L2 Prestige 100®: Mobile IQ by L2

January 11, 2012 SCOTT GALLOWAY NYU Stern

Mobile IQ © L2 2012 L2ThinkTank.com

Clinic

nyc

January 19, 2012 NYU Stern

Module 1: Welcome

Scott Galloway Founder, L2

Digital Omnivores: Key Insights Into Today’s Connected Consumer Mark Donovan SVP Mobile, comScore, Inc.

Mobile is Dead, Long Live Mobile Andy Weissman Partner, Union Square Ventures

The Game Changer on the Path to Purchase Jeremy Arnon Strategic Partner Development, Google

Q&A Session

Module 2: Evolving Strategy for Creative Execution in Mobile Nuri Djavit Partner & CEO, Last Exit

HTML5: Going Web vs. Going App Jason Baptiste Cofounder & CEO, OnSwipe

Lessons from “The Collection” MZ Goodman & Simone oliver New York Times

Influencing Real Life Networks

Paris

January 24, 2012 Palais Brongniart

Module 1: Welcome

Scott Galloway Founder, L2

The Mobile Landscape in Europe Jeremy Copp VP, Mobile, Europe, comScore, Inc.

Evolving Strategy for Creative Execution in Mobile Kent Valentine Engagement Director, Last Exit

Retail … Forever Transformed Chuck Goldman Chief Strategy Officer, Apperian, Inc.

Case Studies & Best Practices in Prestige Mobile Patrick Sarkissian CEO & Founder, Sarkissian Mason

Q&A Session

Module 2: The Google Mobile Platform

Robbie Douek Head of Mobile Sales & Operations, Google France

L2 Mobile Research Maureen Mullen & Colin Gilbert Research & Advisory, L2

Hugo Boss: A Case Study

Tanuj Parikh Business Development Manager, GroupMe

Markus Aller Teamleader, Online Media, Hugo Boss Joachim Bader Managing Director, CLANMO GmbH

Insights from Prestige 100®: Mobile IQ

Q&A Session

MAUREEN MULLEN & Colin Gilbert Research & Advisory, L2

Q&A Session

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Mobile IQ

Mobile:

End of the Beginning In the fourth quarter of 2010, more smartphones were shipped than PCs for the first time.1 By 2015, more

1. “Smartphone Shipments Surpass PCs for the First Time. What’s Next?” Chloe Albanesius, PC Magazine, February 8, 2011. 2. “IDC: Mobile Internet to Pass PCs by 2015,” Mark Hachman, PC Magazine, September 12, 2011. 3. “Mobile Commerce Forecast: 2011 to 2016,” Sucharita Mulpuru, Forrester, June 17, 2011. 4. “Shoppers Research Deals via Mobile and Online Ahead of 2011 Black Friday Sales,” Miranda Miller, Search Engine Watch, November 28, 2011. 5. “Tablets: Ultimate Buying Machines,” Dana Mattioli, Wall Street Journal, September 28, 2011. 6. “Why Millionaires Love Steve Jobs (and the iPad),” Robert Frank, WSJ Blog: The Wealth Report, August 25, 2011.

users will access the Internet wirelessly via a mobile device than

APPeal

from a wired Ethernet connection.2 Over the next five years, m-

Prestige brands have been prudish with mobile.

commerce sales are set to quintuple.3 On the year’s biggest shop-

The mobile strategy for most brands has been dominated by

ping day, Black Friday, online retail traffic from mobile devices

blind investments in iOS apps that lack utility and “stickiness.”

comprised 14.3 percent of page views, up from 5.6 percent last

Seven in 10 brands in the Index maintain at least one iOS app,

year, and mobile sales ballooned to 9.8 percent of online sales, up

but less than a third of all apps produced are commerce-en-

from 3.2 percent last year.4 Throughout the past decade, analysts

abled. Use of features such as notifications, geolocation, and

have relentlessly predicted “The Year of Mobile.” It now looks as if

language specification is more limited. Only 16 percent of the

we are in the fledgling innings of a mobile era.

brands have developed a distinct, iPad-specific experience.

Game Changer

M-Commerce

The introduction of the iPad in April 2010 has escalated the mobile opportunity. Tablets register e-commerce conversion rates of four to five percent versus three percent on

We believe the game will be won or lost via development and optimization of robust, device-agnostic mobile commerce sites. Although two-thirds of brands

traditional PCs.5 The user demographics for the iPad and other

currently maintain a mobile site (the majority launched within

tablets illuminate the opportunity for prestige brands: 20 percent

the past year), only 67 percent of these sites are commerce-

of individuals with $1 million or more in investable assets own

enabled. Furthermore, use of such marketing tactics as mobile-

a tablet and spend 50 percent more time on the device than on

optimized search marketing, cross-platform mobile promotion,

their smartphone.6

and mobile display advertising is scant.

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Mobile IQ p r e stig e 1 0 0 ® mobil e i n v e stm e n ts

Iconic, but Immobile

(December 2011)

While more than half the brands in the Index maintain both an app and a mobile site, 16 percent of brands have yet to produce either. Icons such as Hermès, Patek Philippe, Bottega Veneta, and Marc Jacobs rely exclusively on their traditional site experience, which in some cases proves inaccessible on mobile devices. Mobile competence may be a crystal ball for a brand’s global prospects. Ground zero for growth

70%

in prestige exists in emerging markets among a burgeoning

52%

Mobile App

middle class who are increasingly turning to a small screen to

66%

Both

16%

MobileOptimized Site

learn about and ultimately purchase prestige brands’ products.

Neither

Mobile IQ = Innovation’s Canary in the Coal Mine Our thesis is that competence in mobile is inextricably linked to shareholder value in the prestige industry. Key to managing and developing a competence is an actionable metric. This study attempts

mobil e comm e r c e sal e s F O RE C A S T 2 0 1 0 – 2 0 1 6

to quantify the mobile and tablet competence of Prestige

United States

100® brands. Our aim is to provide a robust tool to diagnose

(Source: Forrester, June 2011)

strengths and weaknesses and help managers achieve

greater return on incremental investment. Like the platforms we are assessing, our methodology is that improve our investigation and findings. You can reach me at scott@stern.nyu.edu. Regards,

Scott Galloway

Founder, L2

14 10 6 3

Clinical Professor of Marketing, NYU Stern 2010 © L2 2012 L2ThinkTank.com

cagr: 39%

BILLIONS OF DOLLARS

dynamic, and we hope you will reach out to us with comments

2011

2012

2013

2014

2015

2016

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Mobile IQ

Methodology Mobile IQ Classes

40%

mobile sites: Mobile-Optimized Sites:

Tablet Experience:

• Technology

• Compatibility

• Navigation & Search

• Ability to Transact

• Social Media Integration

• HTML5 Support

IQ Range

Class

140+

GENIUS Mobile competence is a point of differentiation. Brands pursue a device-agnostic app/site strategy, embrace m-commerce, and consciously integrate mobile across wider digital footprint.

• Customer Service • Product Page • Account & Check-Out

110–139

30%

Mobile Applications: Availability:

App Store Performance:

Functionality:

• iOS (iPad Differentiation)

• Ratings

• Navigation

• Android

• Comments

• Pathway to Purchase

• Blackberry

• Update Frequency

• Personalization

• Windows Phone Series 7

• Language Support

• Phone Feature Utilization

Brands demonstrate high-quality, high-impact approach to mobile within a select dimension, sometimes at the expense of a wider mobile offering.

90–109

AVERAGE Efforts are siloed and inconsistent. Mobile presence suggests explicit preference for site versus app strategy or is primarily concentrated in low-cost entry platforms (e.g., geolocal).

• Symbian

15%

GIFTED

mobile marketing: • Mobile SEO on Google & Bing • Email: Mobile Compatibility & Cross-Promotion of Mobile Properties • SMS: Sign-Up & Activity

15%

70–89

Limited mobile investment reflects low prioritization relative to other digital efforts.

innovation & integration: • Integration: Promotion of Mobile Efforts on Site, Facebook, and Twitter • Geolocal: Presence & Activity on Foursquare • Innovation: Mobile Ad Campaigns, QR Codes, Mobile Wallet Support, etc.

CHALLENGED

< 70

FEEBLE Investment does not match opportunity.

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Mobile IQ

Brand Ranking

Beauty & Skincare

Mobile IQ Class

Hospitality

Retail

Watches & Jewelry

Rank Brand

Category

SEPHORA

Retail

LVMH

164

Genius

Long-standing, sustained, iterative investment in mobile pays off

NORDSTROM

Retail

Nordstrom, Inc.

156

Genius

New mobile app leapfrogs peer efforts with firm link between in-app and in-store experience

MACY’S

Retail

Macy’s, Inc.

155

Genius

Active SMS program and Xmas app experience add unique elements to strong mobile portfolio

NET-A-PORTER

Retail

Compagnie Financière Richemont S.A.

143

Genius

Unique apps for local promotions, store exclusives, and spinoffs complement strong mobile site

BLOOMINGDALE’S

Retail

Macy’s, Inc.

135

Gifted

Engaging, offer-centric mobile site overshadows generic iPad catalog app

L’OCCITANE EN PROVENCE

Beauty & Skincare

L’Occitane International S.A.

133

Gifted

Both mobile app and site feature weak aesthetics, but excel in functionality

TIFFANY & CO.

Watches & Jewelry

Tiffany & Co.

133

Gifted

“What Makes Love True” mobile app demonstrates strong geolocal aptitude

NEIMAN MARCUS

Retail

Neiman Marcus Group

125

Gifted

Differentiated app approach on iPhone (“Gifts”) vs. iPad (“Catalog”) works to its advantage

INTERCONTINENTAL HOTELS & RESORTS*

Hospitality

InterContinental Hotels Group plc

119

Gifted

Presence across four of the five mobile app platforms; “Concierge Insider Guides” iPad app provides unparalleled local insights for 100+ global properties

ESTÉE LAUDER

Beauty & Skincare

Estée Lauder Companies, Inc.

115

Gifted

“Illumination” iAd campaign and high-functioning mobile site compensate for one-dimensional apps

AVEDA

Beauty & Skincare

Estée Lauder Companies, Inc.

113

Gifted

New “My Style” app invites users to upload personal hairstyle while mobile site provides exclusive offers for mobile customers

RALPH LAUREN

Fashion

Ralph Lauren Corporation

112

Gifted

Digital innovator demonstrates balanced investment across mobile app, mobile site, tablet experience, and mobile advertising

SAKS FIFTH AVENUE

Retail

Saks, Inc.

111

Gifted

Strong iPad catalog app compensates for low-impact mobile site

Parent

Fashion

Description

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Mobile IQ

Brand Ranking

Beauty & Skincare

Mobile IQ Class

Hospitality

Retail

Watches & Jewelry

Rank Brand

Category

YVES SAINT LAURENT

Fashion

Gucci Group (PPR)

111

Gifted

New mobile site brings fashion label in sync with advanced, beauty-centric apps

DAVID YURMAN

Watches & Jewelry

David Yurman, Inc.

104

Average

Mobile site launched in November is a welcome replacement for aging iPhone app

DIANE VON FURSTENBERG

Fashion

Diane Von Furstenberg

102

Average

M-commerce does not carry over from site to app; instead promotes exclusives like Signature Skin iPhone covers, the App Wrap dress, and DVF-endorsed music

ERMENEGILDO ZEGNA

Fashion

Ermenegildo Zegna Holditalia S.p.A.

101

Average

Singular focus on iPad virtual store, which is consistently promoted across all digital properties

MANDARIN ORIENTAL hotel group

Hospitality

Jardine Matheson Group

101

Average

“Cities by MO” provides expansion content for “MOHotels” app depending on user’s destination or interest

RITZ-CARLTON*

Hospitality

Marriott International, Inc.

101

Average

Simple, streamlined mobile site and “World Concierge” campaign on Foursquare compensate for disappointing apps

FOUR SEASONS HOTELS AND RESORTS

Hospitality

Four Seasons Hotels, Inc.

100

Average

Industry leader in Foursquare followers, with tips for 83 properties

GUCCI

Fashion

Gucci Group (PPR)

100

Average

Sophisticated, technologically advanced “Gucci Style” app immerses user in brand-curated content that extends well beyond the clothes

BURBERRY

Fashion

Burberry Group plc

Average

Second highest-scoring mobile site in Fashion enables brand to compete without investing in apps

CLINIQUE

Beauty & Skincare

Estée Lauder Companies, Inc.

Average

Early adopter of in-store iPad kiosks and one of only three beauty brands with an active SMS campaign

JW MARRIOTT*

Hospitality

Marriott International, Inc.

Average

Universal “Marriott International” app allows booking at JW properties and provides external links to strong mobile web assets

PARK HYATT*

Hospitality

Hyatt Hotels Corporation

Average

Cross-brand “Hyatt” app allows booking at Park Hyatt hotels; parent’s mobile site provides extensive photo galleries of Park Hyatt properties

CLARINS

Beauty & Skincare

Clarins S.A.

Average

Strong search elements on mobile site; fragrance release (Thierry Mugler Angel) proves a fan favorite in the app store

Parent

Fashion

Description

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Mobile IQ

Brand Ranking

Beauty & Skincare

Rank Brand

Category

GIORGIO ARMANI

Fashion

OMNI HOTELS & RESORTS

Hospitality

TORY BURCH

Fashion

BERGDORF GOODMAN

Retail

COACH

Fashion

SOFITEL*

Hospitality

CHANEL

Fashion

CONRAD HOTELS & RESORTS*

Parent

Mobile IQ Class

Fashion

Hospitality

Retail

Watches & Jewelry

Description

Giorgio Armani S.p.A.

Average

Touch-enabled mobile site compensates for unfocused, fragrance-centric app store offering

TRT Holdings

Average

Mobile app and site do little to go beyond the basics

Tory Burch LLC

Average

Mobile store finder features Foursquare integration; no apps

Neiman Marcus Group

Average

“Shoe Salon” app and Foursquare Mayor specials prevent brand from falling too far behind fellow retailers in absence of mobile site

Coach, Inc.

Average

Mobile users greeted with in-store signage that unlocks exclusive information on Kristin collection

Accor

Average

Leverages “Accor Hotels” app and parent’s mobile site to its advantage, but these assets dilute Sofitel brand

Chanel S.A.

Challenged

Fashion and accessories elements of mobile site still prove inaccessible, forcing strict reliance on apps

Hospitality

Hilton Worldwide

Challenged

Unique app development for “Conrad” brand that proves interoperable with Hilton Honors account

DOLCE & GABBANA

Fashion

Dolce & Gabbana Industria S.p.A.

Challenged

“Fashion Channel” replicated across both mobile site and apps, but stops short of m-commerce

ORIGINS

Beauty & Skincare

Estée Lauder Companies, Inc.

Challenged

Mobile site features extensive user reviews of products but provides no way to submit one’s own opinions on the go

CARTIER

Watches & Jewelry

Compagnie Financière Richemont S.A.

Challenged

Multiple iPad apps and strong universal “Cartier Bridal” app, but mobile shopping experience leads to Call an Advisor

FAIRMONT HOTELS & RESORTS

Hospitality

Fairmont Raffles Hotels International

Challenged

President’s Club participation allows guests to share stories, with user photos appearing alongside official property images

CALVIN KLEIN

Fashion

PVH Corporation

Challenged

CK One augmented reality experience available on three of the five mobile platforms assessed

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Mobile IQ

Brand Ranking Rank Brand

Beauty & Skincare

Mobile IQ Class

Fashion

Hospitality

Retail

Watches & Jewelry

Category

Parent

Description

Starwood Hotels & Resorts Worldwide, Inc.

Challenged

Innovative ad campaign in Weather Channel iPad app takeover; eight property-specific apps with limited functionality undercut superior utility of “SPG” cross-brand app

LVMH

Challenged

Innovative tie-in between Amble app and Foursquare does not save dead-end mobile site experience

WESTIN HOTELS & RESORTS*

Hospitality

LOUIS VUITTON

Fashion

M·A·C COSMETICS

Beauty & Skincare

Estée Lauder Companies, Inc.

Challenged

Strong video content and M·A·C Artist profiles only exist on mobile site, not the app store

LANCÔME

Beauty & Skincare

L’Oréal Group

Challenged

Advanced user-generated content element of mobile apps only partially compensate for lack of mobile site

ST. REGIS*

Hospitality

Starwood Hotels & Resorts Worldwide, Inc.

Challenged

E-Butler app provides guest-specific functionality that goes beyond the basic guest services book

WALDORF ASTORIA*

Hospitality

Hilton Worldwide

Challenged

Brochure-ware app mitigated by functional mobile site leveraging Hilton Honors system

KIEHL’S

Beauty & Skincare

L’Oréal Group

Challenged

Clean mobile site navigation provides outlet for browsing but not buying (Call to Order)

LE MÉRIDIEN*

Hospitality

Starwood Hotels & Resorts Worldwide, Inc.

Challenged

Heavy reliance on “SPG” app for mobile bookings; property-specific app limited to Dubai

BARE ESCENTUALS

Beauty & Skincare

Shiseido Company, Limited

Challenged

“Be a Force of Beauty” campaign incorporated QR codes tied to model’s bio, look, and associated beauty products

RAYMOND WEIL

Watches & Jewelry

Raymond Weil S.A.

Challenged

December launch of official app rounds out mobile investment

AUDEMARS PIGUET

Watches & Jewelry

Audemars Piguet Holding S.A.

Challenged

Comprehensive promotion of mobile footprint on site as brand extends app experience to Android

RELAIS & CHÂTEAUX

Hospitality

n/a - Global Fellowship

Challenged

App “Guides” provide novel path to property discovery, but R&C remains the only hospitality brand without a mobile site

SHANGRI-LA HOTELS AND RESORTS

Hospitality

Shangri-La Asia Limited

Challenged

Tokyo and Manila property apps do not extend to wider resort portfolio; mobile site allows for limited property exploration

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Mobile IQ

Brand Ranking

Beauty & Skincare

Rank Brand

Category

HUGO BOSS

Fashion

JAEGER-LECOULTRE

Parent

Mobile IQ Class

Fashion

Hospitality

Retail

Watches & Jewelry

Description

Valentino Fashion Group S.p.A.

Challenged

Site and apps still lack m-commerce, but do include innovative features like color matching via camera image

Watches & Jewelry

Compagnie Financière Richemont S.A.

Challenged

“My Reverso” app provides user the freedom to visualize custom engraving before reaching out to a concierge

SWAROVSKI

Watches & Jewelry

Swarovski AG

Challenged

SCVNGR hunt in London demonstrates willingness to experiment beyond the app store

JUMEIRAH

Hospitality

Jumeirah Group

Challenged

Emirates Towers property claims sole app; iPad defaults to mobile site designed for smaller screen

MORGANS HOTEL GROUP

Hospitality

Morgans Hotel Group

Feeble

Sections of mobile site (City Guides) revert back to main site; iPad defaults to mobile optimized site designed for a smaller screen

PHILOSOPHY

Beauty & Skincare

Coty Inc.

Feeble

Strong gift finder and navigation filters differentiates mobile site

VALENTINO

Fashion

Valentino Fashion Group S.p.A.

Feeble

Encyclopedic iPad app lacks personalized features, but mobile-optimized shopping portal hints of progress

OMEGA

Watches & Jewelry

The Swatch Group, Ltd.

Feeble

Parallel mobile app/site designs feature comprehensive search tools

SMASHBOX

Beauty & Skincare

Estée Lauder Companies, Inc.

Feeble

Innovative product QR codes direct users to video tutorial by makeup artist Lori Taylor; recently optimized email marketing for mobile screens

VAN CLEEF & ARPELS

Watches & Jewelry

Compagnie Financière Richemont S.A.

Feeble

Mobile placeholder site offers access to catalog and store locator, circumventing flash-heavy site

HUBLOT

Watches & Jewelry

LVMH

Feeble

360-degree product views, augmented reality features, and video content in app do not distract from aging mobile site

ROSEWOOD HOTELS & RESORTS

Hospitality

New World Hospitality

Feeble

One of only two hospitality brands without an app store presence

BULGARI

Watches & Jewelry

LVMH

Feeble

Brand replicates all product-specific apps across iPhone and iPad without customization; “Bulgari Touch” site lacks m-commerce

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Mobile IQ

Brand Ranking

Beauty & Skincare

Rank Brand

Category

BENEFIT cosmetics

Beauty & Skincare

THE PENINSULA HOTELS

Hospitality

ROLEX

Watches & Jewelry

BARNEYS NEW YORK

Retail

MONTBLANC

Parent

Mobile IQ Class

Fashion

Hospitality

Retail

Watches & Jewelry

Description

LVMH

Feeble

August test of in-store iPad kiosks demonstrates increasing innovation in mobile space beyond HTML5 site

Hongkong and Shanghai Hotels, Limited

Feeble

Mobile site requires guest to call or email reservations desk, forcing reliance on buggy app

Rolex Holding S.A.

Feeble

Strong demand for third-party reference apps demonstrates (missed) opportunity beyond mobile site and tablet e-magazine

Istithmar PJSC

Feeble

Remains the only retailer in the Index to shy away from the app store; no longer redirecting to mobile site

Watches & Jewelry

Compagnie Financière Richemont S.A.

Feeble

Strong app presence and product specific-promotions do not compensate for lack of a mobile site

CHOPARD

Watches & Jewelry

Chopard Holding S.A.

Feeble

App presence focused exclusively on “Happy Diamonds” collection; mobile site features simple photo gallery

HARRY WINSTON

Watches & Jewelry

Harry Winston, Inc.

Feeble

“Harry Winston Timepieces” app has limited functionality; HTML5 enables solid tablet experience

ELIZABETH ARDEN

Beauty & Skincare

Elizabeth Arden

Feeble

Mobile site for Prevage line of skincare products only

TOD’S

Fashion

Tod’s S.p.A.

Feeble

Limited mobile site and heavily promoted iPad apps are all about presentation, not functionality

ALFRED DUNHILL

Fashion

Compagnie Financière Richemont S.A.

Feeble

E-magazine iPad app tests mobile aptitude by mirroring “Day 8” microsite

SHISEIDO

Beauty & Skincare

Shiseido Company, Limited

Feeble

App store experience caters exclusively to Chinese market

BOBBI BROWN

Beauty & Skincare

Estée Lauder Companies, Inc.

Feeble

Mobile-friendly email marketing demonstrates awareness of mobile consumers, despite the lack of mobile apps/site

DE BEERS

Watches & Jewelry

LVMH

Feeble

Lack of a mobile site and apps partially offset by move to HTML5

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Mobile IQ

Brand Ranking

Beauty & Skincare

Rank Brand

Category

IWC SCHAFFHAUSEN

Watches & Jewelry

MARC JACOBS

Fashion

PANDORA

Watches & Jewelry

CHLOÉ

Parent

Mobile IQ Class

Fashion

Hospitality

Retail

Watches & Jewelry

Description

Compagnie Financière Richemont S.A.

Feeble

Best-in-class quarterly e-magazine content does not include comments/ratings

LVMH

Feeble

Popularity on Foursquare compensates for continuing lack of mobile apps/site

Pandora A/S

Feeble

Mobile app with updatable catalog and gift finder make up for the absence of mobile site

Fashion

Compagnie Financière Richemont S.A.

Feeble

Mobile site provides look book, but no m-commerce functionality; no apps

VERSACE

Fashion

Gianni Versace S.p.A

Feeble

Lack of a mobile site and apps partially offset by move to HTML5

BOTTEGA VENETA

Fashion

Gucci Group (PPR)

Feeble

Catalogs featured on main site require Flash player, but email marketing is mobile friendly

NARS

Beauty & Skincare

Shiseido Company, Limited

Feeble

Full HTML5 site provides a strong asset from which to build a mobile-specific experience

TAG HEUER

Watches & Jewelry

LVMH

Feeble

Mobile site is relegated to in-site map; multiple apps pulled from iTunes store during study period

CHRISTIAN DIOR

Fashion

Christian Dior S.A. | LVMH

Feeble

App presence only partially compensates for frustrating mobile browsing experience

PRADA

Fashion

Prada Group

Feeble

Site browsing experience proves untenable on mobile device

VACHERON CONSTANTIN

Watches & Jewelry

Compagnie Financière Richemont S.A.

Feeble

“Snow Golf” makes for a poor outing in an industry obsessed with apps

SK-II

Beauty & Skincare

Procter & Gamble

Feeble

Flash fail on site; meanwhile, app store presence caters exclusively to Korean market

FENDI

Fashion

LVMH

Feeble

Aging mobile site resembles brochure-ware

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Mobile IQ

Brand Ranking

Beauty & Skincare

Parent

Mobile IQ Class

Fashion

Hospitality

Retail

Watches & Jewelry

Rank Brand

Category

Description

SALVATORE FERRAGAMO

Fashion

Salvatore Ferragamo S.p.A.

Feeble

Seamless tablet experience has yet to migrate to the phone

PIAGET

Watches & Jewelry

Compagnie Financière Richemont S.A.

Feeble

The brand’s two product-specific apps have not been updated since August 2009 and August 2010, respectively

HERMÈS

Fashion

The Hermès Group

Feeble

No app, no mobile site

ALEXANDER MCQUEEN

Fashion

Gucci Group (PPR)

Feeble

Flash fail on homepage, but online store functions

BALENCIAGA

Fashion

Gucci Group (PPR)

Feeble

Whatever you do, don’t pinch and zoom

OSCAR DE LA RENTA

Fashion

Oscar de la Renta, Limited

Feeble

Flash fail exacerbates lack of mobile site/apps

BACCARAT

Watches & Jewelry

Baccarat Crystal

Feeble

Flash fail; relies on Neiman Marcus to facilitate m-commerce

MOVADO

Watches & Jewelry

Movado Group, Inc

Feeble

Site browsing experience proves untenable on mobile device

100

PATEK PHILIPPE

Watches & Jewelry

Patek Philippe S.A.

Feeble

Please Note: the “next generation” doesn’t use Flash

*Hospitality brands that leverage mobile assets maintained by a parent company and/or shared by sister brands (reward programs, booking systems, etc.) receive credit for those components © L2 2012 L2ThinkTank.com

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Mobile IQ MOBILE IQ DISTRIBUTION

Key Findings

% of Brands per Mobile IQ Class Sephora

Dispersion

Bloomingdale’s L’Occitane en Provence

Almost half the brands in the Index register

Tiffany & Co. InterContinental Hotels & Resorts Estée Lauder

portion of the prestige sector. The disparity

Aveda

between the Index leader (164 IQ points)

mobile IQ

110–139

Ralph Lauren

and the Index laggard (8 IQ points) suggests

Saks Fifth Avenue

that this “mobile gap” is more the result of

Yves Saint Laurent

Nordstrom mobile IQ

>140

GIFTED

Neiman Marcus

as “Feeble”—demonstrating widespread underinvestment in mobile by a considerable

GENIUS

10%

19%

With a median score of only 76, the majority of brands are just beginning to make mobile

Net-A-Porter

David Yurman

JW Marriott

Diane Von Furstenberg

Park Hyatt

Ermenegildo Zegna

Giorgio Armani

Mandarin Oriental

AVERAGE

nonparticipation than subpar performance.

Macy’s

Ritz-Carlton

Clarins Omni Hotels & Resorts

Four Seasons Hotels & Resorts

Tory Burch

mobile IQ

Gucci

90–109

Burberry

Coach

Clinique

Bergdorf Goodman Sofitel

investments, while a select few early investors are pulling away from the pack.

Chanel

St. Regis

Conrad Hotels & Resorts

Waldorf Astoria

Dolce & Gabbana

Le Méridien

Origins Cartier Fairmont Hotels & Resorts Calvin Klein Westin Hotels & Resorts Louis Vuitton M·a·c Cosmetics Lancôme

CHALLENGED

Morgans Hotel Group

Iwc Schaffhausen

Philosophy

Marc Jacobs

Valentino

Pandora

Omega

Chloé

Smashbox

Versace

Van Cleef & Arpels

Bottega Veneta

Relâis & Chateaux

Hublot

Nars

Shangri-La Hotels & Resorts

Rosewood Hotels & Resorts

Tag Heuer

Hugo Boss

Bulgari

Jaeger-LeCoultre

Benefit

Prada

Kiehl’s Bare Escentuals Raymond Weil Audemars Piguet

Swarovski

mobile IQ

70–89

23%

FEEBLE

The Peninsula Hotels

Jumeirah

Rolex Barneys New York Montblanc

44%

mobile IQ

<70

Chopard Harry Winston Elizabeth Arden Tod’s Alfred Dunhill Shiseido Bobbi Brown De Beers

Christian Dior Vacheron Constantin Sk-Ii Fendi Salvatore Ferragamo Piaget Hermès Alexander McQueen Balenciaga Oscar de la Renta Baccarat Movado Patek Philippe

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Mobile IQ

Key Findings

Mobile Site Homepage

In the Company of Genius:

Sephora

While there are four Genius brands in the Prestige 100®, Sephora exists in a class of its own. The brand’s mobile site feature product videos organized by content type and filterable by brand. Other key features include a GPS-based store locator, shopping list creator, order history/tracking, and a section for mobileexclusive offers.

iPad App Home Screen

Sephora’s iPhone app and mobile site share the same basic look and feel, with the latter offering additional features such as a “Beauty Advice” section, “Try It On”—a tool that allows

Mobile Site Product Ratings

Mobile Site Video Library

iPhone App “Try It On” Tool

the user to adjust skin tone and nail polish color on a virtual hand, and barcode scanning functionality to augment in-store shopping. The brand’s iPad app features how-to videos with a side-by-side mirror powered by the device’s camera, allowing users to see their own faces while following makeup application instructions.

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Mobile IQ

Key Findings

Beauty & Skincare

Disparity

107

Genius

that achieved “Genius” or “Gifted” status, half were retailers.

125

101

Gifted

among the first to actively invest in mobile

Disparity

140

customer set, hospitality brands have been

Disparity

AVG IQ

126

Disparity

platforms. However, many investments from the 2009 timeframe are beginning to show their

Watches & Jewelry

180

the Index, retail stands apart. Of the 14 brands

just below “Average.” Catering to a peripatetic

Retail

(December 2011)

contributes at least two brands to the top 20 of

Hospitality plays runner-up to retail, hovering

Hospitality

M obil e I Q D ist r ibutio n BY I N D U S T R Y

Mind the Gap Although each of the five industries reviewed

Fashion

110 Average

age—more than 15 percent of hospitality apps have not been updated in the past 12 months. 90

Challenged

AVG IQ

Feeble

Je w n= elr y 24

& es ch W at

& ty au Be

Fa s n= hion 29

Sk in c n= are 18

sp it n= ality 20

Re t n= ail 9

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Mobile IQ

Key Findings

Beauty & Skincare

(December 2011) Disparity

133

Disparity

Genius

terms of Mobile IQ.

Disparity

Of the larger and more diversified parent

115

AVG IQ

145

140

Disparity

Gifted

score skews toward the upper range of the disparity. Six of the seven Estée Lauder

Disparity

brands register a mobile site score above 110

performance in one of the four dimensions.

Disparity

AVG IQ

108

Average

the Index average, demonstrating consistent

Watches & Jewelry

180

hospitality typically perform above average in

organization for which the portfolio’s average

Retail

M obil e I Q D isp e r sio n by O w n e r ship

parent companies with a portfolio in retail or

companies, Estée Lauder is the only

Hospitality

Organizations with More than One Brand Represented in Index

Good Genes In line with our industry-specific observations,

Fashion

AVG IQ

100

Disparity

AVG IQ

Disparity

AVG IQ

Disparity AVG IQ

Disparity

AVG IQ

Feeble

Challenged

ld w Re n= ide so 2 rts W or ld w n= ide 3 Va L’O le ré nt a in lG o ro Fa sh n= up io 2 n Gr ou p S. p Co n= .A . m pa 2 gn ie Fi na LV nc M ièr n= H eR 9 ich em on t n= S.A Gu 10 . cc iG ro up (P P n= R) 5

lto

W or

es ,I n= nc. 7

Ho te ls &

La u e té Es

pa om rC de

In tt rio ar M

St ar wo od

na io

at rn te

M an im Ne

l, I n= nc. 2

Gr o n= up 2

y’ s I n= nc. 2

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Mobile IQ

Key Findings

mai n sit e s v s . mobil e sit e s Prevalence of Basic Features

Mobile Commerce vs. Mobile Experience

(December 2011, N=66)

In 2011, seven percent of all U.S. Internet traffic came from mobile devices. Many Prestige 100® brands are catching on to the

82%

82% 79%

growing importance of robust, multifunctional mobile sites. While Google estimates that just 21 percent of its advertisers have mobile sites, two-thirds of brands in the Index

= =

74% 67%

MAIN SITE MOBILE SITE

67%

maintain them, and 67 percent of those sites are m-commerce enabled.7 However, participation in m-commerce does not fully capture the quality of the mobile experience. In aggregate, across every category measured,

44% 41%

mobile sites examined consistently failed to

41%

replicate key features and functionalities found on the main sites including videos, product

30%

search, and user ratings.

27%

26%

23% 20% 14% 9%

E-/M- Commerce Enabled

7. “Google’s Battle for the Mobile Web,” Michael Boland, Search Engine Watch, November 25, 2011.

Store Locator

Video

Product/ Property Search

Multiple Languages

Order/ Reservation Tracking

User Ratings

Facebook “like” API

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Mobile IQ

Key Findings iWorld In mid-December 2011, the millionth app was released in the mobile marketplace.8 Approximately 15,000 apps are currently released every week, a pace of development

P r e stig e 1 0 0 ® A P P L I C AT I O N S A c r oss S ma r tpho n e P latfo r ms (December 2011) # of Apps per Platform

% of Brands in Index

196

iOS

70%

that exceeds every competing form of media. Seventy percent of Prestige 100® brands have produced apps for mobile devices. Development efforts are skewed heavily toward the iOS platform. Every brand that supports an app has developed for the iOS platform and average nearly three unique apps for Apple devices. While this investment

Android

does not map to device market share (Gartner

22%

estimates that Android represented 52.5

16%

Symbian

percent of smartphone sales in the third

Blackberry

quarter of 2011), it does reflect Apple’s

demographic advantage.9

Windows Phone 7

2% 8. “One Million Mobile Apps, and Counting at a Fast Pace,” Shelly Freierman, New York Times, December 11, 2011.

According to Hunch data released in August, compared to Android users, iOS users are:10

67% 60% 50% 37% 27% 18%

9. “Gartner Says Sales of Mobile Devices Grew 5.6 Percent in Third Quarter of 2011; Smartphone Sales Increased 42 Percent,” Press Release, Gartner, November 15, 2011.

more likely to...

10. “Android vs. iPhone: Battle of the Mobile Operating Systems,” Amanda Green, Hunch, August 15, 2011.

Have an Annual Household Income of $200k or more

Have an American Express card

Have visited more than five countries

Have a graduate degree

Live in a city

Be women

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Mobile IQ

Key Findings Tablets: iOpportunity

D e v ic e - S p e cific app D e v e lopm e n t fo r i O S P latfo r m (December 2011, N=100)

37%

iPhone

62%

Both

16% 21%

Apple ended the first half of 2011 with nearly a 70 percent share of the global market for

= UNIQUE IPAD CONTENT = REPLICATED ON BOTH DEVICES

tablets. As a product class, tablet devices 11

have proven a boon to m-commerce. Tablet shoppers demonstrate a conversion rate of four to five percent compared with three percent on a PC.12 Even when compared directly to smartphones, 25 percent of “dual owners” surveyed by Ipsos demonstrate a preference

45%

to purchase on sites while using a tablet.13

iPad

Despite the evidence underscoring the growing need to cater to tablet users, prestige brands have been slow to adapt. Although 37 percent of all brands have a presence on both the iPhone and iPad, only 16 percent have created a unique experience for iPad users rather than simply replicating the same app across

Tabl e t E x p e r i e n c e Site Optimization for Safari Browser on iPad (December 2011)

both devices.

Loads iPad Site

Development of iPad-specific site experiences also lags. While 66 percent of brands maintain 11. “Media Tablet and eReader Markets Beat Second Quarter Targets, Forecast Increased for 2011, According to IDC,” IDC, Press Release, September 14, 2011.

a mobile site, only seven have an iPad-specific

12. “Tablets: Ultimate Buying Machines,” Dana Mattioli, Wall Street Journal, September 28, 2011.

percent of brands that default to the PC site,

13. eMarketer, “Tablet Owners Most Active in M-Commerce,” October 19, 2011.

components, which iOS does not support.

Loads Mobile Site

7% 11%

experience. Furthermore, 11 percent of brands in the Index are redirecting to their mobile site on the iPad, often failing to take advantage of the uptick in potential conversion. Of the 82 eighteen percent lack full functionality because of the lingering presence of Adobe Flash

Loads Completely Broken Site

Loads Partially Broken Site

9% 9%

64%

Loads Site

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Mobile IQ

i O S A pps Prevalence of Basic Features (December 2011)

Key Findings Rich Media & Interactivity

Brochure-Ware While iPhone apps dominate, sophistication

Social Media Integration

Personalization

51%

lags across the Prestige 100®. The majority of brands have failed to adopt platform-specific functionality that keeps the user experience “sticky.” Less than a third of apps provide integration with the iPhone’s GPS and native

40%

mapping software. Adoption of other features

39%

is even further behind: 17 percent of apps

35%

include iOS notifications, only 16 percent incorporate the phone’s camera, and a mere

31%

five percent utilize the three-axis gyroscope (the internal component that detects the de-

28%

vice’s orientation in space and translates the user’s movements via tilt, shake, and other motions).

22% 19% 17%

16%

14%

9% 7%

ing

via

Em ail Via Fa ce bo ok Lin Vi ks a to Tw SM itte r Br an d Pa ge s InAp p Ac co un tS ign -In Bo ok m ark Ining Ap p La S ng ea ua rc ge h Sw Un i t c loc hin ka g ble M Co ini nt -G en am t eE lem en ts

sc op e

lity Re a

Gy ro

m er a

ted

en Au gm

t No t

ific

ati

t en

Su pp or

GP S

on s

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Mobile IQ

Key Findings

( L ack of ) Localizatio n Language Support for Apps Posted to U.S. App Store (iOS)

Language Barriers

(December 2011)

Within the U.S. iTunes Store, only 27 percent of the 196 apps reviewed provide support for more than one language, and only 14 apps

90%

provide trilingual support for English, French, and German. According to data from App Annie, the U.S. accounts for 28 percent of the download market for free iOS apps.14 France and Germany are among the top-five nonEnglish-speaking markets for apps, together representing seven percent of the download market. Unlike Asian markets, content within the European iTunes Stores closely mimics that of the U.S. For instance, in the French iTunes Store 87 percent of Prestige 100® brands produce mirrored content with no perceptible alteration. Only 23 percent of the apps have French

27%

language support (versus 96 percent with English language support) and only 21 percent

19%

have changed the description of the app to more effectively cater to a French audience.

11%

10% 7%

English

Multi-Lingual

French

German

Spanish

Italian

Portuguese

Chinese

Japanese

Korean

14. “The Importance of Localization in App Stores,” App Annie, November 9, 2011.

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Mobile IQ

Key Findings

T op 1 0 : M ost C omm e n ts R e c e i v e d ( i O S A P P S )

The Impact of Public Opinion

(January 2012, N=108)

In May, ABI Research reported that the iTunes Store ranking algorithm would begin taking into account qualitative information such as user reviews and frequency of usage.15 This additional wrinkle in iTunes SEO has put newfound emphasis on garnering high ratings and significant user reviews in addition to downloads. The speed with which these apps have garnered a positive reputation is reflected in their relative standing in the App Store. In December, Nordstrom had the highest

SEPHORA: Sephora to Go

285

CLARINS: Thierry Mugler—Angel

264

MACY’S: Macy’s iShop

231

NORDSTROM: Nordstrom

220

placement among the five Prestige 100 ® brands appearing on the Top-200 Free iPhone Apps listed in the Lifestyle category (#13). Similarly, Marriott had the highest placement among the six Prestige 100® brands appearing

MARRIOTT INTERNATIONAL, INC.: Marriott International

215

HILTON WORLDWIDE: Hilton

167

on the Top-200 Free iPhone Apps listed in the STARWOOD HOTELS & RESORTS: SPG Mobile App

138

BERGDORF GOODMAN: Today’s Shoe

115

INTERCONTINENTAL HOTELS GROUP: Priority Club Rewards

111

LANCÔME: Lancôme Make-Up

0 40

0 35

0 30

0 25

0 20

0 10

15. Chantal Tode, “Changes to iTunes app ranking algorithm will have wide impact: experts,” Mobile Marketer, May 5, 2011.

Travel category (#26).

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Mobile IQ

i O S A pps : U s e r S e n tim e n t

The volume of ratings and comments associated with an app is largely

Number of Ratings vs. Number of Stars Received

a function of the time elapsed since release. Only three Prestige 100®

(December 2011, N=102)

apps released in the past year appear on both the top-10 lists for overall comments and a favorable combination of quantity vs. quality of ratings:

Giorgio Armani Acqua for Life Clarins Thierry Mugler Angel

Nordstrom

CLARINS: Thierry Mugler Angel (v1.2)

Nordstrom (v1.2)

Marriott (v1.4)

September

November

August

2011

264

302

336

264

220

215

Marriott International Tiffany & Co. Engagement Ring Finder

Release

Year

Gucci Style

Ratings

Stars

Comments

# of ratings submitted Note: Horizontal axis (# of ratings submitted) is graphed on a logarithmic scale.

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Mobile IQ

Key Findings

Plain-Text MobileOptimized Email

M obil e O ptimizatio n of Email M a r k e ti n g

Email Optimization

(December 2011)

During the second half of 2011, mobile email open rates increased 34 percent, with consumers opening 23 percent of all emails on their mobile devices.16 Although 78 percent of Prestige 100® brands engage in email marketing, only 24 percent have links to mobile-optimized versions of their email

78%

content, and 55 percent opt to provide links to plain HTML versions. Low-hanging fruit abounds. Within their marketing emails, just 18 percent of brands with mobile sites have links to their mobile properties and only 19 percent of the brands

53%

with mobile apps include download links to the corresponding app store.

Regular, Non-MobileOptimized Email

24%

13%

11%

ile

-O

ile

o kt

Html-Based Email In Mobile Browser

Pr o

ize

r ti

ps Ap o kt Lin o

Lin

tiv

ail

16. “Mobile, Webmail, Desktops: Where Are We Viewing Email Now?” Return Path, research study, December 2011.

Lin Ve k to rs P ion la of in W Em eb Lin ail kt o M ob Ve ile rs -O ion pt of imiz Em ed ail

tin

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Mobile IQ T op 1 0 : F ou r squa r e B r a n d F ollow e r s

Key Findings

(December 2011) 180 160

Check-in

140

Only five percent of Americans use geolocal

120

32,191

31,367 11,330

8,699

ôm nc La

·A ·C ea so an ns d H Re ot so els r ts

15,797

Fo u

increased by nearly 30 percent, from 540,000

18,412

Hu go Bo ss

s le’ da m

ing

co Ja

y’s

n to Vu it uis

brands with a detectable Foursquare presence

cities, total check-ins generated by the 94

London, Paris, Milan, and Tokyo). Across all

Gu cc i

20,098

study period (New York City, San Francisco,

across the six cities L2 examined during the

38,244

49,918

growth at retail locations and local properties

65,923

To r

Prestige 100 brands registered high check-in

twice as likely to share product information.17

100

skew younger, register higher income, and are

(in thousands)

apps at least once a month, but these active users represent a high-value demographic. They

170,357

to 700,000 over a four-week period. Nonetheless, only 27 brands in the Index

T op 1 0 : F ou r squa r e Locatio n C h e ck- i n s

maintain an official Foursquare page, five of

(December 2011)

which were classified as “zombie” accounts

142,229

Maintains Foursquare Brand Page

= = =

New York City

(i.e., no recent activity registered from the associated brand). 48,827

ve ra

er ide

7,080

th Fif

17,077

Le M

Av en ue

Yo rk ks

sN ey rn Ba

18,066

In de

21,782

str rd

Ho tal en tin

tel

22,612

30,899

ra ph o Se Co n

m ing

le’ s W es an tin d H Re ot so els r ts

y’s ac

31,727

International

or ga

ns Ho t

17. “Marketing Via Geosocial Apps: Why and How,” Melissa Parrish, Forrester Research, December 6, 2011.

36,159

San Francisco

Int

62,417

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Mobile IQ

Key Findings

A v e r ag e G lobal M o n thly S e a r ch e s fo r P r e stig e 1 0 0 ® B r a n ds Desktop/Laptop vs. non-PC Devices

Searching On The Go

(Source: Google AdWords, November 2011)

Fourteen percent of global monthly Google searches for Prestige 100® brands originate from mobile devices, which is significant

= =

given that non-computer devices account for less than seven percent of traffic in the U.S.

NON-PC DEVICE dESKTOP/LAPTOP

14%

and less than five percent of traffic among the EU5 (France, Germany, Italy, Spain, and the U.K.).18,19 Paid mobile search is rapidly growing in importance. In October 2011, mobile accounted

86%

for approximately 15 percent of all clicks and 13 percent of all impressions on Google. During December, it is estimated that those figures rose to 25 and 20 percent, respectively.20 Despite strong evidence for the need to customize traditional SEM/SEO efforts for mobile platforms, few Prestige 100® brands 18. “Smartphones and Tablets Drive Nearly 7 Percent of Total U.S. Digital Traffic,” comScore press release, October 10, 2011. 19. “Smartphones and Tablets Drive Nearly 5 Percent of Digital Traffic in EU5,” comScore press release, October 26, 2011.

appear to be taking proactive steps. Of search returns rendered on a mobile device,

17% of Aveda’s Global Monthly Searches originate from mobile devices, which the brand capitalizes on with mobile-specific SEO.

Locations map from the organic results

only 13 percent of brands have links to any element of their mobile presence on the first page of Google returns. Fewer than 25 percent include customer service or contact

First curated result features links to the location finder and account access

info. Just over a third of the brands have store locators and/or maps returned in their results.

20. “Mobile Paid Search Share to Skyrocket in December; Remains a Significant Bargain,” James Beveridge, Performics blog, November 22, 2011.

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Mobile IQ

Key Findings Cross-Promotion

S it e - S p e cific P r omotio n of S ocial M e dia Effo r ts v s . M obil e Effo r ts (December 2011, N=70)

Mobile efforts often sit in isolation from the overall digital footprint of Prestige 100® brands.

82%

Only 28 percent of the brands in the Index are developing mobile apps promote them on their main sites. In contrast, 82 percent of the brands link to their Facebook pages and 66

66%

percent to their Twitter accounts.

39%

Only three brands maintain custom tabs on Facebook dedicated to mobile properties. Within a sample of 50 consecutive wall posts, 20 brands linked to their iOS app pages in the iTunes Store, four linked to their apps in the Android marketplace, three linked to their mobile sites, and nine linked to other mobile-related properties like Foursquare and Instagram. Within a sample of 100 consecutive tweets, just 13 brands linked to their iOS apps in the iTunes Store, one linked to its app in the Android marketplace, three linked to their mobile sites, and 12 linked to other mobile-

28%

related properties.

Promotion of mobile apps on Sephora’s homepage

Mobile Apps

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Mobile IQ

Flash of Genius Augmented Reality Goes Mainstream In March 2011 Calvin Klein began a global campaign designed to relaunch “CK One” as a lifestyle brand for the digital generation. The Print Augmented Reality Ads

360-degree campaign spanned television, print, billboard, online advertising, social media, and mobile. The mobile component of CK One encouraged users to find, reveal, and watch locked multimedia content by scanning print material

Locked Content

and billboards—effectively bridging the traditional media and digital media components of the campaign. The supporting technology leveraged image recognition instead of QR codes to enable discovery. The campaign yielded 117 million impressions of the augmented reality print ads. The cross-

Reveal, Find, Watch

platform campaign was optimized for iOS, Android, and Symbian devices.

Billboard Augmented Reality Ads

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Mobile IQ

Flash of Genius Mobile Pick Me Up

Style Profile guides you to collections of distinct looks

In November, Nordstrom launched a new app catapulting the brand to mobile leadership in the competitive retail category. The app’s built-in barcode scanner allows customers to determine whether a particular product is available at a local Nordstrom, including instore pickup. A calendar of upcoming events at preferred stores further bridges the online/ offline connection. Lastly, “Style Profile” provides users with the ability to browse a curated product selection. The Nordstrom app has already accumulated nearly 200 comments in the iTunes Store.

Buy, Bookmark, Share, or…

Pick-Up In-Store

Upcoming Events at “My Stores” bridges in-app and in-store experiences

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Mobile IQ

Flash of Genius Mirror, Mirror on the Device Virtual makeup apps have become table stakes in the beauty industry, making differentiation increasingly difficult. YSL’s ColorMirror app, released on the iPhone and iPad in October, successfully pulls away from the pack, providing enough functionality to meet the needs of both makeup enthusiasts and professionals. The app showcases all available shades and colors for nearly 40 products in 12 categories. With advanced layering and opacity options, this toolbox provides the Biometric recognition of user image

user with freedom to experiment on a virtual model or an imported photo. The sixty-five-

Blank Canvas

Infinite combinations of featured YSL beauty products

point biometrics ensures imported images are optimized to work precisely with the paintbrush tools. Most importantly, the app steadily builds an informative basket of items used to create a unique look for offline purchase.

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Mobile IQ

Flash of Genius Mobile as Media Platform Since late 2010, IWC has been porting the quarterly edition of its Watch International magazine, conceived by German design studio Ringzwei, to the iPad. The content found in these digital issues is diverse, spanning sporting events, celebrity profiles, technical innovations, and examples of cutting-edge design. This e-mag distinguishes itself from others in several ways. It features superior,

Watch International e-mag (issued quarterly)

consistent design that mimics the aesthetics showcased in the companyâ&#x20AC;&#x2122;s redesigned site (launched February 2011). Furthermore, it has several compelling interactive elements:

Intuitive navigation, bookmarking, and social sharing APIs

additional content is unlocked by changing the orientation of the device, content is easily shareable, and entries to sweepstakes are solicited from readers within the app itself.

Select product promotion tied to themes explored in each issue

ÂŠ L2 2012 L2ThinkTank.com

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Mobile IQ

Flash of Genius Multiplatform Brands in the Index struggle with multi-platform app development. Through the Priority Club Rewards app (shared with numerous sister brands), prospective guests can book rooms Discovery of 100+ properties

at InterContinental properties on iOS, Android, BlackBerry, and Windows devices. InterContinental Hotels Group (IHG) produces seven additional apps for iOS, including the innovative Concierge Insider Guides. This iPad app provides exploration of more than

Introduction to Resident Concierge with push to reservation system

120 global hotels. Each property has an introductory video from the resident concierge, insider tips, shopping and eating destinations, and an interactive map highlighting local points of interest. The app pushes users to check room availability and to make a

Insider Tips pertaining to destination

reservation through a web-based agent. These investments appear to be paying off. IHG’s revenues from mobile booking in 2011 are expected to exceed its previous forecast of $130 million (up from $38 million in 2010 and $2.5 million in 2009).21 Interactive map with which to plan travel itinerary

21. Karen Jacobs, “InterContinental sees mobile bookings sales rising,” Reuters, December 21, 2011.

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Mobile IQ

Flash of Genius See the French Sites French beauty brand L’Occitane demonstrates several best practices across the Index. It remains the only beauty brand and one of only 19 brands in the Index with multiple language settings on its mobile site. The site’s persistent navigation and search

L’Occitane’s simple but highly functional mobile homepage

utility highlight L’Occitane’s commitment to m-commerce. During the 2011 holiday season, L’Occitane introduced a Gift Finder tool to help users determine appropriate gifts based on gender, ingredients, and price. In addition, L’Occitane was one of only seven brands to offer an FAQ section and one of only eight brands to offer feedback on mobile site functionality. Inclusion of email,

Includes customer service, Facebook “Like” API, and links to social media

Facebook “Like” and Tweet APIs allow users to share their favorite products.

Robust gift-generating tool—introduced for the holiday 2011 season

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Mobile IQ

ferragamo.com main site with Flash elements

Flash of Genius Tablet Rasa The vast majority of brand sites (91 percent) are viewable on Apple’s iPad tablet, which as of October 2011 accounts for 97 percent of all U.S. tablet impressions.22 Considerably few, however, have developed an iPad or

Ferragamo’s iPad-specific experience replicates main site functionality

tablet-optimized experience. Salvatore Ferragamo, which was criticized for not developing a mobile site in conjunction with its banner ads on the New York Times’ iPhone app last fall, has developed a robust iPad site that seamlessly reflects the aesthetic and most of the functionality of the fashion brand’s main, nonmobile site.23 Although that site is run with Adobe Flash, Ferragamo’s iPad offering looks, feels and acts like ferragamo.com. The former’s m-commerce experience mirrors the latter’s e-commerce experience, including a scrollthrough slideshow of related items on the bottom of each product page.

22. Terrence O’Brien, “iPad accounts for 97 percent of U.S. tablet traffic online,” Engadget, June 24, 2011. 23. Kayla Hutzler, “Ferragamo misses the mark with mobile New York Times ads,” Luxury Daily, September 26, 2011.

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Mobile IQ Westin’s “Wipe Away Your Weather” Campaign

Flash of Genius “Wipe Away Your Weather” The market for mobile ads is quite fragmented. The total U.S. market in 2011 was a mere $630 million ($3.3 billion globally), albeit growing at 43 percent annually.24 Moreover, no single platform has established dominance, with the top three domestic players—Google, Millennial Media, and Apple—splitting 58 percent of mobile display ad revenue.25 This landscape affords broad opportunity for experimentation and innovation by brands. In October, Westin sponsored The Weather Channel’s redesigned 3D iPad app. Users could browse properties and book rooms without leaving the confines of the app.27 Most notably, the advertisement began by taking over the home screen with virtual bad weather to match local conditions (e.g, rain 24. Press Release, “Gartner Says Worldwide Mobile Advertising Revenue Forecast to Reach $3.3 Billion in 2011,” Gartner, June 16, 2011.

or snow), then encouraged users to “Wipe Away Your Weather” to reveal appealing Westin getaways.

25. Emily Steel & Jessica Vascellaro, “A Rare Apple Compromise,” Wall Street Journal, December 13, 2011. 26. Rimma Kats, “Westin Hotels & Resorts bolsters mobile bookings via TWC iPad Sponsorship,” Mobile Commerce Daily, October 24, 2011.

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Mobile IQ

Flash of Genius

New and improved iPhone app launched August 30, 2011

Shoes About Town Bergdorf Goodman’s Today’s Shoe app has been around for two years—an eternity on the iTunes Store. In late August, the brand released the third version of the app, incorporating several requested features: sort by designer, shopping cart, and social sharing. While these features are welcome additions, the wider efforts of the digital team deserve equal praise. Instead of releasing the new and improved app in a vacuum, Bergdorf timed the upgrade to coincide with a parallel digital effort, all building up to the re-launch of the physical Shoe Salon on Two. On September 12,

Blog post announcing app upgrade

“Shoes About Town” powered by Instagram launched September 12, 2011

Bergdorf introduced the Instagram-powered Shoes About Town map, which displays user submitted, geo-tagged images of footwear over a stylized map of Manhattan. In this instance, Bergdorf demonstrated a mobile strategy that integrated disparate efforts, experimented with an emerging platform, and revitalized an aging asset.

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Mobile IQ 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 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. COLIN GILBERT L2 Colin is a strategic consultant with more than three years of experience working at the nexus of the public and private sectors. Serving as a principal at the Civitas Group in Washington, D.C., he helped lead research, advisory, and due-diligence engagements for a range of clients spanning technology start-ups, defense contractors, and government agencies and specialized in matters pertaining to cloud computing, cybersecurity, and online privacy. Colin received a B.A. in History from Stanford University and an M.P.A. from the London School of Economics. While completing his graduate studies abroad, he worked with Accenture to construct case material used to demonstrate the versatility of the firm’s Public Service Value (PSV) methodology.

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 University and an M.B.A. from NYU Stern. JON WEINBERG L2 Jon Weinberg began his career as a strategist and copywriter at The Moderns, a boutique Manhattan-based branding consultancy, where he worked with clients ranging from start-ups to Fortune 1000 corporations. While there, he managed digital strategy for both the firm and its clients. Jon received an A.B. in Government with a secondary in Near Eastern Language and Civilizations from Harvard University, where he served as an associate editor for the Harvard International Review. CHRISTINE PATTON 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 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, iconography, 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.

UPCOMING EVENTS L2 Clinic Mobile

L2 is a think tank for digital innovation.

01.19.12 New York City 01.24.12 Paris

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

L2 Lunch Identifying Facebook Super Fans 02.23.12 New York City

Resea 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.

L2 Clinic Mobile in APAC 03.02.12 Shanghai

EVENT S Forums: Big-picture thinking and game-changing innovations meet education and entertainment.

L2 Lunch Google+ vs. Facebook

The largest gatherings of prestige executives in North America.

03.06.12 Paris

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

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UPCOMING Research

Working Lunches: Members-only lunches led by digital thought leaders and academics.

Digital IQ Index® Reports:

Prestige 100® Reports:

Topic immersion in a relaxed environment that encourages open discussion.

Hospitality

Brazil, Russia, India, China

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Broadcast Media

Facebook IQ

MBA Mashups: Access and introduction to digital marketing talent from top business schools.

consultin g 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.

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upcoming member benEfits Members Site: In the first quarter L2 will launch real-time tracking of digital

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metrics (vs. peers).

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