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SCOTT GALLOWAY

NYU Stern

Fashion
n O V e m b e r 1 7 , 2 0 11

EurOpEAn Niche

A Think TAnk for DiGiTAL innOVATiOn

L2 2011 L2ThinkTank.com

DIGITAL IQ InDEx :

european niche Fashion


inTrODUcTiOn

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Absent
While digital continues to dominate, many of Europes niche fashion brands remain absent online.
No brand in the inaugural European Niche Fashion Index nabbed Genius statusan L2 Digital IQ Index firstand a staggering 70 percent of brands are characterized as Challenged or Feeble. One-third of brands are still not selling online, and less than half are participating in paid search. Adoption and community size on popular social media platformsFacebook, YouTube, and Twitterlag global fashion players. D i G i TA L i n e U r O p e

Digital IQ = Shareholder Value


Our thesis is that digital competence is inextricably linked to shareholder value. Key to managing and developing this competence is an actionable metric. This study attempts to quantify the digital competence of 46 European niche fashion brands. Our aim is to provide a robust tool to diagnose digital strengths and weaknesses as well as help brands achieve greater return on incremental investment. Similar to the medium we are assessing, our methodology is dynamic, and we hope you will reach out to us with comments that improve our methodology, investigation, and findings. You can reach me at scott@stern.nyu.edu. Regards,

UK $91.5 B

FRANCE

ITALY E-Commerce (2010)1

GERMANY

SPAIN

$25.4 B $9.4 B

$33.7 B $12.3 B

Iconic vs. Irrelevant


Many of the brands in this Index do not have the capital to compete toe-to-toe with larger peers across traditional print and brick-and-mortar channels. Digital provides a measureable and scalable opportunity for smaller brands to level the playing field and establish direct relationships with the end consumer via e-commerce and social media platforms. Investing in emerging digital platforms, at what is likely a fraction of the future cost, may be the litmus test for which niche brands become iconic versus irrelevant.

Facebook Adoption (Percent of Internet Users 2010)2

82%

73%

78%

58%

69%

Smartphone Penetration (Approximate of 2010 rates)3 34% 25% 35% 24%

ScOTT GALLOwAy Founder, L2 Clinical Professor of Marketing, NYU Stern


1. 2. 3.

38%

Western European Ecommerce Market Continues Strong Growth, eMarketer, August 15, 2011. 2010 Europe Digital Year in Review, ComScore, February 24, 2011. Mobile Year in Review 2010, ComScore, February 14, 2011.

L2 2011 L2ThinkTank.com

Digital iQ inDex :

European Niche Fashion


AbOUT The rAnkinGS
m e T h O D O LO G y

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D i G i TA L i Q c L A S S e S
IQ Range IQ Class

Site: 40%
Effectiveness of brand site

FunCTIOnALITY & COnTEnT: 75%


Site Technology navigation, product & Site Search Social media integration customer Service & Store Locator product page checkout Account international customization: Language, Currency, Consistency, Shipping

BrAnD TrAnSLATIOn: 25%


Site Aesthetics messaging & imagery

140+

GeniUS
Digital competence is a point of differentiation for these brands. Site content is searchable, shareable, and mobile-optimized. Social media efforts complement broader digital strategy.

110139

GiFTeD
Brands are experimenting and innovating across site, mobile, and social platforms. Digital presence is consistent with brand image and larger marketing efforts.

Digital Marketing: 30%


Search, display, and email marketing efforts
Search: Traffic, SEM, SEO, Web Authority Advertising & innovation: Display, Retargeting, Recent Brand Initiatives, Presence on Tumblr blog & Other User-Generated content: Mentions, Sentiment email: Frequency, Content, Social Media Integration, Tactics

90109

AVerAGe
Digital presence is functional yet predictable. Efforts are often siloed across platforms.

Social Media: 15%


Brand presence, community size, content, and engagement on major social media platforms
Facebook: Likes, Growth, Tabs and Applications, Responsiveness, Engagement Twitter: Followers, Growth, Tweet Frequency, Online Voice youTube: Views, Number of Uploads, Subscriber Growth, Viral Videos

7089

chALLenGeD
Limited or inconsistent adoption of mobile and social media platforms. Site lacks inspiration and utility.

Mobile: 15%
Compatibility, optimization, and marketing on smartphones and other mobile devices
mobile Site: Compatibility, Functionality, Transaction Capability iOS Applications (iphone & ipad): Availability, Popularity, Functionality, iPad Differentiation Other platforms (Android, blackberry): Availability, Popularity, Functionality

<70

FeebLe
Investment does not match opportunity.

L2 2011 L2ThinkTank.com

Digital iQ inDex :

European Niche Fashion


D i G i TA L i Q r A n k i n G
HEADQuArTErS:
UK FRANCE ItAlY

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SpAIN GERMANY

rank

Brand AGEnT prOVOCATEur TED BAKEr STELLA McCArTnEY SupErDrY MOnCLEr MOSCHInO LAnVIn EMILIO puCCI JEAn pAuL GAuLTIEr LA pErLA THOMAS pInK JIL SAnDEr VIVIEnnE WESTWOOD ALBErTA FErrETTI

Headquarters uK uK uK uK Italy Italy France Italy France Italy uK Germany uK Italy

Digital IQ Class

Comments Racy assets and online voice deliver across channels; strongest mobile presence in the study Best-in-class Facebook page delivers with contests and user-generated content Fastest-growing Twitter community sets social media style standards Regional Facebook strategy pays dividends Site relaunch, Grand Central Station flash mob, and social media push impress Chic digital experience with iPad optimization Viral video hit led models, bloggers, and customers dancing to its e-commerce site Strong commerce-oriented site and mobile experience Namesake lends star power to garner one of the largest Twitter followings A mobile presence would lift brand IQ Tailored site navigation reveals digital attention to detail Focus should be on establishing a mobile presence, not on manufacturing a smartphone Facebook leader with largest fan base and forthcoming F-commerce Growing social media voice and e-commerce set foundation

1 2 3 4 5 6 7 8 9 10 11 12 13 14

139 Gifted 128 Gifted 124 Gifted 118 Gifted 115 Gifted 114 Gifted 113 Gifted 112 Gifted 111 Gifted 110 Gifted 109 Average 104 Average 99 Average 95 Average

L2 2011 L2ThinkTank.com

Digital iQ inDex :

European Niche Fashion


D i G i TA L i Q r A n k i n G
HEADQuArTErS:
UK FRANCE ItAlY

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SpAIN GERMANY

rank 15 15 17 18 19 20 20 20 23 25 24 26 27 28

Brand FurLA TruSSArDI MArnI AuBADE GIEVES & HAWKES CoSTuME nATIOnAL MISSOnI SErGIO rOSSI LAnCEL ESCADA KEnzO JOHn LOBB LOrO pIAnA ADOLFO DOMInGuEz

Headquarters Italy Italy Italy France uK Italy Italy Italy France Germany France uK Italy Spain

Digital IQ Class

Comments Robust regional site customization Low email frequency hinders site traffic growth Commerce-oriented site extends to mobile; burgeoning social voice could lift brand French Art of Loving campaign created digital buzz, but product sharing would increase reach Digital marketing efforts would bolster streamlined e-commerce site Static digital footprint does not match brands image Renewed attention to brand diluted by lack of e-commerce Social media is isolated from site Brand cultivates a tribe of product-centric Facebook fans No avenue for site monetization without e-commerce Stylish site relaunch weaves a stronger brand identity, but removing e-commerce is a poor choice Rich branded content would get greater reach through social media Social media would support relaunch of the brands stunning e-commerce site Foundation in place, but requires stronger emphasis on site functionality than aesthetics

89 Challenged 89 Challenged 88 Challenged 87 Challenged 84 Challenged 79 Challenged 79 Challenged 79 Challenged 77 Challenged 75 Challenged 76 Challenged 72 Challenged 71 Challenged 69 Feeble

L2 2011 L2ThinkTank.com

Digital iQ inDex :

European Niche Fashion


D i G i TA L i Q r A n k i n G
HEADQuArTErS:
UK FRANCE ItAlY

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SpAIN GERMANY

rank 29 29 31 32 33 34 35 36 36 38 39 39 41 42

Brand AQuASCuTuM BLuMArInE BALMAIn COrnELIAnI SLOWEAr CLInE BrunO MAGLI BrunELLO CuCInELLI nInA rICCI ErES BErLuTI SOnIA rYKIEL FrATELLI rOSSETTI BrIOnI

Headquarters uK Italy France Italy Italy France Italy Italy France France France France Italy Italy

Digital IQ Class

Comments Confusing site strategy leads to geographic disconnect Brand makes strides with shareable lookbook despite lack of e-commerce Missing Facebook page hinders IQ Recently released iPhone app moving in right direction, but needs to upgrade site Trying to compensate for lack of e-commerce through iOS apps and branded content No social media properties to broadcast runway acclaim Digital voice muffled by protected tweets Strong aesthetics, flat functionality Flash-heavy site with limited regional customization E-commerce site only available in French Strong content is not shareable Faulty product links disrupt e-commerce offering Product sharing, but not much else Brand lags without social media and mobile presence

68 Feeble 68 Feeble 67 Feeble 65 Feeble 64 Feeble 60 Feeble 59 Feeble 57 Feeble 57 Feeble 55 Feeble 54 Feeble 54 Feeble 47 Feeble 46 Feeble

L2 2011 L2ThinkTank.com

Digital iQ inDex :

European Niche Fashion


D i G i TA L i Q r A n k i n G
HEADQuArTErS:
UK FRANCE ItAlY

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SpAIN GERMANY

rank 43 43 45 46

Brand ETrO TurnBuLL & ASSEr pOLLInI GIAnFrAnCO FErr

Headquarters Italy uK Italy Italy

Digital IQ Class

Comments Poor site navigation Digital presence is a relic No email marketing or search optimization makes site difficult to find Absent

44 Feeble 44 Feeble 37 Feeble 29 Feeble

L2 2011 L2ThinkTank.com

Digital iQ inDex :

European Niche Fashion


key FinDinGS
Absence of Genius
For the first time in a Digital IQ Index, we did not register a single Genius brand. The ranking distribution reveals a bifurcation between Gifted brands and those that are Challenged and Feeble, suggesting a subset of niche European brands have made competent, yet still undifferentiated forays on digital platforms while many have largely ignored digital altogether. Adoption of digital platforms among European niche fashion brands is limited compared to the 49 brands in this years Digital IQ Index: FashionEuropean brands trail on every platform. Unlike in the U.S., where small, nimble brands such as Genius Kate Spade and Gifted Tory Burch and Diane von Furstenberg have made impressive strides growing their digital footprint and are punching above their weight class, niche European brands lag behind their larger peers.
Furla Missoni Sergio Rossi lancel Escada Kenzo John lobb loro piana
DIGITAL IQ

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D i G i TA L i Q D i S T r i b U T i O n % of brands per Digital iQ class

GEnIuS
0%
DIGITAL IQ

>140

GIFTED
Agent provocateur ted Baker Stella McCartney Moncler Moschino lanvin Emilio pucci la perla
DIGITAL IQ

Superdry Jean paul Gaultier

110139

22%

AVErAGE
9%
DIGITAL IQ

thomas pink Jil Sander Vivienne Westwood Alberta Ferretti

90109

CHALLEnGED

D i G i TA L A D O p T i O n A c r O S S p L AT F O r m S % of european niche Fashion vs. Global Fashion brands

trussardi Marni Aubade Gieves & Hawkes Costume National

7089

28%

94% 78% 78% 67%

92% 84% 65% 61% 48% 33% 35% 35% 17% 78%

Adolfo Dominguez Eres

FEEBLE

Aquascutum Blumarine Balmain Corneliani Slowear


DIGITAL IQ

Berluti Sonia Rykiel Fratelli Rossetti Brioni Etro turnbull & Asser pollini Gianfranco Ferr

DIGItAl IQ INDEx: EURopEAN NICHE FASHIoN DIGItAl IQ INDEx: FASHIoN Facebook E-commerce Email Twitter YouTube Mobile (Site & App) Blogs

41%

Bruno Magli Cline Brunello Cucinelli Nina Ricci

<70

L2 2011 L2ThinkTank.com

Digital iQ inDex :

European Niche Fashion


key FinDinGS
Island of Innovation
Brands headquartered in the UK register higher Digital IQs than those from other countries. Replicating the findings of the Digital IQ Index: Fashion, Italy and France continue to lag behind their British peers by a considerable margin. Culture, access to digital talent, and vendors all contribute. The top four brands, including Digital IQ leader Agent Provocateur, call the UK home. Furthermore, 90 percent of UK-origin brands boast e-commerce capability.
99

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D i G i TA L i Q by c O U n T r y O F O r i G i n (*other = Germany and Spain)

83 74 73

Shaky Digital Foundation


Through 2014, annual Western European e-commerce growth is expected to reach 11 percent.4 Despite this trajectory, one-third of the brands in this Index do not support e-commerce. Brands without e-commerce averaged a Digital IQ score 35 points lower than those selling online. Additionally, sites with e-commerce recorded more than 1.6 more page views, 110 percent higher three-month traffic growth, and an almost four percent lower bounce rate.

UK (n=10)

Other* (n=3)

Italy (n=22)

France (n=11)

SiTe FUncTiOnALiTy % of Sites with Links to the Following


91% 76% 67% 65% 57% 50%

(october 2011)

WItH WItHoUt

Before Shareable, Findable


A number of European niche fashion brands lack basic site features. Only half of the brands offer site search, while 43 percent of sites are not equipped with basic product filtering. The connection to brick-and-mortar retail is limited with functionality and navigability lacking; two-thirds of the brand sites did not map stores or post hours, and almost 80 percent did not list store services.

Store Locator 9%

Video

Customer Service (Email)

Email Opt-In

Product Filtering

Site Search

24% 33% 35% 43%


4. Forrester Forecast: online Retail Sales Will Grow to $250 Billion By 2014, Erick Schonfeld, techCrunch, March 8, 2010.

50%

L2 2011 L2ThinkTank.com

Digital iQ inDex :

European Niche Fashion


key FinDinGS
product Seclusion
Brands are not only making their products hard to find, but also difficult to share. Only a third of the brands offer product tweeting, and less than 30 percent allow sharing via email. Escada, Lancel, and Pollini are compensating for their lack of e-commerce functionality by experimenting with social media-driven product sharing for their lookbooks and campaign materials. Shareability drives incremental trafficproduct pages with the Facebook like button saw a 34 percent increase in one-month site traffic growth versus only nine percent for sites without the like button. Additionally, brands that included shareable contentnotably, video sharing and blogsalso saw an almost 100 percent increase in traffic growth versus those without.

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One-mOnTh TrAFFic GrOwTh by Site Feature


34%

(Alexa, october 2011)

WItH WItHoUt

24%

22%

20%

18% 12%

13% 9% 10% 8%

In Search of Search
European niche fashion brands arent managing one of their most important storefronts: Google. This digital disconnect shows no signs of improving, as only 43 percent of brands purchase their own brand terms on Google. Ted Baker and Thomas Pink stand out among that minority of brands. They not only optimize their search with product and geolocal information, but also with paid search ads. It is noteworthy that 28 percent saw the presence of a thirdparty e-commerce provider within their above-the-fold organic Google search results, while 67 percent found these e-tailers appear within their top three paid search results. Even more alarming, discount sites such as eBay and Vente-Prive were purchasing against one-third of brands.

Product Facebook like

Video Sharing

Blogs

Links to Social Media

Product Tweets

G O O G L e pA i D S e A r c h r e S U LT S : b r A n D k e y w O r D % in Top Three paid Ads


67%

(october 2011)

43% 33%

9%

7%

E-Tailer L2 2011 L2ThinkTank.com

Brand Site

Discount Site

Department Store

Media

10

Digital iQ inDex :

European Niche Fashion


key FinDinGS
Empty Inboxes
Although more than 70 percent of Western European consumers sign up for email newsletters,5 only 65 percent of the brands in the Index offer email opt-in, and averaged only 0.29 emails per week. While more is not necessarily better, email marketing remains the most effective call-to-action vehicle for e-commerce sales. Superdry and Moncler were the only brands with robust email marketing programs, sending 2.17 and 2.0 emails per week respectively. Email sophistication is also limited, as just 30 percent provide links to social media. Eight percent of emails were shareable via social media, and 41 percent optimized the email for viewing on a mobile device. Mobile optimization is an opportunity, as onequarter of consumers in the UK, Italy, and Spain read emails on their mobile devices daily.6

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T O p 1 0 : w e e k Ly e m A i L F r e Q U e n c y number of emails, Average Across All markets (october 2011)

Superdry

2.17 2.00 1.48 1.35 1.29 1.13 0.86 0.75 0.60 0.53

Moncler

La Perla

Agent Provocateur

Marni

Emilio Pucci

Moschino

Sergio Rossi

Slowear

Alberta Ferretti

0.

0.

1.

1.

2.

5. 6.

the European Social Media and Email Marketing StudyA 6 Country Study about the Digital Dialogue between Facebook, twitter and Email (part 2) (European Summary Consumer Results), Volker Wiewer and Rolf Anweiler, eCircle, December 2010. Ibid.

2.

L2 2011 L2ThinkTank.com

11

Digital iQ inDex :

European Niche Fashion


key FinDinGS
Socially Awkward
Adoption of the big three social media platforms lags in the European niche fashion community. The average Facebook fan page of European niche fashion brands were 20 times smaller than their Digital IQ Index: Fashion peers. Additionally, tab functionality and programming was rudimentary: only 23 percent of pages had a custom landing page, and just five percent host Facebook applications. Vivienne Westwood is on a solid trajectory for continued growth through expanding and managing this studys largest Facebook community. Its forthcoming experimentation with F-commerce should also help the brand. Fifty-five percent of Twitter accounts retweet content, 61 percent reply to tweets and 55 percent link to the brands other social media properties. For example, @StellaMcCartneys tweet stream is packed with tweets complimenting and following up with customers. Additionally, Index leaders Agent Provocateur and Furla have established personas on Twitter that successfully deliver the personality of the brand in 140 characters or less. European niche fashion brands YouTube adoption is less sophisticated than on any other social platform. Brands primarily used YouTube to showcase fashion show coverage, behind-thescenes commentary, and campaign videos. When available, much of this content simply replicates what can be found on the brands sites.

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Vivienne westwood is launching F-commerce soon

@Stellamccartney creates a dialogue with its Twitter followers

L2 2011 L2ThinkTank.com

12

Digital iQ inDex :

European Niche Fashion


key FinDinGS

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T O p 1 0 : FA c e b O O k L i k e S (october 2011)

T O p 1 0 : FA c e b O O k FA n pA G e G r O w T h excluding pages with < 2000 Fans (Septemberoctober 2011)

Vivienne Westwood

353,162 276,705 173,305 139,468 120,000 111,894 66,348 60,406 56,100 56,071

Superdry USA

124% 74% 22% 20% 19% 16% 13% 12% 10% 10%

Superdry

Blumarine

Lanvin

Fratelli Rossetti

Agent Provocateur

Superdry Spain

Stella McCartney

Missoni

Jean Paul Gaultier

Lancel

Aubade Paris

Corneliani

Kenzo

Furla

Lancel

Etro

Moschino

Sergio Rossi

0%

30 %

60 %

90 %

0%

0,

0,

0,

10

20

30

40

0,

15 0%

00

00

00

00

12

L2 2011 L2ThinkTank.com

13

Digital iQ inDex :

European Niche Fashion


key FinDinGS

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b e S T i n T w e e T: T O p 1 0 T w i T T e r F O L LO w e r S (october 2011)

T O p 1 0 : FA S T e S T- G r O w i n G T w i T T e r A c c O U n T S (Septemberoctober 2011)

@StellaMcCartney

194,554

@StellaMcCartney

23.4% 6.1% 4.5% 3.7% 2.5% 2.4% 1.7% 1.7% 1.6% 1.4%

@JPGaultier

17,798 17,344 13,530 12,723

@JPGaultier

@EmilioPucci

@EmilioPucci

@FollowWestwood

@LANVINofficial

@balmainparis

@FollowWestwood

@Superdry

12,349 8,149 8,018 6,205

@Superdry

@kenzo_paris

@Moschinofficial

@ted_baker

@balmainparis

@sergiorossi

@MissoniUSA

@LaPerlaLingerie

5,121

@ted_baker

00

00

00

0%

2%

4%

6%

,0

5,

10

,0

15

20

,0

8%

00

L2 2011 L2ThinkTank.com

14

Digital iQ inDex :

European Niche Fashion


key FinDinGS
Sex Sells
Agent Provocateur gained viral infamy with its 2006 video featuring Kylie Minogue riding a mechanical bull. This video was later banned from television, but secured a cult-like following for the brand. Agent Provocateurs official YouTube channel has almost 1.3 million upload views, more than 10 times the average for European niche fashion brands (121,774). The latest video series with Paz de la Huerta has generated 452,312 views on the brands YouTube channel. To reinforce its video reign, the brand drives video views with a custom YouTube tab on its Facebook page and a video library on its site.
TOp 10: brAnDS

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youTube brand channel Upload Views (october 2011)

Agent Provocateur

1,287,708

Lanvin

457,434

Vivienne Westwood

249,215

Costume National

146,513

Stella McCartney

138,359

Turnbull & Asser

131,785

Thomas Pink

59,687

Trussardi

38,495

Jil Sander

34,617

Corneliani Agent provocateur's paz de la huerta video campaign

29,021

00 0

00 0

26 0,

52 0,

78 0,

00 0

L2 2011 L2ThinkTank.com

15

Digital iQ inDex :

European Niche Fashion


key FinDinGS
Size vs. Engagement
Success on Facebook is no longer limited to the size of a brands page; it is also determined by its level of engagement. As a group, European niche fashion brands have relatively small communities, averaging approximately 55,000 likes and a Facebook interaction rate of 0.16 percent compared to Fashion Index's 0.10 percent. Aubade and Lancel are the only brands to earn the elusive Tribe status, cultivating large communities with strong engagement. Both brands have product-centric posting strategies that maintain a connection with their fans.
product-centric posts are the focus of Lancel's Facebook strategy

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FA c e b O O k c O m m U n i T y S i Z e v s . e n G A G e m e n T r AT e S excluding pages with < 2,000 Fans (october 2011)

FAMILIES
KEY:

TRIBES

= tRIBES BRANDS: Brands with large Facebook Communities and High Engagement

Aubade Lancel

= BRANDS NARRoWING oN tRIBES CAtEGoRIzAtIoN

Jean Paul Gaultier

LeVeL OF enGAGemenT

COHORTS
SiZe OF cOmmUniTy note: Horizontal axis (Size of Community) is graphed on a logarithmic scale.

CROWDS

racy photographs and free gifts result in high engagement for Aubade L2 2011 L2ThinkTank.com

16

Digital iQ inDex :

European Niche Fashion


key FinDinGS
Overachievers vs. underacheivers
Comparing a brands Facebook likes to the number of global monthly organic searches for its brand name on Google (a proxy for brand equity online) provides a metric for identifying brands that are underachieving and overachieving on the social network. As with Digital IQ, a bifurcation exists. Of the 36 brands with an official Facebook account, an overwhelming 78 percent are underachievers, suggesting they have paid limited attention to the popular social network. Of the remaining brands overachieving on Facebook, Vivienne Westwood is the standout. Its community of 353,000 fans is actively promoted through the brands site and email marketing.
-50% 0% 50% 100%

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OVerAchieVerS & UnDerAchieVerS Actual Facebook Fans vs. predicted Facebook Fans (Based on Google Monthly Global Search Volume, october 2011)

Overachievers:
98% 89% 65% 53% 45%

ea

ti

o un

M rlu ni ar M

Sl ow

ag

li Be Br W Viv es ie tw nn oo e d Su pe rd ry
-100%

product resonates
Although European Niche Fashion brands utilize a variety of content to engage Facebook fans, a whopping 84 percent post about productsand for good reason. Product posts garnered the highest average interaction rate, 0.6 percent. Brands were almost as talkative about events, which also earned a high average interaction rate. Contrary to popular belief, two of the least effective posts at generating fan interaction focused on celebrities and advertising materials, which 37 percent and 30 percent of brands discuss, respectively.
0.44% 84% 0.60%

La Ag nv en in tP ro vo ca St ell teu aM r cC ar tn ey

Underachievers:
-97% -99% -99% -99% -100%

FA c e b O O k p O S T c O n T e n T % of brands Using vs. interaction rate (october 2011)


77% 0.59% 0.44% 0.31% 37% 35% 0.22% 12% 9% 30% 0.29% % oF BRANDS USING INtERACtIoN RAtE

Product L2 2011 L2ThinkTank.com

Er

es

Event

Celebrity

General Statement

Ad/Commercial

Question

Tip/Advice

17

Digital iQ inDex :

European Niche Fashion


key FinDinGS
iMobile
Mobile adoption is considerably low among the 46 European niche fashion brands included in this years Index. Only 33 percent of the brands provide any mobile experience18 percent have developed a mobile-optimized site and 17 percent have developed applications. Only two brands, Agent Provocateur and Blumarine, have both a mobile-optimized site and an application. Furthermore, one in five brand sites do not load on a smartphone. The brands that do offer a mobile-optimized experience often do little more than personalize the mobile domain. Less than 30 percent support m-commerce or incorporate a store locator. This low rate of brand mobile-site adoption is particularly staggering in light of the high mobile adoption rate of Europes population. Not only do countries like Spain, Italy, and the UK boast smartphone penetration rates above 30 percent, but approximately 55 percent of smartphone usersmore than 10 percentage points above the U.S.have devices that enable them to browse and perform web-based transactions.
7

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m O b i L e F e AT U r e A D O p T i O n % of mobile Sites (october 2011)


WItH WItHoUt 71% Store Locator 29%

71% E-Commerce Enabled

29%

93% Mobile Site Search

7%

A D O p T i O n O F i O S F U n c T i O n A L i T y F e AT U r e S % of brands (october 2011)


WItH WItHoUt 33% Store Locator 67%

Although it outpaces mobile site development, iOS application adoption still lags at 33 percent. Just one brand, Superdry, has an m-commerce enabled iOS app, and just 11 percent feature customer service. Furthermore, a third of brands fail to incorporate a store locator.

56% Social Sharing

44%

78% M-Commerce

22%

89%
7. Mobile Year in Review, ComScore, February 14, 2011.

11% Customer Service

L2 2011 L2ThinkTank.com

18

Digital iQ inDex :

European Niche Fashion


D i G i TA L p r O J e c T i O n S

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L2s roadmap for navigating the past, present, and future of European niche Fashion online

Yesterday
kenzo
No email address, no web form, and no store finder; only offers one phone number with limited hours

today
Ted baker
Only brand in Index to offer live chat

tomorrow
eres
Eres Is at Your Service lets you request a customer service call from a U.S. or European adviser

Customer Service

Agent provocateur Loro piana


Integrates brand lifestyle content with e-tail Site account lets you customize your e-commerce shopping experience

E-Commerce

Adolfo Dominguez Balmain John Lobb


Lookbook-centered sites equipped with bare minimum in e-commerce

Facebook Engagement

Balmain Gianfranco Ferr


No official Facebook page; unaffiliated pages have cropped up to fill the void

Emilio Pucci Furla La Perla


Facebook programming features custom and gated tabs

Vivienne westwood
Full F-commerce soon to come

Agent provocateur Furla Escada


Strong personality on Twitter, but isolated as only cross-platform promotion is link from site Brand personality evident in tweet stream, which is also featured in widgets on Facebook and site

Online Voice

bruno magli
Protected Twitter account discourages followers

iOS Experience

Adolfo Dominguez Sergio Rossi Loro Piana


Sites are too flash-heavy to load on a mobile device

Agent Provocateur Blumarine


Only brands with both a mobile site and an iOS presence

Superdry
Only brand with fully e-commerce enabled iPhone and iPad apps

YouTube Video

Corneliani Escada Lancel


Cookie-cutter collections of videos featuring ad campaigns, behind-the-scenes coverage, and fashion shows

Agent provocateur
Scandalous video after scandalous video cements brands video following

Lanvin
Viral fall 2011 campaign video ties to offline brand buys

Market Strategy

Gives & hawkes Turnbull & Asser


These mens brands stick to traditional paid media

Stella mccartney Sergio Rossi Emilio Pucci


Using some paid digital media

moncler
Digital marketing is a combination of earned and paid mediaGrand Central Station flash mob attracted the attention of bloggers

L2 2011 L2ThinkTank.com

19

Digital iQ inDex :

European Niche Fashion


FLASh OF GeniUS

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Models Take to the Dance Floor


To announce its Fall/Winter 2011 collection, Lanvin released a video lookbook shot by Stephen Meisel. The video features supermodels Karen Elson and Raquel Zimmerman performing a synchronized dance to Pitbulls I Know You Want Me (Calle Ocho) while wearing different pieces from the collection. Introducing silliness to high fashion, the video garnered more than 150,000 views within a few days of release, delighting viewers with its self-mockery. Lanvin Creative Director, Alber Elbaz, even makes a cameo appearance at the end, showcasing his own dance moves. The video was released weeks after still images of Elson and Zimmerman in the same setting were published. Additionally, Lanvin capitalized on the videos popularity by letting dance pairs enter a raffle to compete in a dance-off during its Fashions Night Out event in New York, which the brand shared with followers and fans via tweets and Facebook posts.

Lanvins Fall 2011 campaign video features supermodels karen elson and raquel Zimmerman dancing in unison to pitbulls i know you want me (calle Ocho)

pairs could compete in a dance competition for prizes, creating more content for its social media platforms at a Lanvin FnO event in nyc

Lanvin shot campaign photos in conjunction with the video L2 2011 L2ThinkTank.com

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Digital iQ inDex :

European Niche Fashion


FLASh OF GeniUS
its rutting Season custom Facebook application

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Ted Baker Goes Wild


Ted Baker launched an integrated Instagram and Facebook campaign this October called Its Rutting Season to promote its winter collection. The brand held events in its Glasgow, Manchester, and London stores and invited fashion bloggers including Les Garons de Glasgow, Sara Luxe, and Mademoiselle Robot to take the brands Instagram feed and snap photos of in-store shoppers. Shoppers posed in an ensemble from the latest collection in a doe or stag mask and their pictures were uploaded to the brands global Facebook page. Rutting models were encouraged to solicit likes from their Facebook networks, and the two photo subjects with the most likes each week won a Ted Baker shopping spree. The campaign was promoted on the brands Twitter account as well as on the blogger/photographers personal digital platforms. During the promotions, Ted Baker added an average of 60 percent more fans per day than before the campaign.
photos were uploaded to Ted bakers Facebook page and Twitter feed

Fashion bloggers took instagram photos of shoppers on three different days, in three different Uk cities

L2 2011 L2ThinkTank.com

21

Digital iQ inDex :

European Niche Fashion


FLASh OF GeniUS

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Hyper-Local
Superdry is the only brand in the Index taking a regional approach to Facebook, managing distinct pages for each major European market. In addition to regional pages, the brands global page provides exclusive content for fans in other geographies. Markets are also championing regional innovation. Superdry USA launched a campaign on October 3 targeting digitally savvy college students. Students at participating universities were encouraged to apply to become a brand ambassador for the chance to win a $1,000 Superdry wardrobe and a $500 cash prize. To qualify, applicants were required to have at least 1,000 Facebook friends and recruit 10 percent of them to become Superdry USA Facebook fans. This campaign continues to fuel Superdry USAs staggering fan growth, which was 124 percent from mid-September to mid-October, beating the other brands in the Index by a wide margin.

Superdry USAs Superdry University campaign augments its rapid fan growth

The SD Global tab is incorporated on each of Superdrys country pages, providing a link to Facebook pages across the globe L2 2011 L2ThinkTank.com

22

Digital iQ inDex :

European Niche Fashion


FLASh OF GeniUS

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moncler celebrated Fashion week on February 13 by taking over Grand central Station with a mob of dancers dressed in the brands skiwear

Moncler Takes Center Stage


To celebrate Fashion Week last February, Moncler staged a flash mob in Grand Central Station. The brand hired 160 dancers clad in Moncler skiwear, as well as 200 extras in order to orchestrate a 10minute dance routine in the stations main concourse. To increase virality and buzz around the event, Moncler invited editorial and media guests to a pre-flash mob reception in the balcony above the terminal. Among the guests were many fashion bloggers who provided their own digital coverage of the event. Moncler did not upload a video of the dance spectacle to its YouTube channel, but instead let blogger and press videos, photos, and articles bring the event to life online. The top five videos of the event have amassed almost 150,000 views combined. Moncler has also taken other critical steps to increase its digital footprint this year, joining Facebook and Twitter in September.

L2 2011 L2ThinkTank.com

23

Digital iQ inDex :

European Niche Fashion


FLASh OF GeniUS
The app includes several photos from the book Linda McCartney: Life in Photographs that were selected by Stella mccartney

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Stella McCartneys ipad App


Stella McCartney released the second version of its iPad app Stellas World this past summer to coincide with its e-commerce launch in 28 European countries. The app features content about new collections and fashion shows, as well as selections of Linda McCartneys photography and behind-thescenes coverage of the British Olympic Team shoot. A particularly engaging hub is the Stella McCartney Kids section, which is loaded with interactive features embedded in each of the campaign photos. When making a product selection on the Kids section, the app seamlessly directs the user to the brands e-commerce site.

behind-the-scenes video of britains Olympic Team in Stella mccartneys designs in collaboration with Adidas

coinciding with the release of the app, Stella mccartney added 28 more european countries to its e-commerce site

The Stella mccartney kids section has animated features visitors can click through to change the scenery

L2 2011 L2ThinkTank.com

24

Digital iQ inDex :

European Niche Fashion


FLASh OF GeniUS
interactive scenes in the Our world section of the site bring the brand personality to life

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The Loro piana Lifestyle


With the launch of e-commerce in October, Lora Piana went live with one of the most interactive online shopping experiences in the Index. Although flash technology hinders page transitions and mobile browsing, the site is beautifully designed and nabbed one of the highest brand translation scores in the Index. Illustrations of lifestyle scenes greet the user and highlight Portfonio products. Navigation to the product page is somewhat cumbersome, but once there the brand delivers up to 11 product views, strong customer service options, and the ability to favorite and gift. Additionally, the brand aims to drive visitors to retail by automatically detecting IP addresses and displaying local store, time, and weather throughout the site.

Site detects users locations and displays information for the nearest stores

product pages have an extensive collection of product photos L2 2011 L2ThinkTank.com

25

Digital iQ inDex :

European Niche Fashion


FLASh OF GeniUS

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Agent provocateur
A key reason Agent Provocateur propelled to the top of this Index is the brands rich site experience and superior navigation. Site account holders can personalize their e-commerce enabled site experience by entering their sizes to display only relevant products. Additionally, users can select their preferred currency upon login. Products can be filtered by size, style, and color, and all product previews can be switched from front view to back view. The site also has a section dedicated to the currentand notoriousPaz de la Huerta spokeswoman lookbook that gives users the option to shop for outfits from each of the campaign photos. Finally, the site drives visitors to Agent Provocateurs social media properties with homepage links to Facebook, Twitter, and YouTube, and also displays a live Twitter feed widget.

Tweets from the saucy @ThemissAp are displayed on the homepages Twitter widget

Online shoppers can peruse the paz de la huerta campaign photos and shop the looks

Account allows shoppers to customize the site content with their sizes and preferred currency L2 2011 L2ThinkTank.com

26

Digital iQ inDex :

European Niche Fashion


TeAm
ScOTT GALLOwAy clinical professor of marketing, nyU Stern Founder, L2 Scott is a Clinical Professor at the NYU Stern School of Business where he teaches brand strategy and luxury marketing and is the founder of L2, a think tank for prestige brands. Scott is also the founder of Firebrand Partners, an operational activist firm that has invested more than $1 billion in U.S. consumer and media companies. In 1997, he founded Red Envelope, an Internetbased branded consumer gift retailer. In 1992, Scott founded Prophet, a brand strategy consultancy that employs more than 120 professionals in the United States, Europe, and Asia. Scott was elected to the World Economic Forums Global Leaders of Tomorrow, which recognizes 100 individuals under the age of 40 whose accomplishments have had impact on a global level. Scott has served on the boards of directors of Eddie Bauer (Nasdaq: EBHI), The New York Times Company (NYSE: NYT), Gateway Computer, eco-America, and UC Berkeleys Haas School of Business. He received a B.A. from UCLA and an M.B.A. from UC Berkeley. VrOniQUe VALcU L2 Vronique began her career in Deloitte Consultings Strategy & Operations practice where she worked with some of the world's largest corporations in retail, manufacturing, and pharma. While there, she conducted extensive social media analyses of consumer-facing brands and contributed to the firms growing interest in the space. Post Deloitte, she moved to the Winterberry Group where she performed strategic consulting for advertising and marketing services companies. At L2, Vronique serves as the Specialty Retail and European research lead. She received her B.A. in Communications from the University of Pennsylvania. mAUreen mULLen L2 Maureen leads L2s research and advisory practice where she helped develop the Digital IQ Index. She has benchmarked digital marketing, e-commerce, and social media efforts of more than 300 brands across pharma, auto, luxury, specialty retail, beauty, and the public sector. Maureen also has led digital strategy consulting engagements for a variety of Fortune 1000 clients. Before joining
L2 2011 L2ThinkTank.com

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L2, Maureen was with Triage Consulting Group and led managed care payment review and payment benchmarking projects for hospitals, including UCLA Medical Center, UCSF, and HCA. Maureen has a B.A. in Human Biology from Stanford University and an M.B.A. from NYU Stern. LLOyD SALmOnS brand Translation, Outside Line Lloyd co-founded the social media agency Outside Line back in 2000. Since then Outside Line have been busy building campaigns and communities for global brands including Diesel, Budweiser, and Virgin Galactic. Prior to this he was responsible for setting up the international new-media marketing network at EMI, working across campaigns for artists such as The Beatles, Queen, Blur, Gorrilaz, Radiohead, and Robbie Williams. These campaigns pioneered online music marketing techniques and won a variety of awards and accolades for digital marketing. Lloyd has also been chairman of the IAB Social Media Council helping to put his experience in to ensuring best practice across the industry. emiLy hALLQUiST L2 Emily is a research associate at L2 where she works with the research team on the Digital IQ Index reports. Her background is in international relations, and she interned last year with International Business-Government Counsellors (IBC) in Washington, D.C.. At IBC, she assisted on client engagements pertaining to their global operations. Emily received a B.A. in Public Policy with minors in Earth and Ocean Sciences and Political Science from Duke University. r. DAnieLLe bAiLey L2 Danielle began her career at The Home Depot, Inc., where she led a variety of internal consulting engagements focused on supply chain, merchandising, and in-store process improvement. She went on to manage the implementation of award-winning mobile initiatives for several large media clients, including The New York Times Company, NBC Universal, Disney/ABC, Maxim magazine, and Zagat. Danielle has a B.S. in Systems Engineering from the University of Virginia and an M.B.A. from NYU Stern.

chriSTine pATTOn creative Director, L2 Christine is a brand and marketing consultant with more than 15 years of experience creating brand identities and marketing communications for aspirational and luxury brands. As creative director of L2, she leads the translation of the L2 brand across all touchpoints, with a particular focus on the visual packaging of L2s research.She began her career at Cos, where she developed the brand and oversaw its evolution from concept through growth to 100 restaurants. Since then she has provided creative direction for a wide array of clients, including the launch of Kidville and CosmoGIRL! magazine. Christine received a B.A. in Economics and Journalism from the University of Connecticut and an M.B.A from NYU Stern. JeSSicA brAGA L2 Jessica, a freelance art director, specializes in identity, iconography, event graphics, and invitations. Initially beginning her career in fashion, designing textiles and prints at Elie Taharis design studio in New York City, she then focused on the Elie Tahari brand aesthetic and consistency in design across its many developing disciplines. Desiring to explore other facets of design, she went on to become the art director of a small, prestigious design firm in Chelsea, where she focused on event graphics, digital and print collateral, and brand aesthetics for companies both large and small. Jessica holds a B.F.A. in Graphic Design, as well as an A.A.S. in Illustration, from Rochester Institute of Technology. AArOn bUnGe L2 Aaron is a freelance graphic designer who specializes in print design, branding and identity, packaging, and web design. His approach to design is both aesthetic and functional; characterized by clear, intelligent design that is always appropriate to the project at hand. He began his career tailoring projects for the Chinese, Australian, and U.S. markets, across multiple design disciplines, and in multiple languages. Aaron has a B.F.A. in Graphic Design from Iowa State University.

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upCOMInG EVEnTS
L2 clinic The Social Graph
EUROPE

L2 is a think tank for digital innovation.


We are a membership organization that brings together thought leadership from academia and industry to drive digital marketing innovation.

11.21.11 paris

L2 clinic Mobile 01.19.12 new york city

rES E A r CH
Digital iQ index: The definitive benchmark for online competence, Digital IQ Index reports score brands against peers on more than 350 quantitative and qualitative data points, diagnosing their digital strengths and weaknesses.

01.24.12 paris

L2 clinic Digital Marketing 04.13.12 new york city 05.22.12 paris

EVEnT S
Forums: Big-picture thinking and game-changing innovations meet education and entertainment. The largest gatherings of prestige executives in North America.

L2 clinic Social Media 06.14.12 new york city

300+ attendees
clinics: Executive education in a classroom setting with a balance of theory, tactics, and case studies.

120 150 attendees


working Lunches: Members-only lunches led by digital thought leaders and academics. Topic immersion in a relaxed environment that encourages open discussion.

upCOMInG rESEArCH
DiGiTAL iQ inDex reports: preSTiGe 100 reports:

European Specialty Retail Travel Magazines

Mobile Facebook Emerging Markets

40 60 attendees
mbA mashups: Access and introduction to digital marketing talent from top MBA schools.

COn SuLT InG


Advisory Services: L2 works with brands to garner greater return on investment in digital initiatives. Advisory work includes Digital Roadmaps, Social Media Strategy, and Site Optimization engagements.

upCOMInG MEMBEr BEnIFITS


Members Site:
in Q1 L2 will launch real-time tracking of digital metrics (vs. peers).

MEM BE r SHIp
For membership info and inquiries: membership@L2ThinkTank.com

A Think TAnk for DiGiTAL innOVATiOn

51 East 12th Street, 2nd Floor New York, NY 10003 w: L2ThinkTank.com e: info@L2ThinkTank.com

L2 2011 L2ThinkTank.com