TheTrendwatch #10bis (luxury)

TheTrendWatch
by FullSIX Group

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Digital Luxury

Digital and luxury share that value is immaterial:
It's all about the level of perceived added value for
the consumer.

Therefore, luxury business decision makers
should be inclined to take the right decisions.


Luxury Lover?

38 y.o.
52% male
(EMEA average)


Digital life induces deep value changes...


Some things remain stable.

Some others have changed.

Stable brand perception.

VALUES

Shift in consumer values.

Emotional Rational
Success Heritage
Confidence Expertise
Wealth Reputation
Elitism Quality
Desirability Design
Indulgence Materials
Pleasure Manufacturing
Reward Service

Elitism: Rent vs. Own


Desirability: Brand ethics


Wealth: Massclusivity


Reputation: Micro-specialized communities


Indulgence/Reward:
Challenged by impulsive purchase

Synchronized/Social shopping:
147% more time spent on the ecommerce website


Expertise: Omniscient Consumer


Service: Level of (free) excellence


Same contact points.

MEDIA

Radical Media Evolutions.

Store and Newspaper remain
premium touch points...


Source: Microsoft Advertising - Luxury Lovers EMEA - Q3 2009


Luxury online…

Media usage vs. Media spend

25% 10%

Source: Luxury Shopping Experience Study - Google & Unity Marketing - Q3 2009


"Blogs, group(s)
or individual Web sites
are no longer the signs of a new era,
but are an established reality
for a whole new generation.

As a large brand,
we must be able to communicate
to this new generation of adepts
of the digital world."

Corinne Delattre,
International Communications Director,
Cartier


The expectations about stores have changed.


In France, any person over 13
is exposed to 38,6 multimedia screen per day
(+13,9% compared to 2005)


Promotions have changed.


Talking objects (RFID, QRcodes…)


Magazines have changed.


“Millions of people now own Kindles,”
said Jeff Bezos, founder and CEO of Amazon.com.
“And Kindle owners read, a lot: When we have both editions,
we sell 6 Kindle books for every 10 physical books…
This is year-to-date and includes only paid books.”


USA
42 hours/week entertainment (all screens)
42 hours/week working
42 hours/week sleeping

EUROPE
32 hours/week entertainment (all screens)
49 hours/week working
42 hours/week sleeping

Sources: Council for Research Excellence and Nielsen, March 2009


YouTube, 2nd search engine behind Google!

This past month, October, 2009, there were a total
of more than 3.7 Billion search queries on YouTube
as measured by comScore.

This represents and increase of more than 31
percent year over year (vs 2,580,000.000 queries
in Oct. 2008) and an increase of 7% over just
last month. Yahoo, although still the 3rd largest
search engine, has now fallen more than 1 billion
queries/mo behind YouTube.


@lternative TV
@lternative TV
@lternative TV + Camp. Mgt
Traditional TV @lternative TV + Camp. Mgt + Engagement

100 120
50 120 50 144 60 180
spend impact
spend impact spend impact spend impact

ROI = 20% ROI = 140% ROI = 188% ROI = 200%
Assuming TV campaigns have By reducing GRP costs per 2, By leveraging digital targeting +25% impact by leveraging
20% ROI,one spends 100 one can spend 50 and behavioral capabilities, interaction & engagement
expecting an impact of 120 expecting the same impact impact can be increased by 20% beyond the video ad


Desktop experiences have changed


Mobile is the New Online: apps + 4G


Offline media are connected


Influent Bloggers are overrated


Buzz Marketing disappeared
with the rise of structured social networks


Recession proof.

BUSINESS

Huge Online Opportunities.

Luxury sales:

5-15% online
95-85% offline

In 2007,
Tiffany's share of internet sales reached 10%

In 2008,
Tiffany's $141 million
Bluenile.com $295.3 million
Jomashop.com $46 million


Digital Roles... Inform
Target Stimulate

Lead
Awareness
Welcome
Build
Reward
Admiration Entertain
Ownership
Converse Indulgence Exclusivity

Luxury
Brand
Exploration Convey
Quality Status
Direct Purchase
Vitalize
Delight
Replicate
Personalize Consideration

Inspire Assist
Personalize

Tell a story.

STRATEGIES

Do great things.

Meaningful Marketing
Be remarkable!
In a world of too many options and too little time,
our obvious choice is to ignore the ordinary.

Unlimited
Choice

Free time and
limited budget


A cow is a cow…
You don’t notice it.


A pink cow is still a cow…
But this simple attribute makes you want to speak about it.



Added value
If you act instead of communicate
for the consumer to express a message, you increase
not only the perception of your brand
but also the added value you bring
Do to your consumer!

You drive them to seek the next interaction.

Declare

Perceived
Brand Value


Paid/Earned media: Attention Marketing


Social CRM: Influence Marketing
2007
Facebook users = population of Italy
(50 million)

2008
Facebook users = population of Russia
(140 million)

2009
Facebook users = population of USA
(350 million)


Is the luxury watch audience on social media?

Hublot 68.1%
Audemars Piguet 56.1%
TAG Heuer 55.9%
Omega 56.3%
Jaeger-Lecoutre 46.6%
Rolex 38.5%
Breguet 38.5%
Longines 39.6%

(% of the website visitors that have been on facebook within the last month)


During the main engagement period,
Traackr’s reports showed that mentions of the Honda Insight
among the Top Influencers increased by 300%
and estimated coverage increased by 675%!


New Circle of Influence: Exclusive Social Networks


IN early November, Burberry deployed a new Web site, artofthetrench.com, that presents street-level views of men and women in their trench coats. Scott Schuman, creator of the popular Sartorialist blog, photographed
the first batch of images, and then people began submitting their own. “They’re still coming in,” said Sarah Manley, senior vice president for marketing and communications at Burberry. So far, there have been 3.7 million
picture views.


Social Targeting
Research at NYU:

Studies conducted by AT&T Research Labs/ NYU Stern
Studied effectiveness of telemarketing & direct mail
Compared traditional targeting methods to ‘Network Neighbor’ effect
Consumers in contact with current customer 3-5x more likely to respond
Increased reach to new customers not reached via traditional method


Social Targeting With our partner

Identifying your customers/ambassadors based on behavior (buying/exposure)
Finding out who is most closely connected to your customers (their social graph)
Using this social graph to target ads to your customers’ closest friends
Theses friends become customers and the cycle continues...

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Ranking based on:
Recency, frequency, and reciprocity.




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Focus on you brand Digital ID
Additional Impact !
& Reach!

RSS!

Email signatures!

ID!
Time !
& Effort!

Phase 1! Phase 2! Phase 3!
Quickwin! Core business! Best Practices!

Integrated Media Planing: Bowling vs. Pinball


Next Steps?
Online is not magic/everything
Setup a premium digital ID for your brand
Your target is online: Find out where, when, why
Monitor the existing conversation around your brand
Deﬁne your KPI's linked with business objectives (vs. online PR only)
Move fast vs. move big
Don't follow best practices: Experiment!
Reconsider old media planning habits (SEM, alternative TV, digital press, social media...)
Go mobile
Do vs. Tell (Focus on added value, choice, functionality, and convenience)

Make us dream!


Thank You!

TheTrendWatch by FullSIX Group

TheTrendWatch.com
facebook.com/TheTrendWatch
twitter.com/TheTrendWatch
youtube.com/TheTrendWatch

TheTrendwatch #10bis (luxury)

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