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Transcript of L2 European retail digital
SCOTT GALLOWAYNYU Stern
© L2 2011 L2ThinkTank.com
A Think TAnk for DiGiTAL innOVATiOn
®
D e c e m b e r 1 5 , 2 0 11
Specialty retailEurOpEAn
Digital iQ inDex®:
European Specialty Retail
What Happens Online Does not Stay OnlineDigital provides a greater opportunity than just generating online
sales. More than 65 percent of consumers in major European
markets use their smartphones while in brick-and-mortar stores.
In addition, two-thirds of EU consumers indicate that they
conduct research online before heading in store, highlighting
digital’s potential to drive and derive incremental revenue.
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i n T r O D U c T i O n
A Tale of Two ContinentsWeakened consumer confidence has sent European retail sales down 2.3 percent year over year.1 The silver lining: E-commerce. In the big three markets—the U.K., Germany, and France—business-to-consumer e-commerce sales are projected to increase at a compound annual growth rate of 12.2 percent, exploding from $93.5 billion in 2011 to an estimated $148.3 billion by 2015.2 In the eight weeks leading to Christmas, online sales are expected to increase nearly 20 percent from a year ago.3 Furthermore, more consumers in the U.K. and Germany made a purchase online as a percentage of the internet population in 2011 than in e-commerce’s birthplace, the U.S.4
Winners & LosersIn our first-ever Digital IQ Index® measuring the digital efforts
of European specialty retailers, a bifurcation appears to be
emerging. Genius retailers including online-only players ASOS
and NEt-A-POrtEr, and juggernauts H&M and Sephora, are
developing robust, multi-platform e-commerce experiences,
aggressively building engaged communities on social media,
and signaling innovation through experimentation on emerging
platforms. Meanwhile, other retailers dim their growth prospects
with anemic sites and social media programs.
1. “Outlook for the Retail and Consumer Products Sector in Asia,” PWC, 2011. 2. “Western Europe B2C Ecommerce,” eMarketer, July 2011. 3. “Europeans will spend nearly $70 billion online for the holidays,” Allison Enright, Internet Retailer, November 23, 2011. 4. Ibid, eMarketer, July 2011.
U.K.(n=15)
112
76
Italy(n=5)
104
Spain(n=6)
87
France(n=24)
Other*(n=5)
80
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DiGiTAL iQ inDEx®:
european Specialty retail
European DisunionDigital competence varies by country of origin. retailers head-
quartered in the U.K., where 12 percent of all retail takes place
online, boast average IQs of 112. their counterparts in France
and Italy, however, average just 87 and 76, respectively.
Digital iQ = Shareholder ValueOur thesis is that digital competence is inextricably linked to
shareholder value. Key to managing and developing a compe-
tence is an actionable metric. this study attempts to quantify
the digital competence of 55 European specialty retailers. the
ranking reflects brands’ efforts across the big five markets in
Western Europe and the U.S. Our aim is to provide a robust tool
to diagnose digital strengths and weaknesses and help brands
achieve greater return on incremental investment. Like 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
regards,
ScOTT GALLOwAy
Founder, L2 Clinical Professor of Marketing, NYU Stern
i n T r O D U c T i O n
AVerAGe DiGiTAL iq by cOUnTry Of heADqUArTerS
* Sweden, Germany, & Switzerland
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Digital iQ inDex®:
European Specialty Retail
meThODOLOGy
A b O U T T h e r A n k i n G S
Site: 35% 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
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
Social Media: 20% Brand presence, community size, content, and engagement on major social media platforms
• facebook: Likes, Growth, tabs & Applications, responsiveness, Engagement
• Twitter: Followers, Growth, tweet Frequency, Online Voice
• youTube: Views, Number of Uploads, Subscriber Growth, Viral Videos
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
DiGiTAL iq cLASSeS
IQ Range IQ Class
140+ GeniUS
Digital competence is a point
of differentiation for these retailers.
Site content is searchable,
shareable, and mobile optimized.
Social media efforts complement
broader digital strategy.
110–139 GifTeD
retailers are experimenting and
innovating across site, mobile, and
social platforms. Digital presence
is consistent with brand image and
larger marketing efforts.
90–109 AVerAGe
Digital presence is functional yet
predictable. Efforts are often siloed
across platforms.
70–89 chALLenGeD
Limited or inconsistent adoption of
mobile and social media platforms.
Site lacks inspiration and utility.
<70 feebLe
Investment does not match
opportunity.
BrAnD TrAnSLATiOn: 25%• Site Aesthetics
• messaging & imagery
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Digital iQ inDex®:
European Specialty Retail
D i G i TA L i q r A n k i n G
rank Brand Headquarters Digital iQ Class Comments
1 ASOS u.K. 156 Genius A digital leader across all platforms, delivers unmatched programming and top-notch customer service
2 H&M Sweden 148 Genius Social media giant also boasts strong site with interactive product pages
2 nET-A-pOrTEr u.K. 148 Genius Seamless e-commerce experience; “Fashion’s Night Out” campaign bridges off- and online
4 SEpHOrA France 142 Genius Mobile leader drives e-commerce with robust content and a plethora of product reviews
5 MArKS & SpEnCEr u.K. 130 Gifted Fastest-growing twitter following and a site experience that wows across every dimension
6 LACOSTE France 127 Gifted Eau de Lacoste L.12.12 launch demonstrates digital mastery; brand integrates social media across every major platform
7 DiESEL italy 126 Gifted Site offers a wealth of content, but mobile offering doesn’t enthrall
8 L’OCCiTAnE France 124 Gifted Brand boasts three of the top 10 fastest-growing pages on Facebook
9 MAnGO Spain 121 Gifted Mobile savant hosts m-commerce across every major operating system
10 HOuSE OF FrASEr u.K. 120 Gifted Excellent e-commerce experience provides localized buy-and-collect option
11 HArrODS u.K. 119 Gifted Digital efforts reinforce brand’s heritage and reputation
11 nExT u.K. 119 Gifted Highest scoring m-commerce experience, but buggy site hampers traditional desktop experience
13 FrEnCH COnnECTiOn u.K. 118 Gifted Seamless e-commerce experience and impressive blogs
14 LA rEDOuTE France 114 Gifted Site excels across every dimension except aesthetics; quick to adopt Google +1 button
SPAIN
FRANCE
ItAlY
HEADQuArTErS:
U.K.OthER
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Digital iQ inDex®:
European Specialty Retail
rank Brand Headquarters Digital iQ Class Comments
15 TOpSHOp u.K. 113 Gifted robust social media programming and huge follower base, but limited mobile offering
15 ZArA Spain 113 Gifted Facebook leader with more than 10.5 million “likes”; user-generated style campaign and contest entertain
17 nEW LOOK u.K. 111 Gifted Efficient e- and m-commerce could be enhanced with stronger design
18 3 SuiSSES France 110 Gifted Interactive catalogs and multimedia blog stand out; Google+ sharing
19 SELFriDGES u.K. 108 Average Cross-platform corporate social responsibility efforts complement digital strategy; mobile investments lag
20 SArEnZA France 107 Average Best asset is site functionality, but lacks aesthetic flair
21 EL COrTE inGLéS Spain 106 Average Brick-and-mortar behemoth has created an equally overwhelming digital offering— quantity over quality
22 CAMpEr Spain 105 Average Nimble site that balances aesthetics and functionality
23 BOOTS u.K. 103 Average Wins on functionality, loses on visual appeal
23 YVES rOCHEr France 103 Average Strong tutorial content gets lost due to feeble navigation
25 GALEriES LAFAYETTE France 98 Average Facebook page benefits from innovative features such as custom Instagram tab
26 BrAnDALLEY France 97 Average Le Lab engages customers by giving them a role in choosing the featured design
26 DESiGuAL Spain 97 Average Site reflects brand personality, but interactivity is relegated to microsites
28 THE BODY SHOp u.K. 95 Average Competent e-commerce offering, but no mobile presence
SPAIN
FRANCE
ItAlY
HEADQuArTErS:
U.K.OthER
D i G i TA L i q r A n k i n G
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Digital iQ inDex®:
European Specialty Retail
rank Brand Headquarters Digital iQ Class Comments
28 uniTED COLOrS OF BEnETTOn italy 95 Average No e-commerce
30 VEnTE-priVéE France 92 Average Investment in Android and iOS platforms, but lackluster site
31 ESpriT Germany 87 Challenged Celebrates the holidays with the “Make Your Wish” offline/online campaign
31 MATALAn u.K. 87 Challenged Virtual fitting room and sophisticated Facebook page are strongest assets
33 KOOKAi France 82 Challenged Blog delights; site is functional but dry
33 prinTEMpS France 82 Challenged No e-commerce, but shareable content delivers
35 MASSiMO DuTTi Spain 79 Challenged Branded content dominates site; e-commerce upgrades sorely needed
36 TriuMpH u.K. 78 Challenged Site navigation lacks sophistication and detracts from brand’s image
37 ETAM France 77 Challenged Facebook functionality is more sophisticated than site
37 MAriOnnAuD France 77 Challenged Strong social media integration on Facebook, but site design needs a refresh
37 AGnèS B. France 77 Challenged Aesthetic appeal fails to mask poor functionality
40 COMpTOir DES COTOnniErS France 76 Challenged Interactive e-catalogs are the only bright spots
41 AnDré France 75 Challenged Facebook Connect redeems an otherwise static site
42 MAjE France 74 Challenged Digital work-in-progress
SPAIN
FRANCE
ItAlY
HEADQuArTErS:
U.K.OthER
D i G i TA L i q r A n k i n G
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Digital iQ inDex®:
European Specialty Retail
rank Brand Headquarters Digital iQ Class Comments
43 MOLTOn BrOWn u.K. 71 Challenged Brand equity does not translate online
43 SAnDrO France 71 Challenged Site design pleases despite nascent digital footprint
45 MinELLi France 68 Feeble E-commerce enabled site is simple but sleek
46 LE BOn MArCHé France 67 Feeble Site design is confusing
47 KADEWE Germany 64 Feeble No frills e-commerce
48 inTiMiSSiMi italy 63 Feeble Beautiful photography, but lacks essentials such as store locator
48 GEOx italy 63 Feeble Still working out e-commerce kinks
50 GLOBuS Switzerland 57 Feeble No social media presence
51 pAuLE KA France 55 Feeble Strong site and Facebook foundation; waiting for more content and stronger navigation
52 GErArD DArEL France 51 Feeble transactions and not much else
53 jELMOLi Switzerland 46 Feeble Site functions best as an online magazine
54 OrCAnTA France 42 Feeble No engagement, interactivity, or shareability
55 LA rinASCEnTE italy 35 Feeble Site is a relic
SPAIN
FRANCE
ItAlY
HEADQuArTErS:
U.K.OthER
D i G i TA L i q r A n k i n G
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Digital iQ inDex®:
European Specialty Retail
20%
25%
22%
7%
Strength Begets StrengthFour brands, ASOS, H&M, NEt-A-POrtEr, and Sephora,
achieved Genius status in the inaugural L2 Digital IQ Index®:
European Specialty Retail study. All four have established a
robust e-commerce channel, strong programming on social
media platforms, mobile compatibility, and display a willingness
to innovate on emerging platforms. the overall IQ distribution
reveals a significant bifurcation: Only 22 percent of brands are
classified as having Average IQs, while the majority are at the
poles as either competent (Genius and Gifted) or incompetent
(Challenged and Feeble).
results of our Digital IQ Index®: Specialty Retail study, which
ranked U.S. retailers, revealed 2011 as the year of the American
department store. Both Macy’s and Nordstrom achieved Genius
rankings, and the category itself boasted an average Digital
IQ of 118, just behind the digitally native e-tailers. In contrast,
European department stores posted an average Digital IQ of
86, with 42 percent residing in the Feeble class. the category’s
performance is not surprising: One-third of European department
stores are not e-commerce enabled, 58 percent have no mobile
presence, and 17 percent do not engage in email marketing.
k e y f i n D i n G S DiGiTAL iq DiSTribUTiOn*
% of brands per Digital iq class
DiGiTAL iQ
>140
GEniuS
DiGiTAL iQ
110–139
Marks & Spencer
lacoste
Diesel
l’Occitane
Mango
house of Fraser
harrods
Next
French Connection
la Redoute
topshop
Zara
New look
3 Suisses
ASOS
h&M
NEt-A-PORtER
Sephora
GiFTED
Selfridges
Sarenza
El Corte Inglés
Camper
Boots
Yves Rocher
Galeries lafayette
BrandAlley
Desigual
the Body Shop
United Colors of Benetton
Vente-Privée
DiGiTAL iQ
90–109
AVErAGE
DiGiTAL iQ
70–89
CHALLEnGED
Minelli
le Bon Marché
KaDeWe
Intimissimi
Geox
Globus
Paule Ka
Gerard Darel
Jelmoli
Orcanta
la Rinascente
DiGiTAL iQ
<70
FEEBLE
Esprit
Matalan
Kookai
Printemps
Massimo Dutti
triumph
Etam
Marionnaud
Agnès b.
Comptoir des Cotonniers
André
Maje
Sandro
Molton Brown
25%
* Numbers do not add up to 100% due to rounding
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Digital iQ inDex®:
European Specialty Retail
k e y f i n D i n G S
in the Company of GeniusASOS
ASOS hosts a consumer-to-consumer marketplace
for reselling clothing, shoes, and accessories
The retailer launched f-commerce on its facebook page allowing users to shop without leaving the platform
Skype partnership provides one-on-one style advice to customers
on november 23
youTube channel has well-integrated links to site, ASOS marketplace, and blogs
mobile site allows shoppers to customize currency and checkout
via PayPal
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Digital iQ inDex®:
European Specialty Retail
k e y f i n D i n G S
in the Company of Geniush&m
Virtual dressing room allows visitors to style a model of their choice
h&m has the most robust Google Plus
page in the index
The retailer nabbed both the highest number of
Twitter followers and youTube brand channel
upload views
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Digital iQ inDex®:
European Specialty Retail
k e y f i n D i n G S
in the Company of GeniusneT-A-POrTer
fashion fix, features brand news and product highlights, press coverage, and a live Twitter feed
instagram serves as the platform to update followers
on the #shoeoftheday
neT-A-POrTer LiVe monitors real-time purchases across
the globe
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Digital iQ inDex®:
European Specialty Retail
k e y f i n D i n G S
in the Company of GeniusSePhOrA
Sephora’s “beauty Talk” forum allows customers to give each other beauty tips and ask for expert advice
Sephora TV houses its how-to and style advice videos
The retailer’s mobile site is fully e-commerce enabled;
reviews are housed on a separate mobile site, which is designed for in-store use
Sephora boasts best-in-class iOS
applications
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Digital iQ inDex®:
European Specialty Retail
The Queen (of Digital)retailers headquartered in the U.K. boast an average IQ of 112,
eight points higher than Spanish peers and significantly higher
than those in France and Italy.
the U.K.’s IQ supremacy mirrors macro trends: Britain’s online
share of all retail sales leads Europe at 12 percent, with the
nation’s e-commerce shoppers spending almost $3,000 online
annually.5 Additionally, 44 percent of U.K. specialty retailers
have a mobile-optimized site, all are present on Facebook and
twitter and are e-commerce enabled. Spain’s average IQ gets a
boost from retail giants Mango and Zara, both Gifted.
Children of the MediumOnline-only retailers boast significantly higher Digital IQ scores
than their brick-and-mortar peers, suggesting traditional
retailers are still playing catch-up in Europe. For those brands
with a store retail strategy, there is also a relationship between
the number of retail locations and Digital IQ, indicating that
terrestrial retailers with a larger offline footprint are also more
competent online.
k e y f i n D i n G S
5. “Western Europe B2C Ecommerce,” Karin Von Abrams, eMarketer, August 2011.
7.3% 3.9%n/a
12% 3.5%
Chal
leng
edG
ifted
Shar
e of
Onl
ine
Ret
ail
90
110
UK(n=15)
112
Spain(n=6)
104
France(n=24)
87
Italy(n=5)
76
Other(n=5)
80
Aver
age
AVerAGe DiGiTAL iq by cOUnTry Of OriGin
VS. ShAre Of OnLine reTAiL
(December 2011)
Chal
leng
edG
ifted
90
110
>1,000
110Av
erag
e
500–1,000
106
250–500
87
100–250
7976
Online Only
120
<100
AVerAGe DiGiTAL iq by nUmber Of STOreS
(December 2011)
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Digital iQ inDex®:
European Specialty Retail
Luxury Comes up Shortretailers with a lower average price point register an average
Digital IQ 20 points above their higher priced peers, indicating
high-end brands have still not found their footing online. this
disparity suggests a missed opportunity, as affluent consumers
are more likely to own a smartphone and tablet, spend more time
online, and are the largest contributors to e-commerce growth.
Leveling the playing FieldAmong the 20 retailers with publicly available financials, there
is no relationship between the size of the business (in annual
revenue) and Digital IQ, suggesting that digital provides a
medium for smaller brands to punch above their weight class.
k e y f i n D i n G S
Chal
leng
edG
ifted
90
110
$
111
Aver
age
$$
90
$$$
92
AVerAGe DiGiTAL iq by Price POinT
(November 2011)
PArenT cOmPAny reVenUeS VS. DiGiTAL iq
(December 2011)
15 20 25 30 351050
Feeb
leAv
erag
eCh
alle
nged
Gift
edG
eniu
s
70
90
110
140
2011 Fiscal Year Revenues (in $ billions)
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Digital iQ inDex®:
European Specialty Retail
30%
83%
17%
76%
26%
74%
4%
15%
70%
85%96%
Videos
24%
Product VideosProduct QuickviewUser Reviews/Ratings
Store Locator Live Chat
MultichannelEuropean specialty retailers are present across most digital
channels. All but one maintain a presence on Facebook and
more than 85 percent are e-commerce enabled. On the next
retail battleground, mobile, nearly 60 percent of retailers have
launched a mobile site and/or an application.
Emerging platforms offer more opportunity for differentiation.
While 38 percent have a presence on Google+, only 16 percent
of the retailers have established official Instagram accounts and
just five percent have a tumblr blog. H&M leads on Google+,
with more than 15,000 subscribers, versus the Index average of
808. In addition, NEt-A-POrtEr photos are followed by more
than 14,000 Instagram subscribers. During data collection, only
one brand, Kookai, was present on all three new media channels.
Low-Hanging FruitEighty-seven percent of the retailers’ sites are e-commerce
enabled, but most lack some of the most basic features, such
as user reviews and product ratings. though the majority, 83
percent, include videos, it is their shareability that drives visits:
Sites with interactive and shareable videos experienced a 19
percent increase in traffic over a one-month period, versus just
five percent for those without. Similarly, retailer sites with blogs
experienced an 18 percent increase in traffic over the same period.
k e y f i n D i n G S
ADOPTiOn AcrOSS PLATfOrmS
% of brands with the following
(November 2011)
SiTe feATUre ADOPTiOn
(November 2011)
Email E-CommerceFacebook Twitter YouTube Blogs Mobile
98%
85%80%
87%
67%58%
93%
16%
5%
38%
Google+ Instagram Tumblr
Emerging Platforms
WIth
WIthOUt
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Digital iQ inDex®:
European Specialty Retail
k e y f i n D i n G S
45%55%
Viewableon Mobile
EmailConsistency
WelcomeEmail
63%
52%
44% 44%
33%
26%
7%
Links toSocial Media
ReplicatedWeb Nav
Send toFriend
Social Sharing
emAiL mArkeTinG ADOPTiOn
(September–November 2011)
emAiL feATUre ADOPTiOn
% of brands with the following
(November 2011)
EMAIl RECEIVED
NO EMAIl RECEIVED
Empty inboxWhile 90 percent of European specialty retailers offer email
signup, almost half did not send an email marketing message
within 10 weeks. Email privacy laws are more restrictive in
Europe than in the U.S., but the medium still provides one
of the most effective call-to-action marketing vehicles. Email
penetration across Europe is 67 percent, and every segment,
with the exception of the 15–24 demographic, has registered
email adoption growth—most in the double digits.6
Online retailers such as Vente-Privée, NEt-A-POrtEr, and
BrandAlley lead the pack in email frequency and sophistication
because of their high inventory turnover, sending upwards of
three emails per week versus the Index average of 0.9.
6. “State of the Internet—Australia,” ComScore, February 18, 2011.
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Digital iQ inDex®:
European Specialty Retail
k e y f i n D i n G S
TOP 10: fAcebOOk fAn PAGe GrOwTh
excluding Pages with < 2,000 fans
(September– November 2011)
TOP 10 brAnDS: fAcebOOk ‘L ikeS’
(November 2011)
0% 50%
100%
150%
200%
250%
228%Jelmoli
101%L’Occitane
(USA)
85%Vente-Privée
(Germany)
73%Sarenza(Italy)
72%L’Occitane(Germany)
72%El Corte Inglés
69%Vente-Privée(Spain)
65%L’Occitane
(France)
55%Vente-Privée
(Italy)
47%House of Fraser
Zara
H&M
Lacoste
Mango
Sephora(Global)
Topshop
ASOS
New Look Retail
Diesel
United Colorsof Benetton
0
4,000
,000
6,000
,000
8,000
,000
2,000
,000
10,00
0,000
10,517,459
8,668,408
6,676,576
2,706,273
2,059,363
1,706,324
1,363,750
1,129,652
1,077,385
852,375
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Digital iQ inDex®:
European Specialty Retail
Size vs. EngagementWinning on Facebook is no longer just about page size, it’s also
about engagement. European specialty retail brands have made
huge investments in fan growth and average more than 460,000
“likes” on Facebook. However, no retailer has achieved the elu-
sive “tribe” status, balancing an above-average community size
with above-average fan interaction. Marks & Spencer,
Diesel, and United Colors of Benetton are best positioned to
reach this sweet spot combining scale and interaction.
Facebook heavyweights Zara, H&M, and Lacoste—all with
communities of more than six million—had some of the lowest
Facebook engagement rates at approximately 0.02%.
k e y f i n D i n G S
COHORTS CROWDS
FAMILIES TRIBESThe Body Shop
DieselMarks
& Spencer
United Colorsof Benetton
Zara
Lacoste
Intimissimi
H&M
Yves Rocher Italy
Yves Rocher US
SiZe Of cOmmUniTy
note: Horizontal axis (Size of Community) is graphed on a logarithmic scale.
Le
Ve
L O
f e
nG
AG
em
en
T
fAcebOOk cOmmUniTy SiZe vs . enGAGemenT rATeS
excluding Pages with < 2,000 fans
(November 2011)
= BRANDS NARROWING IN ON “tRIBES” CAtEGORIZAtION
KEY:
benetton’s product post garners a “like” interaction rate of .69%
A store opening event post of photos has a
“like” interaction rate of .12%
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Digital iQ inDex®:
European Specialty Retail
k e y f i n D i n G S
The in CrowdWhile there is increasing pressure to demonstrate rOI in
Facebook, only four brands in the Index—ASOS, Sephora,
L’Occitane, and the Body Shop (USA)—leverage the platform to
sell products. ASOS is particularly sophisticated, enabling users
to send shopping invitations to friends and providing currency
personalization and product sharing. Zara and Marionnaud offer
interactive lookbooks and product catalogs on Facebook, but
transactions are consumated on the brands’ sites.
Links to E-Commerce page
product Links
partial F-Commerce
Full F-Commerce
fAcebOOk cOmmerce innOVATiOn
% of brands employing the following:
35%
4%
7%
fA
ce
bO
Ok
cO
mm
er
ce
SO
Ph
iST
icA
TiO
n
54%
L’Occitane, Sephora, and The body Shop are experimenting with f-commerce
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Digital iQ inDex®:
European Specialty Retail
TOP 10 brAnDS: mOST DAiLy TweeTS
(September–November 2011)
beST in TweeT: TOP 10 TwiT Ter fOLLOwerS
(November 2011)
k e y f i n D i n G S
TOP 10 brAnDS: fOLLOwerS ADDeD Per DAy
(September–November 2011)
Marks & Spencer
L’Occitane
Harrods
Topshop
Yves Rocher
BrandAlley
House of Fraser
NET-A-PORTER
ASOS
Desigual
0 5 10 2015 25
24
19
14
14
13
12
12
11
11
@hm
@LACOSTE
@Sephora
@ASOS
@Topshop
@NETAPORTER
@LaRedouteFr
@HarrodsofLondon
@Selfridges
@hmusa
0
100,0
00
200,0
00
300,0
00
400,0
00
357,802
244,513
231,269
227,687
201,715
123,217
65,353
58,510
58,400
578,213 @hm
@ASOS
@Sephora
@marksandspencer
@NETAPORTER
@Topshop
@LaRedouteFr
@HarrodsofLondon
@hmunitedkingdom
@Selfridges
020
060
040
080
01,0
00
1,775
752
586
569
407
381
305
178
129
122
32
22© L2 2011 L2ThinkTank.com
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Digital iQ inDex®:
European Specialty Retail
Customer ServiceEighty-five percent of European specialty retail brands maintain
at least one twitter account. Although they largely use twitter
to converse with followers about retail news (product, store,
or general information), more than a third also use twitter as a
vehicle for customer service.
Brands including House of Fraser, Marks & Spencer, and NEt-
A-POrtEr use their official twitter channels to respond to cus-
tomer inquiries and complaints, while ASOS and Sephora have
developed customer service-specific accounts that scan official
pages for questions and comments. responding to customer
service inquiries appears to pay off—twitter handles that ad-
dress these requests yield average followings of almost 60,000,
compared with 16,000 for accounts that do not.
63%
51%48%
24%
63%
Links to Social Mediain Tweet Stream
Retweets Pictures Videos@Replies
56,412
24,745
47,227
17,477
25,545
34,074
58,267
16,159
Customer Service Events Deals/OffersContests
AVerAGe nUmber Of fOLLOwerS by cOnTenT TyPe
(September–November 2011)
% Of brAnDS USinG The fOLLOwinG TwiT Ter TAcTic S
(September 2011)
USING
NOt USING
k e y f i n D i n G S
ASOS and Sephora's dedicated customer service Twitter accounts
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Digital iQ inDex®:
European Specialty Retail
iretailMore retailers have developed iPhone and iPad applications
than have created mobile-optimized sites, one of the most ba-
sic and cost-effective mobile investments. Additionally, just one
in five brands have established an app for the rapidly proliferat-
ing Android platform.
While iOS dominates, app sophistication lags. Only 39 percent
of iPhone and iPad apps are mobile-commerce enabled, and
less than half (46 percent) include a store locator. More surpris-
ing, only 16 percent offer customer service information through
their iOS apps.
Among the 24 percent of retailers with mobile-optimized sites,
sophistication is high—the majority host a retail locator, are
e-commerce enabled, and offer mobile site search.
k e y f i n D i n G S
mObiLe ADOPTiOn by PLATfOrm
(November 2011)
mObiLe SiTe feATUreS
% of mobile-Optimized retailers employing the following:
(November 2011)
iPhone iPad AndroidMobile-OptimizedSite
24%
47%31%
20%
Mobile Site Search
Retail Location Finder 80%
75%
75%
M-Commerce 9%Will not
load
67%not Mobile-Optimized
24%Mobile-Optimized
mObiLe SiTe SOPhiSTicATiOn
(November 2011)
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Digital iQ inDex®:
European Specialty Retail
D i G i TA L P r O J e c T i O n S
L2’s roadmap for navigating the past, present, and future of
European Specialty retail online
today tomorrowYesterday
harrodsStrong lookbooks, but lacking social-sharing capability
Topshop • French ConnectionBlogs well integrated into sites featuring shareable interactive content
marks & SpencerVideos on site are embedded with scrolling product and twitter feeds
GlobusNo Facebook page
Zara • MarionnaudShoppable lookbooks and product catalogs on Facebook, but directs to site to complete transaction
ASOS • L’Occitane • Sephora • The body ShopF-commerce
Gerard Darel • Intimissimi • SandroOnly phone and email
LacosteLive chat and scheduling for customer service calls
ASOSPersonal styling advice via Skype
SephoraBest-in-class iOS apps in the U.S. market, but not customized for, or available, in Europe
New Look • BrandAlleyE-commerce-enabled iPhone apps; no presence on iPad yet
neT-A-POrTerIn addition to e-commerce-enabled app, launched a Fashion’s Night Out specific app to give customers a storefront experience
GlobusNone
kookaiSmall brand, but present on Facebook, twitter, Youtube, Google+, tumblr, and Instagram
h&mLargest twitter and Youtube followings; most sophisticated Google+
TriumphStatic product pages
La redouteCross-sells on product pages based on editorial and client recommendations
h&mVirtual dressing room allows shoppers to design custom looks
Brand Content
Facebook Monetization
Customer Service
iOS Experience
Social Media Presence
Product Presentation
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Digital iQ inDex®:
European Specialty Retail
f L A S h O f G e n i U S
Virtual Fitting roomthe Swedish retailer’s e-commerce enabled site features an
interactive virtual dressing room coupled with sophisticated
navigation. the dressing room allows shoppers to style a
model of their choice from head to toe, including shoes and
accessories. the model’s hairstyle, pose, and background are
also customizable, and the final look can be saved or shared
on Facebook, twitter, email, and blogs.
this focus on product persists outside of the fitting room.
H&M’s site features interactive and video-enhanced lookbooks
for its collection, as well as product pages equipped with
advanced filtering and sorting.
The virtual dressing room lets shoppers design a custom look
The site features sophisticated interactive lookbooks of new collections
Product sections are easily filtered
and sorted
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Digital iQ inDex®:
European Specialty Retail
f L A S h O f G e n i U S
user-Generated ‘pEOpLE!’ CampaignZara’s integrated Facebook and site campaign ‘PEOPLE!’
invites brand enthusiasts worldwide to submit photos of
themselves wearing at least two items from the retailer’s current
collection. Several photos are chosen each week and featured
on the brand site and a dedicated Facebook tab, and the self-
styled models in each selected shot receive €300. the photos
are shareable via twitter and Facebook, and users can add the
products featured directly to their shopping carts.
the campaign has helped fuel Zara's impressive Facebook fan
growth: thirty percent over the past six months, an average of
almost 12,000 new fans per day.
The campaign’s custom facebook tab features photos of the week and past photo selections
Zara customers are invited to submit photos
featuring at least two items from the current
collection for the chance to win €300
Looks are shoppable directly from the photos
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Digital iQ inDex®:
European Specialty Retail
f L A S h O f G e n i U S
Bespoke E-CommerceMarks & Spencer allows customers to create bespoke items
of clothing from its men’s and women’s collections online.
Men can self-tailor jeans, chinos, and shirts, while women can
customize jeans, black dresses, and black formal trousers.
the men’s “made-to-measure shirts” feature is by far the most
comprehensive, allowing shoppers to select fabrics, as well as
nine different design elements including collar and cuff styles.
Women’s black dresses can be customized by style, sleeve, and
hem length.
In addition M&S tV houses a vast collection of shareable videos.
A shoppable scrolling feed displays the products featured in a
video as it plays, and a pop-up shows a complete product list at
the end. Christmas videos are also embedded with a scrolling
twitter feed of Marks & Spencer holiday-related mentions.
marks & Spencer allows shoppers to customize six products online
The m&S TV library houses videos with sophisticated features such as shoppable product lists and Twitter feeds
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Digital iQ inDex®:
European Specialty Retail
f L A S h O f G e n i U S
project OceanIn May, Selfridges launched “Project Ocean,” an activist
initiative to raise awareness of overfishing. the campaign
successfully integrates offline and online elements with a
dedicated Facebook page, twitter handle, and microsite. In the
spring, Selfridges turned the windows of its Oxford Street store
in London into an interactive touch-screen display of the ocean.
For every donation, another fish was added to the sea, and
shoppers could interact with the installation by clicking the fish
to view the species and the name of the donor.
A similar interactive ocean feature is housed on the microsite
to display campaign donations. the online content is shareable
via Facebook and twitter, and donations can also be made
using SMS; to date, £120,279 has been raised.
The interactive online ocean displays a fish for every donation
The Selfridges “Project Ocean” facebook page
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Digital iQ inDex®:
European Specialty Retail
f L A S h O f G e n i U S
L.12.12 Launchto celebrate the launch of its flagship men’s scent collection,
EAU DE LACOStE L.12.12, Lacoste commissioned a light
installation from design agency tronic that was displayed in
New York’s Grand Central terminal from September 19 to 27. A
dedicated microsite solicited user-generated video sequences
that animated a virtual transformation of the classic L.12.12
polo shirt into a fragrance bottle.
Visitors to the microsite could customize their video sequence
with their name, location, a background theme, and color of
their choosing. the 20-second videos were projected onto the
Grand Central terminal installation and streamed live on the
microsite. Video contributors were emailed their projection time
so they could visit Grand Central to view them in person or tune
in via the live stream.
During the campaign, 35,000 user-generated videos were
projected. Lacoste promoted the project on Facebook by
holding a fan-exclusive contest to win a trip to the La Machine
L.12.12 launch party in Grand Central terminal.
Thirty-five thousand user-generated video sequences were displayed on the La machine L.12.12 light installation
Visitors to the http://lamachinel1212.com/ microsite were invited to custom design a video showing the virtual transformation of the L.12.12 polo shirt into a fragrance
30© L2 2011 L2ThinkTank.com
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Digital iQ inDex®:
European Specialty Retail
f L A S h O f G e n i U S
‘Arrive Half naked—Leave Fully Dressed’In June, Desigual held a promotion that aptly reflected its
unconventional style. the retailer held identical events at the
Desigual stores in London, Stockholm, Berlin, Madrid, Prague,
and New York during which the first 100 people to line up in
their underwear before the store opened could choose one top
and one bottom for free. Everyone else received 50 percent
off the summer collection as a consolation prize. the retailer
encouraged participants to take photos on Instagram and tag
them #desigualevents. Videos promoting and covering the
undressed are the most viewed on desigual’s Youtube channel.Desigual encouraged participants to tag instagram photos with #desigualevents
Videos covering the “Arrive half naked—leave fully dressed”
campaign are the most viewed on
Desigual’s official youTube channel
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Digital iQ inDex®:
European Specialty Retail
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 Internet-based 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 Forum’s “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 Berkeley’s Haas School of Business. He received a B.A. from UCLA and an M.B.A. from UC Berkeley.
VérOniqUe VALcU L2
Véronique began her career in Deloitte Consulting’s 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 firm’s 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, Véronique 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 L2’s research and advisory practice where she helped develop the Digital IQ Index®. She has benchmarked the 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, 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 Univer-sity and an M.B.A. from NYU Stern.
freD brOwn brand Translation expert, Last exit
Fred is managing director of Last Exit’s London office where he leads web, social media, mobile, SEO, and eDM projects for clients, including Belvedere, MediaCom, F&F, and numerous medical, aerospace, and logistics brands. He began his career as an industrial designer, working on such projects as the Airbus A380, Panasonic cell phones, and Polaroid cameras. In 1999, Fred launched award-winning new media agency Deepend’s first North American office in New York with fellow Last Exit partner Nuri Djavit. together, they led digital projects for clients, including FIt, Kenneth Cole, and Salomon Smith Barney. He has a First Class Honours Degree from London South Bank University and has served on the board of British Design Innovation.
Fred was assisted in the study by Daniel Saxton, a Senior Creative at Last Exit experienced in multi channel pan-European digital work for brands in the fashion and retail sectors.
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 Inter-national 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 Engineer-ing 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 packag-ing of L2’s research. She began her career at Cosí, 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, iconog-raphy, event graphics, and invitations. She began her career in fashion, designing textiles and prints at Elie tahari’s studio in New York City, and 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, and 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 is both aesthetic and functional, characterized by clear, intelligent design 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.
T e A m
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.
rESEArCH
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.
EVEnTS
forums: Big-picture thinking and game-changing innovations meet education and entertainment.
the largest gatherings of prestige executives in North America.
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.
40–60 attendees
mbA mashups: Access and introduction to digital marketing talent from top business schools.
COnSuLTinG
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.
MEMBErSHip
for membership info and inquiries: [email protected]
upCOMinG rESEArCH
DiGiTAL iq inDex® reports:
Hospitality
Broadcast Media
Magazines
upCOMinG MEMBEr BEnEFiTS
Members Site:
in the first quarter L2 will launch real-time tracking of digital
metrics (vs. peers).
PreSTiGe 100® reports:
Mobile IQ
Brazil, Russia, India
Facebook IQ
upCOMinG EVEnTS
L2 clinic Mobile
01.19.12 new york city
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