Digital Transformation for Luxury Brands

Digital Transformation for Luxury Brands * Insights* for companies looking to drive their luxury business with new digital tools, platforms and devices Digital is important/very important to understand our Upscale Digital Strategy 67% customer: luхury 42% 60% The upscale brands*** consider digital more important for understanding their clientele. mass premium Digital has been most disruptive to brands with high-end positioning. 26% 42% of luxury and 28% of premium-positioned brands say that digital has been very disruptive to their governance (vs generalist 11% for all the others). of luxury companies and 46% of premium-positioned companies spend over 30% of their marketing budget Marketing Budget 54% on digital marketing (vs only 21% of all others). Allocating scarce resources in upscale brands In 2015. the more upscale the positioning the more likely the increase in digital marketing spend will be higher. * Lükury and premium-positioned brands spend more on digital marketing than mass or generalist brands. 14% of high-end brands expect to increase significantly their digital marketing spend versus just 2% for all others. Expected to increase digital marketing budget somewhat or significantly in 2015: 71% 32% 62% generalist 56% luxury premium mass Luxury & Social Media Brand is active or very active (in color) on social media: 73% 54% 70% 47% luxury premium 24% 23% 38% 12% The more upscale the positioning, the more likely the brand and its C-suite are active on social media. mass generalist C-suite are personally act on external social media: C-suite participate actively on enterprise social networks: 42% 19% mass 65% premium 79% luxury 67% generalist 30% premium generalist 79% luxury 34% mass AceODatability The Role of Leadership Leadership is more supportive of digital activities for upscale brands 72% For 58% (versus 51% for all others) of luxury brands, the CEO is personally leading the digital A Test & Learn culture is significantly more encouraged in the upscale brands transformation vs 61% 33% for all other sectors. (35% of all the others) While the Internet is, by its roots and in its application, intrinsically the great leveler, the digital opportunity for brands will depend on a number of key factors, including the sector, company culture and involvement of leadership. The results of this survey indicate that upscale brands find and/or seek to create value via digital tools, devices and platforms. Driving luxury with digital (including eCommerce) to create a superior customer experience. If luxury brands remain, for the most part, laggards in terms of true digital transformation, there is an evident recognition by upscale brands of the strategic need and opportunity to use digital to enhance the customer relationship and, more broadly, to drive the business. www.myndset.com *Digital transformation is a process of change involving the configuration of the entire organization to use new digital tools, devices and platforms effectively and efficiently. "The Myndset commissioned ***Luxury & premium positioned this Digital Transformation survey using Survata. Survey protocol: The survey was - 125 of the respondents 2015 © The Myndset All rights reserved conducted online with pre-recruited profiles in the first week of November 2014. Brand Faing MỹNDSET THE There were 303 respondents, all from the US.