thetrendwatch #10bis (luxury)

TheTrendWatchby FullSIX Group

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.

Shift in consumer values.

VALUES

EmotionalSuccess Confidence Wealth Elitism Desirability Indulgence Pleasure Reward

RationalHeritage Expertise ReputationQuality Design MaterialsManufacturing 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.

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 13is 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.”

USA42 hours/week entertainment (all screens)

42 hours/week working

42 hours/week sleeping

Sources: Council for Research Excellence and Nielsen, March 2009

EUROPE32 hours/week entertainment (all screens)

49 hours/week working

42 hours/week sleeping

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.

Assuming TV campaigns have 20% ROI,one spends 100

expecting an impact of 120

By reducing GRP costs per 2, one can spend 50

expecting the same impact

By leveraging digital targeting and behavioral capabilities,

impact can be increased by 20%

+25% impact by leveraging interaction & engagement

beyond the video ad

ROI = 20% ROI = 140% ROI = 188% ROI = 200%

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

@lternative TV+ Camp. Mgt

+ Engagement

impact

spend 120

impact

@lternative TV

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.

Huge Online Opportunities.

BUSINESS

Luxury sales:

5-15% online

95-85% offline

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

In 2008, Tiffany's $141 millionBluenile.com $295.3 millionJomashop.com $46 million

Digital Roles...

ExclusivityIndulgence

Quality Status

Ownership

Awareness

Admiration

Exploration

Consideration

Purchase

Welcome

Reward

Converse

Direct

Delight

Personalize

Inspire AssistPersonalize

Convey

Vitalize

Replicate

Entertain

Target Inform Stimulate

Luxury Brand

Tell a story.

Do great things.

STRATEGIES

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

UnlimitedChoice

Free time andlimited budget

Meaningful MarketingA cow is a cow… You don’t notice it.

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

Meaningful Marketing

Added value for the consumer

Perceived Brand Value

Declare

If you act instead of communicate to express a message, you increase not only the perception of your brandbut also the added value you bring to your consumer!

You drive them to seek the next interaction.

Paid/Earned media: Attention 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)

Social CRM: Influence Marketing

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 Insightamong 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 SternStudied effectiveness of telemarketing & direct mailCompared traditional targeting methods to ‘Network Neighbor’ effectConsumers in contact with current customer 3-5x more likely to respondIncreased reach to new customers not reached via traditional method

Social TargetingIdentifying 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 friendsTheses friends become customers and the cycle continues...

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Ranking based on:Recency, frequency, and reciprocity.

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Time !& Effort!

Additional Impact !& Reach!

Phase 1!Quickwin!

Phase 2!Core business!

Phase 3!Best Practices!

Email signatures!

Focus on you brand Digital ID

Integrated Media Planing: Bowling vs. Pinball

Next Steps?

Online is not magic/everythingSetup a premium digital ID for your brandYour target is online: Find out where, when, whyMonitor the existing conversation around your brandDefine your KPI's linked with business objectives (vs. online PR only)Move fast vs. move bigDon't follow best practices: Experiment!Reconsider old media planning habits (SEM, alternative TV, digital press, social media...)Go mobileDo vs. Tell (Focus on added value, choice, functionality, and convenience)

Make us dream!

Thank You!

TheTrendWatchby FullSIX Group

TheTrendWatch.comfacebook.com/TheTrendWatchtwitter.com/TheTrendWatchyoutube.com/TheTrendWatch

thetrendwatch #10bis (luxury)

written authorization

thetrendwatchby fullsix

luxury online media

media radical media

consumer values

digital world

male emea average

new generation of adepts

Technology

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