mobile and luxury retail brands

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Presentation made at: http://www.themarketingandcommunicationloft.com/swissclub/ Customers are trying to engage with Luxury Brands through mobile devices. This deck presents: . The size of the opportunity, by brand, and by region; . The competitive landscape; . A framework for action.

TRANSCRIPT

Mobile and Luxury Retail Brands

Beyond critical mass, the opportunity for engagement

Geneva, 10th May 2011

Mobile and Luxury Retail Brands 2

Vertical Channels

Print TV Web In-Store Events...

9th Jan 2007

Mobile and Luxury Retail Brands 4

... and then mobile was created...

Print TV Web In-Store Events... MOBILE

Source: Apple Reports, Jan 2012; Google press releases

200 MillioniPhones

400 MillionAndroid phones

50 MillioniPads

Mobile and Luxury Retail Brands 6

US EU5 JAPAN

91

4342

7883

105

Million Users % Penetration 16-65

Number of Users and Penetration on the 16-65 population of smartphone devices

source: Data from ITU, CIA and GSMA; Dec 2011

Smartphones are beyond critical mass

Mobile and Luxury Retail Brands 7

Mobile “extends” internet

Mobile

PC

7 am

1 pm

8 pm

11 pm

Traf

fic

Time

source: Google Mobile Queries Balanced- Google Think!

Mobile and Luxury Retail Brands

MOBILE the Über-Channel

8

... and its more than another channel

Print TV Web In-Store Events... MOBILE

Mobile and Luxury Retail Brands 9

and...

What does this mean for Luxury Retail Brands?

Mobile and Luxury Retail Brands

Interaction

Talk to Assistant

Navigate

Intention

Enter Stores...

Go to the website

Search and Click

10

Engagement Funnel

Attention

Stim

uli

What proportion of “intentions” come from mobile devices?1

How engaging is the experience on the devices the “interactions” come from?2

How can Luxury Retail Brands act on the opportunity and “mobilise”?3

What proportion of “intentions” come from mobile devices?1

Mobile and Luxury Retail Brands 13

source: Google Adwords - Keyword Tool

0%

5%

10%

15%

20%

25%

Louis Vuitton Prada Chanel Bally Hermés Gucci Fendi Burberry Dior Versace Louboutin Jimmy Choo

19.6%19.7%

16.7%16.7%16.8%16.8%

23%

9.9%

16.7%16.8%16.6%

19.8%

Mobile searches by Brand - Feb 2012

Mobile and Luxury Retail Brands 14

Conclusions - Set 1

Between 17% and 20% of Luxury Retail Brand’s customer “intentions” come from mobile devices;i

This affects all Luxury Retail Brands;ii

Mobile and Luxury Retail Brands 15

source: Google Adwords - Keyword Tool

0%

5%

10%

15%

20%

25%

US UK France Italy Germany Switz Russia

9.33%

16.5%

8.42%

14.61%

10.52%

21.09%

23.65%

Mobile searches by Geography - Feb 2012

Mobile and Luxury Retail Brands 16

source: Google Adwords - Keyword Tool

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Japan Hong Kong UAE Brazil India Korea

44.23%

6.55%

22.76%

29.86%

46.96%

Mobile searches by Geography - Feb 2012

Mobile and Luxury Retail Brands 17

Conclusions - Set 2

Mobile is a global transformation;i

The impact is higher in the largest luxury markets;ii

“There is nowhere to hide”iii

How engaging is the experience on the devices the “interactions” come from?2

Mobile and Luxury Retail Brands 19

How are Luxury Retail Brands doing in search results?

! !

Mobile and Luxury Retail Brands 20

But the experience is broken...

!

!

Mobile and Luxury Retail Brands 21

Some brands are getting it right

!

Mobile and Luxury Retail Brands

!22

some Brands are over-doing it

Mobile and Luxury Retail Brands 23

... and then came the iPad, and not much changed

!

Mobile and Luxury Retail Brands 24

again, some brands are getting it right

!

Mobile and Luxury Retail Brands 25

Conclusions - Set 3

Most of Luxury Retail Brands are abandoning a large percentage of their customers “intentions” and requests;i

Most Brands are not putting the money where their clients are;ii

Brands need a framework to “make sense of it all”;iii

How can Luxury Retail Brands act on the opportunity and “mobilise”?3

Mobile and Luxury Retail Brands 27

A three steps approach

Fix the Basics

Mobile Presence and Basic Brand

Experience

Mobile and Luxury Retail Brands 28

A three steps approach

Fix the Basics

Mobile Presence and Basic Brand

Experience

Mobilise the Story-telling

Create Mobile Participative, Interactive, Augmented

Brand Stories

Fix the Basics

Mobile Presence and Basic Brand

Experience

Mobile and Luxury Retail Brands 29

A three steps approach

Fix the Basics

Mobile Presence and Basic Brand

Experience

Mobilise the Story-telling

Create Mobile Participative, Interactive, Augmented

Brand Stories

Fix the Basics

Mobile Presence and Basic Brand

Experience

Fix the Basics

Mobile Presence and Basic Brand

Experience

Mobilise the Story-telling

Create Mobile Participative, Interactive, Augmented

Brand Stories

Create Value Experiences

Mobilise the Luxury Retail Brand holistic

experience and value

Mobile and Luxury Retail Brands

Ensure you have a well

thought through mobile

site;

Optimise for mobile search;

Analytics,Analytics,Analytics;

An app is a continuous investment;

30

Fixing the basics

Mobile Presence and Basic Brand

Experience

Mobile and Luxury Retail Brands

What is the story you want

to tell?

...and then choose what

mobile engagement

fits best;

Amplify the story-telling

with a social-value angle

Ensure you have an

outstanding execution

31

Mobilise the Story-telling

Create Mobile Participative, Interactive, Augmented

Brand Stories

Mobile and Luxury Retail Brands

Holistic Experience crosses all

other channels

Customer Value come First at all

times

Innovation,Innovation,Innovation;

32

Win on Mobile

Mobilise the Luxury Retail Brand holistic

experience and value

Mobile and Luxury Retail Brands 33

... next

Mobile A path to Win in China Success Strategies in engaging Chinese consumers through Mobile Communications and Services;

Copyright © 2011 BrandEmotivity

Thank You

nuno.santos@BrandEmotivity.com

London | Paris | Singapore | Shanghai

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