Digital marketing has emmersed over the last decade. It's gone crazy, everyone is now online!
Outlets like TV commercials and magazine adverts do not achieve the promotion of a product like they used to. The increase in the use of mobile phones means brand marketers have many more ways of communicating directly and interactively with their target consumers, its all about nurturing the platforms where the cosumers spend most their time. Online sales have become the industrys most important engine of growth and young buyers spend more time on social media than reading magazines or watching TV. The internet is getting more and more important, digital is expected to drive 40% of projected sales growth from 2013 to 2020, as oppurtunitys to open physical retail space diminish as consumers increasingly opt for the convenience of online shopping. In the past 5 years online sales of luxury goods grew four times faster than offline sales. 80% of fashion brands now have a mobile site; less than half did in 2012.
The four largest emerging and developing economies are BRIC conutries (Brazil, Russia, India and China). The future of digital media is in emerging markets like China and India. Social media use in developing economies has risen loads in the last few years. All thanks to the introduction of smart phones, these mobile-first markets are accessing the internet with affordable devices at reasonable rates, creating an oppurtunity for marketers to connect with consumers in countries that have been off the digital grid. However mature markets still lead the way in digital earnings, with the United States ranked number one, followed by Japan, Germany and the United Kingdom.
"Emerging markets are ripe for digital media investment. However understanding what markets to focus on, as well as how and when to enter them is crucial to succeed." - John Nendick, EY Global Media & Entertainment Leader.
Adapting to the web, to sell and communicate with customers, is a challenge for many in the luxury fashion business. Chris Morton, chief executive of Lyst.com, a multi-brand online luxury retailer said no company in the industry could afford to ignore the web. "A luxury brand that avoids the internet is effectively refusing to engage with its customers where they are increasingly spending time and money", he said. "It is not listening to what its customers want, which is dangerous in any consumer-facing industry". The production studio at Burberry's headquarters in London's 'Horseferry House' outputs a never ending stream of digital content, feeding the brand's website and social media channels and reflecting the company's chief creative, Christopher Bailey: "We are now as much a media-content company as we are a design company." The investment has helped make Burberry one of the most successful brands on social media, with one of the highest number of 'likes' per post on Instagram, which Luca Solca, head of luxury goods at Exane, say's "its by far the most relevant social platform for luxury brands." Other top performers include Michael Kors, Chanel and Louis Vuitton. Yet some important luxury brands have failed to bring their strategies in line with todays media reality. Celine, has neither e-commerce nor a social media presence. Celines Instagram account carries less than 10 posts and only 2,000 followers while its star designer Phoebe Philo is barely present. She was even quoted saying she "would rather walk down the street naked than join facebook". But if she wants to keep her brand relevent, she might just have to abide by the digital craze. In contrast, Chanel has 15 million followers, while its creative director Karl Lagerfield has 3 million followers and around 700 posts. The majority of luxury brands remain slow to build their digital capabilities and lack e-commerce sites geared towards important emerging markets, including China, Brazil, Russia, South Korea and the UAE. Some lack e-commerce all together.
http://ww2.cfo.com/technology/2015/02/emerging-markets-ripe-digital-media-investments/
http://www.ey.com/gl/en/industries/media---entertainment/ey-accelerating-digital-media-adoption
https://www.businessoffashion.com/articles/fashion-tech/the-digital-iceberg-luxury-fashion-marketing
http://fortune.com/2016/09/27/lmvh-digital-strategy/https://www.businessoffashion.com/articles/fashion-tech/burberry-remains-digital-luxury-leader-celine-trails
