITES
12. “THE MOBILITY AND IMPULSIVITY OF LUXURY CUSTOMERS IN THE DIGITAL ERA
DEMANDS IMMEDIATE CONNECTIVITY AND CONVERSION…THE FASTER YOU CAN
DELIVER IT TO THEM –WITH STYLE –WILL BUILD THEIR LOYALTY MORE THAN
BUILDING MORE STORES.”
– JAY HOLAN, SVP FITFORCOMMERCE
“THE MOBILITY AND IMPULSIVITY OF LUXURY CUSTOMERS IN THE DIGITAL ERA
DEMANDS IMMEDIATE CONNECTIVITY AND CONVERSION…THE FASTER YOU CAN
DELIVER IT TO THEM –WITH STYLE –WILL BUILD THEIR LOYALTY MORE THAN
BUILDING MORE STORES.”
– JAY HOLAN, SVP FITFORCOMMERCE
13. RECOMMENDATION :
ADOPT USER FRIENDLY & RESPONSIVE DESIGN
• IN THE FIRST MONTH GUCCI ADOPTED RESPONSIVE
DESIGN, THE BRAND QUADRUPLED MOBILE
REVENUE & EXPERIENCED A 70% INCREASE IN
MOBILE CONVERSION
• INTUITIVE NAVIGATION, CONSISTENT CALL TO
ACTION, DETAILED PRODUCT PAGES & EASY
CHECKOUT CONTRIBUTES TO INCREASED MOBILE
CONVERSION
• RECOGNIZING THE IMPORTANCE OF MOBILE, 26 OF THE
TOP 28 LUXURY RETAIL BRANDS NOW OFFER A MOBILE-
OPTIMIZED SITE
14. SOCIAL INTEGRATION
CURRENTLY:
• LUXURY CONSUMERS TODAY ARE MORE
CONNECTED AND RESOURCEFUL THAN EVER
• 78% USE SOCIAL MEDIA, WITH MORE THAN HALF
USING SOCIAL MEDIA TO CONNECT WITH A BRAND
• 50% OF BUYING DECISIONS OF LUXURY GOODS
ARE INFLUENCED BY WHAT CONSUMERS HEAR OR
SEE ONLINE
YET:
• MANY BRANDS ARE STILL WARY OF EMBRACING
SOCIAL AS IT MIGHT PUSH THEM INTO A UBIQUITOUS
ENVIRONMENT, MOVING THEM AWAY FROM THE
ASPIRATIONAL BRAND SPACE AS WAS THE CASE WITH
MICHAEL KORS.
15. ” ‘GOING DIGITAL’ REALLY MEANS AUTHENTICALLY INTERACTING WITH
AN AUDIENCE THROUGH ALL OF THE PLATFORMS THAT MAKE SENSE, IN
ORDER TO REACH THE CONSUMER IN A WAY THAT IS SEAMLESS,
INTUITIVE, ENHANCES BRAND IDENTITY AND ADDS VALUE TO THE
CUSTOMER EXPERIENCE. ”
- ELIZABETH PIZZINATO, SENIOR VP MARKETING & COMMUNICATIONS FOUR SEASONS
16. RECOMMENDATION : INTEGRATE SOCIAL
TO CREATE MEANINGFUL ENGAGEMENT
• KNOWING THAT SOCIAL PLAYS A LARGE ROLE IN THE
THE DECISION MAKING PROCESS OF TODAY’S
LUXURY CONSUMERS, FOUR SEASONS UTILIZED
INTEGRATION OF TWITTER, INSTAGRAM,
FACEBOOK, AND ORIGINAL BLOGS TO GROW
REVENUE FROM ONLINE BOOKINGS 6% AND
MOBILE BOOKING 82%
• BY CREATING ORIGINAL & SHAREABLE
CONTENT ONLINE, THROUGH BLOGS LIKE ‘HAVE
FAMILY WILL TRAVEL’, FOUR SEASONS ENGAGES
WITH THEIR CUSTOMERS IN NEW & MEANINGFUL
WAYS
17. HOW CAN LUXURY BRANDS STILL MAINTAIN FEELINGS OF
ASPIRATION & EXCLUSIVITY WHILE EMBRACING DIGITAL ?
18. “THE FUTURE OF THE WEB IS ABOUT PERSONALIZATION…ABOUT ‘ME’. IT’S ABOUT
WEAVING THE WEB TOGETHER IN A WAY THAT IS SMART AND PERSONALISED FOR
THE USER.”
- TAPAN BHAT, VP YAHOO
19. PROVIDE PERSONALIZATION
• GET CLOSER TO CUSTOMERS ONLINE BY CREATING A
PERSONALIZED SHOPPING EXPERIENCE
• PROVIDE CURATED CONTENT AND BESPOKE
PRODUCTS
• BARNEYS CATERS OFFERINGS TO INDIVIDUAL
SHOPPERS BY MINING PUCHASE DATA AND PRODUCT
BROWSING HISTORY TO DELIVER PERSONAL
RECOMMENDATIONS
• LOUIS VUITTON OFFERS CUSTOMERS THE CHANCE
TO CREATE ONE-OF-A-KIND PIECES ONLINE BY
MONOGRAMMING INITIALS ACROSS A VARIETY OF
PRODUCTS
20. “LUXURY SHOPPING IS BY NATURE A SENSORY EXPERIENCE. THE HERITAGE, SOUNDS
AND VISUALS THAT CAN BE EXPERIENCED IN A LUXURY STORE ARE PART OF THE
ATTRACTION AND THE PRODUCTS THEMSELVES HAVE HIGH AESTHETIC VALUES THAT
NEED TO BE APPRECIATED.”
- JONATHAN HOLMES, FOUNDER LUXDECO.COM
21. CREATE RICH VISUAL & CONTENT EXPERIENCE
• INTEGRATE RICH MEDIA & IMPACTFUL DESIGN TO BOLSTER TRADITIONAL FEELINGS OF
ASPIRATION & EXCLUSIVITY
• FENDI’S WEBSITE COMMITS TO PROVIDING CUSTOMERS WITH AN ENJOYABLE AND
ENGAGING ONLINE BRAND EXPERIENCE BY INCORPORATING HIGH QUALITY PHOTOS AND
INTERACTIVE VIDEOS THROUGHOUT THE SITE
22. “LUXURY SHOPPING IS ALL ABOUT THE PRODUCT EXPERIENCE AND NOT NECESSARY
THE PRODUCT ITSELF, A 360 DIGITAL EXPERIENCE WILL ENHANCE THE OVERALL
CUSTOMER EXPERIENCE FOR LUXURY BRANDS.”
-NICO DU PLESSIS, SENIOR CONSULTANT FITFORCOMMERCE
23. AMPLIFY IN-STORE EXPERIENCE
• STORES STILL REMAIN A BIG DRIVER IN LUXURY
SALES
• OFFER A DIGITALLY ENHANCED IN-STORE
EXPERIENCE TO MAKE THE PHYSICAL SHOPPING
EXPERIENCE RELEVANT & DESIRABLE FOR TODAY’S
TECH-SAVVY LUXURY CONSUMER
• BURBERRY CREATES A DIGITAL 360 EXPERIENCE
FOR CUSTOMERS BY BRINGING THEIR ONLINE
WORLD TO LIFE
24. “LUXURY MAKES DESIRE REAL, GRANTING ITS AUDIENCE ULTIMATE
CONTROL, ALLOWING THEM TO SHAPE THEIR WORLD, IMAGINE AND
THEN REALIZE THEIR DREAMS – AND NOWHERE IS THIS MORE TRUE
THAN WITH THE DIGITAL WORLD IN ALL ITS FORMS. IT HAS THE
POWER TO MOVE THE RELATIONSHIP FROM A DISTANT TO AN EVER
MORE INTIMATE, IN-DEPTH AND DYNAMIC CONNECTION.”
- SOPHIE MAXWELL, FUTURES DIRECTOR PEARLFISHER
25. THANK YOU.
THOMAS SERRANO
PRESIDENT AND FOUNDER
CONTACT INFORMATION:
THOMAS.SERRANO@HAVASWW.COM
(212) 886 - 4147
AMBIKA SAMARTHYA
GROUP ACCOUNT DIRECTOR
CONTACT INFORMATION:
AMBIKA.SAMARTHYA@HAVASWW.COM
(212) 886 - 2089
http://www.wired.co.uk/magazine/archive/2014/03/features/ecommerce-is-history/viewgallery/332483
https://econsultancy.com/blog/64776-five-great-ecommerce-sites-from-luxury-brands/
STORES STILL REMAIN A BIG DRIVER IN LUXURY SALES.
DIGITAL SCREENS AND AV MIRRORS THROUGHOUT THE STORE SHOW BRAND VIDEOS WHILE RFID (RADIO FREQUENCY IDENTIFICATION) TAGS ALSO TRIGGER INTERACTIVE VIDEOS
IPADS THROUGHOUT THE STORE BUILD DETAILED PROFILES OF CUSTOMERS AND CURATE PRODUCTS