Burberry, Kate Spade Top Digital IQ Index Report

UK brand Burberry has topped a list of luxury fashion brands pertaining to the digital arena. That should come as no surprise. In recent times, Burberry has been making waves for its innovative marketing initiatives in the online sphere. Most recently, the luxury fashion brand stunned onlookers by attracting 8.5 million during the launch of its new perfume, Body. The promotional for the perfume invited Facebook users to register for a free sample. 8.5 million bit this sweet-smelling bait. Prior to this, Burberry had impressed industry watchers with its strong Twitter campaign during London Fashion Week. CEO Angela Arhendts has staunchly pushed the brand into the digital arena, and the results are there for all to see.

The recent L2 Luxury Digital IQ Index report studied the digital habits of 49 luxury fashion brands. Burberry topped this list, going so far as to be categorized as “genius”. Founded by Scott Galloway, L2 creates digital IQ index reports for luxury brands. The firm uses over a hundred qualitative and quantitative parameters to score brands. The latest report studies the efforts of these high-end brands in the areas of digital marketing, websites, mobile platforms and social media. Galloway put it succinctly when he said, “From live streams to runway shows to an arms race on social media platforms, brands are seeking the halo of innovation that comes from inspired online programming.” However, luxury fashion brands still do not take the digital medium seriously enough. Galloway stated that while 94 percent of the studied brands had Facebook presence, only 5 offered ecommerce possibilities.

Burberry emerged as the overall winner. Its fan acquisition strategy has paid off immensely. The brand has the most fans on Facebook, the most followers on Instagram and the maximum uploaded views on YouTube. But it is not the only star. One of the biggest surprises is the presence of Kate Spade at the no. 2 spot. The fashion brand is known for its aggressive online initiatives. However, it is a relative newcomer on the fashion scene. Still, Kate Spade has managed to beat other industry biggies to the runner-up spot. At the same time, a big name like Christian Dior does not even make it to the Top 20 list. L2 has listed the 49 brands under five categories – Genius, Gifted, Average, Challenged and Feeble. Christian Dior and Chanel (which does scrape through into the Top 20) are termed as “Average”.

The study does not measure the offline success of these brands. But it does highlight the disparity between online and offline sales for some of the bigger, more iconic brands. The report suggests that it is high time that fashion brands gave more thought to the power of the digital medium. According to the report, 67 percent of consumers in the European Union and 50 percent of American consumers research luxury goods online before making a purchase. Moreover, brands offering ecommerce facilities gained 19 percent more visits on an average per user. These numbers are key to increased success in a world that is increasingly living in the digital world. Just Facebook and Twitter are not enough anymore.

Here is the Top 20 as ascertained by the report:

1. Burberry
2. Kate Spade
3. Coach
4. Gucci
5. Dolce & Gabbana
6. Tory Burch
7. Ralph Lauren
8. Hugo Boss
9. Louis Vuitton
10. Michael Kors
11. Donna Karan
12. Diane von Furstenberg
13. Calvin Klein
14. Marc Jacobs
15. John Varvatos
16. Paul Smith
17. Alexander McQueen
18. Jimmy Choo (client)
19. Chanel
20. Yves Saint Laurent

Via: Inside Retailing, L2

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