MediAvataar's News Desk
• High quality (47%) and fashionable (32%) are the features most associated with the top well-known luxury brands
• The lack of a “luxury” experience represents the main barrier to e-commerce, in fact on-line sales represent only 16% of total sales
• Off-line shopping outperforms e-commerce, but 40% of traditional sales are strongly impacted by digital touch points and content
• Top 6 touch points with highest impact on brand awareness and intention to buy are boutique experience (61,3%), boutique windows (60,8%), official brand websites (54,7%), face to face opinions of friends/family (52,1%), search engines (45,8%) and on-line fashion publications (43,5%)
LuxHub, the strategic consulting practice of Havas, reveals its first global observatory on The Luxury Customer Journey that examines the path to purchase for luxury fashion goods. The proprietary study, conducted in 8 markets with over 6,400 consumers and 25 brands, gives luxury fashion companies a clear understanding of the strategic roadmap they need to develop to engage their target in each market, with a strong focus on their digital transformation.
The Luxury Customer Journey (LCJ) provides an initial snapshot of the most important marketing KPI’s (top of mind, spontaneous and total awareness) before delving deeper into the more relevant content and touch points that build brand awareness and intention to buy, from traditional press and celebrity endorsement to digital word of mouth and bloggers. The study explores customer behaviour and their expectations during their e-commerce and boutique experiences, in-store mobile usage, interaction with brands’ social media pages, as well as the meaningfulness of specific content provided by the brands. It also tests consumer appreciation of the newest experience innovations.
The study confirms people aspire to luxury fashion brands because they provide the thrill associated with the sense of belonging to a selected tribe while providing the unique opportunity to show off personal connoisseurship. However, in the more mature markets during the recent economic slowdown, customers have become increasingly price and quality conscious. They are willing to pay more if they are provided with better, customized, meaningful experiences and services while they approach, select and purchase a luxury product. Even customers in emerging markets are increasingly gaining ground, moving quickly up the Luxury Pyramid, from affordable and accessible logoed products to niche and exclusive goods.
In this evolving landscape, The Luxury Customer Journey aims to unveil and highlight the most significant differences in the behaviour and expectations of the modern luxury consumer in the key European markets, the US, Middle East and China.
Some key takeouts from the Global results:
The features most associated with the top well-known luxury fashion brands are: high quality (47%), followed by fashion as in being considered ‘fashionable’ (32%), while only 26% of the 6.400 interviewees perceived them as recognizable.
The number one reason people buy a luxury good is self-reward (51%), followed by a special sales/convenience price (48%), proving that there is a strong rational approach towards purchase today that threatens many luxury brands’ founding conviction in emotional added value. As regards reasons to buy, China and the Middle East stand out for: purchasing abroad; new collection launches (underlining their passion for the “new”); and religious or national holidays emerging as important.
The study confirms that despite the boom of on-line sales, e-commerce is still not widespread for luxury fashion brands (16%), even if it’s perceived as more comfortable and convenient. The physical point of sale is still the most reassuring channel, confirming that touching and seeing a product is still an essential part of the shopping experience. The luxury experience itself represents the main barrier to e-commerce as on-line boutiques are not always able to meet customer expectations. However, even if off-line shopping still outperforms e-commerce, over 40% of traditional sales are strongly impacted by digital content, online advertising and web editorial.
The majority declare they know exactly what they want before entering a boutique to purchase a fashion luxury good. This is particularly evident in the Middle East (64%) and China (78%) where customers are very clear about what they want to buy, collecting product and brand information prior to visiting the point of sale for the purchase.
The path to purchase is almost never linear, involving interaction with different content and communication assets from owned (i.e. official websites), to paid (i.e. print advertising) and/or earned equity (i.e. word of mouth). The research shows that Millennials and the Middle East and Chinese markets have the most holistic approach to the customer journey, quickly accessing a huge amount of cross platform content. Brand storytelling is extremely important for Chinese consumers while Millennials pose a harder challenge for mature markets where brand heritage and roots have yet to become relevant for them.
The Luxury Customer Journey defines the top 6 touch-points with the highest impact on brand awareness and intention to buy: boutique experience (61,3%), boutique windows (60,8%), official brand websites (54,7%), face to face opinions of friends/family (52,1%), search engines (45,8%) and on-line fashion publications (43,5%). The weight of each touch point changes in each market and with regards to specific target audiences. For example, social media and, in particular, social CRM activities are more significant in the Middle East and China.
Smartphones are increasingly used in the physical point of sale to complete a purchase. In the US, 40% of the panel interviewed uses their mobile to compare prices, 40% of the Chinese to buy the product at a cheaper price on-line; while Europeans remain the most reticent, with 28,3% claiming they don’t use their phones at all while shopping.
All Global luxury consumers are interested in content that provides them with practical and personal advice on new trends and seasonal must-have products related to their age, profile, and taste. Customized services and special treatment are also expected as well as exclusive offers following a subscription to a brand web site and/or loyalty program.
Isabelle Harvie-Watt, Global CEO Havas LuxHub, says: “Brands, particularly the traditional luxury fashion brands, need to shift their focus to their customers and on how to engage them. They need to know their data; they need to understand their customer; they need to be global yet increasingly local and personalized in their approach; they need to become much more digital but at the same time experiential. The Luxury Consumer Journey analyses customer behaviour and expectations in depth in 8 strategic markets in the world. It is an incredible tool and should be the base for the definition of any strategic marketing plan today.”
The Luxury Customer Journey is based on a quantitative on-line survey that involved 6.400 interviews to affluent consumers across 8 markets including the US, China, UK, Spain, France, Italy, Germany and Middle East (Saudi Arabia and United Arab Emirates).
800 interviews (CAWI) were conducted in each market to people aged 25-65 y.o., who had purchased one of the selected brands* over the last 3 years (fragrances, beauty and eyewear excluded).
50% of the sample was recruited adding an income filter (> $100,000 for US, > ¥100,000 for China, > £100,000 for UK, > €60.000 for Spain, > €80.000 for France, Germany and Italy), with the exception of the Middle East.
DDB Worldwide, part of Omnicom Group, today announced a new management structure in the Asia Pacific region.
John Zeigler currently Chairman and CEO, DDB Asia Pacific India and Japan has announced his retirement from the agency. Effective October 1st, he will take on the role of Chairman Emeritus, DDB Asia Pacific.
David Tang, who currently leads DDB Group Singapore, has been appointed as the CEO of DDB Asia. In his role, Tang will be responsible for managing DDB offices in Southeast Asia, Greater China, Japan, and Korea. He will report to Chuck Brymer, Chief Executive Officer of DDB Worldwide.
Madhukar Kamath, Group CEO&MD, DDB Mudra Group in India, will now report directly to Chuck Brymer, CEO, DDB Worldwide. Marty O’Hallaran, Chairman and CEO, DDB Group Australia and New Zealand will also report directly into Chuck Brymer.
Said Madhukar Kamath, “Since the acquisition of the Mudra Group by DDB in November 2011, it has been a fascinating growth journey. As part of the DDB AsiaPacific network, we learnt a lot from John, Marty, David and the rest of the team in APAC. I now look forward to working closely with our Global CEO Chuck Brymer. For my colleagues and me, this new reporting structure underscores the importance of the DDB Mudra Group and the immense potential for growth in India ”
Said John Zeigler, “I have worked with many talented people, and the time is right for these same people to continue to drive DDB Asia Pacific forward. DDB has been my extended family for so long, and I will always think of it with fondness, pride and admiration,”
Brymer comments, “John has been a terrific partner for both DDB and myself. He contributed an enormous amount to our agency’s growth in terms of our people, our work and our clients. We wish him well in his new endeavors. I also look forward to working closely with our colleagues in India, Asia, Australia and New Zealand”
Global Awards Announces Live Sessions in Sydney, London and USA
International healthcare and wellness agencies Ward6 Sydney, Publicis LifeBrands Resolute London, and CAHG Chicago will host live Grand Jury judging sessions on behalf of the 2015 Global Awards℠ competition.
2016 Global Awards Live Jury Sessions hosts include:
· Sydney - September 18th: Hugh Fitzhardinge, Creative Director, Ward6 Sydney, Australia
· London - September 23rd: Shaheed Peera, Executive Creative Director EU, Publicis LifeBrands Resolute London, United Kingdom
· Chicago - September 24th: Robin Shapiro, President & Chief Creative Officer, CAHG New York, Chicago and San Francisco
The Global Awards Grand Jury of prominent international healthcare and wellness executives will assemble this September to judge creative work submitted to the 2015 competition. Judging sessions will also take place online, allowing entries to be viewed comprehensively by an international jury from regions with both established and growing healthcare markets. The annual live sessions allow jurors to examine in detail multi-paged works including: sales kits, direct mail, brochures, point of purchase displays, and annual reports and select entries that will achieve Shortlist status.
Hugh Fitzhardinge commented on the upcoming judging sessions at Sydney-based Ward6, “At Ward6 we’re delighted to host the 2015 Global Awards live session in what’s now a long-standing tradition ‘down under’. I like to think Australia punches above its weight in healthcare advertising and it’ll be great to have creatives from both global networks and local independents in attendance. In a rapidly changing environment, I’ll be hoping to discover some of those elusive game changing ‘new’ ideas that we all wish we’d come up with.”
Shaheed Peera, host of the London based Grand Jury judging session slated for September 23rd at Publicis LifeBrands Resolute said, “It was an honour to be asked to host this year’s UK judging session. The Globals have a wonderful history of celebrating great creative. And I'm really excited to see what will rise to the top this year.”
“CAHG is thrilled to host the Midwest judging of the Global Awards, said Robin Shapiro. “ We have assembled a stellar jury representing some of the best healthcare agencies. Working with these bright creative leaders to discuss, debate, and ultimately help determine the year's best healthcare communication — I can’t imagine a better day!”
The Global Awards will host the 2015 Executive Jury judging session on Tuesday October 13th in New York City.
“The Global Awards Executive Jury and Grand Jury of international industry experts, represent the top creative minds in the field of healthcare & wellness advertising. Our jury members are recruited from more than 20 countries on six continents,” said Michael Demetriades, VP & Executive Director of the Global Awards. “This comprehensive jury selection process ensures that each entry is judged by renowned talent with global knowledge and perspective from the industry.”
The 2015 Global Awards will honor award-winners on December 3, 2015 at celebrations held in both New York City and in partnership with Bravo! in Sydney, Australia.
The Global Awards Board is led by chairperson Robin Shapiro, President & Chief Creative Officer, CAHG New York, Chicago, San Francisco USA. The board is represented by a panel of prominent health care professionals whose reputations and knowledge of the industry continually generate prominence and expand the international reach of the Global Awards. Board members guide the judging process and ensure that the competition addresses the evolving needs of the healthcare communications industry.
The channel, called Sony BBC Earth on air, will broadcast in HD and will be available in Tamil, English and Hindi across India
Multi Screen Media Private Limited (MSM) has signed a deal with BBC Worldwide to bring BBC Earth, a new premium factual channel, to Indian audiences.
BBC EARTH is home to the BBC’s award-winning factual programmes and the work of some of the world’s foremost factual film makers. It showcases the incredible wonders of our universe, from the smallest creature under the microscope to the limitless expanses of space and brings viewers face to face with heart pounding action, mind blowing ideas and the wonder of being human.
The channel, called Sony BBC Earth on air, will broadcast in HD and will be available in Tamil, English and Hindi across India.
BBC Worldwide will draw on its extensive catalogue of programming and reputation for excellence in the premium factual, while MSM which runs the Sony network of television channels in the country has extensive experience and expertise not only in programming but also in operating and distributing televised entertainment both, in India and across the globe.
Both, the formation of the JV as well as the launch of Sony BBC Earth is subject to necessary regulatory approvals in India, for which the process is currently underway.
Paul Dempsey, President, BBC Worldwide Global Markets says “This is a pioneering model for us. By working with a respected local partner of the calibre of MSM we can bring BBC Earth’s world class content to a new audience who we know have a huge appetite for premium factual programming.”
NP Singh, Chief Executive Officer, MSM says “Sony BBC Earth is a joint venture (JV) between Multi Screen Media (MSM) and BBC Worldwide; with MSM owning the majority stake. This partnership with BBC Worldwide gives us an unparalleled edge in distributing factual programming to viewers across MSM’s network in India and to sharing with them, some of the best television content ever.”
“Sony BBC Earth will combine information and entertainment in real surroundings. And audiences that crave the virgin thrill and adventure of exploring natural environments, demystifying science and rewriting history will find it difficult to meander away from this channel. We are confident that within a short span of time, this new channel will carve its own distinct positioning in the minds of the discerning Indian viewer” he adds.
“We at MSM are putting together a whole new team to scale-up this JV with BBC Worldwide. This team will handle the programming, marketing, operations as well as sales and distribution of the channel, “comments NP Sing.
Mindshare leads the award tally bagging 4 golds and the agency of the year in mobile; PepsiCo declared Marketer of the Year at the SMARTIES™
The Mobile Marketing Association Forum (MMAF) Delhi 2015, came to a close with the announcement of the SMARTIES™ India 2015 awards. Gold, Silver, and Bronze award winners were announced in 15 categories ranging from Brand Awareness to Cross Media Integration amidst a fun-filled evening hosted by stand-up comedian Sorabh Pant at The Leela Ambience Gurgaon Hotel and Residences in Gurgaon, India. In addition to the category awards, the SMARTIES™ India 2015 also introduced the Blue industry awards that included Agency of the Year in Mobile, Marketer of the Year in Mobile, Publisher/Media of the Year in Mobile, Enabling Technology Company of the Year in Mobile and Best in show titles.
Mindshare and PepsiCo were the big winners for the night. Mindshare led the race with 4 Golds winning the Agency of the Year in Mobile Award while PepsiCo was chosen as the Marketer of the Year in Mobile. The other winners for the night included Facebook as the Publisher/Media of the Year in Mobile, Paytm as the Enabling Technology Company of the Year in Mobile and the Best in Show award was shared by Red Fuse Communications for their campaign ‘Spreading a Million Smiles with a Mobile’ and Mindshare India for ‘Lays hid the Treasure Hunt inside Google Maps’.
The SMARTIES™ is the world’s only global mobile marketing awards program that honours innovation, creativity and success in the field of mobile marketing. This year an ‘all-Brand Jury’, led by Jury Chairperson D Shivakumar, Chairman & CEO, PepsiCo India Holdings Pvt Ltd, and consisting of other celebrated marketers in India, evaluated the campaigns to shortlist those that showcased the ‘best of the best’ in the industry. Covering everything from brand awareness to innovation, video/rich media and social media, the awards celebrated the excellent work being done on mobile by both brands and agencies.
Mobile as a media channel offers truly exciting opportunities for consumer engagement. In order to better equip marketers to make mobile work for their brands it is important to understand how to use mobile as a vehicle to deliver a holistic brand experience. For this purpose, the MMA in collaboration with Millward Brown Smarties Knowledge Partner analysed all the entries for the SMARTIES Awards in India to present an insights presentation, to unearth best practices, key mobile trends and establish what sets apart a winning mobile campaign.
“I’d like to congratulate all the award winners. I think I speak not only for myself but also on behalf of the Jury when I say that we were really impressed with the entries this year. They were truly representative of the innovation that drives the mobile marketing industry and great work that's happening across India. We hope to inspire marketers to further push the envelope in their own campaigns and look forward to more innovations and participation in the future.” said Rohit Dadwal, Managing Director, Mobile Marketing Association Asia Pacific.