Gucci, Michael Kors, and Fendi Earn the Highest Digital Competence Scores Among 90 Brands Ranked in L2's Digital IQ Index: Fashion 2017 Report
NEW YORK, Nov. 7, 2017 /PRNewswire/ -- Digital benchmarking firm L2 Inc releases its 8th annual L2 Digital IQ Index: Fashion US 2017 Report
The L2 report benchmarks the digital performance of 90 fashion brands operating in the US. The report provides key digital strategies and best practices for fashion brands to navigate the changing face of online luxury and connect with the growing cohort of digitally-driven, Millennial luxury fashion consumers. The L2 Digital IQ Index methodology examines a brand's strengths and weaknesses across the four digital dimensions of Site and E-Commerce, Digital Marketing, Social, and Mobile. Index brands are classified as either Genius, Gifted, Average, Challenged, or Feeble.
"Luxury fashion continues to lag in digital sophistication behind other sectors," explained Brian Lee, Associate Director at L2 Inc. "As a result, luxury fashion brands have become susceptible to growing threats from disruptor brands such as Everlane and Reformation, who have built their business models on digital competence and social media marketing. Such brands provide quality, craftsmanship, and a seamless shopping experience that are quickly becoming budget-friendly alternatives to the luxury brand consumer."
Key findings from L2's report include:
The Threat of Resale: Thirty-eight percent of Index brands do not own the majority of branded search terms that appear against them. For instance, in November 2017, 40 percent of paid search traffic on Céline's branded search terms went to resale sites, while the brand site only received 18 percent of that traffic.
Investing in Instagram: Index brands increased their Instagram followings by an average of 53 percent in 2017, impressive growth in comparison to their other social channels. Facebook followings grew by just 11 percent, and YouTube increased by 28 percent. Furthermore, 12 percent of Index brands now include shoppable tags in their Instagram posts, allowing consumers to purchase products directly from the posts.
App: Twenty-nine percent of Index brand iOS apps have not been updated in the past six months and 56 percent have not been updated in the past year. Luxury Fashion brands that do maintain their mobile apps should evaluate their effectiveness, as just 18 percent have appeared on the App Store's list of the top 250 apps.
"As department stores struggle, luxury fashion brands should ensure they prioritize their digital investments to stay afloat as digital-first competitors like Amazon, resale platforms, and off-price sites elbow their way into the market," noted Emma Ward, Senior Associate at L2 Inc.
To access a complete media-only copy of L2's Digital IQ Index: Fashion US 2017, contact [email protected]
About L2
L2 benchmarks the digital performance of over 2,200 brands across 12 industries globally. Our proprietary Digital IQ Index is the global standard for measuring digital competence. We analyze 1,250 data points to provide brands with actionable, data driven insights on their digital performance.
SOURCE L2
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