L2 European retail digital

SCOTT GALLOWAYNYU Stern

© L2 2011 L2ThinkTank.com

A Think TAnk for DiGiTAL innOVATiOn

®

D e c e m b e r 1 5 , 2 0 11

Specialty retailEurOpEAn

http://l2thinktank.com/

Digital iQ inDex®:

European Specialty Retail

What Happens Online Does not Stay OnlineDigital provides a greater opportunity than just generating online

sales. More than 65 percent of consumers in major European

markets use their smartphones while in brick-and-mortar stores.

In addition, two-thirds of EU consumers indicate that they

conduct research online before heading in store, highlighting

digital’s potential to drive and derive incremental revenue.

2© L2 2011 L2ThinkTank.com

Want to know more about your brand’s ranking?cOnTAcT US

i n T r O D U c T i O n

A Tale of Two ContinentsWeakened consumer confidence has sent European retail sales down 2.3 percent year over year.1 The silver lining: E-commerce. In the big three markets—the U.K., Germany, and France—business-to-consumer e-commerce sales are projected to increase at a compound annual growth rate of 12.2 percent, exploding from $93.5 billion in 2011 to an estimated $148.3 billion by 2015.2 In the eight weeks leading to Christmas, online sales are expected to increase nearly 20 percent from a year ago.3 Furthermore, more consumers in the U.K. and Germany made a purchase online as a percentage of the internet population in 2011 than in e-commerce’s birthplace, the U.S.4

Winners & LosersIn our first-ever Digital IQ Index® measuring the digital efforts

of European specialty retailers, a bifurcation appears to be

emerging. Genius retailers including online-only players ASOS

and NEt-A-POrtEr, and juggernauts H&M and Sephora, are

developing robust, multi-platform e-commerce experiences,

aggressively building engaged communities on social media,

and signaling innovation through experimentation on emerging

platforms. Meanwhile, other retailers dim their growth prospects

with anemic sites and social media programs.

1. “Outlook for the Retail and Consumer Products Sector in Asia,” PWC, 2011. 2. “Western Europe B2C Ecommerce,” eMarketer, July 2011. 3. “Europeans will spend nearly $70 billion online for the holidays,” Allison Enright, Internet Retailer, November 23, 2011. 4. Ibid, eMarketer, July 2011.


mailto:info%40l2thinktank.com?subject=

mailto:info%40L2ThinkTank.com?subject=Digital%20IQ%20Inquiry


U.K.(n=15)

112

76

Italy(n=5)

104

Spain(n=6)

87

France(n=24)

Other*(n=5)

80



DiGiTAL iQ inDEx®:

european Specialty retail

European DisunionDigital competence varies by country of origin. retailers head-

quartered in the U.K., where 12 percent of all retail takes place

online, boast average IQs of 112. their counterparts in France

and Italy, however, average just 87 and 76, respectively.

Digital iQ = Shareholder ValueOur thesis is that digital competence is inextricably linked to

shareholder value. Key to managing and developing a compe-

tence is an actionable metric. this study attempts to quantify

the digital competence of 55 European specialty retailers. the

ranking reflects brands’ efforts across the big five markets in

Western Europe and the U.S. Our aim is to provide a robust tool

to diagnose digital strengths and weaknesses and help brands

achieve greater return on incremental investment. Like the

medium we are assessing, our methodology is dynamic, and we

hope you will reach out to us with comments that improve our

methodology, investigation, and findings. You can reach me

at [email protected].

regards,

ScOTT GALLOwAy

Founder, L2 Clinical Professor of Marketing, NYU Stern

i n T r O D U c T i O n

AVerAGe DiGiTAL iq by cOUnTry Of heADqUArTerS

* Sweden, Germany, & Switzerland






Want to know more about your brand’s ranking?CONTACT US

Digital iQ inDex®:


meThODOLOGy

A b O U T T h e r A n k i n G S

Site: 35% Effectiveness of brand site

FunCTiOnALiTY & COnTEnT: 75%• Site Technology

• navigation, Product & Site Search

• Social media integration

• customer Service & Store Locator

• Product Page

• checkout

• Account

• international customization: Language,

Currency, Consistency, Shipping

Digital Marketing: 30% Search, display, and email marketing efforts

• Search: traffic, SEM, SEO, Web Authority

• Advertising & innovation: Display, retargeting, recent Brand Initiatives, Presence on tumblr

• blog & Other User-Generated content: Mentions, Sentiment

• email: Frequency, Content, Social Media Integration, tactics

Social Media: 20% Brand presence, community size, content, and engagement on major social media platforms

• facebook: Likes, Growth, tabs & Applications, responsiveness, Engagement

• Twitter: Followers, Growth, tweet Frequency, Online Voice

• youTube: Views, Number of Uploads, Subscriber Growth, Viral Videos

Mobile: 15% Compatibility, optimization, and marketing on smartphones and other mobile devices

• mobile Site: Compatibility, Functionality, transaction Capability

• iOS Applications (iPhone & iPad): Availability, Popularity, Functionality, iPad Differentiation

• Other Platforms (Android & blackberry): Availability, Popularity, Functionality

DiGiTAL iq cLASSeS

IQ Range IQ Class

140+ GeniUS

Digital competence is a point

of differentiation for these retailers.

Site content is searchable,

shareable, and mobile optimized.

Social media efforts complement

broader digital strategy.

110–139 GifTeD

retailers are experimenting and

innovating across site, mobile, and

social platforms. Digital presence

is consistent with brand image and

larger marketing efforts.

90–109 AVerAGe

Digital presence is functional yet

predictable. Efforts are often siloed

across platforms.

70–89 chALLenGeD

Limited or inconsistent adoption of

mobile and social media platforms.

Site lacks inspiration and utility.

<70 feebLe

Investment does not match

opportunity.

BrAnD TrAnSLATiOn: 25%• Site Aesthetics

• messaging & imagery

http://l2thinktank.com





Digital iQ inDex®:


D i G i TA L i q r A n k i n G

rank Brand Headquarters Digital iQ Class Comments

1 ASOS u.K. 156 Genius A digital leader across all platforms, delivers unmatched programming and top-notch customer service

2 H&M Sweden 148 Genius Social media giant also boasts strong site with interactive product pages

2 nET-A-pOrTEr u.K. 148 Genius Seamless e-commerce experience; “Fashion’s Night Out” campaign bridges off- and online

4 SEpHOrA France 142 Genius Mobile leader drives e-commerce with robust content and a plethora of product reviews

5 MArKS & SpEnCEr u.K. 130 Gifted Fastest-growing twitter following and a site experience that wows across every dimension

6 LACOSTE France 127 Gifted Eau de Lacoste L.12.12 launch demonstrates digital mastery; brand integrates social media across every major platform

7 DiESEL italy 126 Gifted Site offers a wealth of content, but mobile offering doesn’t enthrall

8 L’OCCiTAnE France 124 Gifted Brand boasts three of the top 10 fastest-growing pages on Facebook

9 MAnGO Spain 121 Gifted Mobile savant hosts m-commerce across every major operating system

10 HOuSE OF FrASEr u.K. 120 Gifted Excellent e-commerce experience provides localized buy-and-collect option

11 HArrODS u.K. 119 Gifted Digital efforts reinforce brand’s heritage and reputation

11 nExT u.K. 119 Gifted Highest scoring m-commerce experience, but buggy site hampers traditional desktop experience

13 FrEnCH COnnECTiOn u.K. 118 Gifted Seamless e-commerce experience and impressive blogs

14 LA rEDOuTE France 114 Gifted Site excels across every dimension except aesthetics; quick to adopt Google +1 button

SPAIN

FRANCE

ItAlY

HEADQuArTErS:

U.K.OthER




Digital iQ inDex®:



15 TOpSHOp u.K. 113 Gifted robust social media programming and huge follower base, but limited mobile offering

15 ZArA Spain 113 Gifted Facebook leader with more than 10.5 million “likes”; user-generated style campaign and contest entertain

17 nEW LOOK u.K. 111 Gifted Efficient e- and m-commerce could be enhanced with stronger design

18 3 SuiSSES France 110 Gifted Interactive catalogs and multimedia blog stand out; Google+ sharing

19 SELFriDGES u.K. 108 Average Cross-platform corporate social responsibility efforts complement digital strategy; mobile investments lag

20 SArEnZA France 107 Average Best asset is site functionality, but lacks aesthetic flair

21 EL COrTE inGLéS Spain 106 Average Brick-and-mortar behemoth has created an equally overwhelming digital offering— quantity over quality

22 CAMpEr Spain 105 Average Nimble site that balances aesthetics and functionality

23 BOOTS u.K. 103 Average Wins on functionality, loses on visual appeal

23 YVES rOCHEr France 103 Average Strong tutorial content gets lost due to feeble navigation

25 GALEriES LAFAYETTE France 98 Average Facebook page benefits from innovative features such as custom Instagram tab

26 BrAnDALLEY France 97 Average Le Lab engages customers by giving them a role in choosing the featured design

26 DESiGuAL Spain 97 Average Site reflects brand personality, but interactivity is relegated to microsites

28 THE BODY SHOp u.K. 95 Average Competent e-commerce offering, but no mobile presence

SPAIN

FRANCE

ItAlY

HEADQuArTErS:

U.K.OthER





Digital iQ inDex®:



28 uniTED COLOrS OF BEnETTOn italy 95 Average No e-commerce

30 VEnTE-priVéE France 92 Average Investment in Android and iOS platforms, but lackluster site

31 ESpriT Germany 87 Challenged Celebrates the holidays with the “Make Your Wish” offline/online campaign

31 MATALAn u.K. 87 Challenged Virtual fitting room and sophisticated Facebook page are strongest assets

33 KOOKAi France 82 Challenged Blog delights; site is functional but dry

33 prinTEMpS France 82 Challenged No e-commerce, but shareable content delivers

35 MASSiMO DuTTi Spain 79 Challenged Branded content dominates site; e-commerce upgrades sorely needed

36 TriuMpH u.K. 78 Challenged Site navigation lacks sophistication and detracts from brand’s image

37 ETAM France 77 Challenged Facebook functionality is more sophisticated than site

37 MAriOnnAuD France 77 Challenged Strong social media integration on Facebook, but site design needs a refresh

37 AGnèS B. France 77 Challenged Aesthetic appeal fails to mask poor functionality

40 COMpTOir DES COTOnniErS France 76 Challenged Interactive e-catalogs are the only bright spots

41 AnDré France 75 Challenged Facebook Connect redeems an otherwise static site

42 MAjE France 74 Challenged Digital work-in-progress

SPAIN

FRANCE

ItAlY

HEADQuArTErS:

U.K.OthER





Digital iQ inDex®:



43 MOLTOn BrOWn u.K. 71 Challenged Brand equity does not translate online

43 SAnDrO France 71 Challenged Site design pleases despite nascent digital footprint

45 MinELLi France 68 Feeble E-commerce enabled site is simple but sleek

46 LE BOn MArCHé France 67 Feeble Site design is confusing

47 KADEWE Germany 64 Feeble No frills e-commerce

48 inTiMiSSiMi italy 63 Feeble Beautiful photography, but lacks essentials such as store locator

48 GEOx italy 63 Feeble Still working out e-commerce kinks

50 GLOBuS Switzerland 57 Feeble No social media presence

51 pAuLE KA France 55 Feeble Strong site and Facebook foundation; waiting for more content and stronger navigation

52 GErArD DArEL France 51 Feeble transactions and not much else

53 jELMOLi Switzerland 46 Feeble Site functions best as an online magazine

54 OrCAnTA France 42 Feeble No engagement, interactivity, or shareability

55 LA rinASCEnTE italy 35 Feeble Site is a relic

SPAIN

FRANCE

ItAlY

HEADQuArTErS:

U.K.OthER





Digital iQ inDex®:


20%

25%

22%

7%

Strength Begets StrengthFour brands, ASOS, H&M, NEt-A-POrtEr, and Sephora,

achieved Genius status in the inaugural L2 Digital IQ Index®:

European Specialty Retail study. All four have established a

robust e-commerce channel, strong programming on social

media platforms, mobile compatibility, and display a willingness

to innovate on emerging platforms. the overall IQ distribution

reveals a significant bifurcation: Only 22 percent of brands are

classified as having Average IQs, while the majority are at the

poles as either competent (Genius and Gifted) or incompetent

(Challenged and Feeble).

results of our Digital IQ Index®: Specialty Retail study, which

ranked U.S. retailers, revealed 2011 as the year of the American

department store. Both Macy’s and Nordstrom achieved Genius

rankings, and the category itself boasted an average Digital

IQ of 118, just behind the digitally native e-tailers. In contrast,

European department stores posted an average Digital IQ of

86, with 42 percent residing in the Feeble class. the category’s

performance is not surprising: One-third of European department

stores are not e-commerce enabled, 58 percent have no mobile

presence, and 17 percent do not engage in email marketing.

k e y f i n D i n G S DiGiTAL iq DiSTribUTiOn*

% of brands per Digital iq class

DiGiTAL iQ

>140

GEniuS

DiGiTAL iQ

110–139

Marks & Spencer

lacoste

Diesel

l’Occitane

Mango

house of Fraser

harrods

Next

French Connection

la Redoute

topshop

Zara

New look

3 Suisses

ASOS

h&M

NEt-A-PORtER

Sephora

GiFTED

Selfridges

Sarenza

El Corte Inglés

Camper

Boots

Yves Rocher

Galeries lafayette

BrandAlley

Desigual

the Body Shop

United Colors of Benetton

Vente-Privée

DiGiTAL iQ

90–109

AVErAGE

DiGiTAL iQ

70–89

CHALLEnGED

Minelli

le Bon Marché

KaDeWe

Intimissimi

Geox

Globus

Paule Ka

Gerard Darel

Jelmoli

Orcanta

la Rinascente

DiGiTAL iQ

<70

FEEBLE

Esprit

Matalan

Kookai

Printemps

Massimo Dutti

triumph

Etam

Marionnaud

Agnès b.

Comptoir des Cotonniers

André

Maje

Sandro

Molton Brown

25%

* Numbers do not add up to 100% due to rounding





http://l2thinktank.com/SpecialtyRetailDigitalIQ2011/



Digital iQ inDex®:


k e y f i n D i n G S

in the Company of GeniusASOS

ASOS hosts a consumer-to-consumer marketplace

for reselling clothing, shoes, and accessories

The retailer launched f-commerce on its facebook page allowing users to shop without leaving the platform

Skype partnership provides one-on-one style advice to customers

on november 23

youTube channel has well-integrated links to site, ASOS marketplace, and blogs

mobile site allows shoppers to customize currency and checkout

via PayPal


https://marketplace.asos.com/

http://www.my-retailmedia.com/blog/tag/Asos.php

http://www.facebook.com/ASOS?sk=app_11007063052

http://apps.facebook.com/asosofficial/?auth=yes

http://m.asos.com



Digital iQ inDex®:



in the Company of Geniush&m

Virtual dressing room allows visitors to style a model of their choice

h&m has the most robust Google Plus

page in the index

The retailer nabbed both the highest number of

Twitter followers and youTube brand channel

upload views


http://twitter.com/#!/hm

http://www.hm.com/us/dressingroom/LADIES#Nr=4294966587

http://www.youtube.com/user/hennesandmauritz?ob=5



Digital iQ inDex®:



in the Company of GeniusneT-A-POrTer

fashion fix, features brand news and product highlights, press coverage, and a live Twitter feed

instagram serves as the platform to update followers

on the #shoeoftheday

neT-A-POrTer LiVe monitors real-time purchases across

the globe


http://fashionfix.net-a-porter.com/

http://www.net-a-porter.com/live

http://instagr.am/p/Xq6MH/



Digital iQ inDex®:



in the Company of GeniusSePhOrA

Sephora’s “beauty Talk” forum allows customers to give each other beauty tips and ask for expert advice

Sephora TV houses its how-to and style advice videos

The retailer’s mobile site is fully e-commerce enabled;

reviews are housed on a separate mobile site, which is designed for in-store use

Sephora boasts best-in-class iOS

applications


http://itunes.apple.com/us/app/sephora-app-for-ipad/id449000401?mt=8

http://community.sephora.com/

http://www.sephora.com/sephoratv/

http://itunes.apple.com/us/app/sephora-to-go/id393328150?mt=8

http://r.sephora.com

http://m.sephora.com/



Digital iQ inDex®:


The Queen (of Digital)retailers headquartered in the U.K. boast an average IQ of 112,

eight points higher than Spanish peers and significantly higher

than those in France and Italy.

the U.K.’s IQ supremacy mirrors macro trends: Britain’s online

share of all retail sales leads Europe at 12 percent, with the

nation’s e-commerce shoppers spending almost $3,000 online

annually.5 Additionally, 44 percent of U.K. specialty retailers

have a mobile-optimized site, all are present on Facebook and

twitter and are e-commerce enabled. Spain’s average IQ gets a

boost from retail giants Mango and Zara, both Gifted.

Children of the MediumOnline-only retailers boast significantly higher Digital IQ scores

than their brick-and-mortar peers, suggesting traditional

retailers are still playing catch-up in Europe. For those brands

with a store retail strategy, there is also a relationship between

the number of retail locations and Digital IQ, indicating that

terrestrial retailers with a larger offline footprint are also more

competent online.


5. “Western Europe B2C Ecommerce,” Karin Von Abrams, eMarketer, August 2011.

7.3% 3.9%n/a

12% 3.5%

Chal

leng

edG

ifted

Shar

e of

Onl

ine

Ret

ail

90

110

UK(n=15)

112

Spain(n=6)

104

France(n=24)

87

Italy(n=5)

76

Other(n=5)

80

Aver

age

AVerAGe DiGiTAL iq by cOUnTry Of OriGin

VS. ShAre Of OnLine reTAiL

(December 2011)

Chal

leng

edG

ifted

90

110

>1,000

110Av

erag

e

500–1,000

106

250–500

87

100–250

7976

Online Only

120

<100

AVerAGe DiGiTAL iq by nUmber Of STOreS

(December 2011)







Digital iQ inDex®:


Luxury Comes up Shortretailers with a lower average price point register an average

Digital IQ 20 points above their higher priced peers, indicating

high-end brands have still not found their footing online. this

disparity suggests a missed opportunity, as affluent consumers

are more likely to own a smartphone and tablet, spend more time

online, and are the largest contributors to e-commerce growth.

Leveling the playing FieldAmong the 20 retailers with publicly available financials, there

is no relationship between the size of the business (in annual

revenue) and Digital IQ, suggesting that digital provides a

medium for smaller brands to punch above their weight class.


Chal

leng

edG

ifted

90

110

$

111

Aver

age

$$

90

$$$

92

AVerAGe DiGiTAL iq by Price POinT

(November 2011)

PArenT cOmPAny reVenUeS VS. DiGiTAL iq

(December 2011)

15 20 25 30 351050

Feeb

leAv

erag

eCh

alle

nged

Gift

edG

eniu

s

70

90

110

140

2011 Fiscal Year Revenues (in $ billions)







Digital iQ inDex®:


30%

83%

17%

76%

26%

74%

4%

15%

70%

85%96%

Videos

24%

Product VideosProduct QuickviewUser Reviews/Ratings

Store Locator Live Chat

MultichannelEuropean specialty retailers are present across most digital

channels. All but one maintain a presence on Facebook and

more than 85 percent are e-commerce enabled. On the next

retail battleground, mobile, nearly 60 percent of retailers have

launched a mobile site and/or an application.

Emerging platforms offer more opportunity for differentiation.

While 38 percent have a presence on Google+, only 16 percent

of the retailers have established official Instagram accounts and

just five percent have a tumblr blog. H&M leads on Google+,

with more than 15,000 subscribers, versus the Index average of

808. In addition, NEt-A-POrtEr photos are followed by more

than 14,000 Instagram subscribers. During data collection, only

one brand, Kookai, was present on all three new media channels.

Low-Hanging FruitEighty-seven percent of the retailers’ sites are e-commerce

enabled, but most lack some of the most basic features, such

as user reviews and product ratings. though the majority, 83

percent, include videos, it is their shareability that drives visits:

Sites with interactive and shareable videos experienced a 19

percent increase in traffic over a one-month period, versus just

five percent for those without. Similarly, retailer sites with blogs

experienced an 18 percent increase in traffic over the same period.


ADOPTiOn AcrOSS PLATfOrmS

% of brands with the following

(November 2011)

SiTe feATUre ADOPTiOn

(November 2011)

Email E-CommerceFacebook Twitter YouTube Blogs Mobile

98%

85%80%

87%

67%58%

93%

16%

5%

38%

Google+ Instagram Tumblr

Emerging Platforms

WIth

WIthOUt







Digital iQ inDex®:



45%55%

Viewableon Mobile

EmailConsistency

WelcomeEmail

63%

52%

44% 44%

33%

26%

7%

Links toSocial Media

ReplicatedWeb Nav

Send toFriend

Social Sharing

emAiL mArkeTinG ADOPTiOn

(September–November 2011)

emAiL feATUre ADOPTiOn

% of brands with the following

(November 2011)

EMAIl RECEIVED

NO EMAIl RECEIVED

Empty inboxWhile 90 percent of European specialty retailers offer email

signup, almost half did not send an email marketing message

within 10 weeks. Email privacy laws are more restrictive in

Europe than in the U.S., but the medium still provides one

of the most effective call-to-action marketing vehicles. Email

penetration across Europe is 67 percent, and every segment,

with the exception of the 15–24 demographic, has registered

email adoption growth—most in the double digits.6

Online retailers such as Vente-Privée, NEt-A-POrtEr, and

BrandAlley lead the pack in email frequency and sophistication

because of their high inventory turnover, sending upwards of

three emails per week versus the Index average of 0.9.

6. “State of the Internet—Australia,” ComScore, February 18, 2011.







Digital iQ inDex®:



TOP 10: fAcebOOk fAn PAGe GrOwTh

excluding Pages with < 2,000 fans

(September– November 2011)

TOP 10 brAnDS: fAcebOOk ‘L ikeS’

(November 2011)

0% 50%

100%

150%

200%

250%

228%Jelmoli

101%L’Occitane

(USA)

85%Vente-Privée

(Germany)

73%Sarenza(Italy)

72%L’Occitane(Germany)

72%El Corte Inglés

69%Vente-Privée(Spain)

65%L’Occitane

(France)

55%Vente-Privée

(Italy)

47%House of Fraser

Zara

H&M

Lacoste

Mango

Sephora(Global)

Topshop

ASOS

New Look Retail

Diesel

United Colorsof Benetton

0

4,000

,000

6,000

,000

8,000

,000

2,000

,000

10,00

0,000

10,517,459

8,668,408

6,676,576

2,706,273

2,059,363

1,706,324

1,363,750

1,129,652

1,077,385

852,375







Digital iQ inDex®:


Size vs. EngagementWinning on Facebook is no longer just about page size, it’s also

about engagement. European specialty retail brands have made

huge investments in fan growth and average more than 460,000

“likes” on Facebook. However, no retailer has achieved the elu-

sive “tribe” status, balancing an above-average community size

with above-average fan interaction. Marks & Spencer,

Diesel, and United Colors of Benetton are best positioned to

reach this sweet spot combining scale and interaction.

Facebook heavyweights Zara, H&M, and Lacoste—all with

communities of more than six million—had some of the lowest

Facebook engagement rates at approximately 0.02%.


COHORTS CROWDS

FAMILIES TRIBESThe Body Shop

DieselMarks

& Spencer

United Colorsof Benetton

Zara

Lacoste

Intimissimi

H&M

Yves Rocher Italy

Yves Rocher US

SiZe Of cOmmUniTy

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

Le

Ve

L O

f e

nG

AG

em

en

T

fAcebOOk cOmmUniTy SiZe vs . enGAGemenT rATeS

excluding Pages with < 2,000 fans

(November 2011)

= BRANDS NARROWING IN ON “tRIBES” CAtEGORIZAtION

KEY:

benetton’s product post garners a “like” interaction rate of .69%

A store opening event post of photos has a

“like” interaction rate of .12%





http://www.facebook.com/Benetton?sk=wall

http://www.facebook.com/MarksandSpencer



Digital iQ inDex®:



The in CrowdWhile there is increasing pressure to demonstrate rOI in

Facebook, only four brands in the Index—ASOS, Sephora,

L’Occitane, and the Body Shop (USA)—leverage the platform to

sell products. ASOS is particularly sophisticated, enabling users

to send shopping invitations to friends and providing currency

personalization and product sharing. Zara and Marionnaud offer

interactive lookbooks and product catalogs on Facebook, but

transactions are consumated on the brands’ sites.

Links to E-Commerce page

product Links

partial F-Commerce

Full F-Commerce

fAcebOOk cOmmerce innOVATiOn

% of brands employing the following:

35%

4%

7%

fA

ce

bO

Ok

cO

mm

er

ce

SO

Ph

iST

icA

TiO

n

54%

L’Occitane, Sephora, and The body Shop are experimenting with f-commerce





http://apps.facebook.com/loccitane_shop/?en-GB

http://apps.facebook.com/egiftsocial/?url=sephora&mp=1

http://www.facebook.com/TheBodyShop?sk=app_285640094787391



Digital iQ inDex®:


TOP 10 brAnDS: mOST DAiLy TweeTS


beST in TweeT: TOP 10 TwiT Ter fOLLOwerS

(November 2011)


TOP 10 brAnDS: fOLLOwerS ADDeD Per DAy


Marks & Spencer

L’Occitane

Harrods

Topshop

Yves Rocher

BrandAlley

House of Fraser

NET-A-PORTER

ASOS

Desigual

0 5 10 2015 25

24

19

14

14

13

12

12

11

11

@hm

@LACOSTE

@Sephora

@ASOS

@Topshop

@NETAPORTER

@LaRedouteFr

@HarrodsofLondon

@Selfridges

@hmusa

0

100,0

00

200,0

00

300,0

00

400,0

00

357,802

244,513

231,269

227,687

201,715

123,217

65,353

58,510

58,400

578,213 @hm

@ASOS

@Sephora

@marksandspencer

@NETAPORTER

@Topshop

@LaRedouteFr

@HarrodsofLondon

@hmunitedkingdom

@Selfridges

020

060

040

080

01,0

00

1,775

752

586

569

407

381

305

178

129

122

32







Digital iQ inDex®:


Customer ServiceEighty-five percent of European specialty retail brands maintain

at least one twitter account. Although they largely use twitter

to converse with followers about retail news (product, store,

or general information), more than a third also use twitter as a

vehicle for customer service.

Brands including House of Fraser, Marks & Spencer, and NEt-

A-POrtEr use their official twitter channels to respond to cus-

tomer inquiries and complaints, while ASOS and Sephora have

developed customer service-specific accounts that scan official

pages for questions and comments. responding to customer

service inquiries appears to pay off—twitter handles that ad-

dress these requests yield average followings of almost 60,000,

compared with 16,000 for accounts that do not.

63%

51%48%

24%

63%

Links to Social Mediain Tweet Stream

Retweets Pictures Videos@Replies

56,412

24,745

47,227

17,477

25,545

34,074

58,267

16,159

Customer Service Events Deals/OffersContests

AVerAGe nUmber Of fOLLOwerS by cOnTenT TyPe


% Of brAnDS USinG The fOLLOwinG TwiT Ter TAcTic S

(September 2011)

USING

NOt USING


ASOS and Sephora's dedicated customer service Twitter accounts





http://twitter.com/#!/ASOS_HeretoHelp

http://twitter.com/#!/Sephora_Expert



Digital iQ inDex®:


iretailMore retailers have developed iPhone and iPad applications

than have created mobile-optimized sites, one of the most ba-

sic and cost-effective mobile investments. Additionally, just one

in five brands have established an app for the rapidly proliferat-

ing Android platform.

While iOS dominates, app sophistication lags. Only 39 percent

of iPhone and iPad apps are mobile-commerce enabled, and

less than half (46 percent) include a store locator. More surpris-

ing, only 16 percent offer customer service information through

their iOS apps.

Among the 24 percent of retailers with mobile-optimized sites,

sophistication is high—the majority host a retail locator, are

e-commerce enabled, and offer mobile site search.


mObiLe ADOPTiOn by PLATfOrm

(November 2011)

mObiLe SiTe feATUreS

% of mobile-Optimized retailers employing the following:

(November 2011)

iPhone iPad AndroidMobile-OptimizedSite

24%

47%31%

20%

Mobile Site Search

Retail Location Finder 80%

75%

75%

M-Commerce 9%Will not

load

67%not Mobile-Optimized

24%Mobile-Optimized

mObiLe SiTe SOPhiSTicATiOn

(November 2011)







Digital iQ inDex®:


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

L2’s roadmap for navigating the past, present, and future of

European Specialty retail online

today tomorrowYesterday

harrodsStrong lookbooks, but lacking social-sharing capability

Topshop • French ConnectionBlogs well integrated into sites featuring shareable interactive content

marks & SpencerVideos on site are embedded with scrolling product and twitter feeds

GlobusNo Facebook page

Zara • MarionnaudShoppable lookbooks and product catalogs on Facebook, but directs to site to complete transaction

ASOS • L’Occitane • Sephora • The body ShopF-commerce

Gerard Darel • Intimissimi • SandroOnly phone and email

LacosteLive chat and scheduling for customer service calls

ASOSPersonal styling advice via Skype

SephoraBest-in-class iOS apps in the U.S. market, but not customized for, or available, in Europe

New Look • BrandAlleyE-commerce-enabled iPhone apps; no presence on iPad yet

neT-A-POrTerIn addition to e-commerce-enabled app, launched a Fashion’s Night Out specific app to give customers a storefront experience

GlobusNone

kookaiSmall brand, but present on Facebook, twitter, Youtube, Google+, tumblr, and Instagram

h&mLargest twitter and Youtube followings; most sophisticated Google+

TriumphStatic product pages

La redouteCross-sells on product pages based on editorial and client recommendations

h&mVirtual dressing room allows shoppers to design custom looks

Brand Content

Facebook Monetization

Customer Service

iOS Experience

Social Media Presence

Product Presentation







Digital iQ inDex®:


f L A S h O f G e n i U S

Virtual Fitting roomthe Swedish retailer’s e-commerce enabled site features an

interactive virtual dressing room coupled with sophisticated

navigation. the dressing room allows shoppers to style a

model of their choice from head to toe, including shoes and

accessories. the model’s hairstyle, pose, and background are

also customizable, and the final look can be saved or shared

on Facebook, twitter, email, and blogs.

this focus on product persists outside of the fitting room.

H&M’s site features interactive and video-enhanced lookbooks

for its collection, as well as product pages equipped with

advanced filtering and sorting.

The virtual dressing room lets shoppers design a custom look

The site features sophisticated interactive lookbooks of new collections

Product sections are easily filtered

and sorted





http://www.hm.com/us/holiday-collection#looks/look1

http://www.hm.com/us/dressingroom/LADIES

http://www.hm.com/us/subdepartment/LADIES?Nr=4294960648



Digital iQ inDex®:



user-Generated ‘pEOpLE!’ CampaignZara’s integrated Facebook and site campaign ‘PEOPLE!’

invites brand enthusiasts worldwide to submit photos of

themselves wearing at least two items from the retailer’s current

collection. Several photos are chosen each week and featured

on the brand site and a dedicated Facebook tab, and the self-

styled models in each selected shot receive €300. the photos

are shareable via twitter and Facebook, and users can add the

products featured directly to their shopping carts.

the campaign has helped fuel Zara's impressive Facebook fan

growth: thirty percent over the past six months, an average of

almost 12,000 new fans per day.

The campaign’s custom facebook tab features photos of the week and past photo selections

Zara customers are invited to submit photos

featuring at least two items from the current

collection for the chance to win €300

Looks are shoppable directly from the photos





http://www.facebook.com/Zara?sk=app_212709818778949

http://www.zara.com/webapp/wcs/stores/servlet/category/us/en/zara-us-W2011/136001/Instructions

http://www.zara.com/webapp/wcs/stores/servlet/category/us/en/zara-us-W2011/133001/Samples



Digital iQ inDex®:



Bespoke E-CommerceMarks & Spencer allows customers to create bespoke items

of clothing from its men’s and women’s collections online.

Men can self-tailor jeans, chinos, and shirts, while women can

customize jeans, black dresses, and black formal trousers.

the men’s “made-to-measure shirts” feature is by far the most

comprehensive, allowing shoppers to select fabrics, as well as

nine different design elements including collar and cuff styles.

Women’s black dresses can be customized by style, sleeve, and

hem length.

In addition M&S tV houses a vast collection of shareable videos.

A shoppable scrolling feed displays the products featured in a

video as it plays, and a pop-up shows a complete product list at

the end. Christmas videos are also embedded with a scrolling

twitter feed of Marks & Spencer holiday-related mentions.

marks & Spencer allows shoppers to customize six products online

The m&S TV library houses videos with sophisticated features such as shoppable product lists and Twitter feeds





http://www.marksandspencer.com/Personalised-Fit/b/679075031?ie=UTF8&pf_rd_r=19B4NWKXPX2MTY3BD9S8&pf_rd_m=A2BO0OYVBKIQJM&pf_rd_t=101&pf_rd_i=679079031&pf_rd_p=467421113&pf_rd_s=global-top-10

http://www.marksandspencer.com/MS-TV/b/311612031?intid=emtv_0_264_0



Digital iQ inDex®:



project OceanIn May, Selfridges launched “Project Ocean,” an activist

initiative to raise awareness of overfishing. the campaign

successfully integrates offline and online elements with a

dedicated Facebook page, twitter handle, and microsite. In the

spring, Selfridges turned the windows of its Oxford Street store

in London into an interactive touch-screen display of the ocean.

For every donation, another fish was added to the sea, and

shoppers could interact with the installation by clicking the fish

to view the species and the name of the donor.

A similar interactive ocean feature is housed on the microsite

to display campaign donations. the online content is shareable

via Facebook and twitter, and donations can also be made

using SMS; to date, £120,279 has been raised.

The interactive online ocean displays a fish for every donation

The Selfridges “Project Ocean” facebook page





http://www.facebook.com/SelfridgesProjectOcean?sk=info

http://www.selfridges.com/en/StaticPage/ProjectOcean/#/

http://www.selfridges.com/en/StaticPage/ProjectOcean/#/

http://www.facebook.com/SelfridgesProjectOcean?sk=info



Digital iQ inDex®:



L.12.12 Launchto celebrate the launch of its flagship men’s scent collection,

EAU DE LACOStE L.12.12, Lacoste commissioned a light

installation from design agency tronic that was displayed in

New York’s Grand Central terminal from September 19 to 27. A

dedicated microsite solicited user-generated video sequences

that animated a virtual transformation of the classic L.12.12

polo shirt into a fragrance bottle.

Visitors to the microsite could customize their video sequence

with their name, location, a background theme, and color of

their choosing. the 20-second videos were projected onto the

Grand Central terminal installation and streamed live on the

microsite. Video contributors were emailed their projection time

so they could visit Grand Central to view them in person or tune

in via the live stream.

During the campaign, 35,000 user-generated videos were

projected. Lacoste promoted the project on Facebook by

holding a fan-exclusive contest to win a trip to the La Machine

L.12.12 launch party in Grand Central terminal.

Thirty-five thousand user-generated video sequences were displayed on the La machine L.12.12 light installation

Visitors to the http://lamachinel1212.com/ microsite were invited to custom design a video showing the virtual transformation of the L.12.12 polo shirt into a fragrance





http://lamachinel1212.com

http://lamachinel1212.com

http://lamachinel1212.com/

http://lamachinel1212.com/

http://lamachinel1212.com/share/index.jsp?UserContent_param=76930



Digital iQ inDex®:



‘Arrive Half naked—Leave Fully Dressed’In June, Desigual held a promotion that aptly reflected its

unconventional style. the retailer held identical events at the

Desigual stores in London, Stockholm, Berlin, Madrid, Prague,

and New York during which the first 100 people to line up in

their underwear before the store opened could choose one top

and one bottom for free. Everyone else received 50 percent

off the summer collection as a consolation prize. the retailer

encouraged participants to take photos on Instagram and tag

them #desigualevents. Videos promoting and covering the

undressed are the most viewed on desigual’s Youtube channel.Desigual encouraged participants to tag instagram photos with #desigualevents

Videos covering the “Arrive half naked—leave fully dressed”

campaign are the most viewed on

Desigual’s official youTube channel





http://summersales.desigual.com/en/instagram.html

http://www.youtube.com/user/webdesigual/videos?sort=p&view=u



Digital iQ inDex®:


ScOTT GALLOwAy clinical Professor of marketing, nyU Stern founder, L2

Scott is a Clinical Professor at the NYU Stern School of Business where he teaches brand strategy and luxury marketing and is the founder of L2, a think tank for prestige brands. Scott is also the founder of Firebrand Partners, an operational activist firm that has invested more than $1 billion in U.S. consumer and media companies. In 1997, he founded red Envelope, an Internet-based branded consumer gift retailer. In 1992, Scott founded Prophet, a brand strategy consultancy that employs more than 120 professionals in the United States, Europe, and Asia. Scott was elected to the World Economic Forum’s “Global Leaders of tomorrow,” which recognizes 100 individuals under the age of 40 “whose accomplishments have had impact on a global level.”

Scott has served on the boards of directors of Eddie Bauer (Nasdaq: EBHI), the New York times Company (NYSE: NYt), Gateway Computer, eco-America, and UC Berkeley’s Haas School of Business. He received a B.A. from UCLA and an M.B.A. from UC Berkeley.

VérOniqUe VALcU L2

Véronique began her career in Deloitte Consulting’s Strategy & Operations practice where she worked with some of the world’s largest corporations in retail, manufacturing, and pharma. While there, she conducted extensive social media analyses of consumer-facing brands and contributed to the firm’s growing interest in the space. Post Deloitte, she moved to the Winterberry Group where she performed strategic consulting for advertising and marketing services companies. At L2, Véronique serves as the Specialty retail and European research lead.

She received her B.A. in Communications from the University of Pennsylvania.

mAUreen mULLen L2

Maureen leads L2’s research and advisory practice where she helped develop the Digital IQ Index®. She has benchmarked the digital marketing, e-commerce, and social media efforts of more than 300 brands across pharma, auto, luxury, specialty retail, beauty, and the public sector. Maureen also has led digital strategy consulting engagements for a variety of Fortune 1000 clients.

Before joining L2, Maureen was with triage Consulting Group and led managed care payment review and payment benchmarking projects for hospitals, including UCLA Medical Center, UCSF, and HCA. Maureen has a B.A. in Human Biology from Stanford Univer-sity and an M.B.A. from NYU Stern.

freD brOwn brand Translation expert, Last exit

Fred is managing director of Last Exit’s London office where he leads web, social media, mobile, SEO, and eDM projects for clients, including Belvedere, MediaCom, F&F, and numerous medical, aerospace, and logistics brands. He began his career as an industrial designer, working on such projects as the Airbus A380, Panasonic cell phones, and Polaroid cameras. In 1999, Fred launched award-winning new media agency Deepend’s first North American office in New York with fellow Last Exit partner Nuri Djavit. together, they led digital projects for clients, including FIt, Kenneth Cole, and Salomon Smith Barney. He has a First Class Honours Degree from London South Bank University and has served on the board of British Design Innovation.

Fred was assisted in the study by Daniel Saxton, a Senior Creative at Last Exit experienced in multi channel pan-European digital work for brands in the fashion and retail sectors.

emiLy hALLqUiST L2

Emily is a research associate at L2 where she works with the research team on the Digital IQ Index® reports. Her background is in international relations, and she interned last year with Inter-national Business-Government Counsellors (IBC) in Washington, D.C.. At IBC, she assisted on client engagements pertaining to their global operations. Emily received a B.A. in Public Policy with minors in Earth and Ocean Sciences and Political Science from Duke University.

r. DAnieLLe bAiLey L2

Danielle began her career at the Home Depot, Inc., where she led a variety of internal consulting engagements focused on supply chain, merchandising, and in-store process improvement. She went on to manage the implementation of award-winning mobile initiatives for several large media clients, including the New York times Company, NBC Universal, Disney/ABC, Maxim

magazine, and Zagat. Danielle has a B.S. in Systems Engineer-ing from the University of Virginia and an M.B.A. from NYU Stern.

chriSTine PATTOn creative Director, L2

Christine is a brand and marketing consultant with more than 15 years of experience creating brand identities and marketing communications for aspirational and luxury brands. As creative director of L2, she leads the translation of the L2 brand across all touchpoints, with a particular focus on the visual packag-ing of L2’s research. She began her career at Cosí, where she developed the brand and oversaw its evolution from concept through growth to 100 restaurants. Since then she has provided creative direction for a wide array of clients, including the launch of Kidville and CosmoGIrL! magazine. Christine received a B.A. in Economics and Journalism from the University of Connecticut and an M.B.A from NYU Stern.

JeSSicA brAGA L2

Jessica, a freelance art director, specializes in identity, iconog-raphy, event graphics, and invitations. She began her career in fashion, designing textiles and prints at Elie tahari’s studio in New York City, and then focused on the Elie tahari brand aesthetic and consistency in design across its many developing disciplines. Desiring to explore other facets of design, she went on to become the art director of a small, prestigious design firm in Chelsea, where she focused on event graphics, digital and print collateral, and brand aesthetics for companies both large and small. Jessica holds a B.F.A. in Graphic Design, and an A.A.S. in Illustration from rochester Institute of technology.

AArOn bUnGe L2

Aaron is a freelance graphic designer who specializes in print design, branding and identity, packaging, and web design. His approach is both aesthetic and functional, characterized by clear, intelligent design appropriate to the project at hand. He began his career tailoring projects for the Chinese, Australian, and U.S. markets across multiple design disciplines and in multiple languages. Aaron has a B.F.A. in Graphic Design from Iowa State University.

T e A m





















































L2 is a think tank for digital innovation.

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

rESEArCH

Digital iq index®: the definitive benchmark for online competence, Digital IQ Index® reports score

brands against peers on more than 350 quantitative and qualitative data points, diagnosing their

digital strengths and weaknesses.

EVEnTS

forums: Big-picture thinking and game-changing innovations meet education and entertainment.

the largest gatherings of prestige executives in North America.

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clinics: Executive education in a classroom setting with a balance of theory, tactics, and

case studies.

120 –150 attendees

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topic immersion in a relaxed environment that encourages open discussion.

40–60 attendees

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COnSuLTinG

Advisory Services: L2 works with brands to garner greater return on investment in digital initiatives.

Advisory work includes Digital roadmaps, Social Media Strategy, and Site Optimization engagements.

MEMBErSHip

for membership info and inquiries: [email protected]

upCOMinG rESEArCH

DiGiTAL iq inDex® reports:

Hospitality

Broadcast Media

Magazines

upCOMinG MEMBEr BEnEFiTS

Members Site:

in the first quarter L2 will launch real-time tracking of digital

metrics (vs. peers).

PreSTiGe 100® reports:

Mobile IQ

Brazil, Russia, India

Facebook IQ

upCOMinG EVEnTS

L2 clinic Mobile

01.19.12 new york city

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02.23.12 new york city

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03.02.12 Shanghai

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03.06.12 Paris


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