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Copyright 2012 PM Digital. All rights reserved. This information is deemed PROPRIETARY and confidential by PM Digital. Unauthorized use or disclosure is prohibited.
5 Hanover Square, New York, NY 10004 t: 212.387.0300 f: 212.387.7647 toll free: 800.254.0330 www.pmdigital.com
September 2012 Trend Report: Luxury Brands Online
Copyright 2012 PM Digital. All rights reserved. This information is deemed PROPRIETARY and confidential by PM Digital. Unauthorized use or disclosure is prohibited.
5 Hanover Square, New York, NY 10004 t: 212.387.0300 f: 212.387.7647 toll free: 800.254.0330 www.pmdigital.com
The luxury goods market presents an intriguing place to investigate what it means
to create a captivating and resilient brand. This is especially true of luxury apparel
and accessories, where brands over a century old have made a tradition of
breaking tradition, delivering cutting-edge design that has the power to impact
consumers from all walks of life. And while it may seem that the exclusive nature
of high-end luxury would be at odds with the democratic spirit of online, the
opposite is true. Many luxury brands are in fact leading the charge with digital
marketing and gaining devoted new customers along the way. Their ability to
innovate and thrive serves as a template for growth, and the numbers are there to
prove it. Global sales of luxury goods are expected to grow another 6%-7% in
2012, surpassing $255 billion1. Luxury e-commerce growth is not only poised to
outpace the average but to drive sector growth overall, as online accelerated to a
25% growth rate in 2011 from 20% the year before.² To explore these topics
further, a look at trends within the luxury apparel market follow: brand sites' unique
online visitors, online demographics, top search terms, social media strategies, and
omnichannel marketing presence.
THE STUDY
2
Methodology & Data
46 luxury apparel and accessories brands (excluding jewelry) were selected to serve as a benchmark for the sector. Some
considerations included brand heritage, price point and dominant customer profile. A few well-known brands with
insufficient online traffic data were omitted. A conscious attempt was made to include newer brands and designers who are
redefining luxury for the 21st century, alongside prestige brands, many of which are 100+ years old.
Much of the data in this report, excluding data primarily gathered by PM Digital, has been sourced from Experian Hitwise
North America. For more information, please refer to About PM Digital & Experian Hitwise at the end of this report.
In This Report
Findings & Implications 3
Brand Overview 6
Online Market Share 10
Demographics 12
Sources of Traffic 14
Search 18
Social Media 24
Tablet & Mobile 44
Comparison Shopping 51
Email 54
About PM Digital
& Experian Hitwise 61
1Bain & Company, May 15, 2012 press release 2American Express Business Insights, February 10, 2012 press release
Copyright 2012 PM Digital. All rights reserved. This information is deemed PROPRIETARY and confidential by PM Digital. Unauthorized use or disclosure is prohibited.
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FINDINGS
3
The five largest luxury brands capture 75% online
market share, based on total visits to 46 luxury brand
sites studied for this report. These include Ralph Lauren,
Gucci, Michael Kors, Louis Vuitton and Chanel.
Most luxury brand websites support e-commerce
(85%), and online traffic favors them. Brands with
online stores get 98% of all traffic to luxury brand sites.
Search engines remain the largest source of traffic
to luxury brand sites (37%), with Google alone
accounting for 29% of referrals (10x as much as Bing).
Cross-traffic to other online retail sites surges
during holiday, temporarily surpassing search
engines as the largest traffic source.
Luxury brands rely more on search engine traffic
than the average Apparel and Accessories site, but
with a smaller ratio of paid search. Some luxury
brands still appear to have no paid search strategies.
Shoes and handbags are the most popular products
driving search clicks for luxury brands. Handbags
drive more clicks for luxury than they do overall.
Social media accounts for 8% of traffic to luxury
brands, with Facebook driving half of this. Facebook
was the second highest referring site after Google, referring
4% of total visits to the category.
Even as Facebook likes continue to grow, social media
is diversifying for luxury brands. YouTube, Pinterest,
Instagram, Twitter and Google+ all play a role.
Fast-growing social outlet Pinterest refers nearly as
many visits as Twitter, a nice source of incremental
traffic that didn’t exist even one year ago. Most luxury
brands have official Pinterest pages, plus consumers create
their own pages and pin their favorite luxury products.
A growing number of luxury brands are also embracing
Instagram, the fast-growing social photo app purchased by
Facebook in 2012.
Social media’s growth will piggyback on the growth of
tablets and smartphones. Parallel to this, email’s
effectiveness for luxury brands will also grow. Email
remains a proven, measurable sales channel that already
integrates well with mobile commerce and complements
social media’s branding power.
Copyright 2012 PM Digital. All rights reserved. This information is deemed PROPRIETARY and confidential by PM Digital. Unauthorized use or disclosure is prohibited.
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IMPLICATIONS
4
Luxury Goods Are Both Product and Experience. Marketers of luxury goods have the same imperative as luxury
service providers, such as hotels or spas: to create a total experience. Consumers demand it. At its core, e-commerce
in this sector rests on successfully translating the exclusivity, authenticity and indulgence that is the essence of luxury
from the real-world flagship or boutique to the virtual store. Social media, video, display ads and other digital media
exist as much to reinforce and shape this brand experience as to drive traffic and sales.
Paid & Organic Search Require Balance. Paid and organic search perform at their peak when both are operating
within an integrated master strategy to convert search queries into clicks and ultimately into shopping cart checkouts.
Yet one-third of luxury brands shun paid search completely, which means fewer online sales, lost opportunities to drive
foot traffic and in-store purchases, and forfeiting control over brand messaging in a ubiquitous medium that reaches a
global audience on a daily basis. At the other end of the spectrum, a few brands rely so heavily on paid search that
organic traffic, the low-hanging fruit for any brand that sells direct to consumers, is presumably going elsewhere.
Social Media is Growing, Diversifying and Migrating to Mobile. Facebook will remain a major force for luxury
brands as its users increasingly shift from PCs to tablets and smartphones. The social giant has stated publicly that it’s
focusing laser-like on mobile as its path to growth now and into 2013. Facebook will contribute to shaping the total
brand experience, and as new ad targeting capabilities are rolled out, will further impact brick-and-mortar as well as
online growth. Simultaneously, most luxury brands are embracing new forms of engagement—such as fast-growing
social photo app Instagram and its equally visual counterpart, Pinterest. Both platforms provide an ideal stage for
covetable high-end goods, allowing consumers ample opportunity for admiration with little overt marketing. Luxury
brands are wisely jumping in early in the evolving, increasingly visual and mobile ecosystem of social media.
Copyright 2012 PM Digital. All rights reserved. This information is deemed PROPRIETARY and confidential by PM Digital. Unauthorized use or disclosure is prohibited.
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IMPLICATIONS (CONTINUED)
5
Email Thrives in a Social/Mobile World. Alongside search engines, email helped build online commerce in its
earliest days, and this remains as true as ever in today’s socially-engaged, always-connected mobile world. Email’s
strength lies in reaching the right customer at the right time with the right offer (which may sometimes be no offer at all,
e.g. a first look at the new season’s runway). With 24/7 access to email on smaller devices, this medium could play a
similar role in the growth of mobile commerce. Its targetability already complements the branding power of social,
display, mobile display and apps, and even print and mass media.
Mobile Is Not a Channel. Rather, it’s all channels, the entire Internet accessed from non-PC devices. Mobile is search
(paid and organic), social, email, display, site design and customized apps. No digital ad format or sales channel will be
unaffected as web users migrate to tablets and smartphones, and as e-commerce morphs into m-commerce. The high-
income demographics of early m-commerce adopters means that luxury will be at the leading edge of this transition.
Google Shopping Changes the Game for Comparison Shopping. Comparison shopping sites like Beso,
DesignerApparel.com, ShopStyle and Shopping.com allow consumers to shop for an item across many sites at once,
often in search of the best price. Comparison sites, including those operated by Bing, Yahoo! and Google, are normally
a good source of new customers for the average retailer, but present a challenge for luxury brands: a shopper seeking
a discount on a coveted handbag or pair of ankle boots, for example, will more likely be referred by a comparison site to
department store sites and other multi-brand retailers rather than to the brand site. There, she not only potentially
receives her discount but also recommendations to shop competitive brands. This increased exposure combined with
downward pricing pressure from this source of traffic (not insignificant, especially during holiday) means that luxury
brands need to carefully manage what share of customers they can afford to “lose” to wholesale partners via
comparison sites without cannibalizing their full-price direct business. Google Shopping, recently integrated with
Product Listing Ads into a unified, search-based platform, offers one way for brands to gain back some control over
positioning, price, and most critically, placement vs. wholesale competitors.
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Overview of Luxury Brands
Covered in This Study
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Online stores for beauty and fragrance only, not apparel and
accessories.
7
ONLINE LUXURY FASHION BRANDS
BY E-COMMERCE CAPABILITY
WITH ONLINE STORES WITHOUT ONLINE STORES
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E-COMMERCE CAPABILITY BOOSTS MARKET SHARE
FOR ONLINE LUXURY BRANDS
8
Data source: Experian Hitwise North America, July 2012
85% of luxury brands have online stores. This 85% receives 98% of traffic.
Copyright 2012 PM Digital. All rights reserved. This information is deemed PROPRIETARY and confidential by PM Digital. Unauthorized use or disclosure is prohibited.
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1999
At this point, luxury brands mostly shun online
stores, unconvinced of their value. Giorgio Armani
S.p.A. launches e-commerce, but only in the U.S.
for Armani Exchange, its most accessible brand.
2007
Armani finally expands online shopping to
premium lines—first is Emporio Armani.
2009
m.armani.com launches mobile
commerce for Emporio Armani
(which today also supports
Giorgio Armani).
Fall 2011
Giorgio Armani and Armani Collezioni finally get
online stores, joining other major luxury brands.
ARMANI EXTENDS E-COMMERCE CAPABILITY
TO LUXURY PRODUCT LINES
9
Sources: Armani.com, WWD.com
Until Armani added e-commerce for its most prestigious brands, less than a year ago, it was one
of the few e-commerce holdouts among luxury brands. It was faster diving into mobile commerce.
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ONLINE MARKET SHARE BY BRAND
10
The five largest brands
capture 75% of online
market share in the U.S.,
based on total visits to 40+
luxury sites in July 2012.
Luxury brand leaders
include contemporary
American designers
alongside iconic European
houses, some founded in
the 1800s.
Data source: Experian Hitwise North America, July 2012
Ralph Lauren taking the largest share of
web traffic speaks to the brand’s successful
integration of the luxury lifestyle concept
across diverse product lines ranging from
exclusive to mass-market. A similar
dynamic is at play with Michael Kors.
“Other” includes an additional 26 luxury brands.
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Site July 2011 % Share July 2012 % Share
Céline 6,291 0.1% 24,115 0.3% 283%
Sergio Rossi 6,482 0.1% 17,024 0.2% 163%
Proenza Schouler 2,012 0.0% 4,218 0.1% 110%
YSL 41,493 0.5% 83,398 1.1% 101%
Michael Kors 481,146 6.2% 931,382 11.8% 94%
Bottega Veneta 19,438 0.3% 36,936 0.5% 90%
Nanette Lepore 6,423 0.1% 11,501 0.1% 79%
Emilio Pucci 5,495 0.1% 9,491 0.1% 73%
Manolo Blahnik 8,140 0.1% 13,556 0.2% 67%
Lanvin Paris 6,240 0.1% 10,040 0.1% 61%
Givenchy 3,662 0.0% 5,106 0.1% 39%
Hermès 124,605 1.6% 162,849 2.1% 31%
Vince 17,121 0.2% 21,496 0.3% 26%
Longchamp 39,921 0.5% 50,016 0.6% 25%
Chloé 10,462 0.1% 12,876 0.2% 23%
Oscar De La Renta 30,509 0.4% 37,276 0.5% 22%
Marc Jacobs 116,011 1.5% 141,032 1.8% 22%
Gucci 989,255 12.7% 1,119,241 14.2% 13%
Fendi 42,091 0.5% 46,993 0.6% 12%
Alexander Wang 7,220 0.1% 7,938 0.1% 10%
Versace 47,115 0.6% 51,586 0.7% 9%
Moncler 3,008 0.0% 3,280 0.0% 9%
Mulberry 21,037 0.3% 22,466 0.3% 7%
Total Visits YoY
Growth
ONLINE MARKET SHARE – YOY GROWTH
11
Predictably, smaller sites top the list of fast-growing online luxury brands, as higher growth rates tend
to be more common at that end of the scale. The one exception is MichaelKors.com—it is both
the third-largest site in total online market share, and a top 5 site for YoY growth.
Data source: Experian Hitwise North America
Reasons to smile:
Michael Kors Holdings
Ltd. successful IPO.
Ten seasons of
Project Runway
MichaelKors.com
nearly doubles traffic
in one year.
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ONLINE DEMOGRAPHICS – AGE
12
Data source: Experian Hitwise North America, 12 Rolling Weeks Ending 7/28/2012
*Luxury Brands is a custom category defined by PM Digital.
Online luxury brands
attract younger visitors
than apparel and
accessories sites in
general. 44% of luxury
visitors are 18-34.
Popular culture embraces
luxury brands as symbols of
success, helping them
resonate with younger
consumers, including
aspirational shoppers.
Michael Kors—at once a
luxury brand, celebrity and
fashion designer—
personifies this dynamic, and
reaches a conspicuously
large share of the youngest
online demographic.
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ONLINE DEMOGRAPHICS – HOUSEHOLD INCOME
13
Data source: Experian Hitwise North America, 12 Rolling Weeks Ending 7/28/2012
*Luxury Brands is a custom category defined by PM Digital.
Average household
income of visitors to
online luxury brands
looks a lot like that of the
broader Apparel and
Accessories category.
Some brands are more
adept at attracting high-
income internet users;
these include Jimmy Choo,
Yves Saint Laurent, Chanel
and Ralph Lauren.
What about tablet & mobile users?
Demographic data here is sourced
from traditional web traffic, and does
not include mobile. Research has
shown that smartphone and tablet
users tend to have higher incomes,
so as luxury consumers increasingly
migrate traffic to smaller devices,
brands must be ready to greet them.
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Clickstream:
Top Sources of Traffic
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KEY SOURCES OF TRAFFIC
15
^Shopping Sites corresponds to Experian Hitwise’s Shopping &
Classifieds category.
*Comparison Shopping sites is a custom category defined by PM
Digital.
Search engines account for the largest share of traffic to luxury sites, well more than
one-third of all visits.
Data source: Experian Hitwise North America
Shopping sites (mainly online retailers)
are next in line after search engines,
referring one-third of visits to luxury
brand sites. This is indicative of the
tendency of online shoppers to visit many
different stores.
Most traffic from other stores can
be classified one of three ways:
general apparel, department store,
or another luxury brand.
Site
July 2012
Clicks
Search Engines 37.09%
Shopping Sites^ 33.17%
Apparel & Accessories 16.49%
Department Stores 8.14%
Luxury Brands 4.96%
Social Networking and Forums 7.61%
Email Services 4.13%
Comparison Shopping* 2.36%
Key Sources of Traffic
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KEY SOURCES OF TRAFFIC TRENDS
16
In 2012, search engines
reasserted their lead over
shopping sites to again
become the largest single
source of traffic to luxury
brand sites.
Traffic from other stores
surged during holiday.
Most key traffic sources are
seasonally variable and may
fluctuate week to week.
Social media accounts for
nearly as much luxury
brand web traffic as
department stores (which
compete directly with
brands for the luxury goods
consumer).
^Shopping Sites corresponds to Experian Hitwise’s Shopping & Classifieds category, which is mainly comprised of
online retailers.
*Comparison Shopping is a custom category defined by PM Digital.
Data source: Experian Hitwise North America
Holiday cross-shopping wanes; search regains status as #1 traffic driver.
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Site
July 2012
Clicks
Macy*s 1.89%
eBay 1.63%
Nordstrom 1.15%
Amazon.com 1.10%
Neiman Marcus Online 0.79%
Coach 0.71%
Saks Fifth Avenue 0.61%
Zappos.com 0.50%
Bloomingdale's 0.47%
Hollister 0.34%
Dillard's 0.29%
Old Navy 0.28%
BergdorfGoodman.com 0.28%
Abercrombie & Fitch 0.24%
GAP 0.23%
Levi's USA 0.19%
True Religion Brand Jeans 0.19%
Juicy Couture 0.18%
American Eagle Outfitters 0.18%
Tory Burch 0.17%
Shopping Sites^
TOP REFERRING SITES BY SOURCE
17
Google was the top referring
site in July for luxury brand
sites, accounting for 29% of
traffic—this was 10x the
clicks from Bing.
Facebook was the second
highest traffic driver, with
almost 4% of clicks.
Yahoo! properties jointly
beat Facebook, accounting for
nearly 7% of referrals via
search, email, comparison
shopping and various smaller
Yahoo! assets.
^Other Shopping Sites corresponds to Experian
Hitwise’s Shopping & Classifieds category.
*Comparison Shopping is a custom category
defined by PM Digital. Data source: Experian Hitwise North America
Site
July 2012
Clicks
Google 28.74%
Yahoo! Search 3.09%
Bing 2.80%
AOL Search 0.60%
Ask 0.47%
Search Engines
Site
July 2012
Clicks
Facebook 3.88%
YouTube 1.92%
Twitter 0.49%
Pinterest 0.32%
Tumblr 0.09%
Google+ 0.08%
Yelp 0.06%
Instagram 0.05%
BlackPlanet.com 0.05%
Tagged 0.04%
Social Media
Site
July 2012
Clicks
Yahoo! Mail 1.86%
Gmail 1.06%
Aol Mail 0.83%
Windows Live Mail 0.37%
Email Services
Site
July 2012
Clicks
Yahoo! Shopping 0.33%
DesignerApparel.com 0.32%
ShopStyle 0.27%
NexTag 0.19%
bizrate 0.18%
BuyCheapr 0.17%
Shopzilla 0.16%
Bing Shopping 0.16%
Comparison Shopping*
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Search
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VISITS FROM SEARCH BY BRAND
19
Luxury brands rely more
on search engine traffic
than the average Apparel
and Accessories site.
At the same time, luxury
brands also rely slightly
less on paid search.
At the other extreme,
a few brands rely so
heavily on paid search
that SEO strategy
seems neglected.
^Apparel and Accessories is a category defined
by Experian Hitwise.
*Luxury Brands is a custom category defined
by PM Digital.
Data source: Experian Hitwise North America,
July 2012
Several highly visible
luxury brands get
disproportionately
large shares of
search traffic—and
yet skip paid search
completely—a
strategic vulnerability
since search engines
often change organic
algorithms, potentially
resulting in lost ranking
and traffic.
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TOP REFERRING SEARCH ENGINES
20
Not only is Google the top referring site for luxury brands, but that traffic is trending upwards.
The share of visitors from Google to luxury brand sites ranged from 25%-33% over the past year.
Data source: Experian Hitwise North America
In late July, Bing
surpassed Yahoo! for
the first time in a year
to become a slightly
larger source of traffic
to luxury brand sites.
Whether Bing holds onto
this lead over its partner
search engine remains
an open question.
The two engines referred
between 2%-5% of traffic
each over the past year.
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TOP SEARCH TERMS FOR LUXURY BRAND SITES
21
For online retail broadly, brand name
search clicks beat non-brand search
clicks by a mile, and luxury retail is no
different.
The names of luxury brands whose
websites see the greatest traffic overall
also shine brightest amidst the
constellation of keywords and clicks that
drive search traffic to the category.
Luxury Brands is a custom category defined by PM Digital.
Data source: Experian Hitwise North America, 12 Rolling Weeks Ending 7/28/2012
A Tale of Two Brand Words
“louis vuitton” is the #1 search term
among luxury brand sites, but has zero
paid clicks.
“ralph lauren” grabs nearly the same
share of clicks as “louis vuitton,” but
most of them are paid.
Search Terms
Search
Clicks % Paid
louis vuitton 7.81% 0%
ralph lauren 7.75% 61%
michael kors 6.52% 35%
gucci 5.11% 62%
polo 3.06% 63%
christian louboutin 1.96% 2%
burberry 1.91% 71%
chanel 1.76% 48%
polo ralph lauren 1.74% 31%
hermes 1.10% 56%
jimmy choo 0.96% 38%
dolce and gabbana 0.81% 40%
prada 0.80% 22%
fendi 0.75% 0%
polo outlet 0.74% 50%
michael kors handbags 0.71% 18%
salvatore ferragamo 0.70% 1%
versace 0.70% 0%
polo.com 0.63% 76%
gucci.com 0.61% 69%
louis vuitton handbags 0.59% 0%
hermes.com 0.58% 93%
ysl 0.57% 65%
bottega veneta 0.52% 100%
marc jacobs 0.51% 25%
channel 0.38% 36%
michael kors watches 0.38% 34%
louis vuitton official website 0.38% 0%
alexander mcqueen 0.38% 56%
www.louisvuitton.com 0.37% 0%
Top Search Terms
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Top 5 Sites
Search
Clicks % Paid
Chanel.com 59.22% 49%
Coach.com 5.05% 0%
Facebook.com 4.98% 32%
Wikipedia.org 2.86% 5%
YouTube.com 2.63% 18%
search term: "chanel"
Top 5 Sites
Search
Clicks % Paid
Hermes.com 60.69% 55%
YouTube.com 4.16% 0%
Wikipedia.org 4.12% 0%
lightspeed.dickinsonisd.org 3.71% N/A
Bluefly.com 2.90% 100%
search term: "hermes"
Top 5 Sites
Search
Clicks % Paid
MichaelKors.com 62.78% 35%
michaelkors-handbags.us 3.83% 67%
Macys.com 2.54% 73%
Bloomingdales.com 1.54% 99%
Zappos.com 1.47% 1%
search term: "michael kors"
Top 5 Sites
Search
Clicks % Paid
Burberry.com 69.20% 65%
NeimanNarcus.com 7.38% 100%
LATimes.com 4.25% N/A
Nordstrom.com 4.10% 90%
SaksFifthAve.com 2.12% 100%
search term: "burberry"
Top 5 Sites
Search
Clicks % Paid
Gucci.com 80.29% 61%
YouTube.com 3.69% 8%
Facebook.com 2.71% 0%
NeimanNarcus.com 2.63% 100%
ListVerse.com 2.08% N/A
search term: "gucci"
Top 5 Sites
Search
Clicks % Paid
RalphLauren.com 81.15% 61%
Macys.com 3.32% 11%
Wikipedia.org 2.77% 0%
RLHome.Polo.com 1.66% N/A
RalphLauren.fr 1.13% N/A
search term: "ralph lauren"
Top 5 Sites
Search
Clicks % Paid
LouisVuitton.com 50.86% 0%
Facebook.com 3.92% 8%
LouisVuitton.eu 3.42% 0%
BagBorrowOrSteal.com 2.62% 85%
YouTube.com 2.54% 0%
search term: "louis vuitton"
PAID & ORGANIC SEARCH WORK TOGETHER
TO MAXIMIZE BRAND TERM OWNERSHIP
22
Exhibit A: LouisVuitton.com
owns 50% share of “louis vuitton”
search clicks. None are paid.
Data source: Experian Hitwise North America, 12 Rolling Weeks Ending 7/28/2012
Exhibit B: Leading
luxury competitors own
up to 80% of search
clicks for their brand
terms. All do at least
some paid search.
Verdict? Search strategies
are not one-size-fits-all, but
data here suggests that
LouisVuitton.com is leaving
some search traffic on the
table while ceding click share
for its trademarked brand
name to other sites.
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Individual Keywords
Search
Clicks % Paid
shoes 3.53% 28%
handbags 2.87% 19%
outlet 2.37% 44%
men 1.80% 36%
shirts 1.40% 62%
women 1.29% 54%
bags 1.21% 49%
purses 1.00% 47%
sunglasses 0.95% 47%
watches 0.94% 47%
bag 0.93% 9%
sale 0.89% 19%
store 0.78% 41%
belt 0.63% 13%
clothing 0.59% 38%
mens 0.57% 55%
official 0.53% 4%
clothes 0.52% 17%
website 0.52% 0%
baby 0.50% 11%
perfume 0.44% 30%
2012 0.44% 50%
kids 0.40% 61%
dress 0.40% 46%
designer 0.35% 53%
shirt 0.34% 45%
online 0.33% 50%
bedding 0.33% 71%
leather 0.33% 55%
black 0.31% 51%
Non-Brand
TOP INDIVIDUAL KEYWORDS FOR LUXURY BRAND SITES
23
Shoes and handbags remain the most
popular products driving search
clicks for luxury brands, followed by
sunglasses and watches, as search
data broken out into component
keywords reveals.
As “handbags” drive less than 1% of
clicks to general apparel and accessories
sites, this product occupies a uniquely
central focus for luxury brands.
Dresses and shirts are the most clicked-
on clothing terms for luxury brands.
Bold = product words
Other keywords
indicate that
successful
searchers were
looking for
gender-specific
and current-
season (“2012”)
items, sales, and
store locations
including outlets.
The word “official” making this
list reveals a desire to connect
directly with luxury brands—
rather than via resellers.
Luxury Brands is a custom category defined by PM Digital.
Data source: Experian Hitwise North America, 12 Rolling Weeks Ending 7/28/2012
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Social Media
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VISITS FROM SOCIAL MEDIA BY BRAND
25
Social media’s importance to luxury
brand sites is considerable—it
drives nearly 8% of traffic. This
roughly parallels social traffic to the
average Apparel and Accessories site.
As with search, we see smaller sites
relying the most on social media
traffic.
^Apparel and Accessories is a category defined by Experian Hitwise.
*Luxury Brands is a custom category defined by PM Digital.
Data source: Experian Hitwise North America, July 2012
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TOP REFERRING SOCIAL SITES
26
Even accounting for
Twitter’s mobile traffic
(also not reflected in this
trend line, but reportedly
equal to its web traffic),
it remains a niche
source of traffic. Data source: Experian Hitwise North America
Facebook is still the most important social media traffic driver for luxury brands. YouTube is
also important, especially with video’s ability to bring fashion directly from the runway to the consumer.
Facebook’s traditional web-
based traffic is increasingly
being supplanted by mobile
traffic. The company reports
that its active mobile users
grew 67% this year. (This
chart shows traditional web
traffic only.)
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TOP REFERRING SOCIAL SITES
27
Data source: Experian Hitwise North America
Social media traffic is diversifying beyond Facebook. Pinterest, Google+ and Instagram are all
new sources, and represent incremental traffic that didn’t exist even one year ago.
Pinterest is a fast-growing
new social source for
luxury brands which
integrates easily with other
social media. The emerging
platform is well suited for
luxury brands, as its visual
nature allows users to
admire, organize and share.
Instagram users primarily
interact via mobile apps and
splintered offshoot sites (e.g.
Webstagram, Gramfeed and
Instagreat). User numbers imply
that engagement is considerable,
though perhaps more walled off
from brand websites, rather than
being a direct traffic source.
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FACEBOOK LIKE COUNTS
28
As social traffic starts to diversify, it’s good to remember that Facebook likes still outnumber followers
of other popular sites across the board. For luxury brands like Burberry and Gucci that are at the
forefront of social exploration, the order of magnitude can be 10s to 100s of times greater.
Data source: PM Digital Research & Analysis, September 2012
Burberry is by far the
largest luxury brand on
Facebook, followed by
Louis Vuitton, Dior and
Gucci.
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FACEBOOK LIKE COUNTS – YOY GROWTH
29
Data source: PM Digital Research & Analysis, September 2012
Huge growth in Facebook likes
continues for many luxury brands.
Those with smaller online market
share like Bally, Fendi and Proenza
Schouler saw the greatest growth.
Michael Kors saw its Facebook
audience grow by 275% YoY, no
small feat for a huge online brand that
still managed to nearly double its web
traffic this past year. Surely Kors’
social presence helped grow web
traffic, and vice-versa.
A definitive luxury brand with a large
online presence, Louis Vuitton also
stood out with 185% YoY growth in
Facebook likes.
Facebook PageSept 2011
Likes
Sept 2012
LikesYoY Growth
Bally 30,592 170,540 457%
Fendi 318,281 1,750,582 450%
Proenza Schouler 29,169 110,319 278%
Michael Kors 399,525 1,499,579 275%
Givenchy 94,922 335,366 253%
Louis Vuitton 3,269,857 9,323,683 185%
Valentino 90,561 239,885 165%
Bottega Veneta 96,658 240,843 149%
Chloé 272,993 667,014 144%
Donna Karan 63,352 154,031 143%
Prada 798,887 1,898,606 138%
Mulberry 56,390 122,141 117%
Salvatore Ferragamo 104,995 211,578 102%
Jean Paul Gaultier 104,129 208,971 101%
Armani 1,716,359 3,396,361 98%
Emilio Pucci 31,758 61,323 93%
Moschino 53,633 103,535 93%
Hermès 385,275 720,079 87%
Miu Miu 193,832 361,146 86%
Alexander McQueen 426,366 792,557 86%
Stella McCartney 115,276 213,423 85%
Oscar de la Renta 223,799 411,097 84%
Dior 5,168,679 9,208,345 78%
Versace 563,959 998,266 77%
Dolce & Gabbana 3,300,640 5,783,992 75%
Sergio Rossi 40,309 70,048 74%
Yves Saint Laurent 651,185 1,127,551 73%
Longchamp Paris 379,869 657,548 73%
Gucci 5,343,328 8,986,666 68%
Louboutin 801,034 1,340,657 67%
Burberry 8,417,627 13,462,768 60%
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OTHER SOCIAL MEDIA COUNTS
30
Data source: PM Digital Research & Analysis, September 2012
On Google+ and Instagram, top luxury brands look similar to those on Facebook, with Burberry
leading on all three. On Twitter, Dior has taken the lead this year.
Pinterest followers are far fewer,
but pinning only took off this
year. With the importance of
captivating images to luxury
brands, this may soon grow.
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SOCIAL – MICHAEL KORS
31
Data source: PM Digital Research & Analysis, September 2012
The tremendous growth in Facebook likes for Michael Kors is no doubt due in part to his long-
running involvement with Project Runway.
Facebook post
introduces the
Fall 2012
collection via
YouTube.
Omnichannel
Michael Kors:
August 2012 print
catalog was also
uploaded and
browse-able online;
“Star” campaign
theme integrated
across catalog and
social media.
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SOCIAL – MICHAEL KORS (CONTINUED)
32
Data source: PM Digital Research & Analysis, September 2012
The Michael Kors Pinterest page has the most followers (49,087) and the most boards (30) among
the luxury brand sites in this study. In addition to boards focused on products, Kors offers one
dedicated to Karaoke (primarily on YouTube) offering a glimpse into the designer’s personality.
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SOCIAL – LOUIS VUITTON
33
Louis Vuitton saw large Facebook audience gains in October and March, corresponding with new
seasonal collections. One involved a Marc Jacobs collaboration.
Data source: PM Digital Research & Analysis, September 2012
Facebook posts promoting Spring Summer
2012 Collection and live fashion show.
Louis Vuitton –
Marc Jacobs
Exhibition in Paris.
A Day of Live Events on YouTube.
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SOCIAL – LOUIS VUITTON (CONTINUED)
34
Louis Vuitton has also used social media to promote specific marketing initiatives like pop-up
stores. Here, a collaboration with the Japanese artist Yayoi Kusama.
Facebook post promoting
the opening of pop-up store. Twitter post features campy “Spot
the Difference” videos. Videos star
fashion blogger Bip Ling acting out
a poem written by Kusama, and are
designed to promote London's
Selfridges pop-up.
Data source: PM Digital Research & Analysis, September 2012
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SOCIAL – LOUIS VUITTON (CONTINUED)
35
Louis Vuitton has a worldwide Twitter account, as well as several country accounts. Most
followers (369,129) are for @LouisVuitton_US; another 256,084 follow the worldwide account.
Data source: PM Digital Research & Analysis, September 2012
Twitter post promoting Pinterest.
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SOCIAL – BURBERRY
36
Much has been written about Burberry’s social media success. Burberry reached 10 million
Facebook likes by the end of 2011, and has since added 3-million-plus. Much of its growth comes
from sharing lots of unique and varied content across various social networking platforms.
Handwritten note from Burberry’s CCO
Christopher Bailey inviting fans to watch a
fashion show. Post with show link below. Post
celebrating
milestone.
Other sample posts with behind the scenes
music from ad campaign, gift ideas.
Data source: PM Digital Research & Analysis, September 2012
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SOCIAL – BURBERRY (CONTINUED)
37
Burberry currently has 17 Boards on Pinterest, covering categories like in-season women’s and
men’s wear, children’s apparel, accessories, and its iconic trench. There are currently 1,000+ pins
and 12,126 followers.
Data source: PM Digital Research & Analysis, September 2012
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SOCIAL – BURBERRY (CONTINUED)
38
With 1,218,399 followers, @Burberry is also near the top of all luxury brands with Twitter. Like
Louis Vuitton, in addition to this main brand identity, the company operates several targeted country
accounts as well as a separate @BurberryService handle.
Data source: PM Digital Research & Analysis, September 2012
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SOCIAL – DIOR
39
Dior is also active in social media, with the third largest Facebook following, and the biggest
Twitter following. Sample posts promote the latest collections and connect via celebrities.
Data source: PM Digital Research & Analysis, September 2012
Fashion show and
behind the scenes.
Links to DiorMag.com. Celebrities wearing Dior at
the Golden Globe Awards.
Notable attendees at the
Christian Dior Haute
Couture Spring-Summer
2012 show.
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SOCIAL – GUCCI
40
Gucci’s social presence is among the most diversified and integrated.
Data source: PM Digital Research & Analysis, September 2012
In honor of World
Humanitarian Day,
Gucci shared UNICEF’s
link featuring Beyoncé.
Facebook post links to
“Making of Adv Campaign”
on YouTube.
Pinterest board celebrates Gucci’s legacy.
Fashion show on
GucciConnect.com,
integrated live via
Facebook and
Twitter.
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SOCIAL – PRADA
41
With nearly 1.9 million likes, Prada has the ninth largest Facebook following. Amazingly, Prada
was a late adopter of Facebook, having joined only this year in January 2012. Prior to this, an
unauthorized “Prada” page had approximately 800,000 likes (roughly a year ago). Garnering over 1
million additional followers, its growth continues. Prada is not currently using Twitter to communicate
with its brand enthusiasts.
Data source: PM Digital Research & Analysis, September 2012
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SOCIAL – RALPH LAUREN
42
Data source: PM Digital Research & Analysis, September 2012
Ralph Lauren has 24 boards on Pinterest highlighting its Ralph Lauren Collection as well as its
various brands (from Purple Label, Black Label, Blue Label to mass-market lines Polo, Lauren, Home,
Paint, etc.) In addition to the official presence (with 1,310 followers), there are 100s of user-generated
boards like “I Love Ralph Lauren!”
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SOCIAL – RALPH LAUREN (CONTINUED)
43
Data source: PM Digital Research & Analysis, September 2012
Twitter post celebrating Labor
Day holiday links to Instagram.
Ralph Lauren outfitted the 2012 U.S. Olympic Team and used various social channels to engage
with its audience around support for the athletes.
For every message sent
from Facebook to the
athletes, the company
donated $1 (up to
$25,000) to the USOC.
Links to film on YouTube: In Their Own Words.
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Tablet & Mobile
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TABLET & MOBILE APPS – INSTAGRAM
45
Newer technology like social photo sharing app Instagram is also being explored by luxury
brands. The majority (60%) of luxury retailers in this study has a presence. Like with Facebook,
Burberry is leading the pack with the most followers (514,000). Marc Jacobs follows with 318,000.
Michael Kors, Gucci, Stella McCartney, and Alexander McQueen all have 100,000+ followers.
Chanel photo from
backstage at Fall-Winter
2012/13 Haute Couture.
The visual nature of Instagram provides an ideal platform for luxury brand marketers
to further engage with consumers and allow fans to create and spread images.
Data source: PM Digital Research & Analysis, September 2012
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TABLET & MOBILE APPS – INSTAGRAM (CONTINUED)
46
Diane von Furstenberg joined Instagram in August 2012 and immediately promoted a shopping
spree.
Launch promoted via Twitter.
Data source: PM Digital Research & Analysis, September 2012
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TABLET & MOBILE APPS – DOLCE & GABBANA
47
Dolce & Gabbana’s app is landscape-oriented, and allows users to access women’s wear, men’s
wear, store locations and news via social media feeds.
In addition to presenting
the collections, app
includes fashion show
runway galleries, videos,
and backstage extras.
Data source: PM Digital Research & Analysis, September 2012
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TABLET & MOBILE APPS – GUCCI
48
Following the introduction of its Gucci Style app, the Italian brand has added mobile checkout
to enhance its in-store shopping experience. Luxury Daily reported that Gucci has equipped store
associates at select locations with Apple iPhone 4S devices that contain a mobile point-of-sale program
to process sales, email receipts to customers, access the Gucci Style app and use a translator and
currency convertor on the spot. The brand is gradually implementing the app in select branded stores
in the United States, Europe and Asia.
Gucci promotes its “shoppable magazine” in email.
Gucci’s point of sale app. Facebook post promoting the
most recent issue of Gucci Style.
Data source: PM Digital Research & Analysis, September 2012
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TABLET & MOBILE APPS – PRADA & CHANEL
49
2012 Tokyo Fashion show
is available for download on
iPad and PC.
Chanel J12 app is dedicated
to the latest models of the
watch collection.
Data source: PM Digital Research & Analysis, September 2012
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TABLET & MOBILE APPS – LOUIS VUITTON
50
Louis Vuitton does not have a shopping app, instead devoting this technology to experiential
pursuits. It most recently launched a 100 Legendary Trunks app for iPad, which has been described
as a history lesson of sorts. Exploring the legacy of the brand, it includes unpublished texts and
documents, videos, sound clips and images. Other apps are focused on travel and image filtering.
Louis Vuitton’s free
Kusama Studio app
allows image filtering
(below promoted on
Facebook).
100 Legendary Trunks app sells
for $18.99, a departure from other
apps from Louis Vuitton and other
luxury brands, which are free.
Amble travel app from Louis Vuitton.
Data source: PM Digital Research & Analysis, September 2012
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Comparison
Shopping Sites
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COMPARISON SHOPPING SITES
52
Comparison shopping sites collectively account for 2%-4% share of traffic to luxury brand
sites, and become more important seasonally. Since department stores and other multi-brand
retailers work with comparison shopping sites directly, while luxury brand sites largely do not, this
undoubtedly raises pressures on brands to avoid losing market share at peak times of year—
especially to discounters.
Comparison shopping
sites see their share of
traffic surge during key
holiday weeks, and
again in late January—
last season’s traffic
peaked twice at 4% of all
luxury brand site visits.
Data source: Experian Hitwise North America
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GOOGLE SHOPPING & PRODUCT LISTING ADS
53
The merger of Google Product Listing Ads with Google Shopping
elevates the prominence of graphically compelling ads on the
search results page. Luxury brands likely get top placement for
many of their products on regular Google search ads; they ought to
consider efforts to do the same for Google Shopping. Competitors are
already present.
Data source: PM Digital Research & Analysis, September 2012
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VISITS FROM EMAIL SITES BY BRAND
55
Luxury brand sites continue to
under-leverage email as an online
traffic driver despite its proven
ability to reach brand loyalists at
targeted times of year, such as when
new collections debut.
Most luxury brands have room to
grow email traffic—one third of
brands examined in this study had
no measurable email traffic share at
all, and another third lag behind.
^Apparel and Accessories is a category defined by Experian Hitwise.
*Luxury Brands is a custom category defined by PM Digital.
Data source: Experian Hitwise North America, July 2012
Diane von Furstenberg
and Stella McCartney
see notably large
shares of email traffic.
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TOP REFERRING EMAIL SITES
56
Yahoo! Mail remains the
largest traffic-driver for
luxury brand sites
among web-based
email providers. Its
traffic share can rival that
of Yahoo! search as well
as Bing, and it outpaces
Twitter and Pinterest.
Data source: Experian Hitwise North America
The share of visits that luxury brands get from email sites varies seasonally, and undoubtedly
increases with targeted campaigns. 24/7 access to email on smaller devices could play a key role as
mobile commerce grows. Its targetability is already complementary to the branding power of mobile
display ads and apps.
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EMAIL – FASHION SHOWS
57
Provides links to
videos, galleries
and articles. 2012 Tokyo Fashion Show
live on Prada.com.
Paris-Bombay show on Chanel.com.
Women’s Fall/Winter
2012-2013 Collection
As part of integrated marketing communications, luxury brand sites use email to announce
new collections, for branding and to provide “insider” content.
Data source: PM Digital Research & Analysis, September 2012
Copyright 2012 PM Digital. All rights reserved. This information is deemed PROPRIETARY and confidential by PM Digital. Unauthorized use or disclosure is prohibited.
5 Hanover Square, New York, NY 10004 t: 212.387.0300 f: 212.387.7647 toll free: 800.254.0330 www.pmdigital.com
EMAIL – ANNOUNCEMENTS
58
New Houston Galleria store opening.
New Fendi Kids website.
Includes link to “Watch
Behind the Scenes.”
$1,000 shopping spree promoted to
those who engage with the Fall 2012
Rendez-Vous collection on Instagram.
Email is an effective way to share news, including new product lines and locations, as well as
contests and offers with brand loyalists.
Data source: PM Digital Research & Analysis, September 2012
Copyright 2012 PM Digital. All rights reserved. This information is deemed PROPRIETARY and confidential by PM Digital. Unauthorized use or disclosure is prohibited.
5 Hanover Square, New York, NY 10004 t: 212.387.0300 f: 212.387.7647 toll free: 800.254.0330 www.pmdigital.com
EMAIL – YEAR-END HOLIDAYS
59
Holiday email typically offered complimentary 2 day shipping.
Luxury brands use email to promote specific items and incentives during year-end holidays.
Holiday campaign with limited
time free ground shipping.
Gucci also announced its Holiday 2011 “Giving Back”
initiative to donate to UNICEF’s Schools for Africa.
Data source: PM Digital Research & Analysis, September 2012
Copyright 2012 PM Digital. All rights reserved. This information is deemed PROPRIETARY and confidential by PM Digital. Unauthorized use or disclosure is prohibited.
5 Hanover Square, New York, NY 10004 t: 212.387.0300 f: 212.387.7647 toll free: 800.254.0330 www.pmdigital.com
EMAIL – OTHER HOLIDAYS
60
Chanel and Fendi sent Valentine’s Day greetings via email. Father’s Day email
offered complimentary
ground shipping.
Aside from promoting specific items, email is used to strengthen relationships at various times
of year.
Data source: PM Digital Research & Analysis, September 2012
Copyright 2012 PM Digital. All rights reserved. This information is deemed PROPRIETARY and confidential by PM Digital. Unauthorized use or disclosure is prohibited.
5 Hanover Square, New York, NY 10004 t: 212.387.0300 f: 212.387.7647 toll free: 800.254.0330 www.pmdigital.com
ABOUT PM DIGITAL & EXPERIAN HITWISE
PM DIGITAL
PM Digital, an award-winning Digital Marketing Agency,
specializes in Paid Search, SEO, Social Commerce,
Display Advertising, and Shopping Feed Management.
Through our customized, high-touch campaigns, we
drive qualified traffic to our clients’ websites to grow their
business online. Our talent, expertise, technology and
industry knowledge enables our clients to consistently
achieve YOY growth. PM Digital is headquartered in
NYC and also has offices in San Francisco, Arizona and
South Carolina.
PM Digital Research & Analysis
The Research group leverages proprietary data and
external subscription services to provide categorical and
competitive studies for online marketers. PM Digital
Research provides all interpretation of data obtained
from third party sources.
Contact
PM Digital
5 Hanover Square
New York, NY 10004
toll free: 800.254.0330 main: 212.387.0300
[email protected] www.pmdigital.com
61
EXPERIAN HITWISE
The leading global online competitive intelligence
service, Experian Hitwise helps clients protect and
grow their market share through the application of
Internet measurement data. Experian Hitwise
measures the largest sample of internet users - 25
million worldwide, including 10 million in the United
States. This sample size allows clients to
understand internet behavior and competitive
activity through data that is unmatched in
timeliness, depth and breadth.
Contact
Experian Hitwise
300 Park Avenue South, 9th Floor
New York, NY 10010
main: 212.380.2900
www.hitwise.com