Luxury Marketing News
Originally published in February 2012, we’ve reposted because it’s so relevant to the start of 2013.
In 2010, branded content was one of the largest trends among retailers and brands. In 2011, branded content shifted to branded entertainment and social shopping via Kaboodle, Polyvore and ShopStyle. Now, in 2012, it’s content cultivation and aggregation. From creative uses of Pinterest to Instragram’s API, brands are now enthralled with the consumer obsession of curation.
Luxury British retailer launches new Chicago flagship store, creates an immersive physical and digital event experience
Burberry Chief Creative Officer Christopher Bailey hosted an event last night to mark the opening of the brand’s second largest store in North America, located on Michigan Avenue in Chicago. The evening was a celebration of Chicago, showcasing the city’s creative community through the brand’s digital platform, Art of the Trench (founded in 2009). Images of Chicagoans wearing iconic trench coats were displayed throughout the store, the city and globally across Burberry social media sites including Twitter, Tumblr (now with 61,000 followers) and Google+.
As eCommerce continues to disrupt luxury brands, Marc Jacobs makes another play as a luxury brand to watch with their digital marketing. Today, the brand has launched a new website with a companion mobile site, even further spiffed up with over the top social sharing to your favorite curation sites, PayPal integration and shipping to Canada.
Earlier this year, The Atlantic published an article that asked, “Is Facebook Making Us Lonely?” The title was attention getting right? That, coupled with the commentary about the negative effects of social technology on brain, led me to think about how technology would affect societal breakdowns ??– impacting the ways in which we live and beginning to alter our cultural values.
Prada intrigued us with the 24hour Museum event, then they asked us to seek comfort in alternative forms of therapy. Now, they’re tapping into our aspirations and desire once more. Prada has now launched “Il Palazzo”, a multi-platform, experiential project in collaboration with fashion illustrator Richard Haines and spot director and producer James Lima.
For our annual review of brand blogs, this year, we’ve expanded past fashion to include our favorite luxury and home interior and design blogs. We hope you enjoy the list.
Hermès Paris Mon Ami
For a luxury brand attempting to make the most of digital, I don’t think anyone gives Hermès enough credit. Since 2010, the brand that has said it will never give way to “masstige” has been applying that principle to its online marketing, leveraging video, street style photography, emerging online fashion influencers and customer content.
Disruption, Innovation, Collaboration, Social Business, Enterprise 2.0…all of these terms are associated with the ways in which brands are coming terms when developing new e-commerce models. To gain insight, cut through the jargon and find out the true impact of digital commerce on retail, we turned to L2 Think Tank’s summit on Commerce: E, F and M held last month in New York. James Edis, a professor at NYU Stern and the VP, Emerging Technologies Group at HBO, shared his insights on how social and digital trends are impacting, and disrupting, eCommerce for prestige, luxury brands. Here are nine ways statistics that may surprise you that are vital to luxury brand’s success in the online space.
- It takes 93 percent of specialty retailers over three days to ship new orders. Over 50 percent take more than five (5) days to credit returns. Bluefly takes three weeks, which may be a sign of financial trouble.
- Retailers think that on-site search, online promotions and website utility are most important things to consumers. That’s not true, consumers care about transparency in inventory, tracking order progress and they also want in-store pickup options. Nordstrom, Coach, Crate & Barrel and Zara are offering in-store pick up options, an extremely complex process to achieve successfully.
- Frightening Mobile Stats: One in ten people have their phone within reach of the shower; 33 percent of millennials have their phone next to their bed and check Facebook and email before they get out of bed. Mobile and m-commerce are progressing so rapidly that retailers struggle to catch up, mobile is going from $0 to $50 billion in the next 36 months. Amazon holds 37 percent of the market share.
- Retailers are now getting more traffic from iPads than iPhones and Android. Consumers are 20 percent more likely to buy off a tablet than a mobile site.
- One in two households with incomes over $150,000 will have an iPad. They are comfortable making high price purchases on their tablet.
- Customers would rather be served by a non-organic point of purchase. Estee Lauder showed that customers that interacted with the Clinique iPad app are more likely to buy and convert to purchase than talking to someone behind a counter.
- Connecting online to offline is the biggest hurdle for retailers. Macy’s and Banana Republic allow you to book online style appointments and go in-store for consultation. Oscar De La Renta offers customers the option to have stylist review their purchases before it ships.
- Facebook commerce is dead. Only Oscar De La Renta and L’Occtaine have e-commerce shops. Facebook conversions to e-commerce site sales is slower than most other channels. F-Commerce was clearly a fad of 2009-2012.
- Amazon, eBay, Alibaba and Apple have deep access to cheap capital. If Amazon wants to build a distribution in south in order to fulfill an order in Alabama in 4 hours, they can. Amazon touches one in five consumers globally online. They’re investing cheap capital into sustainable, long-term competitive advantage. Amazon is creating the infrastructure to enable consumers to achieve the instant gratification that buying in physical store does. Amazon has acquired My Habit, ShopBop and is launching Amazon Lockers. Amazon touts taking online sales to 3x in 18 months to brands that come on board, brands like Tumi and Swarovski are already experimenting. Amazon is the great white shark of retailing.
To watch the full video, and to discover why Amazon is a great white shark, visit FORA.tv for the complete video series.
About L2 Think Tank: L2 is a think tank for digital innovation. We are a membership organization that brings together thought leadership from academia and industry to help brands navigate the changing digital landscape. Drawing from our proprietary Digital IQ Index? research, best practices, and emerging trends, L2 distills this intellectual capital and makes it actionable for our members. Images courtesy of L2 Think Tank.
Disclosure: Fora.TV is an strategic partner and advertiser of InsideFMM.com. The company provide access to its content to FMM. Editorial and content is original to FMM’s site.
On Monday, Swarovski launches a 30-day digital campaign inspired by their Fall/Winter 2012/13 Collection, “Kingdom of Jewels,” designed by creative director Nathalie Colin. Swarovski will bring the kingdom to life by treating consumers like royalty for a month. Swarovski will host an integrated digital campaign online that will offer premium and VIP experiences to consumers from August 27 to September 30.