The Future of Luxury Online by megan tan

Megan Tan Course: BA Fashion Communication and Promotion Module: Negotiated Project Stage 1 Module Code: FASH30002 Tutor: Matt Gill Word count: 8782 (without quotes)

1 2 3 THE NEW DIGITAL AGE

-Connected -Growing dependancy

THE DEMOCRATISATION O F L U X U R Y - 11 - Luxury brands are digital laggards -A good or a bad thing? -Consumer Insight

DIGITAL STRATEGIES -What are brands currently doing? -Storytelling -Anyone ignoring it?

4 5 MERGING THE PHYSICAL & DIGITAL -Integration

SOCIAL MEDIA -Who is using social media? -How?

tly

6 7 8 THE NEW LUXURY COSUMER r-Targeting future consumers through digital -A day in the life -New Millenial vs Traditional consume

CLICK CLICK -Convenience -Innovations within e-commerce -Problems

STRATEGIC OUTCOME -Improving customer service online -Augmented Reality

56 2

INTRODUCTION The digital world is evolving at such a fast pace, it is effecting nearly everyone and everything across the globe. The future of luxury fashion in terms of the online world is such a fascinating topic due to the colliding worlds of digital and luxury, with luxury priding itself on being strictly exclusive, and the world wide web being very much inclusive. Social changes over the years have effected the way in which we interact with eachother, and now the way in which we interact with brands as well. Overall this report will focus on the future of luxury online, in this new digital age that we live in, by taking inspiration from what brands are currently doing in terms of this, and therefore suggesting where this may lead to in the future as technology advances even further. It will determine whether or not online and digital is the appropriate path for luxury brands to be taking, or if in fact it is simply jeapordizing these brands exclusivity and therefore diluting brand message and values. There has been ongoing debate around this current and timely issue within the luxury fashion sector so this report will initially explore the shift from offline to online, and our growing dependency on the internet. The report will then look at how brands could use online platforms to interact and engage with consumers. It also aims to help luxury brands spot potential opportunities within the current digital landscape and then incorporate these into the overall brand strategy or DNA, in order to engage new consumers, but at the same time not risk losing existing ones. Both primary and secondary research in regards to consumers will outline exactly what it is that they want when it comes to luxury online, as well as any current issues. In depth analysis will be carried out on brands that are currently using digital innovatively and successfully, allowing other luxury brands scope to expand on these or make their own in the near future.

The New Digital Age

â&#x20AC;&#x153;The term digital has become so much a part of our everyday vocabulary that we never really stop to consider what it means, let alone reflect upon the impact it has on our livesâ&#x20AC;? (Green and Taylor, 2012)

CONNECTED The idea of looking at the future of luxury fashion online, initially stems from interest in to the subject of peoples dependency on the internet in a modern day society and the idea that this dependency is becoming so much a part of our daily lives, that all types of brands are having to adapt their overall strategies to fit in with the advancements of technology. Dependency on the internet is changing the way in which brands market there products, and with this constantly growing, there will be changes in the way luxury fashion is perceived when it comes to online. 7

Initial research looked at the growth of the Internet over the years, and how everything is now online â&#x20AC;&#x201C; it would be almost impossible for any brand to dismiss an online presence. The fact that 171 billion emails are sent out daily, that 180 million websites are browsed everyday or that there are over 170 million blogs in the cyberspace shows the importance of the internet for todays society. (Okonkow, 2010)

The Internet is constantly growing; In 2013 86% of households enjoyed a broadband connection, up from 80% in 2011 (Mintel, 2013). This statistic shows the steadily increasing growth of Internet usage, with no signs of slowing down. This confirms the idea of the internet becoming an essential tool in peoples livesâ&#x20AC;&#x201C; it is inescapable, something that all brands must take in to account when it comes to considering their online presence. Just like the Internet is for individuals, it is unavoidable for brands if they want to reach out to a wider range of consumers. The cyberspace world is developing in such a fast manner that it is expected to reach two billion users by the end of 2015 (Okonkow, 2010).

GROWING DEPENDANCY (Harrison, 2012) says: “we have become increasingly dependent on the internet for things we need to maintain our normal life. If this trend continues, as most expect it will, we may not be able to survive so easily without the Internet.” Previously, day to day life did not depend on the Internet, if we wanted something we would go out and get it from a store, the internet was not available to browse beforehand. However now that the internet has become not so much of a luxury, brands must have an appropriate online strategy to meet growing consumer demands . It is interesting to note that our generation is the last ‘unplugged generation’. “To the pre-digital generations, technology was introduced as a luxury-a compliment to everyday life. Our unplugged experiences have established boundaries in our digital lives. That is no longer the case -the digital world isn’t an accessory; it’s life.” (Kohrman, 2013). This is essential when considering marketing in todays digital era, where the new millennial generations are so reliant on the internet and technology, that it would be damaging for a brand to ignore. Digital is simply a way of life - so the way in which they present themselves online is something that luxury brands really need to focus on.

Research from a survey (See appendix 3) shows that 47% of people spend over 4 hours a day using the internet, making it evident that brands should be using this tool to engage consumers. This is a substantial amount of time for brands to engage with potential consumers, also suggesting that the internet can be one of a brands most successful marketing tools, possibly overtaking offline, traditional methods in the future. All respondents aged 18-60 used the internet for at least one hour a day, with the 18-35’s spending even more time, making them the most ‘connected’ generation, which suggests online marketing is essential to attract and engage this particular demographic to a brand. The New millennial’s are the future consumers of luxury so targeting them now through these platforms is both essential and beneficiary to brands. This is further backed up with Tom Ford who has spoken about the internet saying: “I live, I shop almost exclusively on the Internet. I’ve bought cars on the Internet. I watch television, I do everything on it. I even watch my son online,” referring to the baby monitor camera app that he is able to check on his iPhone.” (Amed, 2013)

The democratisation of luxury

“Any brand with an audience below 50 cannot ignore digital” (Thomson, 2013)

LUXURY BRANDS ARE DIGITAL LAGGARDS “Keep the masses out so that the people who can afford to buy their way in feel they’re exceptional” (Ortved, 2011) This is exactly why luxury brands have been skeptical when it comes to embracing digital. They are usually at the forefront of innovation, with high street brands following behind. Ironically, when it comes to digital innovation luxury brands have been much slower to adopt this trend due to the fact digital and online platforms are accessible to the masses. Online makes brands inclusive, when luxury brands have worked so hard and pride themselves on being exclusive – the polar opposite, which is where the debate of fashion vs digitality comes in to play. Brand image is all about inaccessibility so that they can remain, aspirational - something that some can only dream about, which is all part of the allure of luxury. Online struggles to support this as everyone can engage with it. Despite this juxtaposing message that the digital world is conveying, in todays society luxury brands are finding that digital is inescapable. “If companies, brands and even individuals don’t adopt to the online culture they they’ll fall behind/miss out” (Beswick, 2013). Beswick is adamant that luxury brands should not ignore digital and by doing so they will lose out on potential customers, as well as fall behind, losing relevance in a modern day society. This fear has made some luxury brands panic as they now realize that an online presence is essential. 13

“A couple of years ago, we were in Italy, and we met with [Donatella] Versace and [an executive at] Armani…and they were like, ‘Digital, whatever,’ remembers the CEO of an agency that deals with several lux brands. ‘Now it’s, ‘how can I do it?’There’s been almost a cataclysmic shift.” (Ortved. 2013) However, luxury brands are finding out that digital is not so easy and if approached without extreme caution, it could backfire. Entering the digital universe must be done so carefully and not for the sake of it, or there is really no point. Fabien Baron speaks about brands giving off a diluted message when they decide that they need to use digital by putting a film online, and do it

quickly, behind the scenes as well as being poorly produced. If the quality of the film is not as high as the print ad there is no point in doing this. The brand should be able to convey their core identity and values through digital, in the same way as print. Without this there is no point a brand using digital fo the sake of it. (Ortved, 2013)

Not everyone believes that technology and digital is the right strategy for luxury brands to be taking. Lee Colman speaks about brands using technology but not actually doing anything for the consumer, which is a wrong investment in technology - he believes you should be there for the consumer in person. (Thomas, 2012) Consumer research also supported the idea os this debate, with mixed feelings towards the subject. Some felt that luxury becoming so democratized has made brands lose an air of exclusivity, no longer feeling that they are part of a small elite community of people that can afford to buy in to this lifestyle. One consumer said “ I think it can make existing customers feel less special sometimes, as everyone can engage with such brands now.”(see appendix 24) “Yes it is making it too accessible and begs the question of “is luxury still luxe if it can be engaged with by all?” (Waller. 2013). This begs the question of how can luxury be defined in the digital world. Just because something is online does it take away its luxury status? Having said this, many Industry experts have been in favor of brands having an online presence: “I believe there is a fine line, over exposure and wide availability can damage brands exclusivity. Brands that are selective in their online presence and limited stock do have potential” (Toogood, 2013). This suggests it is possible for brands to remain exclusive online. Limited stock or perhaps limited edition ranges online can work well, backed up through primary research, with one consumer saying: “ Another reason why I will often purchase online is when there are exclusive collections on the internet, that you cannot get in store” (see appendix 23). 15

A good example of this is the exclusive capsule collection Mulberry launched in November 2013 for online retailer Mr Porter (see figure 1) At a talk with creative director from Burberry, the question of whether digital was taking over, and would eventually overtake the in store experience gained this response: “I hope not. It won’t overtake, but you have to move forward as people and technology are changing – you must move with the times. Digital however is catching up but there will always be that need to touch something physically.” (Stogden, 2013) This suggests that there will always be a future for physical luxury stores, but brands

Figure 1. Mulberry x Mr Porter

should be aware that digital is catching up rapidly, so must be taken in to consideration just as much as the offline world is. Head of Marketing at Louis Vuitton, (Bouvier, 2013) says: “It is a great opportunity for luxury brands to communicate with a broader audience. A role of luxury is to make people dream and I think digital offers that opportunity”. Again this suggests that digital marketing is equally as valuable as traditional methods even more so within the luxury sector as it allows people to dream - something that goes alongside the aspirational factor involved in luxury.

“Online is an important space in which to present a luxury message – whether it is about highlighting brand provenance or heritage” (Brooks, 2013). This states that online is a new dimension for brands to present themselves and show off in the appropriate way to a wide range of consumers, which is where democratization becomes a good thing, as everyone can see what the brand has to say for themselves directly; they have their own voice which is self controllable. Many consumers have said that they enjoy engaging with luxury brands online for this exact reason - to find out about the heritage of the brand, with one consumer saying “I often look at brands own websites to find out whats new. I also enjoy to find out about the heritage of the brand before I purchase from them. I am very interested in the craftsmanship involved in the making of luxury items. This makes me justify spending so much money on them. “(see appendix 24) 17

digital age is redefining the â&#x20AC;&#x153;The industry for the better; opening it

up to the world, getting consumers involved and enriching it with new talent

â&#x20AC;?

(Green and Taylor, 2012)

CONSUMER INSIGHT Ipsos MediaCT found that among US affluents with household income of more than $100,000 per year, the amount of time spent online grew nearly one-quarter from 2011 to 2013, at 32.8 hours per week to 41.6 hours per week, respectively (EMarketer, 2013) Further to this, primary research has shown that 78% of luxury consumers enjoy interacting with luxury brands online (see appendix 11), arguing the case that accessibility is not quite as damaging, as some may think. At the end of the day consumer needs are at the forefront, and research has proved there is a clear demand for consumers to be able to interact with luxury brands through the internet, it must not be ignored. Affluent consumers are spending an increased amount of time online and are also willing to engage with luxury in this way, meaning brands need to find innovative ways to engage the consumers, which will be suggested in the recommendations.

Consumers also agree that luxury brands will lose significance if they do not move forward with one participant saying: “There presence will decline” (see appendix 21). Technology is becoming more advanced and brands must adapt for the future millennial consumers of luxury as there expectations grow, alongside innovations within digital. According to a survey conducted by Luxury Interactive and ShopIgniter, “63 percent of luxury marketers believe that digital marketing will surpass print, television, and loyalty programs in importance by 2015.” This really reinstates the idea of online being very much a part of the future of the luxury industry.

Both consumer and industry expert insight, has suggested that brands must embrace the online world in order to stay ahead and meet consumer demands. Although ongoing debate surrounds this topic, the overall consensus suggests brands cannot ignore digital. However what brands must realise is that if they do not understand their consumers needs and adopt digital in to their overall strategies, then they may be perceived as uninspiring or backward. This leads on to the next chapter which will highlight how brands are currently using digital, in exciting and innovative ways to engage consumers.

Digital Strategies

â&#x20AC;&#x153;

Digital is everyhing and nothing. (Sheehy, 2013)

â&#x20AC;?

WHAT ARE BRANDS CURRENTLY DOING? BURBERRY CASE STUDY Burberry is regarded as the ultimate leader, at the forefront of all digital innovations within the luxury market. Burberrys focus on digital has made them relevant to a new generation who previously knew nothing about the brand. (Morrison, M) This is an extremely clever marketing strategy, which opens them up to a mass market and ultimately increase sales and profits, as well as consumer loyalty. The turning point, which set Burberry apart from other luxury brands in the digital universe was when they created Art of the Trench in 2009 where people could upload photographs of themselves wearing the iconic burberry trench coat and have it featured on the website. (see figure 2)

Figure 2. Burberry Art of the Trench homepage

â&#x20AC;&#x153;They really have created a brand that appeals across the board and I think that everYthing, stores, advertising, online, e shots all have the same 100% polished look and voice. â&#x20AC;&#x153; (Waller. Email. 2013)

Figure 3. Screenshots of Burberry Kisses website

This media campaign was appealing to Burberry’s high-end customer base but also generated interest in the new youthful, aspirational future customer. One of they key factors in its success was the way in which they marketed the campaign, using word of mouth and social media rather than explicit marketing. This clever tactic allowed the campaign to have an exclusive ‘in -the-know’ feel that appealed to the luxury consumer, who were made to feel like they were special. So how has this benefited the brand? In the year following the launch, Burberry’s Facebook fan base grew to more than one million, the most amount of fans any luxury brand had at that time. E-commerce sales grew 50 per cent year-over-year, partially because of increased web traffic, from Art of the Trench and Facebook. The site had 7.5 million views from 150 countries in the first year. Another great digital innovation from is the Burberry Kisses campaign, partnered with Google, which allows users to send letters that are sealed with a virtual kiss to loved ones across the globe (see figure 3) This interactive campaign can be seen as a “clever and charming example of humanising technology n order to interact with the consumer in a more personal way” (Swinton, 2013). Personal interaction is key to luxury brands, as consumers do not want to feel they are just one in a million being marketed to, with the same standard approach, which research has proven (see appendix 3). Luxury consumers want to feel feel special, like they are getting a personalised service that not just anybody can receive, especially when they are spending so much money. According to Google “The brief was to create an emotional connection between the Burberry brand and Millennial consumers”. You can actually see the kiss travel across the globe which brings the experience even more to life. The fact that the brief was aimed at millennial consumers, highlights the importance of targeting this consumer group through digital now, so that they will grow to love the brand. The fact the brief aimed to target millennial consumers shows that digital is an essential tool that must be used for these younger consumers. “Burberry Kisses began with the idea of giving technology a bit of heart and soul, and using it to unite the Burberry family across the world - by telling a story that makes the digital personal.” (Sowray, 2013) “While many of us are waiting for the day we can afford a Burberry trench, campaigns like Burberry Kisses are keeping the brand top of mind and close to our hearts” (Swinton, J. Online) showing the importance of enticing millennial consumers in to the brand now so that when they do have the money to buy in to the brand, it will already be in their mind as something which they have aspired to be a part of.

Figure 4. Burberry Smart Personalisation

Burberry also launched a new made-to-order catwalk and “smart personalisation” service, which has taken personalisation to a whole new level. Consumers were able to order items they see on the A/W 2013/14 catwalk show to be delivered to them nine weeks. Additionally, these bespoke pieces including outerwear and bags allow consumers to have their names engraved into the metal coat tag or bag plate adding a unique and personal touch. Each of these items have a built-in technology allowing consumers to hold their smart phone over this in order to activate video footage with shows how the garment was made, showing its journey, even including design sketches. (see figure 4). This also works inside Burberrys Regent Street store which will show the video’s on large screens around the store. This is a great way to showcase the expert design and craftsmanship that goes in to making each product, something that is important to consumers: “I watched the Burberry

Smart personalisation video recently and thought it was absolutely fantastic. It gives you such a feel of the brands heritage and the amazing work that goes in to making the products. It is really getting across the sense of ‘luxury’ in a video (see appendix). “This campaign also illustrates how the luxury industry is ceaselessly trying to find a balance between the demand for immediacy and the value of time, as a key element of quality, in order to stay at the cutting-edge of digital innovation.” (Taffet, 2013) Overall the campaign manages to integrate personalisation within digital as well as getting across the values of the brand, which as mentioned previously is key when trying to engage consumers. Through all these digital campaigns, streaming of live runway shows and making themselves accessible to the masses, Burberry has managed to really boost its brand value as well as achieving market dominance, making it a key success story when it comes to luxury brands using digital.

“Luxury brands should have content - a blog or magazine, which is what the smartest brands have realised” Figure 5. Net a Porter The Edit

Net a porter was one of the ultimate turning points in the luxury industry, when it comes to selling online. A crucial part of Net a Porter’s success is down to the online publication ‘The Edit’, which is providing engaging , curated content to consumers (see figure 5) This strategy ensures the brand has control of the communication channels. as the consumers hear directly from the brand itself. The features within The Edit place Net-aPorter’s products in context. They act to inspire readers and then give them an opportunity, within the publication, to purchase the pieces they liked. The fact that no other

(Thomson 2013)

luxury brands have their own online publication like this is key to its success. Other brands should adopt the idea of merging publications and its user curated content with online shopping. Primary research found this to be an important factor behind the reasons customers chose to shop at Net a Porter (see appendix 16). Observational research found that when one consumer browsed the website for a prolnged period of time, the most time was dedicated to ‘the Edit’ highlighting the popularity of this with consumers, as it manages to engage them before going on to purchase (see appendix 26). 30

Motilo case study Motilo, is an online fashion site that launched in 2011. It is a fashion store that recreates the ‘fun aspect’ of shopping together. The different video and chat functions allow friends to shop together in real time. The website uses bespoke advanced technology and the interactive canvases allow consumers to style outfits and looks using products from Motilo’s luxury affiliates such as Net a Porter and Matches. Once looks are created users can then involve their actual friends and getting feedback on looks before purchasing, which is often what consumers need. They can also share the looks with the Motilo Community or via social networks.

“Sofia Barattieri, CEO of Motilo.com says “Motilo is the natural evolution of online shopping. We all use Facebook. We all shop online. Now Motilo brings the best of shopping and social networking together in one place.” “ This is important to note when considering the future of luxury online, as Motilo is really trying to evolve the overall online shopping experience, by injecting a fun factor in to it. Consumers want a pleasurable experience, and with advancements in technology there will be increased demands for a better online shopping experience. E commerce will require new and innovative ways to do so, which Motilo is offering. The idea with Motilo was that if shopping can be a social activity offline, it can become a social activity online as well. They are doing something different and exciting which other luxury brands do not provide, which is why they stand out so much. “The fashion-conscious consumer is changing how we shop,” says Barattieri. “They’re looking at social media and blogs for their opinions – e-tailers are catching up with that. They are pushing the change – that’s exciting.” Although Motilo is not yet a household name to match the likes of Net-a-porter, what is important to point out ,is the fact that the website is at the forefront of the next generation of online shopping, it is already one step ahead of the game. It reflects the way we’re using the internet for fashion now and how we will be in the future which is why Motilo is such a fitting example for this report which looks at the future of luxury online. Motilo even won most innovative website at the Guardian awards for digital innovation 2012. 31

Figure 6 Figure 6. Motilo Website (screenshots)

Figure 7. Tiffany What Makes Love True Website

“The website demonstrates that today’s web (and indeed luxury) is about sharing emotions and not about dictating.” (Oknonkow,2011).

Tiffany is also using digital in an innovative way to connect with consumers, with their multi media campaign ‘What Makes Love True’, launched in June 2011. This campaign initially consisted of a website and iPhone app, featuring love themed user curated testimonials. In 2012, the brand expanded to Instagram with “True Love in Pictures.” Firstly, Tiffany used street style photographers and bloggers Scott Schuman and Garance Doré to take pictures of couples in Paris and New York with Tiffany then asking users to submit their own and use the hashtag #TrueLovePictures (see figure 7). Within months, there were thousands of shared photos with many of them accumulating a substantial amount of likes.

What makes the campaign so successful? Firstly the website is completely based on real human concepts, with real stories and emotions making it easy for consumers to relate to. The universal theme of love can emotionally connect with nearly all consumers. The overall concept is heart warming and touches on a very important element for luxury brands which is all about an emotional connection with people. This website is making consumers aspire towards pleasure, with sensory codes being used to ignite the dream factor as well as arousing emotional responses from people. The campaign highlights the importance of luxury brands using the internet to engage consumers through the sharing of emotions rather than hard marketing techniques. Another factor adding to the success of the campaign, is the lack of obvious product display which is often seen in many luxury digital campaigns â&#x20AC;&#x201C; the product is not right in front of users, instead the brand has tactically tried to reach out to the users emotions and items are often flashed extremely discreetly throughout. Overall, the campaign is a perfect fit for the luxury jewelry retailer as it promotes the lifestyle of Tiffanyâ&#x20AC;&#x2122;s customers and not just the products themselves, ultimately creating a connection with users rather than purely trying to sell a product. Although anyone can download the app for free, the fact it joins tiffany consumers together really fits in with the exclusive nature of the brand.

“People buy stories not products. It is all about the story whether online or offline.” (Sheehy, 2013)

STORYTELLING What campaigns such as Burberry’s Kisses, and What makes Love True have in common is the fact they are providing luxury consumers with a unique personalised experience, through telling a story and connecting with them emotionally.

‘More than anything else, the luxury brand is an epic tale, carried by its stories: storytelling is its mode of expression.’ (Kapferer and Bastien, 2009: pg.122) It is important for brands to adopt the notion of storytelling as a means to communicate with consumers by using emotion. This is what will really get across the brands personality and values, by building their own dialogue and allowing consumers to engage through embarking on a journey that can relate to their own emotions. Storytelling adds an aspect of authenticity to luxury brands and is a new and exciting form of engagement which appeals to consumers.

Tom Ford says “I think one of the reasons I was really resisting digital, was because it’s less controllable.” (Amed, 2013)

ANYONE IGNORING IT? A brand that has shunned digital in the past is “Too cool for school” Tom Ford by barely having a website which can be the most appropriate gesture to make in the social media space on some level by refusing to engage. (Cardona, 2013) Another thing that Tom Ford has done is put on a super secret show. While most luxury brands are now live streaming their shows from London Fashion Week, tom Ford done quite the opposite. In September 2010 he held a secretive show in his New York store with this approach which went counter to the prevailing winds that were beginning to transform and democratise the industry.Only one hundred superelite editors were invited. and images were not released until the collection was actually available to buy. Attendees where not allowed to tweet or take their own photographs, resulting in the show being absent from social media Even brands such as Chanel who currently refuse to sell online, accept that things are changing in the digital landscape with CEO Pavlosky saying: “Chanel has to adapt. Five years ago we were doing one advertising campaign per collection. Now we are doing lots of different content and are obliged to change our mindset. We are in a new world and everything is moving very fast” (Amed, 2012)

Merging the physical & digital

INTEGRATION

“The brands that will lead in luxury online are those that embrace the Internet as a complement to offline activities, instead of viewing it as a threat. The main challenge is to translate the brands image, personality and core identity on the website.’’ – (Okonkwo,2011 - p.21)

According to (Morrison, 2012): “What sets Burberry apart from other fashion houses – is the dedication to digital and the seemingly effortless weaving of the medium into everything the brand does”. Christopher Bailey talks about how digital should never be an afterthought or a checklist that is something to do. He believes digital is a way we live and by dealing with it as a project it will be superficial. He also believes that the melding of the digital and physical worlds is what makes the strategy of the brand. (Morrison, 2012) This highlights the importance of brands overall integrated communication strategies - digital should be part of this rather than a separate platform, and brands should draw from the success of burberry in the digital universe as they do just this.

Brands like Gucci and Chanel are practicing this through visual consistency across all platforms from online to offline. The brand image that is presented in store is also present online. (see figure 8)

Figure 8. Integration Moodboard

Figure 9. Gucci Men’s store via Google Maps

It is no longer a case of online vs. offline, it is a question of how the two can successfully be integrated in to a brands overall strategy, which is what we are seeing and will ultimately be the future of luxury fashion online. “Vera Wang president said: ‘we haven’t so much shifted, but rather we have allocated additional recourses to build, support and promote our social media platforms’”. (Ortved, 2012). Online should avoid segregating themselves from each other, but instead embrace one another, and become part of a brands DNA.

Primary research through store visits found that consumers often know what they want before they visit physical stores – (see appendix 33) “Many consumers come in with articles from a magazine or online where they have seen something they want.” (Store Assistant, Prada, 2013) A survey also found that 80% looked online before visiting the store, with the online presence often influencing their decision (see appendix 13). The fact that so many have browsed online prior to store visit highlights the importance of the online experience in relation to the offline one. The online experience should drive consumers to visit the stores, if they don’t feel comfortable actually purchasing online. A sales assistant in Gucci said that online can be viewed like a catalogue, so this platform must present collections in a desirable way, which will encourage people to purchase. (see appendix 33). This research proves the importance of a luxury brands online presence through its website. The fact that it acts like a catalogue means that products must be displayed and talked about in a way that will make people want to buy in to the brand. Online is also a chance for the brand to talk about their own heritage. To further back this up, a google/ Ipso report found that 75% of luxury goods buyers conduct advance research online, regardless of where they purchase

Gucci are trying to merge the physical and digital worlds through there joint venture with Google Business Photos, allowing customers to explore the store the comfort of their own home (see figure 9). It is an excellent way to show off a flagship store by bringing the digital customer inside the store in a new and innovative way. The fact that luxury brands can really tell great stories through their physical stores in something key to their success and they were able to expose this through the internet, something we may begin to see more of in the future. This would be appropriate for time poor consumers who cannot get to brick and mortar stores but would still like to live this experience through the internet. It may entice consumers to visit the physical store, but at the same time encourage consumers who are not so in touch with digital, to both engage with the brand and shop online.

Social Media

WHO IS USING SOCIAL MEDIA? When it comes to social media, many luxury fashion brands have millions of followers or likes, however the question must be raised in regards to who these followers actually are. Verderi says: “We see brands fight over the number of friends on Facebook and judge their initiatives based on number of ‘likes,’’ but who are those friends? Are those people luxury brands ever wanted to talk to?” (Ortved. 2012) This point is reiterated through a conversation with Antony Waller (see appendix). “Social media is great for building conversation about the brand. It can build admiration for a luxe brand but it cannot build loyalty for the simple fact that only about 0.01% of those can probably afford to buy it” (Waller, 2013) It is not always a luxury brands intended clientele that will engage with the brands through social media, it is often aspirational consumers who are unable to purchase from the brand. In this aspect, social media does not always create financial benefit for the brand, but what it does do, is gets these aspirational consumers thinking about the brand, which will be beneficial in the future. 45

Social media is about as accessible as it can get when it comes to digital, which is why brands were at first dubious to indulge in this. However, social media is becoming more a part of the fabric of peoples lives, including luxury consumers.

“All the recent changes in social media are very exciting and it is a fantastic opportunity for brands to actually make an impact and to talk A study by Experian found that social to their customers more directly and networking accounts for more than a quarter of more personally than ever before.” time spent online. With internet users spending so much of their time on social networking sites, luxury brands must use this as a marketing tool, as well as traditional offline and print marketing.

(Jehanne, 2012)

“Facebook revealed that it attracts 1.1 billion active users each month. It should be clear by now that the online social space has become part of the fabric of daily life. Yet brands and marketers are still not making the most of the opportunities social media presents them with” (Garside and Rushe, 2013) According to Unity Marketing Research “eighty percent of people with an income of over 250,000 are social media users, and 50 percent have used social media to learn about a brand or see new products..” Following on from this, primary research conducted found that 90 percent of luxury fashion consumers used social media, with 85 percent interacting with luxury brands via this. Instagram and Twitter were found to be the most popular.(see appendix 3 and 11). This suggests that luxury consumers are open to try new digital innovations through social media.

Another way in which consumers use social media is as a platform to share with others their luxury purchases, particularly through Instagram and Facebook.

HOW? Now it has been established that that social media is an extremely effective platform to engage luxury consumers, particularly younger ‘tech savvy’ ones, the question is now in regards to how brands can go about this?

Figure 10. Gucci Twitter feed

“A perception remains that social is the preserve of official PR feeds, enterprising promotions and the occasional viral success – not as a site for sustained conversation with a community of active and productive consumers.” (Dickins. 2013. Online)

Research has shown that although brands are using social media to increase engagement, many are not using it to its maximum potential, with few brands creating as highly successful and innovative campaigns from the likes of Burberry. Even though most luxury brands now have a social media presence, their social marketing often does not seem to be appropriate for their target consumers. What brands need to take note of is that social media should not be used as a sales tool. Brands should be tapping in to consumers lifestyles and engaging them through this. Social media is most effective if it gives meaningful, insightful engaging content to the consumers rather than trying to sell products (Stern, 2012), Gucci prefer to push news and brand messaging at its consumers instead of trying to get involved with them and create content to engage in conversation (see figure 10). What Gucci should be doing is allowing its consumers to become closer to the brand in a way that other media does not allow such as providing followers with exclusive fashion tips or giving them access to exclusive events, which will ultimately encourage more people to engage. They should engage their social audience through exclusive, informative and insightful content.

Pavlosky says â&#x20AC;&#x153;But we need to have something to say. We do not just tweet to tweetâ&#x20AC;? (Amed, 2012)

Figure 11. Chanel Twitter Feed

Luxury brands must have a deep understanding of their audience and use this to their advantage by placing consumers at the heart of conversation. If they share their brand voice and identity on social media, platforms like twitter can give brands an opportunity to demonstrate their amazing customer service due to the conversational and photographic content on such sites, which will be extremely impactful for the brands. A good example of this is Chanel - they tweet a variety of brand related videos and backstage content which manages to exude a sense of exclusivity as well as interesting, engaging information about the brand. (see figure 11 )

As previously mentioned, storytelling is a key way in which luxury brands can engage consumers and the Facebook Timeline, is allowing brands such as Tiffany, Louis Vuitton and Burberry to tell the story of the brand through this feature. For example Tiffany shows consumers the monumental moments in the brands history such as information of when the brand first started. (see figure 12)

Figure 12. Tiffany Facebook Timeline

An excellent example of a brand who has really grasped the idea of using social media to engage consumers, is Oscar de la Renta, through its ‘Oscar PR girl’, who has over 250.000 followers on Twitter, and the constant flow of updates via Twitter, Instagram and Tumblr. The PR Girl has managed to communicate her love & admiration for Oscar in a very personal way whilst also giving exclusive ‘behind the scenes’ peeks in to the brand. The brand released its fall 2013 campaign (as seen in figure 13) on social-mobile platform Instagram instead of waiting to show it off in September magazines weeks later, with this managing to gain thousands of likes within the first hour. This gave Oscar de la Renta’s thousands of followers to gain an exclusive peek at the collection before everyone else. The digital strategy even incorporated e-commerce within it. Online presale for the collection launched when the photos were put up, so consumers could shop for the looks after seeing them. They were the first brand in the industry to showcase a cmapaign in this way and it is another sign of how the digital world, and social media platforms are impacting the way fashion brands reach consumers, due to this ‘social revolution’. . “It’s less about a “print versus social media” mentality and more about tying everything together to create a cohesive brand message that hits all touch points.” This again reiterates the idea of integration being key when it comes to online and offline, which is something Oscar de la Renta is successfully doing through this idea, whilst also positioning the brand among younger audiences. The fact that Oscar de la Renta’s social media is run all by the same person, Erica Bearman, allows the brand to have a consistent and relatable voice. This is an example of how humanisation of such social media sites can really leverage a brands message and convey their values. It is communicating with consumers on more of a personal level rather than just seeming like an automated computer message.

“Through the use of social media, Bearman skillfully manages to balance the designer’s incredible history with the present, and gives followers a rare behind the scenes peek of the awe -inspiring world of the brand whilst preserving its dignity.” (WWW, 2012)

â&#x20AC;&#x153;As perceptions begin to shift regarding social media as an open platform to engage consumers for exclusive products, the time is ripe for premium brands to establish dedicated social presences.â&#x20AC;?

d â&#x20AC;?

(Dickins. 2013)

It can now be seen as essential as these platforms have become part of their existing customers dialogue, but also created great opportunities to foster future consumers at an early stage. They must be careful when it comes to retaining a sense of exclusivity but can do so through engaging existing consumers and also people who want to aspire to be part of the brand. Additionally, brands can understand consumer needs, from receiving immediate feedback, strengthening brand relationships with consumers.

Figure 13. Oscar de la Renta Fall 2013 Campaign

The new luxury Consumer

TARGETING FUTURE CUSTOMERS THROUGH DIGITAL A 2011 Digitas study noted that over the next decade digitally entrenched millennials will become the next major luxury buyers – and should therefore be targeted now. Research has proven a younger consumer is so in touch with digital that luxury brands should use such technology to target new millennials, who may currently be aspirational consumers but will eventually have enough income to purchase. Of course this does not mean that other generations should be ignored, as they are still willing to engage with brands online to a certain extent (see appendix 11 and 24). You must be careful not to exclude the current luxury consumer, who are the ones who are loyal to these brands and spending the money.

“As I am so obsessed with the internet and

all things social, as I suspect many other people my age are, it is essential for brands to have a strong online presence so our generation can interact with brands in a way that is very familiar to us”. (see appendix 18) New Millennial consumers are very important within the future of luxury as they are the future consumers, set to become the ‘new breed’ in coming years. Brands should work towards building relationships with the generation now to build loyalty. This group will take over as the largest generational segment in the luxury consumer market around 2018-2020”, according to Unity Marketing.

“It still will be a very small percentage of those younger people you capture today that will turn into customers. However their ‘voice’ and power does build brand reputation which can help the brand with collaborations, investments etc. “ (Waller, 2013) The suggestion is to focus on using digital platforms such as social media to engage with a tech savvy millennial future consumer generation, as it is important to note the future consumers will be these new millennials who are ‘digital natives’. Considering the nature of this report is based around the future of luxury, it is appropriate to address this now. This is further backed up by (Toogood 2013) who said that this was a “great marketing tool as younger clients are more viral and viral marketing is often more trusted.” 57

Figure 14. Louis Vuitton 360 degree view of products

This is key when thinking about a brands online presence and the power of the internet. People, in particular younger consumers love to share their feelings about brands via different social media platforms, so it is important to get people talking about the brand in a way they deem to be good. It is also important to note that this age group, according to a report on Mintel, are the most dedicated followers of fashion, are major drivers of sales within the luxury clothing market, however due to their limited spending power these purchases are often made only when items have been dramatically reduced in price. (Mintel, 2013)

Store observation found a number of key things in the way consumers shop; consumers who were looking at accessories such as handbags or purses liked to try on and hold up to themselves. They often looked at such items from every angle, as well as closely inspecting intricate detailing, something that must be incorporated to the online store so that consumers can easily view products. As seen in Figure 14 Louis Vuitton offers a 360 degrees option to view products, as well as a zoom in option, with additional images showing clear and detailed views.

Additionally, many consumers required assistance, often speaking with sales advisors, as well as sitting down in designated spaces to have one on one consultations

A D A y I N THE LIFE OF

The new luxury consumer

Koulla Sergi Age 26 Fashion assistant/Stylist 60

Consumer research has shown key differences between the different types of luxury consumers, with an older more traditional one and the younger new millenial consumer. (see appendix 23-25). Research has proved that the younger generation of new millennial consumers enjoy interacting with brands through both online and social media platforms more so than an older consumer. This is not to say that an older consumer will not interact with luxury via digital, but rather suggesting it is more essential to target the younger consumers through this as research has proven everyone in this demographic appears to be very much ‘connected’. As can be seen in Figure 15, one new millennial consumer interacts with all of this technology on a daily basis, all of which are connected to the internet throughout the day. She does not go anywhere without these items, and uses them to browse various luxury brands websites as well as using social media, showing the significance of online presence when it comes to communicating with this ‘new breed’ of consumers.

Figure 15. Technology Moodboard

Overall findings have lead to the conclusion that digital marketing is an appropriate strategy to engage new millennials at an early stage, as this is something so familiar with that generation they do not know any different. For older consumers, luxury fashion is often about going in store and living the â&#x20AC;&#x2DC;luxury experienceâ&#x20AC;&#x2122; in person, but for younger consumers, who will ultimately be the future for luxury brands, they have been brought up with digital as a way of life, so why can they not live a luxury experience digitally if they know no different?

â&#x20AC;&#x153;It is not a case of mirroring the in store experience, it is about doing something differentâ&#x20AC;? (Thomson, 2013)

Click Click

According to a report from the Boston Consulting Group: “some 13.5% of all purchases were done over the internet in 2010, and this is projected to rise to 23% by 2016”. (Rigby, 2013) This means that more and more of us are shopping online with almost a quarter of UK retail sales to be made online by 2016. Luxury shopping online plays a part in this, and will only continue to grow. Bolen talks about when Oscar De la Renta received an online order in 2009 for an $80,000 coat from a customer who was unable to get to new york. they said: we could not have been more wrong in our expectations of the internet. Online purchases are still a small proportion of total sales but are growing rapidly. (Grouso, 2012), suggesting this service can be extremely profitable for luxury brands. Jonathan Saunders backs this up, saying: “There was a snobbery about shopping online not that long ago, we would buy staples but you would never buy a cocktail dress for £3,000. Think about how much that has changed.” (Amed, 2013) These statements both suggest that e commerce will play a crucial part in the future of luxury online, as demand increases.

François-Henri Pinault, chairman and CEO of PPR says: “While the whole industry has been resisting e-commerce for the last 15 years it’s now realising it’s inescapable.” (Glenapp, 2012)

CONVENIENCE Primary research found that those who shop online are often time poor and live further out from major cities, so in terms of convenience e commerce is important: “I am time poor, I live outside of the city, so it is hard for me to get to the stores. I will go to the stores if I am in a city, but the rest of the time it is easier for me to order online. “(see appendix 16) This is supported with Mallen saying: “Glamour readers love internet fashion. The internet is just one more way four our readers to indulge in their fashion obsession.

They have incredibly hectic lives juggling careers, social lives and often families, so internet shopping offers them a way of saving time” (Wiseman, 2012) According to a sales assistant in Prada, some items are different from country to country and items sold in particular countries may not be available in another, so for this online is ideal, for product availability. (see appendix 33)

“

”

“It is unstoppable, people will open up more and more to purchasing online” (Waller, 2013)

Primary research has shown that 45% of respondants purchase both in store and online, with 16% preferring to shop online completely, which proves that luxury consumers are willing to use the internet for such purchases. (see appendix 13) Lucie Toogoode also agrees that luxury brands should be using e-commerce: â&#x20AC;&#x153;It is the right direction as brands have to be in line with market demands and technology is a key leader. E-commerce is growing faster than stores and it reaches out to clients that do not have a store in their local area.(Toogoode, 2013) â&#x20AC;&#x153;Sell your goods online if your clients expect you to (and in most cases they do)â&#x20AC;? (Okonkow, 2010, p.3) Due to the growing demand of consumers wanting to purchase luxury online, and the way things are going, Okonkow suggests that you must do what it is the consumers want, which research has proven is online as well as in store.

Chanel do not sell their clothing online with Pavlosky saying: “To be able to wear Chanel clothes, you need to try them on. I think it’s part of Chanel. It’s more than just our service. It’s part of our differentiation. It’s a strategic choice.” (Amed, 2012) However, it is interesting to note that they also say “But perhaps two years, three years, five years from not we will start to sell [clothing] online” (Amed, 2012, which again suggests the future of luxury is gearing towards online purchasing, so luxury brands must address this now (Amed, 2012).

INNOVATIONS W ITHIN ECOMMERCE With more and more consumers purchasing online, brands must think of more innovative ways to make the online shopping experience pleasurable and distinctive, as the future of luxury online changes. Oscar de a Renta’s ‘True Fit’ technology tool on its e-commerce site, is a great example which personalizes the shopping experience for customers (see figure 16). Customers can find the styles that match their taste as well as body type. The software asks several personal questions about a customer’s body type and style and then collects and saves the data to propose the matching items.

Figure 16. Oscar de la Renta ‘True Fit’ technology

The software resulted in a higher traffic on the website and higher sales. The strategy is resulting in increased sales mainly due to decreased returns as consumers know exactly what they are ordering. Additionally it strengthens consumer loyalty due to a more positive, satisfying shopping experience. Oscar Del la Renta is using this tool to create the personalized shopping experience that consumers expect from luxury brands.

The use of Augmented Reality is changing the way consumers shop online. French luxury jeweler, Boucheron, used this technology allowing consumers to virtually try on watches and jewelry through their website.

At the launch of its app site traffic rose 50 percent and still runs 10 percent up year on year. Also, 8 percent of visitors to the site downloaded the app and tried on the rings. Boucheron was able to remain true to its brand values of provenance, craftsmanship and tradition whilst also using innovative technology to talk to its customers. (Lamb, 2013)

Another innovation we may see more of in the future are shoppable video’s which brands such as Hugo Boss and Gucci have used (see figure 17). The short films allow consumers to investigate various items, and the audience sees how each item might be used in a natural context. Brands are utilising digital and realising that consumers, demand more when it comes to the overall online shopping experience.

These types of video’s are helping brands to stay relevant and helping to engage both existing and potential consumers. They are a way of versatile shopping that are both captivating, whilst full of product options that are presented in a way that might imitate a consumer’s actual path on a web site. This is much more interesting than simply flicking through still images of products on a brands website.

“This is a dynamic approach to featuring content and enabling a seamless strategy from inspiration, to desire to purchase,” {Mccarthy, 2013)

Figure 17. Gucci Shoppable Video

Buying straight from the runway is an evolving innovation within the luxury fashion world, with brands such as Burberry allowing consumers to purchase pieces from its collection immediately after the runway show (see Burberry case study). Consumers were able to “Shop the Runway” following the brand’s London Fashion Week show, and by doing this Burberry is able to give consumers a unique experience of owning an item long before it hits store shelves. This encouraged impulsive purchasing when the collections are initially showcased due to the fact consumers do not want to wait and feel they are receiving a special and personalised service through this. Another advantage to buying straight from the catwalk is that brands can see what is and isn’t working in a collection which can then be refined before it goes in store (Waller, 2013) 75

There are issues with the current e-commerce experience, which are preventing consumers from purchasing online with one consumer saying: “I would not buy luxury online, as I am paying for the overall experience and high level of customer service you receive in store. I also do not like the fact you cannot try items on.” (see appendix 24) Another issue highlighted through store visits is the fact that products may look different in screen. In Mulberry a sales advisor spoke about consumers often complaining about the colours or materials of products looking very different in real life. (see appendix 33) This is again mentioned by Tom Ford: Indeed, Ford is perplexed by how digital is changing the fashion industry. “I love black dresses, I think everyone should own a lot, but black dresses don’t sell online because on the computer they don’t read like anything. Fashion has changed so much because of the Internet, not only because of the way it’s reported, but more and more [because of] the way it’s sold.”. (Amed, 2012) Brands must try to address such issues, using an innovative and engaging approach to create solutions to the existing problems related to luxury shopping online, which will be further explored in the recommendations section of the report.

CONCLUSION Overall, this report has found that luxury brands have slowly started to embrace digital, with some key players such as Burberry really engaging younger millennial consumers, through a variety of original innovative concepts as outlined in this report. Whilst luxury brands have been hesitant in previous years to use online platforms, the report has shown both arguments for and against luxury brands being online, due to the exclusive vs accessibility debate. Extensive research has suggested in todays digital age it is absolutely essential for all luxury brands to have an online presence, with brands finally realising that digital must be part of their overall marketing strategy, in order to keep up with consumer demands. Brands finally realise that the digital landscape is an excellent way to demonstrate their brand message, as well as build relationships with consumers.

Another key area brands must focus on is their e - commerce sites, as research has shown this will become even more apparent in the near future, with increased purchasing online.

This has resulted in brands being forced to focus on the way in which they sell these products online, to meet consumers high expectations they have come to form from in store experience. It is evident that many luxury brands could utilize digital even further in order to engage a younger â&#x20AC;&#x2DC;tech savvyâ&#x20AC;&#x2122; demographic, through the use of social media, their online website and online store. There is still massive room for improvement especially as technology advances, and allows better opportunity for luxury brands to do so. The main issue is now how these brands can incorporate digital whilst retaining a sense of exclusivity at the same time, whilst also engaging and attracting more potential consumers. The recommendations discussed will be useful for brands overall strategies.

Strategic outcome

Research throughout the report has proved that there is growing demand for e-commerce, with it looking set to steadily increase in the near future, as a result of more and more consumers now open to purchasing online. To meet these consumer demands luxury brands must think of innovative ways to make the online shopping experience as pleasurable and exciting as the in store one, whilst also offering consumers fresh and exciting ways to purchase online. “E-commerce is something that we have to do or we have to define how to do it,” said Federico Barbieri, senior vice president of e-business at Kering. “I can’t understand why the industry has been hesitant or shy about jumping into it. In digital, if you want to keep engaging the consumer and keep positioning your brand and molding your business, you have to do it. There s no barrier, and the future is there, and you have to define what a luxury brand experience is online.” (Strugatz, 2013)

The report has proven that it is essential for brands to have an online presence in todayâ&#x20AC;&#x2122;s digital era with more brands increasingly offering e-commerce stores as they have begun to realise this is an integral part of the brands overall strategy in regards to the future of luxury online. Research has shown that consumers are willing to shop online with 40 percent of consumers either preferring to shop online, or will do both online and in store.(see appendix 11).

Research has shown that digital should never be an afterthought brands must incorporate digital in to the brands DNA, and overall strategy which is why these suggestions should become the way of life for luxury brands in the future.

Understandable reasons are given from consumers who do not currently shop online, therefore these recommendations intend to offer solutions to these issues in order to attract a wider range of people to both shop online and digitally engage with luxury brands. They should also help luxury brands to work towards meeting the growing consumer demands and expectations of the online shopping experience, something only a few years back people did not believe would be viable. These recommendations will not only hope to increase e-commerce sales, but also engage a younger tech savvy consumer to the brand, with research suggesting this is something brands should focus on at an early stage. 82

“ An integral part of offline luxury marketing is that personal touch. Why would you not use the same approach online? ” (Lilley, 2013)

IMPROVED CUSTOMER SERVICE ONLINE Exceedingly high levels of customer service and the one on one attention received in luxury stores was one of the core reasons consumers chose to shop in store, rather than online (see appendix 17). “I get such a thrill from going in to the luxury stores and being greeted with such exceptional customer service. You are made to feel so special when you are in the shop and I believe that is part of what you are paying for with luxury. I would not be willing to spend so much money on products if I wasn’t getting such good customer service.” (see appendix 24) This begs the question of why this high level of customer service cannot be replicated online - luxury brands pride themselves upon the fact they offer consumers such an exceptional experience with the added personal touch upon visiting stores, so surely they should want to recreate this online, in order to maximize profits for the company.

Currently, there is a lack of personalisation when it comes to customer service online, with brands such as Dior simply offering a telephone number for consumers to call to assist with help and advice (see figure 18). Assistance is not as easily accessible to them, as it is in the physical store. Why should this be any different online when the consumer is still spending the same amount of money? If somebody is about to purchase a ÂŁ2000 bag, and has a last minute enquiry before they do so, why would they want to wait for a response, or even worse, have to go out of their way in order to contact someone regarding this?

By then the brand may have already lost a sale, with such a delayed response. Help should be on hand immediately, and should come to the consumer, not vice versa, particularly within the luxury sector. Brands such as Burberry do have a live chat option, allowing you to speak to a consultant on the computer, as well as a call back option demonstrating that luxury brands are beginning to address this issue in the digital universe, but not to its full potential.

Figure 18 - Screen shot of the Dior checkout page

A suggestion that brands could adopt to overcome this current issue, is the use of a live webcam chat with a customer sales assistant or stylist, available to consumers instantly. This should pop up in the corner of the screen allowing the consumers to browse products as they speak with someone face to face. Luxury brands need to make sure that their websites are as simple and easy to navigate as possible (see appendix 11), so should offer an easy approach in setting up this instant live chat option, with clear instructions of how to do so. The option to start the live chat should be visible to users alongside products and content, so that product related inquiries can be asked immediately rather than at the checkout stage, where it may be of less use. Consumers can gain product knowledge through this live chat function - for example, if they are unsure of certain detailing or the material of a product, and would like to know more. Product and even brand information can be gained easily, and quickly with the personal approach consumers would experience in store, rather than typing questions in to a computer screen. In addition to this brands could offer the opportunity to talk with a personal shopper, to give both style advise and product recommendations to consumer. Having this option to talk with a personal shopper will give consumers that same feeling of luxury they have when they receive such a service in store, but from the comfort of their own home instead. This is something that consumers find important when it comes to shopping in general: â&#x20AC;&#x153;Going in store can be a bit of an effort, if you can have it whilst sitting down then I would rather go online. It is so much easier being able to look at products from the comfort of your own home,â&#x20AC;? (see appendix 23). How much more of a personalised and luxurious experience can you get in the digital world? This could be more of a bespoke service than the general enquiries web cam chat which should be available instantly. Brands could email existing consumers to inform them about the free online personal shopping experience, something which consumers will not have used before. This digital personal shopping experience is something that currently no luxury brands offer, so a brand adopting this would be at the forefront of innovation within the e-commerce experience. Oscar de la Renta, have touched upon this with their personal shopping service via chat (see figure 19), but this is nothing like having face to face interaction, making consumers feel they are gaining an overall more personal experience, something research has proven to be key. 85

Fig

Figure 19 - Oscar de la Renta Personal Shopping Online

This will allow all users to experience the live webcam chat function for any enquiries they might have, but existing consumers are offered an even more custom built service of taking part in a digital personal shopping experience before everyone else can, adhering to the exclusive nature of luxury brands. Other consumers should then be able to book a time slot to do the same, in addition to the general enquiries feature. The way in which it should work is for the stylist to speak to the consumer via webcam chat, and then electronically compile a selection of product recommendations that they might like. These can then be added in to the consumers basket (the stylist should be able to have access to this online) allowing the consumer to then go back and look at these and choose which ones to purchase. There should be a feature incorporated where the stylist is able to place different items into different ‘folders’ in order to create ‘looks’, similarly to Motilo (see case study), which is the kind of service consumers would receive in store. The consumer can discuss outfit choices with the personal shopper before ultimately purchasing.

Consumers should be made aware of this new feature through the homepage of the e-commerce store, immediately informing consumers of this new and exciting service available, which may encourage them to browse further. before leaving the website. Additionally personal invitations via email should be sent out to existing customers, with the option to make an appointment. Of course brands should also promote the new feature through social media, in order to let their existing digital consumers know. Overall, this should help to make the consumer feel at ease, creating a suitable solution to the issue of consumers currently being unable to receive a personal customer service experience through the internet and is almost as good as being there in person. This can be seen as the internets alternative to having a highly qualified personal shopper with you in store. This will also make the overall online shopping experience easier and more pleasurable for consumers which should be at the forefront of brands minds, when it comes to their e-commerce stores.

Figure 20 - Amazon Kindle Fire

As can be seen in Figure 20, Amazon have used a ‘Mayday’ button available on the new Kindle Fire, allowing consumers with technical issues, to simply click this button and be instantly linked to a customer service advisor through a live video. By investing in the customer service online, brands such as Burberry are seeing significant benefits: “Ahrendts said sales growth was in line with the company’s expectations. “This performance reflects continuing strong brand momentum and our team’s intense focus on retail execution, supported by a planned increase in investment in marketing, customer service offline and online and our retail portfolio.” (Butler & Rankin, 2014)

This statement, suggests that increased investment in the customer service provided online, can result in increased sales for a luxury brand, highlighting the importance of digital as well as the physical store. Digital should provide consumers with the level of service they have come to expect through visiting luxury stores. You cannot get any more personal than face to face interaction which is able to mirror the in store experience to a certain extent. Currently, no luxury brands offer this feature, so if a luxury .

AUGMENTED REALITY The second suggestion is to incorporate Augmented Reality in to luxury brands online strategy, within the online store. Research has shown that a major factor as to why consumers will not purchase online, is due to the fact they are unable to try products on and visualise what they might look like (see appendix 12,19,22). This is a common problem with online purchasing, with few luxury brands addressing this through the use of technology. This recommendation could be applied to a broad range of luxury brands who are trying to engage a younger consumer, through the use of digital. With advancements in technology, brands can begin to resolve this issue through the use of Augmented Reality. This is a way to visualise real world products in incredible detail, where products can be worn and viewed on the body as though looking in a mirror. The real world is superimposed with virtual images. (Holition). Although this has been around for a few years with brands such as Boucheron (see figure 21) having already experimented with this within the luxury sector, through the creation of an app to try on watches, it is still not part of any brands overall strategy, with “Chipendale saying: “Brands are seeing that by building augmented reality into a brand’s DNA it can be used to increase e-commerce”. (Lamb. 2013)

This technology may be the future for luxury brands when it comes to their online websites, resulting in both increased web traffic and e-commerce sales. For luxury brands who are trying to engage a younger audience what better way to attract attention and interest by introducing cutting edge technology within it, appealing to this digital generation.

Figure 21. Boucheron using Augmented Reality

Augmented reality is creating a highly engaging and exciting experience for consumers. It provides both visual and experiential appreciation of a product and is an excellent way to build a relationship with digital customers and persuade them to purchase online. As found in the report, it is important for luxury brands to target new millennials now as these will be the future drivers in the luxury market (see chapter 6) Digital is a part of their daily language so engagement through this would be highly appropriate for the younger consumer. Augmented reality provides brands with a fun and interesting way to do so, with the personalised aspect encouraging users to feel the need to try it, showing that the brand is putting consumer needs at the forefront of their overall strategy, through exceptional forward thinking digital content.

The way in which brands use it however, must be appropriate to a luxury consumer and must not come across as either amateur or gimmicky -ignoring the value factor. A potential way to do this would be for brands to send consumers a card in the post, with an appropriate marker for them to use in order for the augmented reality to work properly. This will then turn to life when held in front of the computers webcam, allowing consumers to try different products. Brands should send this to their existing consumers, with a personalised message alongside the marker, explaining the new technology and instructions of how to use this.

â&#x20AC;&#x153;Personalization is a key factor in exclusivity, so donâ&#x20AC;&#x2122;t have digital for the sake of it but make it personalized.â&#x20AC;?. (Stogdon, 2013) This really stresses the importance of a personalised experience in the digital world, so this method of sending existing consumers the information about the technology, will make them feel particularly special. There should also be an option to print this off from home for everyone else, allowing a wide range of potential consumers to engage with such technology but at the same time making the brands existing consumers feel that they are particularly superior by receiving a personal invitation to try it out. The main focus of the report looks in to how luxury brands can remain exclusive whilst being online, so by using this approach to introducing augmented reality, brands are able to do this.

“This revolutionizes the concept of online shopping, where sales might be prevented due to the fact that consumers are unable to try on clothing.” (Wyers, 2013)

Motilo (see case study), has suggested that social shopping is the future for online, with additional research proving that new millennial consumers like to share their purchasing habits with friends via social media websites such as Facebook and Instagram as seen in figure... and seeking reassurance from friends (see appendix 33). As a result of this, it would be appropriate for brands using augmented reality within their online stores to allow consumers to share photographs of themselves straight to social media websites in order to gather peoples opinions or ‘likes’ before purchasing products. Rather than simply sharing images of a product, what better way to share than images of the consumer actually virtually wearing these products? The social integration is key within this technology as consumers have never before been able to try on an outfit and send it to a friend for approval. This could also be done through having a dedicated Facebook page or Instagram account similar to Tiffany’s what makes love true campaign (see figure 7) where the consumers are able to share these pictures - so that they can feature in part of the brand online, creating an online community and strengthening brand loyalty. This idea is very much suited to the younger, digital consumer rather than an older more traditional luxury consumer, which is why it would be appropriate for a luxury brand who is aiming to target younger consumers in the future. This use of social media not only gets word out about products and the brand, but gets people to interact with your product in a way that is meaningful to them. Additionally it is also a great way to promote products through consumers themselves rather than the actual brand, by creating such a community. “Third parties such as fashion bloggers, stylists, friends and family are more likely to give an honest opinion and consumers are therefore always more likely to respond to their promotion of a product,”

Deborah Hall says: “Augmented reality is a unique opportunity to engage users in a personalized way by adding content to their environment wherever they are.” The incorporation of augmented reality could be promoted in store first through magic mirrors such as the ones that have been used in Topshop in Moscow back in 2011 (see figure 22). Consumers can try this out and be informed about the fact they can try this technology in the privacy of their own homes. Driving online traffic from in store relates back to the idea of integration which was explored throughout the report. If consumers try this in store and like it then it may make them feel more comfortable ultimately making purchases on the internet with the assistance of augmented reality as well as addressing the issue of consumers being unable to try

Figure 22 - Topshop interactive mirrors in Moscow store

Additionally, it can create the perception of personal exclusivity which is crucial in retaining the exclusive nature of a luxury brand. It also provides a sensory experience creating brand desire which is necessary when trying to engage millenialls in this digital age. Holition say “Although in a steady growth phase, Juniper Research suggest the turning point for commercialising AR will come in 2013-2015, with projected global market value of £1.4b at this time”, making augmented reality an appropriate and timely innovation for luxury brands to adopt now. Although over the years many brands have experimented with augmented reality it is not fully integrated in to any luxury brands online store at this current moment in time.

Overall, research has led to the findings that digital and online is very much the future for luxury brands whether they like it or not. New millennial consumers will be the new breed of luxury consumers, who are â&#x20AC;&#x2DC;digital nativesâ&#x20AC;&#x2122; so must be addressed through such platforms. The recommendations outlined can be adopted by luxury brands when it comes to their online stores in order to try and engage more consumers and increase sales, as more and more people are opening up to purchasing online.

REFERENCES & BIBLIOGRAPHY

LIST OF REFERENCES Green and Taylor, 2012. Fashion vs Digitality [online]. Not just a label. Available at:http://www.notjustalabel. com/editorial/fashion_vs_digitality [Accessed: 4th November 2013] Okonkwo, U, 2010. Luxury online: Styles, Systems, Strategies. Palgrave. Londom: Macmillan. Mintel, 2012. Fashion Online. Mintel. [online] Available via: Mintel Database [Accessed: 21 December 2013] Harrion, R, 2012. Are We Becoming too Dependant on the Intenet? Unplugged... The Blog. August 8 2012. Available at: http://www.austin-williams.com/blog/post.cfm/are-we-becoming-too-dependent-on-the-internet [Accessed 28 September 2013] Kohrman, M. 2013. One Millenialâ&#x20AC;&#x2122;s conflicted feelings about plugging into the digital revolution [online]. Fast Company. Available at: http://www.fastcompany.com/3013143/unplug/one-millennials-conflicted-feelings-about-plugging-into-the-digital-revolution [Accessed 28 September 2013] Amed, I. 2013. The Business of Being Tom Ford: Part 2. [online]. Business of Fashion. Available at: http://www.businessoffashion.com/2013/09/the-business-of-being-tom-ford-part-ii.html [Accessed: 29th November 2013] Thomson, A, 2013. Winkcreative: Telephone conversation with Megan Tan, London, 24 November 2013. Ortved, J, 2011. Is Digital killing the Luxury Brand? [online]. Adweek. Available at: http://www.adweek.com/ news/advertising-branding/digital-killing-luxury-brand-134773 [Accessed 28 November 2013] Tan, M (megantan@hotmail.co.uk), 2013. Nottingham Trent Research Project. 11 November 2013. Email to: Sedge Beswick (sedgeb@asos.com) Thomas, C. Luxury brands must develop their customer experience to suvive. [online0. Huffington Post. Available at: http://www.huffingtonpost.co.uk/2012/11/20/luxury-brands-must-develop-their-customer-experience-to-survive_n_2165351.html [Accessed: 15th November 2013] Waller, A, 2013, LSN Global Online vs Offline Conference. 26 November 2013 Tan, M (megantan@hotmail.co.uk), 2013. FCP dissertation research questions. 18 November 2013. Email to: Lucie Toogood (lucietoogood@hotmail.com) Stogdon, G, 2013. Burberry Talk [Talk to Fashion students, Nottingham Trent University] 29 November

Tan, M )megantan@hotmail.co.uk), 2013. Dissertation Questions. 20 November 2013. Email to: Melanie Bouvier (bouviermel@yahoo.fr) Orsini, P, 2013. The luxury Consumer. Shoppers lead brands to digital channels. E Marketer [online] Available at: http://www.iprospect.com/wp-content/uploads/2013/12/eMarketer_The_Luxury_Consumer-Shoppers_Lead_Brands_to_Digital_Channels1.pdf [Accessed: 14th November 2013] Brooks, D, 2013. Luxury Focus” selling the story behind the brand [online]. Drapers. Available at: http:// www.drapersonline.com/in-business/luxury-focus-selling-the-story-behind-the-brand/5054939.article [Accessed: 29th November 2013] Swinton, J, 2013. How Burberry’s digital strategy is boosting brand value [online]. The Guardian. Available at: http://www.theguardian.com/media-network/partner-zone-brand-union/burberry-digital-strategy-brand [Accessed: 6th December 2013] Sowray, B, 2013. Sealed with a Kiss: Burberry’s latest innovation [online]. The Telegraph. Available at: http://fashion.telegraph.co.uk/news-features/TMG10113717/Sealed-with-a-kiss-Burberrys-latest-innovation.html [Accessed: 4th December 2013] Taffet, J, 2013. Burberry introduces smart personalisation for shoppers [online]. Shopper Culture. Available at: http://shopperculture.integer.com/2013/03/burberry-introduces-smart-personalization-for-shoppers.htm [Accessed: 30th December 2013] Cochrane, L, 2012. Jonathan Saunders and Motilo: is this the future of fashion online? [online-. The Guardian. Available at: http://www.theguardian.com/fashion/2012/dec/12/jonathan-saunders-motilo-fashion-online [Accessed: 4th January 2014] Okonkow, U, 2011. Why Tiffany’s multimedia campaign rocks! [online]. Luxe Mag. Avaliable at: http:// www.luxe-mag.com/en-september2011-digiluxe-tiffany%E2%80%99s-multimedia-campaign-rocks/?popup=true [Accessed: 29th December 2013] Sheehy, P, 2013. Online vs Offline Conference [talk to students, Broadway Cinema] 23 November. Kapferer, J. and Bastien, V. (2009). The Luxury Strategy:Break the Rules of Marketing to Build Luxury Brands. London: Kogan p.53 Cardona, M, 2013. Chi-chi vs. channels: Can social media sell luxury? [online]/ Economist. Avaliable at: http://www.economistgroup.com/leanback/channels/chi-chi-vs-channels-can-social-media-sell-luxury/

Morrison, M, 2012. A focus on Digital makes Burberry relevant to a New Generation [online]. Ad Age. Available at: http://adage.com/article/cmo-strategy/a-focus-digital-makes-burberry-relevant-a-generation/238671/ [Accessed: 10th December 2013] Garside, J and Rushe, D, 2013. Facebook profits rise despite drop in US visitors to its website. The Guardian. [online]. Available at: http://www.theguardian.com/technology/2013/may/01/facebook-loses-10m-visitors-us [Accessed: 9th January 2014] Dickins, J, 2013. Social media is an underused opportunity for luxury brands. The Guardian. [online]. Available at: http://www.theguardian.com/media-network/media-network-blog/2013/jun/14/social-media-opportunity-luxury-brands [Accessed: 14th December 2013] Stern, D, 2012. Twitter: giving luxury brands a voice [online]. The Drum. Available at: http://www. thedrum.com/content/twitter-giving-luxury-brands-voice [Accessed: 18th December 2014] Unknown, 2012. Style stalkerâ&#x20AC;? Erica Bearman [online]. Who What Wear. available at: http://www.whowhatwear.com/style-stalker-erika-bearman [Accessed: 17th January 2014] Mintel a, 2011. Consumer Attitudes towards luxury brands. Mintel. [ONLINE] Available via: Mintel Database [Accessed: 22 December 2013] Glenapp, R, Luxury fashion brands canâ&#x20AC;&#x2122;t resist e-commerce [online]. The Guardian. Available at: http:// www.theguardian.com/media-network/media-network-blog/2012/oct/23/luxury-fashion-brands-ecommerce [Accessed: 8th January 2014] Rigby, C, 2012. Almost a quarter of UK retail sales to be online in four years: study [online] Internet Retailing. Available at: http://internetretailing.net/2012/03/almost-a-quarter-of-uk-retail-sales-to-beonline-in-four-years-study/ [Accessed: 8th January 2014] Wiseman, E, 2012. One-click wonder: the rise of Net a porter [online], The guardian. Available at: http://www.theguardian.com/lifeandstyle/2010/jul/11/natalie-massenet-net-a-porter-internet-fashion [Accessed: 3rd January 2014] Okonkwo, U, 2010. Luxury online: Styles, Systems, Strategies. Palgrave. Londom: Macmillan. Lamb, R, 2013. What luxury brands have been missing in augmented reality [online]. Evins. Available at: http://evins.com/aperture/?p=1935 [Accessed: 17th January 2014] McCarthy, J, 2013. Hugo Boss bolsters summer collection in shoppable video [online]. Luxury Daily. Avaliable at: http://www.luxurydaily.com/hugo-boss-wraps-summer-collection-in-shoppable-drama/ [Accessed: 15th January 2014]

Strugatz, R, 2014. Luxury brands split over e-commerce [online]. Available at: http://www.iamomnichannel.com/luxury-brands-split-over-e-commerce/ [Accessed: 4th November 2013] Butler, S and Rankin, J, 2014. Online sales and in-store iPads give Burberry a Christmas boost [online]. Available at: http://www.theguardian.com/business/2014/jan/15/burberry-shares-rise-christmas-salesincrease [Accessed: 20th January 2014] Lilley, I, Personalising the Luxury eCommerce experience [online]. Luxury Society. Available at: http:// luxurysociety.com/articles/2013/02/personalising-the-luxury-ecommerce-experience [Accessed: 22nd January 2014] Wyers, A, 2013. 24 Augmented Reality Retail Experiences [online]. Trend Hunter. Available at: http:// www.trendhunter.com/slideshow/augmented-reality-retail [Accessed: 22nd January 2014]

100

LIST OF ILLUSTRATIONS Figure 1. Mulberry x Mr Porter (2013) [screenshot] Available at: http://www.mrporter.com/journal/ journal_issue141/2#1 [Accessed: 30th December 2013] Figure 2. Burberry Art of the Trench homepage (2013) [screenshot] Available at: http://artofthetrench.com/ [Accessed: 18th December 2013] Figure 3. Burberry Kisses website (2014) [screenshot] Available at: http://kisses.burberry.com/ [Accessed: 18th December 2013] Figure 4. Burberry Smart Personalisation (2013) [photograph]. Available at: https://www.prote.in/en/ feed/2013/02/burberry-smart-personalisation [Accessed: 29th December 2013] Figure 5. Net a Porter The Edit (2013) [screenshot]. Available at: http://www.net-a-porter.com/magazine/231/contents [Accessed: 15th December 2013] Figure 6. Motilo Website (2013) [screenshot] Available at: http://www.motilo.com/ [Accessed: 15th December 2013] Figure 7. Tiffany What Makes Love True Website (2014) [screenshot] Available at: http://www.tiffany. com//WorldOfTiffany/WMLT/Stories/Default.aspx [Accessed: 15th December 2013] Figure 8. Tan, M. Integration (2013) Moodboard [Moodboard] Figure 9. Gucci Menâ&#x20AC;&#x2122;s store via Google Maps (2013) [Photograph] Available at: http://luxurylaunches. in/gucci-virtual-store.php [Accessed: 30th December 2013] Figure 10. Gucci Twitter feed (2014) [screenshot] Available at: https://twitter.com/gucci [Accessed: 110th January 2014] Figure 11. Chanel Twitter Feed (2014) [screenshot] Available at: https://twitter.com/CHANEL [Accessed: 10th January 2014] Figure 12. Tiffany Facebook Timeline (2013) [screenshot] Available at: https://www.facebook.com/ Tiffany?fref=ts [Accessed: 10th December 2013] Figure 13. Oscar de la Renta Fall 2013 Campaign (2013) [advertisement] Available at: http://www. wwd.com/images/processed/wwd/2013/07/24/landscape/01-large/instagram-oscar-de-la-renta-teaser.jpg [Accessed: 3rd January 2014] Figure 14. Louis Vuitton 360 degree view of products (2014) [screenshot] Available at: http:// www.louisvuitton.co.uk/front/#/eng_GB/Collections/Women/Handbags/products/Speedy-30-MONOGRAM-M41526 [Accessed: 10th January 2014]

101

Figure 15. Tan, M (2014) Technology Moodboard [moodboard] Figure 16. Oscar de la Renta â&#x20AC;&#x2DC;True Fitâ&#x20AC;&#x2122; technology (2013) [screenshot] Available at: http://www.oscardelarenta.com/ready-to-wear/ [Accessed: 15th December 2013] Figure 17. Gucci Shoppable Video (2012) [photograph] Available at: http://video-commerce.org/wp-content/uploads/2012/04/gucci-shoppable-video.png [Accessed: 15th January 2014] Figure 18 - Screen shot of the Dior checkout page (2014) [screenshot] Available at: https://wwws.dior. com/couture/en_gb/checkout/panier [Accessed: 15th January 2014] Figure 19 - Oscar de la Renta Personal Shopping Online (2014) [screenshot] Available at: http://www. oscardelarenta.com/ready-to-wear/personal-shopper/ [Accessed: 15th January 2014] Figure 20 - Amazon Kindle Fire (2013) [photographh] Available at: http://wivb.com/news/national/amazon-unveils-kindle-fire-hdx-with-247-live-help_60250314 [Accessed: 15th January 2014] Figure 21. Boucheron using Augmented Reality (2011) [photograph] Available at: http://jasonharding. co.uk/boucheron-augmented-reality/ [Accessed: 15th January 2014] Figure 22 - Topshop interactive mirrors in Moscow store (2011) [photograph] Available at: http:// www.stylus.com/global/processedimages/2011/may/rc_0411_th12/rc_0311_ni042_--__w_760_.jpg [Accessed: 15th January 2014]

102

BIBLIOGRAPHY BOOKS Kapferer, J. and Bastien, V., 2009. The Luxury Strategy:Break the Rules of Marketing to Build Luxury Brands. London: Kogan Page. Lent, R., 2009. Selling Luxury: Connect with Affluent Customers, Create Unique Experiences through Impeccable Service, and Close the Sale. Hoboken, N.J: Wiley. Okonkwo, U, 2010. Luxury online: Styles, Systems, Strategies. Palgrave. Londom: Macmillan. Okonkwo, U., 2007. Luxury Fashion Branding: Trends, Tactics, Techniques. Basingstoke: Palgrave Macmillan. Thomas, B, 2011. Direct and digital marketing in practice. London. A. & C Black Tungate, M., 2009. Luxury World the Past, Present and Future of Luxury Brands. London: Kogan Page. DATABASES Google Think. How Affluent Shoppers Buy Luxury Goods. Google [Online] Available via https://www.google. co.uk/think/research-studies/affluent-shoppers-luxury-goods-global.html [Accessed: 2nd January 2014] L2 Thinktank. Fashion. L2 Thinktank. Digital IQ Index [online] Available via: L2ThinkTank.com Mintel a, 2011. Consumer Attitudes towards luxury brands. Mintel. [online] Available via: Mintel Database [Accessed: 1st November 2013 Mintel b, 2012. Fashion Online. Mintel. [online] Available via: Mintel Database [Accessed: 1st November 2013] JOURNAL ARTICLES Kim, Angella J. ; Ko, Eunju, 2012. Do social media marketing activities enhance customer equity? An empirical study ofluxury fashion brand. Journal of Business Research [Online). 2012, Vol.65(10), pp.14801486. Available at: http://www.sciencedirect.com/science/article/pii/S0148296311003584

103

Seringhaus, F. H. Rolf, 2005. Selling Luxury brands Online. Journal of Internet Commerce, 2005, Vol.4(1), pp.1-25. Available at: :http://dx.doi.org/10.1300/J179v04n01_01 Xia Liu ; Alvin C. Burns ; Yingjian Hou, 2013. Comparing online and in-store shopping behavior towards luxury goods. International Journal of Retail & Distribution Management [online]. 2013, Vol.41(11/12), p.885-900. Available at: http://www.emeraldinsight.com/journals.htm?articleid=17098927&show=abstract WEBSITES Amed, I. 2013. The Business of Being Tom Ford: Part 2. [online]. Business of Fashion. Available at: http://www.businessoffashion.com/2013/09/the-business-of-being-tom-ford-part-ii.html [Accessed: 29th November 2013] Baker, R, 2013. Luxury brands afraid of digital and social [online]. Marketing Week. Available at: http:// www.marketingweek.co.uk/news/luxury-brands-afraid-of-digital-and-social/4006785.article [Accessed December 15th 2013) Brooks, D, 2013. Luxury focus: selling the story behind the brand [online]. Drapers. Available at: http:// www.drapersonline.com/in-business/luxury-focus-selling-the-story-behind-the-brand/5054939.article [Accessed 29th November 2013] Brooks, D, 2013. Luxury Focusâ&#x20AC;? selling the story behind the brand [online]. Drapers. Available at: http:// www.drapersonline.com/in-business/luxury-focus-selling-the-story-behind-the-brand/5054939.article [Accessed: 29th November 2013] Butler, S and Rankin, J, 2014. Online sales and in-store iPads give Burberry a Christmas boost [online]. Available at: http://www.theguardian.com/business/2014/jan/15/burberry-shares-rise-christmas-sales-increase [Accessed: 20th January 2014] Butler, S, 2011. [online]. Sarah Curran: the woman who built a wardrobe with doors all over the world [online].The Guardian. Available at: http://www.theguardian.com/business/2011/oct/13/sarah-curran-my-wardrobe-fashion [Accessed 25th November 2013] Cardona, M, 2013. Chi-chi vs. channels: Can social media sell luxury? [online]. Economist group. Available at:http://www.economistgroup.com/leanback/channels/chi-chi-vs-channels-can-social-media-sell-luxury/ [Accessed: 9th December 2013] Cochrane, L, 2012. Jonathan Saunders and Motilo: is this the future of fashion online? [online-. The Guardian. Available at: http://www.theguardian.com/fashion/2012/dec/12/jonathan-saunders-motilo-fashion-online [Accessed: 4th January 2014] Cunningham, N, 2013. Does augmented reality have a future in luxury fashion? [online]. Cream. Available at: http://www.creamuk.com/news/2012/06/does-augmented-reality-have-a-future-in-luxury-fashion/ [Accessed: 15th January 2014]

104

Dickins, J, 2013. Social media is an underused opportunity for luxury brands. The Guardian. [online]. Available at: http://www.theguardian.com/media-network/media-network-blog/2013/jun/14/social-media-opportunity-luxury-brands [Accessed: 14th December 2013] Garside, J and Rushe, D, 2013. Facebook profits rise despite drop in US visitors to its website. The Guardian. [online]. Available at: http://www.theguardian.com/technology/2013/may/01/facebook-loses-10m-visitors-us [Accessed: 9th January 2014] Glenapp, R, Luxury fashion brands can’t resist e-commerce [online]. The Guardian. Available at: http:// www.theguardian.com/media-network/media-network-blog/2012/oct/23/luxury-fashion-brands-ecommerce [Accessed: 8th January 2014] Green and Taylor, 2012. Fashion vs Digitality [online]. Not just a label. Available at:http://www.notjustalabel.com/editorial/fashion_vs_digitality [Accessed: 4th November 2013] Greenhill, D, 2012. How digital media is reshaping luxury fashion retail’s most important job [Online]. Luxury Daily. Available at: http://www.luxurydaily.com/how-digital-media-is-reshaping-luxury-fashion-retail%E2%80%99s-most-important-job/ [Last Accessed 20th December 2013] Guadion, T, 2010. Net Worth [online]. WSJ Magazine. Available at: http://magazine.wsj.com/hunter/rebel-yell/net-worth/2/ [Accessed: 14th January 2014] Harrison, R, 2012. Are We Becoming too Dependant on the Intenet? Unplugged... The Blog. August 8 2012. Available at: http://www.austin-williams.com/blog/post.cfm/are-we-becoming-too-dependent-onthe-internet [Accessed 28 September 2013] http://www.propcom.co.uk/news/exclusive-vs-accessible-luxury-brands-and-every-day-social-media/ [Accessed: 4th January 2014] Hutzler, K, 2011. Alfred Dunhill keeps guests in-store with London lifestyle experiences [online]. Luxury Daily. Available at: http://www.luxurydaily.com/alfred-dunhill-invites-customers-to-make-themselves-athome-with-london-location/ [accessed: 30th November 2013 Karr, A, 2012. Dior well ‘liked’ on Facebook [online]. Womens wear Daily. Available at: http://www.wwd. com/media-news/digital/facebook-fashion-post-likes-5649701 [Accessed 16th December 2013) King, J, 2013. Top 10 luxury brand campaigns of Q3 [online], Luxury Daily. Available at: http://www. luxurydaily.com/top-10-luxury-brand-digital-campaigns-of-q3/ [Accessed 1st December 2013] Kohrman, M. 2013. One Millenial’s conflicted feelings about plugging into the digital revolution [online]. Fast Company. Available at: http://www.fastcompany.com/3013143/unplug/one-millennials-conflicted-feelings-about-plugging-into-the-digital-revolution [Accessed 28 September 2013]

105

Lamb, R, 2012. Social video poised as No. 1 focus for luxury brand digital marketing this year: study [online]. Luxury Daily. Available at: http://www.luxurydaily.com/social-video-intends-to-be-no-1-focus-forluxury-brand-digital-marketing-study/ [Accessed 20th December 2013] Lamb, R, 2013. What luxury brands have been missing in augmented reality [online]. Evins. Available at: http://evins.com/aperture/?p=1935 [Accessed: 17th January 2014] Lilley, I, Personalising the Luxury eCommerce experience [online]. Luxury Society. Available at: http:// luxurysociety.com/articles/2013/02/personalising-the-luxury-ecommerce-experience [Accessed: 22nd January 2014] Martinez, I, 2012. E-commerce will define the luxury industry [online]. Kernel Magazine. Available at: http://www.kernelmag.com/features/report/1276/e-commerce-will-define-the-luxury-industry/# [Accessed 5th January 2014] McCarthy, J, 2013. Hugo Boss bolsters summer collection in shoppable video [online]. Luxury Daily. Avaliable at: http://www.luxurydaily.com/hugo-boss-wraps-summer-collection-in-shoppable-drama/ [Accessed: 15th January 2014] Meerson, A, 2013. THE RIGHT USE OF SOCIAL MEDIA FOR LUXURY BRANDS? AS A MEDIA, NOT AS A HOME. [online]. Luxury Digital. Available at: http://luxurydigital.com/2013/12/06/the-right-use-of-socialmedia-for-luxury-brands-as-a-media-not-as-a-home/ [Last accessed 8th December, 2013] Morrison, M, 2012. A focus on Digital makes Burberry relevant to a New Generation [online]. Ad Age. Available at: http://adage.com/article/cmo-strategy/a-focus-digital-makes-burberry-relevant-a-generation/238671/ [Accessed: 10th December 2013] O’Reilly, L, 2013. Chanel: ‘Digital should not be a department’ [online]. Marketing week. Available at: http://www.marketingweek.co.uk/news/chanel-digital-should-not-be-a-department/4006474.article [Accessed 25th November 3013] Okonkow, U, 2011. Why Tiffany’s multimedia campaign rocks! [online]. Luxe Mag. Avaliable at: http:// www.luxe-mag.com/en-september2011-digiluxe-tiffany%E2%80%99s-multimedia-campaign-rocks/?popup=true [Accessed: 29th December 2013] Orsini, P, 2013. The luxury Consumer. Shoppers lead brands to digital channels. E Marketer [online] Available at: http://www.iprospect.com/wp-content/uploads/2013/12/eMarketer_The_Luxury_Consumer-Shoppers_Lead_Brands_to_Digital_Channels1.pdf [Accessed: 14th November 2013] Ortved, J, 2011. Is Digital killing the Luxury Brand? [online]. Adweek. Available at: http://www.adweek. com/news/advertising-branding/digital-killing-luxury-brand-134773 [Accessed 28 November 2013]

106

Rabinowitz, I, 2013. Whats the next trend in digital? [online]. Social media Explore. Available at: http:// www.socialmediaexplorer.com/social-media-marketing/whats-the-next-trend-in-digital/ [Accessed 11th November 2013] Rigby, C, 2012. Almost a quarter of UK retail sales to be online in four years: study [online] Internet Retailing. Available at: http://internetretailing.net/2012/03/almost-a-quarter-of-uk-retail-sales-to-beonline-in-four-years-study/ [Accessed: 8th January 2014] Santi, A, 2012. Luxury Report: The move to multichannel [online]. Drapers. Available at: http://www. drapersonline.com/in-business/luxury-report-the-move-to-multichannel/5042932.article [Accessed: 25th November 2013 Shea, E, 2013. Bottega Veneta aims for e-commerce boost via site redesign [online]. Luxury Daily. Available at: http://www.luxurydaily.com/bottega-veneta-aims-for-ecommerce-boost-via-site-redesign/ [Accessed: 15th November 2013] Shea, E, 2013. Future of fashion brands depends on millennial brand affinity [online]. Available at: http://www.luxurydaily.com/millennials-are-a-crucial-target-for-luxury-fashion-marketers/ [Accessed 3rd January 2014] Shea, E, 2013. Online streaming of fashion shows makes show locations irrelevant [online]. Luxury Daily. Available at: http://www.luxurydaily.com/online-streaming-of-fashion-shows-makes-show-locations-irrelevant/ [Accessed: January 5th 2014] Sowray, B, 2013. Sealed with a Kiss: Burberryâ&#x20AC;&#x2122;s latest innovation [online]. The Telegraph. Available at: http://fashion.telegraph.co.uk/news-features/TMG10113717/Sealed-with-a-kiss-Burberrys-latest-innovation.html [Accessed: 4th December 2013] Stern, D, 2012. Twitter: giving luxury brands a voice [online]. The Drum. Available at: http://www. thedrum.com/content/twitter-giving-luxury-brands-voice [Accessed: 18th December 2014] Stern, D. Twitter: giving luxury brands a voice [online]. The Drum. Available at: http://www.thedrum. com/content/twitter-giving-luxury-brands-voice [Accessed 29th November 2013] Stocker, K, 2013. Is the luxury market finally switching on? [online]. Drapers. Available at: http://www. drapersonline.com/news/ecommerce/webwatch/is-the-luxury-market-finally-switching-on/5052919. article [Accessed 25th November 2013] Strugatz, R, 2014. Luxury brands split over e-commerce [online]. Available at: http://www.iamomnichannel.com/luxury-brands-split-over-e-commerce/ [Accessed: 4th November 2013] Sullivan, L, 2013. Luxury brands finally finding the key to driving online, mobile conversions [online]. Media Post. Available at: http://www.mediapost.com/publications/article/209720/luxury-brands-finallyfinding-the-key-to-driving-o.html [Accessed 12th November 2013]

107

108

109

APPENDIX

110

Appendix 1 - Declaration and Ethics forms

N S

P si

1 a

2 re

3 b 4

_ N

N D

111

Nottingham Trent University School of Art and Design CONSENT FORM Please read and confirm your consent to being interviewed for this project by ticking the appropriate boxes and signing and dating this form

1. I confirm that the purpose of the project has been explained to me, that I have been given information about it in writing, and that I have had the opportunity to ask questions about the research 2. I understand that my participation is voluntary, and that I am free to withdraw at any time without giving any reason and without any implications for my legal rights 3. I give permission for the interview to be recorded by research staff, on the understanding that the tape will be destroyed at the end of the project 4. I agree to take part in this project

___________________ __________ __________________ Name of respondent Date Signature For office use only Name of researcher taking consent …………………………………………. Date ……………………………………… Signature

112

Appendix 2. Methodology

Secondary Research Extensive reading was carried out mainly through articles around the timely debate of whether or not luxury should be using digital. Books were also looked at to gain a general understanding about my topic, before primary research was carried out to test these theories and ideas formed from secondary research Books: I have used a few books to inform this report, which explore the future of luxury. They have been crucial in gaining insight around my subject, and have been fundamental to refer to when constructing my report. Two of the most important ones were Luxury online: Styles, systems, strategies by Uche Okonkwo and The Luxury Strategy by Jean-NoĂŤl Kapferer and Vincent Bastien. Websites: Most secondary research was done through reading online articles. This was very helpful due to the nature of my report being a current and timely subject in the industry, so these provided the most up to date information and insight appropriate to the report. They helped to bring together my initial ideas but also backed up my own primary research through industry professional insight. They have really managed to shape the overall nature of my report. The Guardian, Luxury Daily, Marketing Week, Drapers, Forbes are all prime examples of these, as well as brands own websites in order to see what they are doing in terms of digital and online. Journals: The journals offered an academic view on my subject as well as providing in depth analysis of current issues within the luxury sector, and highlighting consumer needs. Examples of journals looked at are: Selling Luxury brands Online. Journal of Internet Commerce, 2005, Vol.4(1) Databases: Databases such as Mintel have been used to give me vital statistics included throughout the report, as well as information regarding consumer attitude toward both luxury and online in general. Visual Inspiration : To gain visual inspiration, I set up a Pinterest board with both graphics for the report, as well as layout designs, which I referred back to when creating my document. I also gathered research in regards to visuals through the book the book, Essentials in Visual Communication by Bo BergstrĂśm.

115

Primary Research Online surveys Why? To gain an idea of peoples dependency on the internet, and initial research in to whether they preferred online or offline marketing techniques. Also to find out who was using social media, and if this was an appropriate platform for brands to engage with consumers To find out how consumers shopped online, and if they were willing to engage with luxury consumers online. This also gave me an understanding in to the current issues within luxury online. How? Through an online survey on surveymonkey.com using both multiple choice and essay type questions. It was able to reach a wide range of consumers â&#x20AC;&#x201C; both gained over 30 responses Who? Respondants aged between 18-55 Limitations: Sometimes limited response without detail Observational shop luxury consumers Why? To understand shopping habits, and what consumers needs were in store, so that these could be translated to online. How? Observe if there was a difference in the way generations of consumers shop. The fact that consumers were unaware I was observing them meant that they acted completely naturally, how they usually would shop. I was able to see if consumers required a lot of assistance. I could see the way consumers looked at products which was important to note for when it came to how products were able to be viewed online Who? Koulla Sergi, 26. Limitations: I could not speak to consumers as I was using non-participant observation, so could not elaborate on my findings. Online observation of consumer using Net a porter website To gain an understanding of how consumers shop online. What aspects are most important to them. Consumer browsed the Net a porter website for 45 minutes without any interaction with myself, so I did not influence her decisions This gave me an insight into what aspects of the website were most important for this consumer when online. Interesting to see that content â&#x20AC;&#x201C; The Edit was the most important rather than actual products It was also only undertaken on one consumer, other consumers may have different priorities In depth Interview with New Millennial Consumers. Why? To understand consumer purchasing habits, what they thought about the online luxury experience and what is most important for them when it comes to digital. How? Individual face to face interviews, with a variety of open questions This helped to gain an understanding of what is most important to consumers when it comes to online. Important to find out if this generation are willing to interact with brands via this way. Who? Aimee Robinson, 21 and Koulla Sergi, 26 Limitations? Personal opinions may not reflect others In depth interview with an older luxury consumer. Why? To understand the different lifestyle values, shopping habits and brand interactions between different age generations. How? Individual face to face interview, with a variety of open questions. Good to hear about reasons why she would not shop online. This was helpful when it came to recommendations, as I could work on solving issues around this. Interesting to see differences between age groups

116

Email interview with Melanie Bouvier., Digital Marketing Manager at Louis Vuitton Why? To gain industry experts on their opinion around my subject. To establish what they believe is the future and the intentions behind their brand. How? An email interview consisting of 5 questions- Was able to find out about a particular brand and whether or not online worked for them. Limitations? Set questions meant there was not much elaboration on topics. Answers were often quite short without detail. May not want to talk about other brands Email interview with Antony Waller. Why? Interested in what he said at a conference, I wanted to follow this up with more detailed responses around the idea of luxury becoming too accessible . How? Email interview -gained expert insight from someone who has worked n the luxury industry for years. Vital information was gained this way particularly around the subject of e â&#x20AC;&#x201C; commerce and accessibility. Email interview with Sedge Beswick, social media manager at ASOS. Why? To gain professional insight about social media and brands using such platforms to engage consumers. How? Email interview. Was able to find out more about social media and marketing. Spoke about growing dependency on the internet, which was useful for my first chapter about this. Limitations? Set questions meant there was not much elaboration on topics. Could be biased towards digital and social media, as that is her role. Email interview with Lucie Toogood, Buyer for Gucci. Why? To get industry insight about the future of luxury online and e-commerce. How? Email interview consisting of 5 questions. Was able to gain insight about a particular brand. Gave an opinion on targeting aspirational consumers now. Limitations? Worked from the Middle East, so was unsure about some aspects. Phone interview with Adam Thomson, Winkcreativ.e. Why? To gain general insight around my topis. Was able to have a conversation in a relaxed style. Managed to find out a lot of information through the phone call, and was able to have discussions around topic. Gained good insight from a male perspective and differences between male and female shopping habits Limitations? Due to the nature of the interview being by phone, it was hard to ask set questions, sometimes went off on a tangent Store visits. Why? To speak to a number of different sales assistants in different stores in order to find out about consumers and how they shopped, as well as the relationship between online and offline. How? I visited multiple luxury stores such as Chanel, Prada, Dior, Burberry, Louis Vuitton, De Beers - Sloane Street and Westfield in Londo. Who? I walked around and spoke to various people who worked in the shop and was able to find out more about consumers shopping habits. Gathered a lot of opinions in two days about the online experience and whether or not e-commerce was a good strategy for the future. I was also able to see if there was coherency between in store and the brands websites. Limitations? They were sometimes unsure about the online aspect of the brand, due to them working in store. Could be slightly biased toward in store over digital 117

LSN Global Online vs Offline Conference Was able to hear a number of industry professionals speak about my subject matter. Gave me a lot of different perspectives and opinions Richard Danks – Portas Agency. Antony Waller – Luxury Brand PR Paul Sheehy: Folk Digital Agency

118

Appendix 3 - Results from initial ‘Online vs Offline’ survey

119

120

Appendix 4

Appendix 5

Q1: Which category below includes your age? 21-25 Q2: Do you use the internet daily? If so how often? More than 4 hours Q3: Do you respond better to online advertising or offline? (online being on the internet eg. pop ups, banners, facebook etc and offline being postal, flyers, magazines etc) Why? Offline Why? It stands out more, online a lot of adverts look the same so never really catch my attention Q4: Do you ever feel ‘bombarded’ by online advertisements? Yes Q5: Would you like to see a return in more traditional offline forms of marketing and advertising, or do you think it should stay digital/online? Return in traditional Q6: Would a brand attract your attention if the marketing campaign used no online platforms at all? (no facebook, twitter, website) No Q7: Do you use word of mouth, by telling people about brands you like? Yes Q8: What is your favourite or most memorable marketing campaign, and why? Burberry Art of the Trench - I loves that consumers could get involved and I really enjoyed browsing the site to see all the different uploaded pictures Q9: Where do you see most advertising and marketing for brands? Magazines/newspapers Television Online (Facebook, pop ups, Google etc) Q10: Do you think that more personal marketing would make you become more loyal to a brand? Why? Yes

Q1: Which category below includes your age? 50 or older Q2: Do you use the internet daily? If so how often? More than 4 hours Q3: Do you respond better to online advertising or offline? (online being on the internet eg. pop ups, banners, facebook etc and offline being postal, flyers, magazines etc) Why? Online Why? Because it’s more convenient Q4: Do you ever feel ‘bombarded’ by online advertisements? No Q5: Would you like to see a return in more traditional offline forms of marketing and advertising, or do you think it should stay digital/online? Digital and online Q6: Would a brand attract your attention if the marketing campaign used no online platforms at all? (no facebook, twitter, website) No Q7: Do you use word of mouth, by telling people about brands you like? Yes Q8: What is your favourite or most memorable marketing campaign, and why? Most Memorable campaign was a facial product, reasons because it was demonstrated on different skin types Q9: Where do you see most advertising and marketing for brands? Online (Facebook, pop ups, Google etc) Television Magazines/newspapers Q10: Do you think that more personal marketing would make you become more loyal to a brand? Why? Yes Why? I am able to identified if the product was right for me

121

Appendix 6

Appendix 7

Q1: Which category below includes your age? 26-30 Q2: Do you use the internet daily? If so how often? 1-2 hours Q3: Do you respond better to online advertising or offline? (online being on the internet eg. pop ups, banners, facebook etc and offline being postal, flyers, magazines etc) Why? Offline Why? Pop ups are annoying! Q4: Do you ever feel ‘bombarded’ by online advertisements? Yes Q5: Would you like to see a return in more traditional offline forms of marketing and advertising, or do you think it should stay digital/online? Return in traditional Q6: Would a brand attract your attention if the marketing campaign used no online platforms at all? (no facebook, twitter, website) Yes Q7: Do you use word of mouth, by telling people about brands you like? Yes Q8: What is your favourite or most memorable marketing campaign, and why? Respondent skipped this question Q9: Where do you see most advertising and marketing for brands? Online (Facebook, pop ups, Google etc) Television Q10: Do you think that more personal marketing would make you become more loyal to a brand? Why? Yes Why? Speaking to a human makes you feel the follow up service will be better

Q1: Which category below includes your age? 50 or older Q2: Do you use the internet daily? If so how often? More than 4 hours Q3: Do you respond better to online advertising or offline? (online being on the internet eg. pop ups, banners, facebook etc and offline being postal, flyers, magazines etc) Why? Online Why? I am always using the internet Q4: Do you ever feel ‘bombarded’ by online advertisements? Yes Q5: Would you like to see a return in more traditional offline forms of marketing and advertising, or do you think it should stay digital/online? Digital and online Q6: Would a brand attract your attention if the marketing campaign used no online platforms at all? (no facebook, twitter, website) Yes Q7: Do you use word of mouth, by telling people about brands you like? Yes Q8: What is your favourite or most memorable marketing campaign, and why? Advertisement of whites lemonade. (A good few years ago) reason I liked it was it had humour. Q9: Where do you see most advertising and marketing for brands? Online (Facebook, pop ups, Google etc) Television Radio Magazines/newspapers Q10: Do you think that more personal marketing would make you become more loyal to a brand? Why? Yes

122

Appendix 8

Appendix 9

Q1: Which category below includes your age? 16-20 Q2: Do you use the internet daily? If so how often? More than 4 hours Q3: Do you respond better to online advertising or offline? (online being on the internet eg. pop ups, banners, facebook etc and offline being postal, flyers, magazines etc) Why? Offline Why? click off of things online- paper things are material so catch my interest more Q4: Do you ever feel ‘bombarded’ by online advertisements? Yes Q5: Would you like to see a return in more traditional offline forms of marketing and advertising, or do you think it should stay digital/online? Return in traditional Q6: Would a brand attract your attention if the marketing campaign used no online platforms at all? (no facebook, twitter, website) No Q7: Do you use word of mouth, by telling people about brands you like? Yes Q8: What is your favourite or most memorable marketing campaign, and why? http://hollyeardley-kingston.tumblr.com/ post/59620471499 i like the interactiveness http://thetutorcrowd.tumblr.com but this is my all time fav- really clever and appeals to target market- made me laugh aswell i could go on forever about ads... probs guessed this is your lil friend holly Q9: Where do you see most advertising and marketing for brands? Television Q10: Do you think that more personal marketing would make you become more loyal to a brand? Why? Yes Why? because you feel more attached to the brand and that it will benefit you more as an individual if you buy into it

1: Which category below includes your age? 21-25 Q2: Do you use the internet daily? If so how often? More than 4 hours Q3: Do you respond better to online advertising or offline? (online being on the internet eg. pop ups, banners, facebook etc and offline being postal, flyers, magazines etc) Why? Offline Why? Usually near or in the location Q4: Do you ever feel ‘bombarded’ by online advertisements? Yes No Q5: Would you like to see a return in more traditional offline forms of marketing and advertising, or do you think it should stay digital/online? Digital and online Q6: Would a brand attract your attention if the marketing campaign used no online platforms at all? (no facebook, twitter, website) Yes Q7: Do you use word of mouth, by telling people about brands you like? Yes Q8: What is your favourite or most memorable marketing campaign, and why? Share a coke- made a bottle of coke special again and engaged everyone. Q9: Where do you see most advertising and marketing for brands? Online (Facebook, pop ups, Google etc) Television Q10: Do you think that more personal marketing would make you become more loyal to a brand? Why? Yes

123

Appendix 10 Q1: Which category below includes your age? 16-20 Q2: Do you use the internet daily? If so how often? Respondent skipped this question Q3: Do you respond better to online advertising or offline? (online being on the internet eg. pop ups, banners, facebook etc and offline being postal, flyers, magazines etc) Why? Offline Why? I take the time to look at offline advertising without just dismissing it straight away. Q4: Do you ever feel ‘bombarded’ by online advertisements? Yes Q5: Would you like to see a return in more traditional offline forms of marketing and advertising, or do you think it should stay digital/online? Return in traditional Q6: Would a brand attract your attention if the marketing campaign used no online platforms at all? (no facebook, twitter, website) Yes Q7: Do you use word of mouth, by telling people about brands you like? Yes Q8: What is your favourite or most memorable marketing campaign, and why? Can’t really think of any - online or offline Q9: Where do you see most advertising and marketing for brands? Online (Facebook, pop ups, Google etc) Television Q10: Do you think that more personal marketing would make you become more loyal to a brand? Why? Yes Why? It makes you feel more involved and integral to the growth of the brand, as though you have a personal stake in it, which would make you want to support it more.

124

Appendix 11 - Results from Luxury online survey

125

126

127

Individual Responses Appendix 12 Q1: Which category below includes your age? 18-25 Q2: Do you purchase luxury fashion goods? Yes Q3: If yes, how often would you purchase these luxury goods? Once a month Q4: Do you buy online or in store? Please explain your reasons for this In Store Why? As I can try before I buy ! Q5: If in store, do you look/browse online before visiting the store? Yes If yes, does this effect your decision to go in store? No Q6: Do you follow or interact with any luxury brands on social media? (i.e. Facebook, Instagram, Twitter) Yes Q7: If yes to the previous question, where do you interact with luxury brands? Instagram Twitter Q8: Do you feel that luxury brands should have an online presence or not, and is this the best strategy for the future? Please explain your reasons for this I would prefer to go into a store 2 try before I buy.. I would not buy it online unless I was 100% sure.. I donâ&#x20AC;&#x2122;t believe this is the best strategy as I wouldnâ&#x20AC;&#x2122;t spend money out online unless I was sure on an item..it can look different online compared to in a shop! Q9: What specific factors are most important to you when it comes to shopping online? Simple and easy to navigate Detailed description about products High quality, detailed pictures Q10: Do you enjoy interacting and engaging with luxury brands online? Yes Why? I like to see new luxury brands that are out & the easiest way to do this is online.

Appendix 13 Q1: Which category below includes your age? 18-25 Q2: Do you purchase luxury fashion goods? Yes Q3: If yes, how often would you purchase these luxury goods? Once every few months Q4: Do you buy online or in store? Please explain your reasons for this In Store Why? I like how they wrap it - bags etc Q5: If in store, do you look/browse online before visiting the store? Yes If yes, does this effect your decision to go in store? No Q6: Do you follow or interact with any luxury brands on social media? (i.e. Facebook, Instagram, Twitter) Yes Q7: If yes to the previous question, where do you interact with luxury brands? Instagram Twitter Q8: Do you feel that luxury brands should have an online presence or not, and is this the best strategy for the future? Please explain your reasons for this Yes - more and more people are using online so would attract more people Q9: What specific factors are most important to you when it comes to shopping online? Simple and easy to navigate Web design Q10: Do you enjoy interacting and engaging with luxury brands online? No Why? Prefer instore

128

Appendix 14 Q1: Which category below includes your age? 18-25 Q2: Do you purchase luxury fashion goods? Yes Q3: If yes, how often would you purchase these luxury goods? Once every few months Q4: Do you buy online or in store? Please explain your reasons for this In Store Why? They treat you in a different manner and you feel more important Q5: If in store, do you look/browse online before visiting the store? No Q6: Do you follow or interact with any luxury brands on social media? (i.e. Facebook, Instagram, Twitter) Yes Q7: If yes to the previous question, where do you interact with luxury brands? Twitter Instagram Facebook Q8: Do you feel that luxury brands should have an online presence or not, and is this the best strategy for the future? Please explain your reasons for this I think it should be available to view but not to buy online as then you loose the luxury of the staff and how you are treated. People will always go to the shop of luxury, you can’t get this at home. Q9: What specific factors are most important to you when it comes to shopping online? Web design Video’s (runway shows, behind the scenes etc) High quality, detailed pictures Detailed description about products Simple and easy to navigate Q10: Do you enjoy interacting and engaging with luxury brands online? Yes

129

Appendix 15 Q1: Which category below includes your age? 26-35 Q2: Do you purchase luxury fashion goods? Yes Q3: If yes, how often would you purchase these luxury goods? Once every two weeks Q4: Do you buy online or in store? Please explain your reasons for this Both Why? If I am around London shopping, I would pop in and have a look and maybe purchase, but if not I would buy online as I live outside of London so it is much easier for me to order online (convenience). I also like online as it is easy to see all the products, sometimes instore you cannot find what you are looking for. Q5: If in store, do you look/browse online before visiting the store? Yes If yes, does this effect your decision to go in store? yes, particularly if it was a brand I was not familiar with - if the website and overall online experience was exceptional, it would make we want to visit the store. Whereas if I was unimpressed with the website I wouldn’t bother Q6: Do you follow or interact with any luxury brands on social media? (i.e. Facebook, Instagram, Twitter) No Q7: If yes to the previous question, where do you interact with luxury brands? Respondent skipped this question Q8: Do you feel that luxury brands should have an online presence or not, and is this the best strategy for the future? Please explain your reasons for this Yes I do, as I see online as a ‘catalogue’, where you can see all the items in one place. I also feel that it makes people more aware of the brand Q9: What specific factors are most important to you when it comes to shopping online? Simple and easy to navigate High quality, detailed pictures Web design Q10: Do you enjoy interacting and engaging with luxury brands online? No Why? I like to purchase online, but I wouldnt really look at any luxury brands social media or anything like that

Appendix 16 Appendix 17 Q1: Which category below includes your age? Q1: Which category below includes your age? 36-45 26-35 Q2: Do you purchase luxury fashion goods? Q2: Do you purchase luxury fashion goods? Yes Yes Q3: If yes, how often would you purchase these luxury Q3: If yes, how often would you purchase these luxury goods? goods? Once every two weeks Once every two weeks Q4: Do you buy online or in store? Please explain your Q4: Do you buy online or in store? Please explain your reasons for this reasons for this Both In Store Why? I am time poor, I live outside of the city, so it is hard for Why? I go in store because I enjoy the overall experime to get to the stores. I will go to the stores if I am in a city, ence. The service is all part of the price you pay for but the rest of the time it is easier for me to order online. luxury, and I can honestly say it is absolutely faultless. Also, I like the freedom of being able to browse from the I often require a lot of help or advise which is available comfort of my own home. to be in the stores, over the internet you cannot get this Q5: If in store, do you look/browse online before visiting the help store? Q5: If in store, do you look/browse online before visiting Yes the store? If yes, does this effect your decision to go in store? I conYes stantly browse various luxury fashion websites to see what is If yes, does this effect your decision to go in store? new, if there is something I like that I could not get online, I Yes, particularly if it is a brand I have not heard of, if I would perhaps visit the store see them online, and I like the look of it then I will try Q6: Do you follow or interact with any luxury brands on social and hunt down a stockist whether it be a store or in a media? (i.e. Facebook, Instagram, Twitter) department store. Yes Q6: Do you follow or interact with any luxury brands on Q7: If yes to the previous question, where do you interact social media? (i.e. Facebook, Instagram, Twitter) with luxury brands? No Facebook Q7: If yes to the previous question, where do you interQ8: Do you feel that luxury brands should have an online act with luxury brands? presence or not, and is this the best strategy for the future? Respondent skipped this question Please explain your reasons for this Q8: Do you feel that luxury brands should have an online Yes, I believe luxury brands must be online in todays society. presence or not, and is this the best strategy for the If not they will lose out on customers such as myself who future? Please explain your reasons for this uses the internet as a convenience method. Yes, I think they do need to be online. This creates Q9: What specific factors are most important to you when it awareness and allows people to look at products before comes to shopping online? going in store so that they have an idea. However I Simple and easy to navigate believe this will never live up to the store experience High quality, detailed pictures Q9: What specific factors are most important to you Other (please specify) I like there to be customer service on when it comes to shopping online? hand, immediately. Sometimes brands do not get back to you Simple and easy to navigate for ages, which is useless Detailed description about products Q10: Do you enjoy interacting and engaging with luxury Videoâ&#x20AC;&#x2122;s (runway shows, behind the scenes etc) brands online? Q10: Do you enjoy interacting and engaging with luxury Yes brands online? Why? Because online is easy to look at a variety of different Yes brands all in one place. Sites like net a porter make online Why? It is interesting to learn about the brands through shopping so much easier and more enjoyable for me. I also online. I love watching runway shows and getting behind love that there is the net a porter magazine online which i the scenes information as it makes me feel more part of can draw inspiration from the brand I am engaging with. 130

Appendix 18 1: Which category below includes your age? 18-25 Q2: Do you purchase luxury fashion goods? Yes Q3: If yes, how often would you purchase these luxury goods? Once a month Q4: Do you buy online or in store? Please explain your reasons for this Both Why? I like to go in store if I am making a big purchase, but if I am buying accessories I will often go online. Because I live in Nottingham, there is not a great deal of luxury brands available in stores here, so for this reason I will look online and purchase - it is more of a convenience thing Q5: If in store, do you look/browse online before visiting the store? Yes If yes, does this effect your decision to go in store? Definitely, if I visit a brands website and it is terrible, it would make me think twice about purchasing from the brand, unless I am very familiar with the brand and trust it already Q6: Do you follow or interact with any luxury brands on social media? (i.e. Facebook, Instagram, Twitter) Yes Q7: If yes to the previous question, where do you interact with luxury brands? Facebook Instagram Twitter Q8: Do you feel that luxury brands should have an online presence or not, and is this the best strategy for the future? Please explain your reasons for this I think it is essential to have an online presence in this day and age. Although at the moment I can only afford to buy in to luxury every so often, once I start earning I will be a strong follower of luxury fashion. As I am so obsessed with the internet and all things social, as I suspect many other people my age are, it is essential for brands to have a strong online presence so our generation can interact with brands in a way that is very familiar to us

131

Q9: What specific factors are most important to you when it comes to shopping online? Simple and easy to navigate Detailed description about products High quality, detailed pictures Video’s (runway shows, behind the scenes etc) Other (please specify) I love Net a porter due to ‘The Edit’. I think this is a great way to engage consumers as it is not simply ‘selling products’ Q10: Do you enjoy interacting and engaging with luxury brands online? Yes

Appendix 19 Q1: Which category below includes your age? 26-35 Q2: Do you purchase luxury fashion goods? Yes Q3: If yes, how often would you purchase these luxury goods? At least once a week Q4: Do you buy online or in store? Please explain your reasons for this In Store Why? So I can try products on. I don’t trust the sizing if I buy online and returns are such a hassle Q5: If in store, do you look/browse online before visiting the store? Yes If yes, does this effect your decision to go in store? Yes it does, I will look online at products, but if there is nothing I am particularly interested in then I won’t go out of my way to go instore. So the online website of the brand should really highlight new products and collections Q6: Do you follow or interact with any luxury brands on social media? (i.e. Facebook, Instagram, Twitter) Yes Q7: If yes to the previous question, where do you interact with luxury brands? Twitter Q8: Do you feel that luxury brands should have an online presence or not, and is this the best strategy for the future? Please explain your reasons for this I think they need to be online, if not then people cannot do prior in research before going in store. Also I think it is a great way to educate consumers about the brand in a fun and interesting way Q9: What specific factors are most important to you when it comes to shopping online? Simple and easy to navigate Lots of information about the brand High quality, detailed pictures Q10: Do you enjoy interacting and engaging with luxury brands online? Yes Why? I like to know about the heritage of a brand and online allows this

Appendix 20 18-25 Q2: Do you purchase luxury fashion goods? Yes Q3: If yes, how often would you purchase these luxury goods? At least once a week Q4: Do you buy online or in store? Please explain your reasons for this Online Why? I am often very busy at work, and as I am a fashion assistant I am constantly having to trawl the internet for products or runway looks, therefore I often purchase this way as I am so used to it. It is convenient as it is delivered straight to your door and I think it is just part of my way of life now. Why go in store when you can get something delivered to you without the stress? Q5: If in store, do you look/browse online before visiting the store? Yes If yes, does this effect your decision to go in store? As i am constantly engaging with luxury brands online I know all the latest collections already so if I wanted to pysically see somthing I would then go in store Q6: Do you follow or interact with any luxury brands on social media? (i.e. Facebook, Instagram, Twitter) Yes Q7: If yes to the previous question, where do you interact with luxury brands? Instagram Twitter Q8: Do you feel that luxury brands should have an online presence or not, and is this the best strategy for the future? Please explain your reasons for this OF COURSE! you cannot ignore online, particularly due to the fact that younger customers are so in tune with online and is the way many engage with luxury brands. brands would risk losing these potential customers if they were not online Q9: What specific factors are most important to you when it comes to shopping online? Detailed description about products High quality, detailed pictures Q10: Do you enjoy interacting and engaging with luxury brands online? Yes Why? I love it! I love to see all the tweets from these brands and see what they have to say. It’s a great way of hearing from the luxury brands directly 132

Appendix 21 : Which category below includes your age? 18-25 Q2: Do you purchase luxury fashion goods? Yes Q3: If yes, how often would you purchase these luxury goods? Once every two weeks Q4: Do you buy online or in store? Please explain your reasons for this Both Why? If I am near a store I would always choose to go in, as I absolutely love the whole experience. I love being made to feel special and have a lot of attention from sales assistants making the whole process enjoyable. But if I need something deparately and canâ&#x20AC;&#x2122;t get to a store I will often look on Net a Porter and order it Q5: If in store, do you look/browse online before visiting the store? Yes If yes, does this effect your decision to go in store? Not really, I just like to have a look every so often. Although I have found out about a few new brands through the internet such as Anya Hindmarch who I absoultely love but was unaware of until quite recently Q6: Do you follow or interact with any luxury brands on social media? (i.e. Facebook, Instagram, Twitter) Yes Q7: If yes to the previous question, where do you interact with luxury brands? Instagram Twitter Q8: Do you feel that luxury brands should have an online presence or not, and is this the best strategy for the future? Please explain your reasons for this Yes, there prescence will decline. 21I think that it is, if not luxury brands will fall behind and make them not as relevant to younger generations such as myself who live and breathe online/digital Q9: What specific factors are most important to you when it comes to shopping online? High quality, detailed pictures Web design Other (please specify)

133

Other (please specify) I like editorial content like Net a porters magazine, it makes the whole shopping experience so much more fun. Also i think it is important to have customer service online - some brands have instant chat which I find very helpful Q10: Do you enjoy interacting and engaging with luxury brands online? Yes Why? Because I am so obsessed with social media, this is a great way to get a peek in to these luxury brands worlds and feel like

Appendix 22 Which category below includes your age? 26-35 Q2: Do you purchase luxury fashion goods? Yes Q3: If yes, how often would you purchase these luxury goods? Once a month Q4: Do you buy online or in store? Please explain your reasons for this Both Why? It depends, if it is a handbag or clothes I prefer to go in store so I can se what it looks like. But for jewellery or sunglasses or maybe like a purse I would just buy online as it often looks very similar online to in real life Q5: If in store, do you look/browse online before visiting the store? Yes If yes, does this effect your decision to go in store? If they are not luxury brands as higly regarded such as Chanel, and they donâ&#x20AC;&#x2122;t have a good online precence it might put me off bothering to visit the store due to low epectations gained from looking at them online Q6: Do you follow or interact with any luxury brands on social media? (i.e. Facebook, Instagram, Twitter) Yes Q7: If yes to the previous question, where do you interact with luxury brands? Instagram Twitter Q8: Do you feel that luxury brands should have an online presence or not, and is this the best strategy for the future? Please explain your reasons for this Most definitely. I use the internet for probably at least 5 hours a day due to work, so its a great way to engage with me. I like to browse websites such as style.com to see whats new on the catwalk, and the internet is an easy and convenient way to do this

Q10: Do you enjoy interacting and engaging with luxury brands online? Yes Why? I love finding out more about the brands instead of simply just buying products. I like to get involved with the brands i purchase from and i think campaigns such as art of the trench is fun and gets you involved

Q9: What specific factors are most important to you when it comes to shopping online? Simple and easy to navigate Lots of information about the brand Videoâ&#x20AC;&#x2122;s (runway shows, behind the scenes etc)

134

Appendix 23 Face to face interview Who: Aimee Robinson Age: 21 Student Do you purchase online or in store? I will always buy my fur online as you can get great discounts for this. Other than that I tend to swap and change. It all depends on what I am buying. Once, I bought a Louis Vuitton bought bag online as it was personalized which I think is really key. Its good as you can design it and actually see it there in front of you on a screen, , whereas in store you can explain what it is that you want but cant actually see it, visualized there in front of you, so there may be miscommunication or it might not look how you expected it to. It is also great as you can then compare and contrast different items. Another reason why I will often purchase online is when there are exclusive collections on the internet, that you cannot get in store. Do you feel your age changes the way you shop for luxury? If there is something very expensive that I wanted, my parents would go with and look at product themselves to be absolutely sure I really like it and wanted it. They would not just purchase something big off the Internet, they would need to be 100% sure. I will always look for somewhere that does deals. I love looking on net a porter and also its great as me and my friends know the hotspots where you can often get cheaper deals, for example there is a shop on oxford street that my friend managed to get vintage Chanel bag for only a few hundred pounds. Would you browse online first or go in store? Going in store can be a bit of an effort, if you can have it whilst sitting down then I would rather go online. It is so much easier being able to look at products from the comfort of your own home, and for this reason I would rather just purchase on the Internet. And of course you can often find much better deals. What do you think is most important when it comes to luxury brands online presence? Something that really bugs me is the advertising on luxury brand website’s, quite often they are far too much like a magazine, with a lot of advertising rather than actual products on display. If I wanted to look at ad campaigns I would look at vogue,. I do think a look book is good to have online, but on the home screen I don’t think brands should have too much of an introduction of advertising or video content as I think you can lose consumers like that. For example if I was trying to show my mum a bag that I wanted and there’s a massive introduction to the brand or website before I can even find the bag to show her, then she might lose interest and therefore the brands could lose consumers because of this. There is no need to have all that, just simply have the products on display. That is why I love the Anya Hindmarch website so much. It is so simple and easy to navigate.

135

Do you engage with brands through social media? I follow Burberry on Twitter and I really love to look at technology innovation, something that Burberry has done so well. I also really like looking at catwalk shows online, and I think this is a very important way brands should engage consumers. I will watch a show and then go back to that brands website to have a look, so this is something important as it can increase web traffic from these fashion week shows being streamed online. What do you feel is most important when it comes to luxury brands e â&#x20AC;&#x201C; commerce stores? I think that personalising and being able to visualize products properly is very important. Its what sets brands apart from one another. I also love looking at look books on websiteâ&#x20AC;&#x2122;s as I like help to style different outfits. This goes well alongside products. I also believe something that is extremely important for me is that you can get something within the next 24 hours from ordering it. I donâ&#x20AC;&#x2122;t like the whole waiting around thing, it can be such a pain. Same say delivery is great if you needed to get a last minute purchase for something. I also think click and collect is a pain while being a bit pointless, I would rather just have it delivered straight to my door.

136

Appendix 24 Face to face interview Who: Marina Paraskeva Age: 38 Do you purchase luxury goods in store or online and what are your reasons for this? I only purchase luxury goods in store. This is because I absolutely love the overall experience - I treat it has a day out. I get such a thrill from going in to the luxury stores and being greeted with such exceptional customer service. You are made to feel so special when you are in the shop and I believe that is part of what you are paying for with luxury. I would not be willing to spend so much money on products if I wasn’t getting such good customer service. Staff go out of their way to help you. I even love the way it is packaged and put in the bag - this is very important to me. It makes me excited when I see the way the delicately wrap it and I leave with the nice bag in my hand. Would you be willing to shop online? No, not really. The only way I would purchase online is if I needed something urgently that I could not get in stores, say for a friends birthday or something where I couldn’t wait. And even so this would have to be an accessory such as a bag or purse. I would never buy clothes from the internet. As mentioned before, the customer service is not available on the internet, and this is something that i think is highly important and one of the reasons purchase luxury brands in the first place Do you interact or engage with luxury brands via the internet? Yes, i often look at brands own websites to find out whats new. I also enjoy to find out about the heritage of the brand before I purchase from them. I am very interested in the craftsmanship involved in the making of luxury items. This makes me justify spending so much money on them. In this way I think videos found on the internet are really great. I watched the Burberry Smart personalisation video recently and thought it was absolutely fantastic. It gives you such a feel of the brands heritage and the amazing work that goes in to making the products. It is really getting across the sense of ‘luxury’ in a video. I don’t use social media so do not interact with brands through this platform. Personally, I don’t really see much point in this. I feel that it is making luxury too attainable as so many people can access it. I think it can make existing customers feel less special sometimes, as everyone can engage with such brands now. It is more aimed at younger customers, but brands need to not forget about people like me who are more traditional but have been loyal to certain brands for many years.

137

What are your thoughts on more and more luxury brands turning to digital to engage their consumers? To be honest, I don’t really agree with this, you can call me old fashioned but I personally believe the luxury experience is all part of going in to the stores and living a ‘luxury lifestyle’ something which the internet can’t offer in my opinion. I like the personal touch and service given in store whereas I feel the internet is bot able to connect to its customers on such a personal level. it is kind of cold if you ask me. I don’t really get the whole thing of all the technology in stores now with all the ipads and everything, if you ask me I think the most important thing is the customer service available for customers and being able to talk to the sales assistants one on one to gain advice. I like this personal approach. Another thing is that I think it can make existing customers feel less special sometimes, as everyone can engage with such brands now What do you think is the most important thing a brand can do to make you want to purchase from them? For me personally, I am drawn into things if they are able to attract me through emotions. when brands reach out to my emotions I am much more inclined to buy in to them. I love brands that are able to tell a story rather than simply trying to push products on to people. I remember I watched a video which told the story of Coco Chanel and really outlined the heritage of the brand which I thought was great. Small things, like for instance with Mulberry which is a brand i adore, when I go in store I like to find out about the different types of leather, rather than just buying a bag on the internet where you cannot feel it or smell it. It’s the small details like that, which i love.

138

Appendix 25 Face to face interview Who: Koulla Sergi Age: 26 Fashion Assistant/Stylist Do you purchase luxury goods online or in store? Both, but I would say mainly online. I am obsessed with Net a Porter and The Outnet, I probably spend a few hours of my day on both, thats because of my job as Fashion Assistant as well though. I will go in store often if I know there is something I want, but usually it’s just more convenient to buy online. I love that online you can compare so many different items. It will also depend on what I am buying as sometimes I will already know how it looks or feels and what the material is like etc.. so then I will just buy online. But if it is something new that I might be unsure about I might go in store to find out more and talk to someone. Sometimes I do prefer to go in store for clothing however in case it doesn’t fit and I have to return it which can be a bit annoying. Whats your favourite luxury brand online? I love the way Net a Porter package everything up - I get so excited when I see the black box. I even kind of like the waiting in a weird way, as I get so excited knowing something is on its way to me. I absolutely love The Edit, I spend ages browsing on there, and I think this is a great way to engage customers rather than simply trying to sell products. Do you engage with luxury brands on social media, and do you think they should be using this as a platform to engage with consumers? Absolutely. I follow nearly every luxury brand out there. I think its a great way to hear from the brands directly, what they want to say rather than reading about it is newspapers or magazines. I also think it is so important for brands to be using this as a form of communication particularly for younger customers. Nearly all young people use some form of social media, so if brands did not use this they would definitely lose a lot of potential customers. What do you think is most important when it comes to luxury brands using social media? I do not think they should use social media as a marketing platform, thats what adverts are for. Instead they should try to engage customers with exciting content to talk about and get them involved on a personal level. I love hearing exclusive news via social media - I don’t particularly want to try and be sold a bag, or I wouldn’t follow them. Do you think luxury online makes it too accessible? No i wouldn’t say too accessible. Although it does need to be accessible to a point. There is no point a luxury brand trying to stay so exclusive that it won’t use online and then miss out on potential customers. It needs to be online as that is the way things are going, and theres no stopping it. People want things easily and in a convenient way so shopping online does this. However, what brands must make sure is that their online presence lives up to their offline one, making sure it still reflects and embodies the exceptional standards there are in store.

139

What is most important for you when you visit a luxury brands website? Firstly, it must be simple to navigate, if it is too complicated I get bored straight away and donâ&#x20AC;&#x2122;t even bother looking. It must be easy to find the online shop, some websites you have to spend ages just trying to figure out how to purchase an item. That to me is most important really, I like to be able to see products clearly, as that is usually what I am looking for, rather than loads of information about the brands, I already know a lot of that. Appendix 26. Observation Observational Research- Koulla Sergi Research was undertaken through monitoring the consumers behavior on luxury website Net a Porter for 45 minutes in order to understand how they engage online and what aspects are most important to them. This was purely observational, without giving the consumer instructions, to find out naturally what was most important to her. Most time was spent browsing through The Edit - 20 minutes Then the consumer looked at â&#x20AC;&#x2DC;New Inâ&#x20AC;&#x2122; - 10 minutes The consumer then chose to search for particular designers (Moschino and Saint Laurent) - 7 minutes The consumer looked at a Saint Laurent ring and placed in basket - 3 minutes The consumer then went to basket and ordered item - 4 minutes Overall the consumer was most interested in the content provided on the website through The Edit. Most time was spent browsing this part of the website. She was also interested in what was new to the website. She was confident when browsing and checkout was very quick, highlighting the user friendly aspect of the overall website.

140

Appendix 26: Email Interview Who: Melanie Bouvier, Marketing, Louis Vuitton

141

Appendix 27: Email Interview Who: Sedge Beswick, ASOS social media manager

adam thomson

142

Appendix 28: Email Interview Who: Antony Waller, Fashion PR, Shoot & Show Director.

143

144

Appendix 29: Email Interview Who: Lucie Toogood, Gucci

Do you feel that by luxury fashion brands now having an online presence, it is damaging the brands exclusivity? I believe there is a fine line, over exposure and wide availability can damage brands exclusivity. Brands that are selective in their online presence and limited stock (styles and units) do have potential. Does Gucci being online, increase more sales through e commerce as well as directing people in store to purchase? This is difficult for me to answer as I am based in the Middle East where we have only recently launched e-commerce. From previous experience it is a different client who purchases online as they are usually time poor and a younger target profile that are up to speed with the mod cons of technology. I donâ&#x20AC;&#x2122;t think that ecommerce drives clients into the store to purchase, PR & Marketing are still the key driver in this. Do you think e-commerce is the right route for luxury brands to be taking, or should brands stick to in store, where they can give consumers a completely luxe experience and high level of customer service? It is the right direction as brands have to be in line with market demands and technology is a key leader . Ecommerce is growing faster than stores and it reaches out to clients that are do not have a store in their local area. For luxury brands there is a fine line as it is challenging to recreate the in store experience and customer service online, this is something that will still take

145

What are your thoughts on luxury brands using social media? Is this a good thing or a bad thing given the exclusive nature of these brands? This needs to remain selective and targeted, the right product to the right target audience at the right time using the right social media. Again i am sure this is something we will begin to see more of as the younger ‘techy’ generation grow and become target clients for luxury brands. What do you believe the future for Gucci is, in regards to digital and online presence as well as using e-commerce and social media, is this the best strategy for the brand in the future? It will of course be part of the strategy but the heart of luxury fashion is all about the experience and service which can’t currently be replicated so it wouldn’t be the key strategy for the business. As the online industry is evolving so are the businesses that use them.…. Who knows what will happen in 20 years though! What are your thoughts on luxury brands targeting younger consumers now, and engaging with them through digital platforms as they will be future consumers? It is a great idea to educate potential future clients regarding the heritage of the brand and also to get clients shopping at an earlier age through aspirational products. It is a great marketing tool as younger clients are more viral and viral marketing is often more trusted. Research so far has shown me that luxury brands who are entering the digital world need to mirror the special experience and high standards that their consumers have come to expect in-store. Do you feel that this is ultimately possible online and if so how could brands be doing this? Brands are defiantly working towards this but so far the digital experience is not replicating the in store experience and service. The new advances of technology that can make the online experience more in line with the in store experience are too new for the current target clients, in time this will change and e-commerce and in store retailing could become more consistent however it will never replace the extraordinary in store experience and high customer service that luxury brands have created.

146

Do you think luxury fashion going online is making brands too accessible? No, I don’t think it makes it too accessible. You have to be really careful. Burberry opened themselves up to a bigger audience. A lot of people thought what they were doing to the brand could be harmful long term. You have bonified luxury brands, then more mass market. Burberry has made itself mass luxury. If they don’t make it too open and accessible then it works okay. Online is inevitable, its how you communicate, use of technology is the most interesting thing. Burberry was trying to encourage a generation that had no understanding of product to engage with the brand, which really worked through Art of the Trench. Online you control as many touch points as possible. Online is most controllable environment brands have ever had. You can be who you want to be. Balance between online and offline is most crucial Do you think it is important to target new millennial consumers through digital? If your goal is to attract younger consumers of course you cannot ignore digital. Any brand with an audience below 50 cannot ignore digital. Younger age is getting important; mulberry has done a good job in terms of branding by making it accessible to a point but still desirable. I don’t know of any, but I would love to know if there are any brands out there that are completely ignoring digital Do you think its possible to recreate the luxury in store experience online? Its not a question of mirroring experience from in store. If you look back on history of Internet. Look at SECOND LIFE which is a platform for people to live how they do in the real world but online, there was a rush for brands to create own spaces on there which I think is absolutely absurd. That experience went to show how crazy it is trying to replicate your in store experience online. You want the whole story. The idea is delivering content alongside your product. Net a porter have esquires editorial team working with them, which makes there online magazine so successful. Luxury should have content, blog or magazine, and that is what the Smartest brands have now realised. What the internet has done, is made bricks and mortar retailers up their game, rethink of what their doing. I find it hilarious that shops are all becoming more than a store; every store has a coffee shop now. It is extremely interesting to watch where retailers are changing. What are your thoughts on selling luxury fashion online? Mr. porter is a great example of how to drive sales. There are interesting habits with men and women, women are happier to buy online and return things. Men don’t tend to shop like that, they often do research know what they want and go and get it. It is interesting how Mr. porter talk about garments. For example they might say ‘if you are usually an XS get a small in this as it comes up smaller’, they show you as much detail as possible - people want to see fabric, buttons, this wants to be shown. The packaging and deliver is extremely important along with the unwrapping experience, something that Mr. Porter does extremely well. The packaging is intricately thought out, and makes you almost feel like you have actually been to a shop. One of the biggest issues with e-commerce remains to be the fact you cannot try clothing on.

147

Appendix 30 - LSN Global: Online Vs Offline Conference (Key points) Antony Waller: E- commerce is unstoppable, people will open up more and more to purchasing online. It’s the way the world is going, and there is no stopping it. Also brick and mortar stores are very expensive to run You can be online without being online Bora Aksu has a clear market and keeps to it – passionate about brand personality. The fashion landscape is changing and it is the digital era that has changed this. Fashion is now becoming more inclusive and less exclusive. Bora Aksu keeps message same across channels. – dark romantic feeling At Fashion week previously there were few pictures released, now there is live streaming, everyone can have a say. Burberry streamed show at Piccadilly Circus . Advantage to buying live from catwalk is that brands can instantly see what is and what isn’t working in a collection ad can then be refined before it goes in store. People aren’t bothering to travel to fashion week – look at Tom Ford who had a secret show – ultimate exclusivity. Maybe it will go back to being like this. Digital may not translate into sales – not a given that if luxury goes online and puts a lot of time and money into digital it is going to be as successful as Burberry. It needs to fit in with brand identity. Important as to how brands keep same voice across all their networks – same brand messaging is key, should you adopt to each social network? Begs the question – ‘can luxury be luxury if it attainable?’ Folk digital - Paul Sheehy People buy stories, not products. It is all about the story whether online or offline – Paul, Folk Digital Anthropologists content that 70% of what we learn is through stories, so important for brands to adopt this. Digital is everything and nothing. Great video from burberry, about smart personalization as it really includes the craftsmanship in the digital video, allowing a real connection to it. People experience is key – Richard danks

148

Appendix 31: Burberry Talk at Nottingham Trent University Who: Greg Stogdon (key points) Burberry First British brand on FB Shift of how they were perceived digitally, looking at different sectors to bring people together, One day they found all old film reels and then made them into a digital film – importance of really combining the heritage of the brand with new digital technology. All teams work together- integrate digital into other departments. Approach digital in the same way products are designed. At Burberry craftsmanship is involved in digital processes. Burberry Kisses campaign really personalized technologyPower of mobiles – holographic fashion show Bejing – 2.6 million views even before the edit. Creating a massive buzz. People now want to know more about how product is made, behind scenes, digital is key in providing this experience to consumers. Technology must be true to the brand Personalization is a key factor in exclusivity, so don’t have digital for the sake of it but make it personalized. Q: Is digital taking over, and will it eventually overtake in store? A: Well I hope not, it wont overtake but you have to move forward as people and technology are changing, you must move with the times, Digital however is catching up but there will always be a need to touch something. You need to follow trends, consumer needs are key

149

150

Appendix 32 Store visits, examples of questions asked Participants were kept annonymous

Store visits Multiple store visits were undertaken in London, in both Westfield, and Sloane Street, in order to speak to people working for the brand and gain further consumer insight, as well as consumer observation to see their purchasing behavior. These general questions were asked to gain insight in to how the consumer shops, and if they were also interested in engaging with the brand online prior to store visits. Questions were also asked to see if a younger consumer shopped differently in store to an older one, to compare and contrast the different age generationâ&#x20AC;&#x2122;s behavior. Have consumers often browsed online prior to store visit? Do they often require a lot of assistance or know what they want? Do you think selling online is the best strategy for luxury brands in the future? Can you notice a difference in the way younger consumers shop in store? Appendix 33: Store visits, response from sales assistants Prada Often customers already know what they want when they come in to the store, for example in Prada most customers want a particular bag. They may come in with a cut out article. It is different for dresses, sometimes they need to be pinned and tailored. Most trousers for men are often too long, so must then send off to the tailor I feel that it is great that Prada now sell online. Some items are different from country to country. So a jacket in London may not be sold in Paris, therefore it is good to go online for this; there are more options available. Online the product may be different, each store in different countries stock different items, However for clothes it is necessary to come in to the store so that they can try on, and see what they look like, but for accessories such as sunglasses or handbags, online is amazing. Younger consumer is more difficult and demanding, If young consumers come in they come with parents Mulberry Most people need guidance from sales assistance 80:20. Only a handful of people will have looked online before they come in store, and these will be the people who know what kind of styles they are looking for already. Mulberry online store does do really well. However, a lot of mulberry customers at the moment until this point view buying a mulberry as an investment piece, sentimental value, so majority of customers enjoy in store experience where you can tell them about the leather, pick which leather they prefer, wrapping

151

Dior More often than not customers know what they are looking for, they have seen it online, and then ask for it. Online can be viewed as like a catalogue, as it has all items on display. Dior online store offers last season items, not current season, so they always suggest they should live the Dior experience in store, talk to them, get to know them, online is cold dialogue. For Dior it is practical, if you know what piece you want. But if you want to know about the brand and enjoy products, feel them, then come in store. Online pictured are not as detailed, and online store is quite cold. It is necessary to have an online presence, but for purchasing, in store is better. Some consumers will have looked online before. Loyal consumers will always come in store due to atmosphere customer service. The consumers who come in store would be willing to purchase online, if they live far away they will buy online rather than coming all the way to store, but if people are around the area shopping they will go in. Some people actually come in store to try items on and then buy online, you cant return in store has to be online, so actually returns is not even an issue with e commerce Younger consumers do shop different â&#x20AC;&#x201C; they are much more about the look and fashion but older consumers take longer to decide and see it as an investment. Younger people go towards fashion and what is currently in â&#x20AC;&#x201C; very much trend driven. Gucci A lot of customers go online first, online catalogue, do not offer catalogues for customers, only option they have. There are different sizes, European sizes; Gucci is half a size bigger, a lot of times when they purchase online must return to Italy Good to sell online, as soon as they know their size they wont come back they will then buy online De Beers Do not sell online, donâ&#x20AC;&#x2122;t see it selling online in the future, as diamonds are so specific and individual. A lot of guidance in what it is that you are purchasing. People may get overwhelmed online, prioritise wrong things. Potentially collections could be online, but definitely not rings Some people have done research online prior to visiting store. Also have an app, which allows you to play with engagement rings see how they are going to look which is doing quite well For you forever, semi bespoke diamonds, personal touch Add a personal touch been created Chanel Does not see Chanel selling online even in the future, as it does not fit in with the brand identity, although we do acknowledge it is more convenient for customer but it is part of the brand.

152

Customers all know what they want before they come in store, seen things online or in magazines. Younger customers are coming in; they will buy smaller items like handbags and shoes rather than RTW. Miu Miu A lot of clients prefer to come in store to try on, Consumers in this local place, Sloane Street, are often regular customers, Younger generation would come in a group if they are looking at RTW they all try on together to get comments from each other and gain advice, whereas an older consumer will come by themselves but often make an appointment as they want guidance from sales assistance. It is good to have e commerce for Miu Miu so consumers can see things and visualize. Business side it is good, unsure how clients find it. It is easy as you can see things and just simply click. Brand sizes are different however so consumers often need to try on. Consumers may see things in magazine or online then call to see if they have in stock Versace There are clients that are used to the street, increased footfall from people who look online always but don’t trust online so come in store. Sell different products online than n in store which is a very good thing so they don’t have to carry so many lines in store. Something they don’t sell online must be ordered online. Younger consumers shop in Versace, they just don’t trust online they want to come in and see and feel and bring parents and then buy. Very good to have e commerce only started this year for Versace but has increased traffic both online and in store.

153

Appendix 34 . Turorial Record Sheets

15/10/13 Megan Tan

Research so far

Research ideas â&#x20AC;&#x201C; what am I going to look at Can I gain more of a focus as topic is so broad

Secondary research is good so far Think about more books?

Think about a focus â&#x20AC;&#x201C; luxury? Make critical path and plot in key dates Look over module guide Think about case studies

154

22/10/13 Megan Tan

Potential case studies Critical Path

Still unsure about my main research question

Think about figuring out a range of questions and problems to solve

Aims/objectives list Think of one line summary/pitch of project idea Paragraph of what you are putting in the email you send to people Visual representation of where I am up to so far

155

29/10/13 Megan Tan

Laptop with visual progress Aims and Objective Example paragraph of what I am sending to people

Not sure who to contact just yet - proffesional wise.

Luxury is a good focus to have May have issues getting contacts? Matt can send me some

Bring Bibliography so far Methodology Chapter planning case studies

156

12/11/13 Megan Tan

Laptop with visual progress Aims and Objective Example paragraph of what I am sending to people

Presentation queries - is it formal? What do we need to include?

Informal - we are given formative feedback and given a grade for what we are at now. show your progress and where you are going next.

Prepare for presentation

157

19/11/13 Megan Tan

Come prepared with powerpoint presentation

Where shall I go next? Potential strategic outcomes?

Informal - we are given formative feedback and given a grade for what we are at now. Look at luxury consumers in generation - mum and daughter? See differences Make sure I concentrate on Visuals Think about looking at a brands overall marketing campaign for strategic outcome

Look over feedback sheets Self evaluate presentation

158

26/11/13 Megan Tan

What have I done since presentation? Any questions about it, evaluation of how I did

Feedback - what grade am I at? What kind of primary research shall I start with?

Begin Primary research by creating a survey to send out to people who purchase luxury goods - then look at interviewing people further Go in to ucury stores - speak to sales assistants/consumers

Do more primary research Bring sample of writing Chapter plan finalised

159

7/12/13 Megan Tan

Bring sample of writing Bring a chapter plan

Are my chapter plan headings okay? Do they include everything? Is primary research so far okay - contacting industry professionals.

Try and get majority of writing done over Christmas Concentrate on visuals Think about how you want the report to look Do more consumer research

Aim to have majority of writing done - first draft complete all primary research

160

14/1/14 Megan Tan

Bring all work so far on laptops Bring design work for the document of your research report Think about printers

Unsure how to get it printed/bounded - looking at reports next week Not sure if I am along the right lines of strategic outcome

Think about if you want to have strategic outcome for one brand or a variety. Split them in to smaller reccomendations Think about going to a print shop to discuss options

Bring design work so far

161

21/1/14 Megan Tan

Bring all work so far on Indesign document

Issues finding imagery that is suitable

Think about using graphic imagery Colours on report - could have different shades of grey to split up chapters - colour code Simple perfect binding, with textured front cover - suitable for luxury

162