LUXURY GOODS Digital and Physical Integration: Luxury Retail's Holy Grail 4 MARCH 2016 We have analysed in-store digital proficiency We have worked with ContactLab and carried out 61 store visits in New York City, measuring performance on 21 different parameters, looking at three areas: 1) The basic: technology in-store; 2) The developed: how digital clients are received and services in-store; 3) The advanced: how digital is leveraged to make the most of traffic in-store. Overall Ralph Lauren is the leader in bringing digital innovations into stores and connecting Online and Offline environments, followed by Bergdorf Goodman and Burberry. We expect several companies to achieve Digital and Physical retail integration in the coming quarters. Digital offers an ROIC accretive growth avenue Expanding retail networks at a time of more muted demand growth risks diluting space productivity: a capital sin for any retailer and a guaranteed way to sink ROIC and TSR. By contrast, digital is one of the profitable "growth pockets" available to luxury goods players today: 1) consumers are embracing digital and spending more and more luxury dollars online; 2) being late to the party, luxury players can take advantage of established technologies and choose from a long list of service providers. Coupled with their small volumes, this caps their capex requirements; 3) luxury brands enjoy large average baskets, limiting concerns over fulfilment costs; 4) digital sales carry materially lower SG&A costs (rent, personnel, etc.) and higher margins. Combining physical and digital retail has obvious benefits Consumers buying luxury goods both online and in-store spend c.50% more per year than in-store only customers. When goods are out of stock, offering consumers the opportunity to order online in-store and receive their purchases at home increases conversion rates and – ultimately – sales/m 2 . Providing order online and pick-up in-store opens cross-selling opportunities – similar to order online and return/exchange in-store. Both ultimately support space productivity. As most luxury brands have become retailers, space productivity must be their North Star. Down the road – as digital luxury takes off – this will require brands to right-size their POS networks, something best-in-class players are already doing. Luca Solca (+44) 203 430 8503 Melania Grippo (+39) 02 89 63 1724 Guido Lucarelli (+39) 02 89 63 1726 ContactLab Marco Pozzi (+39) 02 28 31 181 Alexandra Bertasio (+39) 02 28 31 181 Davide Sarra (+39) 02 28 31 181 See Appendix (on p42) for Analyst Certification, Important Disclosures and Non-US Research Analyst disclosures.
Transcript
LUXURY GOODS
Digital and Physical Integration: Luxury Retail's Holy Grail
4 MARCH 2016 We have analysed in-store digital proficiency
We have worked with ContactLab and carried out 61 store visits in New York City, measuring
performance on 21 different parameters, looking at three areas: 1) The basic: technology in-store;
2) The developed: how digital clients are received and services in-store; 3) The advanced: how
digital is leveraged to make the most of traffic in-store. Overall Ralph Lauren is the leader in
bringing digital innovations into stores and connecting Online and Offline environments, followed by
Bergdorf Goodman and Burberry. We expect several companies to achieve Digital and Physical
retail integration in the coming quarters.
Digital offers an ROIC accretive growth avenue
Expanding retail networks at a time of more muted demand growth risks diluting space productivity:
a capital sin for any retailer and a guaranteed way to sink ROIC and TSR. By contrast, digital is
one of the profitable "growth pockets" available to luxury goods players today: 1) consumers are
embracing digital and spending more and more luxury dollars online; 2) being late to the party,
luxury players can take advantage of established technologies and choose from a long list of
service providers. Coupled with their small volumes, this caps their capex requirements; 3) luxury
brands enjoy large average baskets, limiting concerns over fulfilment costs; 4) digital sales carry
materially lower SG&A costs (rent, personnel, etc.) and higher margins.
Combining physical and digital retail has obvious benefits
Consumers buying luxury goods both online and in-store spend c.50% more per year than in-store
only customers. When goods are out of stock, offering consumers the opportunity to order online
in-store and receive their purchases at home increases conversion rates and – ultimately –
sales/m2. Providing order online and pick-up in-store opens cross-selling opportunities – similar to
order online and return/exchange in-store. Both ultimately support space productivity. As most
luxury brands have become retailers, space productivity must be their North Star. Down the road –
as digital luxury takes off – this will require brands to right-size their POS networks, something
best-in-class players are already doing.
Luca Solca
(+44) 203 430 8503
Melania Grippo
(+39) 02 89 63 1724
Guido Lucarelli
(+39) 02 89 63 1726
ContactLab
Marco Pozzi
(+39) 02 28 31 181
Alexandra Bertasio
(+39) 02 28 31 181
Davide Sarra (+39) 02 28 31 181
See Appendix (on p42) for Analyst Certification, Important Disclosures and Non-US Research Analyst disclosures.
Exane BNP Paribas Research & ContactLab Luxury Goods 4 March 2016 page 2
Exane BNP Paribas Research & ContactLab Luxury Goods 4 March 2016 page 3
Executive Summary
We have analysed in-store digital proficiency
We have worked with ContactLab and carried out 61 store visits in New York City,
measuring performance on 21 different parameters, looking at three areas: 1) The
basic: technology in-store; 2) The developed: how digital clients are received and
services in-store; 3) The advanced: how digital is leveraged to make the most of traffic
in-store. Overall Ralph Lauren is the leader in bringing digital innovations into stores
and connecting Online and Offline environments, followed by Bergdorf Goodman and
Burberry. We expect several companies to achieve Digital and Physical retail
integration in the coming quarters.
Figure 1: Ralph Lauren leads in bringing digital innovations into stores and connecting the online and offline, followed by Bergdorf Goodman and Burberry. Many luxury brands are trailing
In-Store Digital Proficiency, New York, December 2015
Exane BNP Paribas Research & ContactLab Luxury Goods 4 March 2016 page 4
Digital offers an ROIC accretive growth avenue
Expanding retail networks at a time of more muted demand growth risks diluting space
productivity: a capital sin for any retailer and a guaranteed way to sink ROIC and TSR.
By contrast, digital is one of the profitable "growth pockets" available to luxury goods
players today: 1) consumers are embracing digital and spending more and more luxury
dollars online; 2) being late to the party, luxury players can take advantage of
established technologies and choose from a long list of service providers. Coupled with
their small volumes, this caps their capex requirements; 3) luxury brands enjoy large
average baskets, limiting concerns over fulfilment costs; 4) digital sales carry materially
lower SG&A costs (rent, personnel, etc.) and higher margins.
Combining physical and digital retail has obvious benefits
Consumers buying luxury goods both online and in-store spend c.50% more per year
than in-store only customers. When goods are out of stock, offering consumers the
opportunity to order online in-store and receive their purchases at home increases
conversion rates and – ultimately – sales/m2. Providing order online and pick-up in-
store opens cross-selling opportunities – similar to order online and return/exchange in-
store. Both ultimately support space productivity. As most luxury brands have become
retailers, space productivity must be their North Star. Down the road – as digital luxury
takes off – this will require brands to right-size their POS networks, something best-in-
class players are already doing.
Exane BNP Paribas Research & ContactLab Luxury Goods 4 March 2016 page 5
The Cross Channel Opportunity
Digital offers an ROIC accretive growth avenue
Expanding retail networks at a time of more muted demand growth risks diluting space
productivity: a capital sin for any retailer and a guaranteed way to sink ROIC and TSR.
By contrast, digital is one of the profitable "growth pockets" available to luxury goods
players today: 1) consumers are embracing digital and spending more and more luxury
dollars online; 2) being late to the party, luxury players can take advantage of
established technologies and choose from a long list of service providers. Coupled with
their small volumes, this caps capex requirements; 3) luxury brands enjoy large
average baskets, limiting concerns over fulfilment costs; 4) digital sales carry materially
lower SG&A costs (rent, personnel, etc.) and higher margins.
Figure 2: Expanding retail networks at a time of more muted demand growth risks diluting space productivity and ROCE (1/2)
LVMH Organics Sales Growth (%) / Stores growth (%) vs ROCE y/y growth /%)
Note: Stores growth and Sales growth refers to LVMH F&LG division only – ROCE is calculated on LVMH Group
Source: Exane BNP Paribas estimates and analysis
2009
2010
2011
20122013
2014
R² = 0.9439
-20%
-15%
-10%
-5%
0%
5%
10%
15%
20%
25%
0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0
RO
CE
(y/y
% g
row
th)
Organic Sales Growth (%) / Stores growth (%)
Exane BNP Paribas Research & ContactLab Luxury Goods 4 March 2016 page 6
Figure 3: Expanding retail networks at a time of more muted demand growth risks diluting space productivity and ROCE (2/2)
History of ROCE
Source: Exane BNP Paribas estimates and analysis
Figure 4: ROCE has a direct impact on total shareholders return
ROCE improvement (2004-2014 % ppts) vs. TSR (2004-2014 %)
Source: Company Reports, Exane BNP Paribas Estimates and Analysis
Exane BNP Paribas Research & ContactLab Luxury Goods 4 March 2016 page 7
Figure 5: The number of registered and digitally contactable clients continues to rise
Source: ContactLab Analysis
Figure 6: Digitally contactable clients spend more in-store (+16%) (1/2)
Client yearly average spending (EUR, worldwide, 2013-14)
Source: ContactLab Analysis
0%
5%
10%
15%
20%
25%
30%
35%
40%
2012 vs 2011 2013 vs 2012 2014 vs 2013
0%
10%
20%
30%
40%
2012 vs 2011 2013 vs 2012 2014 vs 2013
(10%)
0%
10%
20%
30%
40%
2012 vs 2011 2013 vs 2012 2014 vs 2013
Rev enues from Digitally-Contactable Clients
(y oy % chg)
Number of Digitally-Contactable Clients
(y oy % chg)
Av ge Yearly Spend by Digitally-Contactable Clients
(y oy % chg)
0
200
400
600
800
1000
1200
Registered DigitallyContactable
2
2013 2014 2013 2014
Exane BNP Paribas Research & ContactLab Luxury Goods 4 March 2016 page 8
Figure 7: Digitally contactable clients spend more in-store (+16%) (2/2)
Client yearly average in-store spending (worldwide, 2013–14)
Source: ContactLab Analysis
Figure 8: Whilst still a relatively small channel, online is expected to drive c.40% of luxury market growth over the 2013-20E period – of which c.20% to come from the development of mono-brand e-stores
Luxury Goods Market (EUR bn)
Source: Altagamma & Exane BNP Paribas estimates
100
109
116
90
95
100
105
110
115
120
In-Store Registered(index = 100)
Digitally-Contactable2013
Digitally-Contactable2014
147
51% 4%
37% 7% 217
40%
20%
21%
19% 305
0
50
100
150
200
250
300
350
2005 Retail -Physical
Retail -Online
Wholesale -Physical
Wholesale -Online
2013 Retail -Physical
Retail -Online
Wholesale -Physical
Wholesale -Online
2020E
Exane BNP Paribas Research & ContactLab Luxury Goods 4 March 2016 page 9
Figure 9: Burberry is a virtuous example of interaction of on-line and off-line operations. Click & collect already represents 15% of Burberry’s on-line sales
Burberry – Click-&-Collect in-store
Source: Burberry
Exane BNP Paribas Research & ContactLab Luxury Goods 4 March 2016 page 10
Combining physical and digital retail has obvious benefits
Consumers buying luxury goods both online and in-store spend c.50% more per year
than in-store only customers. When goods are out of stock, offering consumers the
opportunity to order online in-store and receive their purchases at home increases
conversion rates and – ultimately – sales/m2. Providing order online and pick-up in-
store opens cross-selling opportunities – similar to order online and return/exchange in-
store. Both ultimately support space productivity. As most luxury brands have become
retailers, space productivity must be their North Star. Down the road – as digital luxury
takes off – this will require brands to right-size their POS networks, something best-in-
class players are already doing.
Figure 10: Cross-channel clients demonstrate how important digital marketing and e-commerce can become
USA, percentage of registered client purchasing history (2011 – 2013) – excl. Wholesale
Panel of eight worldwide luxury brands.
Source: ContactLab Analysis
Figure 11: Cross-channel consumers spend c.50% more than in-store only customers
Client yearly average spending (EUR, worldwide, 2013-14)
Exane BNP Paribas Research & ContactLab Luxury Goods 4 March 2016 page 12
Research Methodology
We have analysed in-store digital proficiency. We have worked with ContactLab to
ascertain how luxury players are proceeding with the integration of physical and digital
retailing. We have carried out 61 store visits in New York City, measuring performance
on 21 different parameters. We have covered our usual 30 brands list + 4 department
stores: Bergdorf Goodman, Saks, Barneys, and Macy's. We have looked at three
areas: 1) The basic: technology in-store; 2) The developed: how digital clients are
received and services in-store; 3) The advanced: how digital is leveraged to make the
most of traffic in-store.
Figure 14: Methodology
Source: ContactLab
Figure 15: Our panel of 34 players: 30 brands and 4 Department stores in NY
Source: Exane BNP Paribas
• Research timeframe: December 2015
• Panel of 34 players:
- 30 Monobrand (Exane BNP Paribas luxury panel)
- 4 Multibrand Department Stores
• Data Collection: Visits to 57 Flagship/Stand-Alone Stores in New York (Manhattan) and 4 Department Stores
- Direct observation
- Questions to Sales Assistants
• Evaluation Criteria: 21 Parameters divided into 3 Categories
- Technology in-store
- Dealing with Digital Clients in-store
- Online Promotion while in-store
Jeweller Bulgari Department Store Barneys
Jeweller Cartier Department Store Bergdorf Goodman
Jeweller Tiffany Department Store Macy's
High-End Bottega Veneta Department Store Saks
High-End Brunello Cucinelli
High-End Chanel
High-End Dior
High-End Hermès
High-End Loro Piana
High-End Saint Laurent
High-End Valentino
Runner-Up Balenciaga
Runner-Up Céline
Runner-Up Dolce&Gabbana
Runner-Up Fendi
Runner-Up Ferragamo
Runner-Up Givenchy
Runner-Up Tod's
Mega-Brand Burberry
Mega-Brand Gucci
Mega-Brand Louis Vuitton
Mega-Brand Prada
Mega-Brand Zegna
Premium Armani
Premium Coach
Premium Hugo Boss
Premium Michael Kors
Premium Moncler
Premium Ralph Lauren
Premium Tory Burch
30-MONOBRAND PANEL MANHATTAN MULTIBRAND
Exane BNP Paribas Research & ContactLab Luxury Goods 4 March 2016 page 13
Figure 16: 57 Flagship/Stand-Alone Stores and 4 Department Stores visited in New York
Source: ContactLab
Figure 17: We measured In-Store Digital Proficiency through 21 parameters divided into 3 categories
Source: ContactLab
Monobrand Store Address in Manhattan New York Monobrand Store Address in Manhattan New York
717 Fifth Avenue, NY 10022, New York Gucci 725 Fifth Avenue, NY 10022 , New York
760 Madison Avenue, NY 10065, New York Hermès 691 Madison Avenue, NY 10065, New York
148 Mercer Street, NY 10012, New York 690 Madison Avenue, NY 10065, New York
149 Mercer Street, NY 10012, New York Hugo Boss Time Warner Building - 10 Columbus Circle Suite 106, NY 10019, New York
699 Fifth Avenue, NY 10022, New York (old location) 555 Broadway, NY 10012, New York
650 Madison Avenue, NY 10022, New York (new location) Loro Piana 748 Madison Avenue, NY 10065, New York
683 Madison Avenue, NY 10065, New York Louis Vuitton 1 East 57th Steet, NY 10022, New York
136 Greene Street, NY 10012, New York 116 Greene Street, NY 10012, New York
Bulgari 730 Fifth Avenue, NY 10022, New York Michael Kors 667 Madison Avenue, NY 10065, New York
9 East 57th Street, NY 10022, New York Time Warner Building - 10 Columbus Circle, NY 10023, New York
131 Spring Street, NY 10012, New York 610 Fifth Avenue, NY 10020, New York
Cartier 767 Fifth Avenue, NY 10153, New York Moncler 90 Prince Street, NY 10012, New York
870 Madison Avenue, NY 10021, New York Prada 724 Fifth Avenue, NY 10019, New York
67 Wooster Street, NY10012 , New York 575 Broadway, NY 10012, New York
139 Spring Street, NY 10012, New York Ralph Lauren 867 Madison Avenue, NY 10021, New York
15 East 57th Street, NY 10022, New York 888 Madison Avenue, NY 10021, New York
737 Madison Avenue, NY 10065, New York 878 Madison Avenue, NY 10021, New York
79 Fifth Avenue, NY 10003, New York 872 Madison Avenue, NY 10021, New York
595 Madison Avenue, NY 10022, New York 711 Fifth Avenue, NY 10022, New York
Time Warner Building - 10 Columbus Circle, NY 10019, New York 109 Prince Street, NY 10012, New York
21 East 57th Street, NY 10022, New York Saint Laurent 3 East 57th Street, NY 10022, New York
17 East 57th Street, NY 10012, New York 80 Greene Street, NY 10012, New York
105 Greene Street, NY 10012, New York Tiffany 200 Fifth Avenue, NY 10022, New York
133 Green Street, NY 10012, New York 97 Greene Street, NY 10012, New York
Dolce&Gabbana 717 Fifth Avenue, NY 10022, New York Tod's 650 Madison Avenue, NY 10022, New York
598 Madison Avenue, NY 10022, New York Tory Burch 797 Madison Avenue, NY 10065, New York
112 Greene Street, NY 10012, New York Valentino 693 Fifth Avevue, NY 10022, New York
Ferragamo 655 Fifth Avenue, NY 10022, New York Zegna 663 Fifth Avenue, NY 10022, New York
Givenchy 747 Madison Avenue, NY 10065, New York
Multibrand Store Address in Manhattan New York
Barneys 660 Madison Avenue, NY 10065, New York
754 Fifth Avenue, NY 10019, New York
745 Fifth Avenue, NY 10151, New York
Saks 611 Fifth Avenue, NY 10022, New York
Macy's 151 West 34th Street, NY 10001, New York
Chanel
Coach
Dior
Fendi
Bergdorf Goodman
Céline
Armani
Balenciaga
Bottega Veneta
Brunello Cucinelli
Burberry
Exchange in Store (declared on website)
Return in Store (declared on website)
ONLINE PROMOTION
WHILE IN STORE
In Store Battery Charger
Extra Effort: Interactive Mirrors
Extra Effort: Interactive Touchscreens
SA Tablet
Appointments in Store via Website
DEALING WITH DIGITAL
CLIENTS IN STORE
Appointments in Store via App
In-Store Invite for App Download
In-Store Invite for Hashtag/Website Visit
TECHNOLOGY IN STORE
E-commerce Invite
Online Order in Store Option
Question 3 to SA: Assistance for Online Shopping while In-Store
Online evidence of In-Store "Made to Measure"/"Made to Order"/Monogramming Corner
Online evidence of In-Store Cosmetic Corner
Screens
Open WiFi in Store
In-Store Client Recognition via Technology (e.g. via Beacons)
Client Recognition via SA dialogue (before checkout)
Question 2 to SA: "In case I purchased an item online, can I return it in store?"
Question 1 to SA: "Can you retrieve items from my Wishlist?"
Exane BNP Paribas Research & ContactLab Luxury Goods 4 March 2016 page 14
In-Store Digital Proficiency
Today, we are just seeing the first steps. Today we are just seeing the first steps in
digital and physical integration. Unsurprisingly, it's easier to stuff stores with
technology, than to painstakingly redesign the client interface processes - so as to
make the most of what digital can bring to incumbent physical retailers. The luxury
players we have surveyed scored 39% of the absolute maximum potential for Dealing
with Digital Clients in-store but only 17% on the two other important areas: Technology
in-store and Online Promotion while in-store. US department stores lead in the pursuit
of the "holy grail", scoring an average 50% of the maximum potential. Mega-brands
follow with 44%. Premium brands trail at 34% while High-end (17%) and Runners-up
(13%) look far behind.
Figure 18: Dealing with Digital Clients in-store criterion is partially exploited, while Technology in-store and Online Promotion while in-store criteria are very far off from their maximum potential
In-Store Digital Proficiency, New York, December 2015
Source: ContactLab Analysis
CRITERIA SCORE MAX POTENTIAL SCORESCORE OVER MAXIMUM
POTENTIAL %
Dealing with Digital Clients in Store 482 1224 39%
Technology in Store 111 646 17%
Online Promotion while in Store 47 281 17%
TOTAL 640 2,151 30%
Exane BNP Paribas Research & ContactLab Luxury Goods 4 March 2016 page 15
Figure 19: Ralph Lauren leads in bringing digital innovations into stores and connecting the online and offline, followed by Bergdorf Goodman and Burberry. Many luxury brands are trailing (1/2)
In-Store Digital Proficiency, New York, December 2015
Exane BNP Paribas Research & ContactLab Luxury Goods 4 March 2016 page 16
Figure 20: Ralph Lauren leads in bringing digital innovations into stores and connecting the online and offline, followed by Bergdorf Goodman and Burberry. Many luxury brands are trailing (2/2)
In-Store Digital Proficiency, New York, December 2015
Source: ContactLab Analysis
Figure 21: Department Stores are the best performing group, reaching 50% of maximum potential, followed by Mega-Brands (44%) and Premium Brands (34%), while High-End and Runner-Up still have limited in-store digital content (17-13%)
In-Store Digital Proficiency, New York, December 2015
Source: ContactLab Analysis
Group Brand OVERALL SCORE OVERALL RANKINGTECHNOLOGY IN STORE
(Ranking)
DEALING WITH
DIGITAL CLIENTS IN STORE
(Ranking)
ONLINE PROMOTION
WHILE IN STORE
(Ranking)
Premium Ralph Lauren 43 1 2 1 4
Department Store Bergdorf Goodman 38 2 1 12 1
Mega-Brand Burberry 38 2 5 4 4
Mega-Brand Louis Vuitton 35 4 5 6 4
Department Store Saks 34 5 21 1 2
Department Store Macy's 33 6 3 11 4
Department Store Barneys 32 7 7 6 4
Mega-Brand Zegna 31 8 12 6 3
Premium Coach 28 9 16 6 4
Premium Hugo Boss 26 10 3 14 11
Jeweller Tiffany 26 10 21 3 11
Jeweller Cartier 25 12 16 5 11
Mega-Brand Gucci 25 12 9 10 11
Premium Tory Burch 23 14 13 14 4
Premium Michael Kors 18 15 21 12 11
High-End Valentino 17 16 13 17 11
High-End Hermès 16 17 21 14 11
Premium Armani 14 18 21 17 11
Runner-Up Fendi 14 18 9 24 11
High-End Loro Piana 14 18 21 17 11
Runner-Up Balenciaga 12 21 21 20 11
Jeweller Bulgari 12 21 21 20 11
Mega-Brand Prada 12 21 16 22 11
High-End Brunello Cucinelli 10 24 21 22 11
Runner-Up Givenchy 10 24 16 25 11
Premium Moncler 10 24 13 28 11
High-End Bottega Veneta 8 27 21 25 11
Runner-Up Tod's 8 27 21 25 11
High-End Chanel 7 29 9 32 11
High-End Dior 6 30 7 33 11
Runner-Up Dolce&Gabbana 6 30 21 29 11
Runner-Up Ferragamo 6 30 16 30 11
High-End Saint Laurent 3 33 21 31 11
Runner-Up Céline 0 34 21 33 11
GROUP # BRANDS GROUP SCOREMAX GROUP
SCORE% MAX SCORE
Department Store 4 137 274 50%
Mega-Brand 5 141 324 44%
Premium 7 162 472 34%
Jeweller 3 63 198 32%
High-End 8 81 468 17%
Runner-Up 7 56 415 13%
TOTAL PANEL 34 640 2151 30%
Exane BNP Paribas Research & ContactLab Luxury Goods 4 March 2016 page 17
US players lead against European brands
Overall Ralph Lauren is leading in bringing digital innovations into stores and
connecting Online and Offline environments, followed by Bergdorf Goodman and
Burberry.
Technology in-store
Three of the top four are American: Bergdorf Goodman, Ralph Lauren, Hugo Boss and
Macy's. Fourteen brands haven't adopted any digital tool yet. Technology can also be
neat and elegant as demonstrated by Dior’s screens-in-staircases and Ralph Lauren’s
fitting rooms with interactive mirrors.
Figure 22: Bergdorf Goodman is leading, followed by Ralph Lauren, Hugo Boss and Macy’s. A large group of 14 Monobrands have not adopted any digital tool yet
“Technology in-store” overview, New York, December 2015
Source: ContactLab Analysis
Brand RANKING ScreensOpen WiFi
in StoreSA Tablet In Store Battery Charger
Extra Effort
Interactive Mirrors
Extra Effort Interactive
Touchscreens
Bergdorf Goodman 1
Ralph Lauren 2
Hugo Boss 3
Macy's 3
Burberry 5
Louis Vuitton 5
Barneys 7
Dior 7
Chanel 9
Fendi 9
Gucci 9
Zegna 12
Moncler 13
Tory Burch 13
Valentino 13
Cartier 16
Coach 16
Ferragamo 16
Givenchy 16
Prada 16
Armani 21
Balenciaga 21
Bottega Veneta 21
Brunello Cucinelli 21
Bulgari 21
Céline 21
Dolce&Gabbana 21
Hermès 21
Loro Piana 21
Michael Kors 21
Saint Laurent 21
Saks 21
Tiffany 21
Tod's 21
Many screens across the store
(in relation to store's dimension)
with several large size screens
(e.g. large/wall size)
Offered Yes, engaging useAvailability of Phone Charger
inside the store
Availability of Interactive
Mirrors
Availability of Interactive
Touchscreens
Multiple screens across the store
(in relation to store's dimension)
with at least one large size
screen
Yes, non engaging use with
clients
Only 1 large size screen
One or more small size screens
(e.g. PC size)
No screens
Not offered NoNo Phone Charger inside the
storeNo Interactive Mirrors No Interactive Touchscreens
TECHNOLOGY IN STORE (SUM UP)
Exane BNP Paribas Research & ContactLab Luxury Goods 4 March 2016 page 18
Figure 23: “Basic” digital tools/services have been adopted by 1/3 of the Panel and can effectively support brand building
Technology in-store, New York, December 2015 (1/2)
Source: ContactLab Analysis
Brand RANKING ScreensOpen WiFi
in StoreSA Tablet
In Store Battery
Charger
Bergdorf Goodman 1 Few screens compared to shop's area, mainly located on one floor Yes (open) No Yes
Ralph Lauren 2 Depending on shop location: many at Polo store, fewer at Ralph Lauren Women, Men, Child and Baby Yes (open) Yes (SA actively using them ) No
Hugo Boss 3 Ground Floor: 2 L Craftsmanship (Suits), First Floor: 1 M Models, Second Floor: 1 M Runway Yes (open) No No
Macy's 3Multiple screens of different dimensions on each floor, mainly located on ground floor, also screens in brands' identity
cornersYes (open) No No
Burberry 5Ground Floor: 2 S Beauty, 1 S Branding/Products, Second Floor: 1 M Branding/Products, Third Floor: 1 M
Branding/Products, Fourth Floor: 1 M Branding/Products, Fifth Floor: 1 M RunwayYes (open) Yes (SA actively using them ) No
Louis Vuitton 5 Ground Floor: 1 M Runway, 1 XS Watches, First Floor: 1 M Men Bags with Monogram, Second Floor: 1 L Branding Yes (open) Yes (SA actively using them ) No
Barneys 7 Few screens compared to shop's area, mainly located on one floor Yes (open) No No
Dior 7Ground Floor: 1 XS Craftsmanship (Watch Making), Staircase: 1 XL Maison History + Runway Models, First Floor: 1 M
RunwayYes (open) No No
Chanel 9 Ground Floor: 1 XS Craftsmanship (Watch Making), First Floor: 1 L Runway No Yes (SA actively using them ) No
Fendi 9 No Yes (open) Yes (mostly inventory check) No
Gucci 9 Ground Floor: 1 M Runway, Second Floor: 2 M Runway No Yes (few tablets) No
Zegna 12 Ground Floor: 2 M Advertising, First Floor: 1 M Advertising Yes (open) No No
Moncler 13 No No Yes (only 2 as Digital Catalog) No
Tory Burch 13 No No Yes (SA actively using them ) No
Valentino 13 No No Yes (few tablets) No
Cartier 16 No Yes (open) No No
Coach 16 Ground Floor: 1 XL Advertising Yes (open) No No
Ferragamo 16 Ground Floor: 1 XS Branding, 1 M Runway, First Floor: 1 M Runway No No No
Givenchy 16 No Yes (open) No No
Prada 16 No Yes (open) No No
Armani 21 Ground Floor: 1 XL Advertising No No No
Balenciaga 21 Women Store - Ground Floor: 1 XS Models, Lower Floor: 1 S Runway / Men Store - 1 XS Models No No No
Bottega Veneta 21 No No No No
Brunello Cucinelli 21 No No No No
Bulgari 21 No No No No
Céline 21 No No No No
Dolce&Gabbana 21 No No No No
Hermès 21 Men Store - First Floor: 1 XS Runway, Second Floor: 1 XS Branding, Third Floor: 1 XS Branding No No No
Loro Piana 21 First Floor: 2 S Models (no video) No No No
Michael Kors 21 Ground Floor: 1 XL Branding No No No
Saint Laurent 21 No No No No
Saks 21 Few screens compared to shop's area, mainly located on one floor No No No
Tiffany 21 Third Floor: 2 S Craftsmanship (Watch Making) No No No
Tod's 21 No No No No
Many screens across the store (in relation to store's dimension) with several large size screens (e.g. large/wall size) Offered Yes, engaging use
Availability of Phone
Charger inside the
store
Multiple screens across the store (in relation to store's dimension) with at least one large size screenYes, non engaging use with
clients
Only 1 large size screen
One or more small size screens (e.g. PC size)
No screens
Not offered NoNo Phone Charger
inside the store
TECHNOLOGY IN STORE (1/2)
Exane BNP Paribas Research & ContactLab Luxury Goods 4 March 2016 page 19
Figure 24: More advanced innovations are still rare: Bergdorf Goodman leading with both Interactive Mirrors and Touchscreens, followed by Ralph Lauren, Hugo Boss, Macy’s and Barneys
Technology in-store, New York, December 2015 (2/2)
Source: ContactLab Analysis
Brand RANKING Extra Effort: Interactive Mirrors Extra Effort: Interactive Touchscreens
Bergdorf Goodman 1 Free standing Digital Mirror to take and share pictures Digital Directory with menu (e.g. search designers and locate them, discover more about services,restaurants, etc..)
Ralph Lauren 2Polo Store - Located in fitting rooms: call SA, request additional styles/sizes, "Complete the Look" suggestions,
adjust lighting, etc
Hugo Boss 3
XL Screen to browse online store, use Instagram and get advice on Suits Tailoring (e.g. select your body type -
normal, bulky, skinny..- and desired look - casual, business,..- to receive an email with suggestions for personalized
looks), Digital Directory
Macy's 3 Price Checkers, Look Book, other brand related gears (e.g. Kate Spade New York City quiz)
Burberry 5
Louis Vuitton 5
Barneys 7 Digital Directory with menu (e.g. search designers and locate them)
Dior 7
Chanel 9
Fendi 9
Gucci 9
Zegna 12
Moncler 13
Tory Burch 13
Valentino 13
Cartier 16
Coach 16
Ferragamo 16
Givenchy 16
Prada 16
Armani 21
Balenciaga 21
Bottega Veneta 21
Brunello Cucinelli 21
Bulgari 21
Céline 21
Dolce&Gabbana 21
Hermès 21
Loro Piana 21
Michael Kors 21
Saint Laurent 21
Saks 21
Tiffany 21
Tod's 21
Availability of Interactive Mirrors Availability of Interactive Touchscreens
No Interactive Mirrors No Interactive Touchscreens
TECHNOLOGY IN STORE (2/2)
Exane BNP Paribas Research & ContactLab Luxury Goods 4 March 2016 page 20
Figure 25: Dior Best Practice: Screens encased in French windows retracing the Maison’s history and today’s Runway Shows
Dior, 21E 57th Street, New York
Source: Left Hiroko Masuike for The New York Times (Dec 2010), right Architects Newspaper (July 2011)
Figure 26: Zegna Best Practice: Highlighting the availability of In-Store free WiFi on its website
Source: Zegna Website, US
Exane BNP Paribas Research & ContactLab Luxury Goods 4 March 2016 page 21
Figure 27: Bergdorf Goodman Best Practice:. Battery Charger column
Bergdorf Goodman, 754 5th Avenue, New York
Source: ContactLab
Exane BNP Paribas Research & ContactLab Luxury Goods 4 March 2016 page 22
Figure 28: Ralph Lauren Best Practice: Fitting Rooms with Interactive Mirrors allowing customers to: request assistance (e.g. additional sizes/items), receive “Complete the Look” suggestions, choose the lighting setting and send selections to a mobile phone. At the end of the shopping session customers can directly check-out and skip the waiting line
Polo Ralph Lauren, 711 5th Avenue, New York
Source: Left Fashion Times (Nov 2015), right picture by Thomas Iannaccone (Nov 2015)
Exane BNP Paribas Research & ContactLab Luxury Goods 4 March 2016 page 23
Figure 29: Bergdorf Goodman: only player to provide Digital Mirrors to take pictures with worn garments. Clients can compare the looks, save them and also share with friends via email or SMS
Bergdorf Goodman, 754 5th Avenue, New York
Source: ContactLab Analysis
Exane BNP Paribas Research & ContactLab Luxury Goods 4 March 2016 page 24
Figure 30: Bergdorf Goodman Best Practice: Digital Floor Directory, displaying not only floor descriptions, but also additional useful information (e.g. where to find a specific Designer, Client Services and Personal Styling)
Bergdorf Goodman, 754 5th Avenue, New York
Source: ContactLab
Exane BNP Paribas Research & ContactLab Luxury Goods 4 March 2016 page 25
Figure 31: Hugo Boss Best Practice: Just introduced an Interactive Touchscreen to browse the Online Store, follow the brand on Instagram and get advice on Suits Tailoring
Hugo Boss, 10 Columbus Circle, New York
Source: ContactLab
Figure 32: Macy’s Best Practice: Look Book
Macy’s, 151 W 34th Street, New York
Source: ContactLab
Exane BNP Paribas Research & ContactLab Luxury Goods 4 March 2016 page 26
Dealing with Digital Clients in-store
Ralph Lauren and Saks are leading, followed by Tiffany and Burberry. We expect
several companies to achieve Digital and Physical retail integration in the coming
quarters.
Barneys is the only one using beacons to recognise customers. Sales assistants of
eleven brands stressed the separation of digital and physical retailing activities (!).
Seven of these are powered by Yoox; Burberry and Tory Burch Sales Assistants
appear the best trained for effective Cross-Channel integration.
Exane BNP Paribas Research & ContactLab Luxury Goods
Figure 33: Ralph Lauren and Saks are leading, followed by Tiffany and Burberry
“Dealing with Digital Clients in-store” overview, New York, December 2015
Source: ContactLab Analysis
SA clear answerSA declared
answer
Consistency
between SA answer
and Website
information
SA stressing online and offiline
are synergetic
Ralph Lauren 1
Saks 1
Tiffany 3
Burberry 4
Cartier 5
Barneys 6
Coach 6
Louis Vuitton 6
Zegna 6
Gucci 10
Macy's 11
Bergdorf Goodman 12
Michael Kors 12
Hermès 14
Hugo Boss 14
Tory Burch 14
Armani 17
Loro Piana 17
Valentino 17
Balenciaga 20
Bulgari 20
Brunello Cucinelli 22
Prada 22
Fendi 24
Bottega Veneta 25
Givenchy 25
Tod's 25
Moncler 28
Dolce&Gabbana 29
Ferragamo 30
Saint Laurent 31
Chanel 32
Céline 33
Dior 33
Book an Appointment via
website /
phone call / email
App with Book an
Appointment option
Yes, message
received (tested via
bluetooth and app -
when available)
In-store client
recognition before
checkout
Yes from Brand
systems
Offered online & in-
store, or only in-
store
Broadly offered Yes (clear answer)Yes
(return in store)
SA answer
consistent with
website information
Synergetic Online/Offline
Personalization Services
offered In-Store and
mentioned
Online in Store Locator
Cosmetic Corner
offered In-Store,
Beauty mentioned
as sold category in
Store Locator
Yes from customer
account via SA
tablets
Offered only onlineOffered in selected
stores only
Yes
(only exchange
or store credit)
No remark
Personalization Services
offered In-Store, but not
mentioned Online in Store
Locator
Cosmetic Corner
offered In-Store,
Beauty not
mentioned as sold
category in Store
Locator
No Book an Appointment
option available on
website
No Book an
Appointment option
available on App /
No App
No No client recognition No Not offered Not offered
No
(unclear / no
answer)
No
(no return /
exchange
in store)
SA answer
inconsistent with
website information
Online/Offline separation
stressed
No Personalization
Services offered In-StoreNo presence
Online evidence of
In-Store Cosmetic
Corner
Brand RANKING
DEALING WITH DIGITAL CLIENTS IN STORE (SUM UP)
Question 2 to SA: "In case I purchased an item online, can I return it in store?"
Appointments in Store
via Website
Appointments in Store
via App
In-Store Client
Recognition via
Technology
(e.g. via Beacons)
Client Recognition
via SA dialogue
(before checkout)
Question 1 to SA:
"Can you retrieve
items from my
Wishlist?"
Online evidence of In-
Store
"Made to Measure"
/"Made to Order"
/Monogramming Corner
Exchange in Store
(declared on
website)
Return in Store
(declared on
website)
Exane BNP Paribas Research & ContactLab Luxury Goods
Figure 34: About 1/3 of players sponsor “Book an Appointment in-store” option on their Websites, but just Tiffany and Cartier also do so through their Apps. No apparent in-store client recognition, neither via Beacons nor via SA interaction, except for Barneys
Dealing with Digital Clients in-store, New York, December 2015 (1/3)
Source: ContactLab Analysis
Brand RANKING Appointments in Store via Website Appointments in Store via AppIn-Store Client Recognition via Technology
(e.g. via Beacons)
Client Recognition via SA dialogue
(before checkout)
Question 1 to SA:
"Can you retrive items from my
Wishlist?"
Ralph Lauren 1Yes (select book an appointment option when
contacting store via email)Yes App - No Appointments No No Via SA tablet
Saks 1 Yes (Men Made to Measure via email)Yes App - No Appointments
(*only Men "Made to Measure" via email)No No No
Tiffany 3 Yes (Diamond Expert / Registry Consultation) Yes App - Yes Appointments No No No
Burberry 4 Yes (only 121 Spring Street via phone call) No App No No No
Cartier 5 No Yes App - Yes Appointments No No No
Barneys 6 Yes (Store Locator, Personal Shopping section) Yes App - No Appointments Yes No No
Coach 6 No Yes App - No Appointments No No No
Louis Vuitton 6 No Yes App - No Appointments No No No
Zegna 6 Yes (Made to Measure) No App No No No
Gucci 10 Yes Yes App - No Appointments No No No
Macy's 11 No Yes App - No Appointments No No No
Bergdorf Goodman 12Yes
(Personal Styling section, via email or phone No App No No No
Michael Kors 12 No Yes App - No Appointments No No No
Hermès 14 No Yes App - No Appointments No No No
Hugo Boss 14 No Yes App - No Appointments No No No
Tory Burch 14 No Yes App - No Appointments No No No
Armani 17 Yes (Made to Measure) Yes App - No Appointments No No No
Loro Piana 17 No Yes App - No Appointments No No No
Valentino 17 Yes (Homepage) Yes App - No Appointments No No Via SA tablet
Balenciaga 20 Yes (Store Locator) No App No No No
Bulgari 20 No Yes App - No Appointments No No No
Brunello Cucinelli 22 No No App No No No
Prada 22 No No App No No n.a. (no Wishlist option)
Fendi 24 Yes (Store Locator) Yes App - No Appointments No No No
Bottega Veneta 25 No No App No No No
Givenchy 25 No Yes App - No Appointments No No n.a. (no Wishlist option)
Tod's 25 No No App No No No
Moncler 28 No Yes App - No Appointments No No No
Dolce&Gabbana 29 No Yes App - No Appointments No No No
Ferragamo 30 No No App No No No
Saint Laurent 31 No Yes App - No Appointments No No No
Chanel 32 No Yes App - No Appointments No No No
Céline 33 No No App No No n.a. (no Wishlist option)
Dior 33 No Yes App - No Appointments No No n.a. (no Wishlist option)
Book an Appointment via website / phone call /
emailApp with Book an Appointment option Yes, specific message received once in Store
In-store client recognition before
checkoutYes from brand systems
Yes, Beacon network detected
(tested via bluetooth and app -when available)
Yes from customer account via SA
tablets
No Book an Appointment option available on
website
No Book an Appointment option available on App / No
AppNo client recognition No client recognition No
DEALING WITH DIGITAL CLIENTS IN STORE (1/3)
Exane BNP Paribas Research & ContactLab Luxury Goods
Figure 35: Return-in-store Question: majority of brands SA reply clearly, although for seven brands answers are inconsistent with what is declared on website. 11 Brands stressed that online and offline channels are separated
Dealing with Digital Clients in-store, New York, December 2015 (2/3)
Source: ContactLab Analysis
SA clear answer SA declared answerConsistency between SA answer and
Website information
SA stressing online and
offiline are synergetic
Ralph Lauren 1 Yes (online & in-store) Yes (refund) Yes Yes return in store Yes No remark
Saks 1 Yes (only in-store) Yes (refund) Yes Yes return in store Yes No remark
Tiffany 3 Yes (online & in-store) Yes (refund) Yes Yes return in store Yes No remark
Burberry 4 Yes (only in-store) Yes (refund) Yes Yes return in store Yes No remark
Cartier 5 Yes (online & in-store) Yes (store credit) Yes Yes return in store (store credit) Yes No remark
Barneys 6 No Yes Yes Yes return in store Yes No remark
Coach 6 Yes (online & in-store) Yes (refund) Yes Yes return in store (also exchanges for same price items) Yes No remark
Louis Vuitton 6 Yes (online & in-store) Yes (refund) Yes (Consulted Return Policies) Yes return in store Yes No remark
Zegna 6 No Yes (refund) Yes Yes return in store Yes No remark
Gucci 10 Yes (in-store) Yes (refund) Yes No return in store No (return posible according to web) Separated
Macy's 11 Yes (only in-store) Yes Yes Yes return in store Yes No remark
Bergdorf Goodman 12 Yes (only online) No Yes Yes return in store No (no return info on web) No remark
Michael Kors 12 Yes (online & in-store) Yes (refund) Yes Yes return in store (within 30 days) Yes No remark
Hermès 14 Yes (online & in-store) Yes (store credit) Yes Yes return in storeNo (return only with store credit according to
web)No remark
Hugo Boss 14 Yes (only online) Yes (refund) Yes Yes return in store Yes No remark
Tory Burch 14 Yes (only online) Yes (refund) Yes Yes return in store Yes No remark
Armani 17 No No Yes No return in store Yes Separated
Loro Piana 17 Yes (online & in-store) Yes (store credit) No n.a. (unclear answer) n.a. (unclear answer) No remark
Valentino 17 No No Yes No return in store Yes No remark
Balenciaga 20 Yes (only online: size/color) No Yes No return in store Yes Separated
Bulgari 20 Yes (online & in-store) Yes (store credit) Yes No return in store No (return posible according to web) No remark
Brunello Cucinelli 22 Yes (in-store) Yes (refund) YesNo return in store (advice to buy online where full refund is possible,
while only store credit for in store purchases) No (return posible according to web) Separated
Prada 22 Yes (only in-store) Yes (store credit) No n.a. (unclear answer) n.a. (unclear answer) No remark
Fendi 24 No No YesYes return in store (bring back item to store and they will send it
back for you) No (no return info on web) Separated
Bottega Veneta 25 Yes (only online: size/color) No Yes No return in store Yes Separated
Givenchy 25 Yes (only online: size) No Yes No return in store Yes Separated
Tod's 25 Yes (only online) No Yes No return in store Yes Separated
Moncler 28 No No Yes No return in store, exchanges only Yes Separated
Dolce&Gabbana 29 No No Yes No return in store Yes Separated
Ferragamo 30 No No No n.a. (unclear answer) n.a. (unclear answer) No remark
Saint Laurent 31 No No Yes Yes return in store (store credit) No (no return info on web) Separated
Chanel 32 n.a. (no Fashion ecommerce) n.a. (no Fashion ecommerce) n.a. (no Fashion ecommerce) n.a. (no Fashion ecommerce) n.a. (no Fashion ecommerce) n.a. (no Fashion ecommerce)
Céline 33 n.a. (no Fashion ecommerce) n.a. (no Fashion ecommerce) n.a. (no Fashion ecommerce) n.a. (no Fashion ecommerce) n.a. (no Fashion ecommerce) n.a. (no Fashion ecommerce)
Dior 33 n.a. (no Fashion ecommerce) n.a. (no Fashion ecommerce) n.a. (no Fashion ecommerce) n.a. (no Fashion ecommerce) n.a. (no Fashion ecommerce) n.a. (no Fashion ecommerce)
Offered online & in-store, or
only in-storeBroadly offered Yes (clear answer) Yes (return in store)
SA answer consistent with website
informationSynergetic Online/Offline
Offered only online Offered in selected stores only Yes (only exchange or store credit) No remark
Not offered Not offered No (unclear / no answer) No (no return/exchange in store)SA answer inconsistent with website
information
Online/Offline separation
stressed
DEALING WITH DIGITAL CLIENTS IN STORE (2/3)
Brand RANKINGExchange in Store
(declared on website)
Return in Store
(declared on website)
Question 2 to SA: "In case I purchased an item online, can I return it in store?"
Exane BNP Paribas Research & ContactLab Luxury Goods 4 March 2016 page 30
Figure 36: In-store Personalization Services and Beauty Corners could be further leveraged online: Bergdorf Goodman, Saks and Gucci only players promoting both services online
Dealing with Digital Clients in-store, New York, December 2015 (3/3)
Source: ContactLab Analysis
Brand RANKING Online evidence of In-Store "Made to Measure"/"Made to Order"/Monogramming Corner Online evidence of In-Store Cosmetic Corner
Ralph Lauren 1 "Made to Measure" Suits n.a.
Saks 1 "Made to Measure" Suits, scissors and fabrics exposition (Saks Fifth Avenue Collection) Yes (Store Locator)
Tiffany 3 Engraving Service n.a.
Burberry 4"Scarf Bar" with personalization options, Gift Wrapping corner with personalized cards, less
emphasis on "Made to Order"No
Cartier 5 Watch Fitting, "Set For You" n.a.
Barneys 6 No presence (No Made to Measure for Barneys private label) Yes (Store Locator)
Coach 6Monogramming Services and Bag Personalization with wide leather selection options,
sewing machine in storen.a.
Louis Vuitton 6Monogramming Services, artisan live monogramming suitcases, colourful name tags
exposition, sewing machine in storen.a.
Zegna 6 "Made to Measure" Suits and Cachemire Personalization n.a.
Gucci 10"Made to Order" Shoes with leather exposition and style options displayed, "Made to
Measure" Suits with displayed optionsYes (Store Locator)
Macy's 11 No presence No
Bergdorf Goodman 12"Made to Measure" Shirts, collars and wrists exposition (Goodman's Made-to-Measure
Shirts)Yes (Store Locator)
Michael Kors 12 No presence No preserce
Hermès 14 "Made to Measure" Shirts, collars and wrists options exposition n.a.
Hugo Boss 14 No presence n.a.
Tory Burch 14 No presence No preserce
Armani 17 "Made to Measure" Shirts, collars and wrists options exposition Yes (Store Locator)
Loro Piana 17 "Made to Measure" Suits, materials exposition n.a.
Ferragamo 30 "Made to Measure" Suits and Ties, books with options n.a.
Saint Laurent 31 No presence No preserce
Chanel 32 No presence Yes (Store Locator)
Céline 33 No presence n.a.
Dior 33 No presence No preserce
Personalization Services offered In-Store and mentioned Online in Store LocatorCosmetic Corner offered In-Store, Beauty mentioned as sold
category in Store Locator
Personalization Services offered In-Store, but not mentioned Online in Store LocatorCosmetic Corner offered In-Store, Beauty not mentioned as
sold category in Store Locator
No Personalization Services offered In-Store No presence
DEALING WITH DIGITAL CLIENTS IN STORE (3/3)
Exane BNP Paribas Research & ContactLab Luxury Goods 4 March 2016 page 31
Figure 37: Book an Appointment in-store also via App
Source: Tiffany App, US
Exane BNP Paribas Research & ContactLab Luxury Goods 4 March 2016 page 32
Figure 38: Barneys, launch of Beacon Technology at Chelsea Flagship Store (Feb 2016)
Source: Digiday (Feb 2016)
Figure 39: Louis Vuitton: website showing Monogramming service in-store finder
Source: ContactLab
Exane BNP Paribas Research & ContactLab Luxury Goods 4 March 2016 page 33
Figure 40: Burberry Best Practice: “Scarf Bar” simultaneously promoted across web, social, email and store channels
Source: ContactLab
Figure 41: Chanel: website showing Beauty corner at NYC Flagship Store via store finder
Source: ContactLab
Exane BNP Paribas Research & ContactLab Luxury Goods 4 March 2016 page 34
Online Promotion while in-store
Bergdorf Goodman and Saks lead, while 70% of the panel appears to be nowhere.
Figure 42: Bergdorf Goodman, followed by Saks, leading in Online Promotion while in-store; 70% of the Panel are lagging
Online Promotion while in-store, New York, December 2015
Source: ContactLab Analysis
Brand RANKING E-commerce Invite Online Order in Store OptionQuestion 3 to SA:
Assistance for Online Shopping while In-Store
In-Store Invite for App
Download
In-Store Invite
for Hashtag/Website Visit
Bergdorf Goodman 1 Yes Yes (prompted) Yes n.a. Yes (Discover the new bg.com - Made for mobile)
Saks 2 No Yes (prompted) Yes No Yes (Visit saks.com)
Zegna 3 No Yes (prompted, declared on web) Yes n.a. No
Barneys 4 Yes No n.a. NoYes (THE WINDOW.BARNEYS.COM - for inside fashion
access/BNYCHILLINOUT)
Burberry 4 No Yes (prompted) Yes n.a. No
Coach 4 No Yes (prompted) Yes No No
Louis Vuitton 4 No Yes (prompted) Yes No No
Macy's 4 Yes No n.a. Yes No
Ralph Lauren 4 No Yes (prompted) Yes No No
Tory Burch 4 No Yes (prompted) Yes No No
Armani 11 No No n.a. No No
Balenciaga 11 No No n.a. n.a. No
Bottega Veneta 11 No No n.a. n.a. No
Brunello Cucinelli 11 No No n.a. n.a. No
Bulgari 11 No No n.a. No No
Cartier 11 No No n.a. No No
Céline 11 n.a. (no Fashion ecommerce) n.a. (no Fashion ecommerce) n.a. (no Fashion ecommerce) n.a. No
Chanel 11 n.a. (no Fashion ecommerce) n.a. (no Fashion ecommerce) n.a. (no Fashion ecommerce) No No
Dior 11 n.a. (no Fashion ecommerce) n.a. (no Fashion ecommerce) n.a. (no Fashion ecommerce) No No
Dolce&Gabbana 11 No No n.a. No No
Fendi 11 No No n.a. No No
Ferragamo 11 No No n.a. n.a. No
Givenchy 11 No No n.a. No No
Gucci 11 No No n.a. No No
Hermès 11 No No n.a. No No
Hugo Boss 11 No No (coming soon) n.a. No No
Loro Piana 11 No No n.a. No No
Michael Kors 11 No No n.a. No No
Moncler 11 No No n.a. No No
Prada 11 No No n.a. n.a. No
Saint Laurent 11 No No n.a. No No
Tiffany 11 No No n.a. No No
Tod's 11 No No n.a. n.a. No
Valentino 11 No No n.a. No No
Visuals to encourage visitors to
online shoppingYes (clearly stated) Yes (SA ready to help)
Stickers on shop
windows suggesting to
download App
Stickers on shop windows suggesting to follow the brand on
social networks or to visit the website
Yes (prompted by client questions)
No Not Offered Not OfferedNo stickers on shop
windowsNo stickers
ONLINE PROMOTION WHILE IN STORE
Exane BNP Paribas Research & ContactLab Luxury Goods 4 March 2016 page 35
Figure 43: Bergdorf Goodman: E-commerce invite on Screens and Digital Floor Directory
Bergdorf Goodman, 754 5th Avenue, New York
Source: ContactLab
Exane BNP Paribas Research & ContactLab Luxury Goods 4 March 2016 page 36
Figure 44: Barneys: E-commerce invite through Stickers on shop windows
Barneys, 660 Madison Avenue, New York
Source: ContactLab
Exane BNP Paribas Research & ContactLab Luxury Goods 4 March 2016 page 37
Figure 45: Macy’s: E-commerce invite on Screens above Price Checkers, Screens and Floor Directory
Macy’s, 151W 34th Street, New York
Source: ContactLab
Figure 46: Abercrombie&Fitch: Online Order in-store service clearly stated in-store
Abercrombie&Fitch, 720 5th Avenue, New York
Source: ContactLab
Exane BNP Paribas Research & ContactLab Luxury Goods 4 March 2016 page 38
Figure 47: Zegna: Online Order in-store service clearly stated in website
Source: Zegna Website, US
Figure 48: Macy’s: App download promotion with numerous visuals in its Herald Square location
Macy’s, 151 W 34th Street, New York
Source: ContactLab
Exane BNP Paribas Research & ContactLab Luxury Goods 4 March 2016 page 39
Figure 49: Barneys and Saks: in-store invite for hashtag/website visit through stickers on shop windows
Source: ContactLab
Figure 50: Bergdorf Goodman: in-store invite for website visit through stickers on shop windows
Bergdorf Goodman, 745 5th Avenue, New York
Source: ContactLab
Exane BNP Paribas Research & ContactLab Luxury Goods 4 March 2016 page 40
Figure 51: Snapchat Geofilter: Neiman Marcus first player to use Geofilter during NY Fashion Week
February 2016
“We will be one of the first brands to use Geofilter during NYFW. It will be live Feb. 11 to Feb. 18 at all three major show venues from 8 a.m. – 8 p.m.” (Natalie Bowman, Vice President of Media at Neiman Marcus, Luxury Daily,
16th
February 2016)
“Snapchat [...] is a great tool for sharing what you are doing in that moment. Whether a person is at our store or attending a runway show, we love the idea of making it easy—and fun—to share their story with their friends. It is a
unique way to integrate the Neiman Marcus brand into their lives in a more fun and playful manner.” (Natalie
Bowman, Vice President of Media at Neiman Marcus, Social by Definition, 16th February 2016)
Source: Luxury Daily (Feb 2016), Social by Definition (Feb 2016)
Figure 52: Neiman Marcus on Snapchat
February 2016
Source: Twitter
Exane BNP Paribas Research & ContactLab Luxury Goods 4 March 2016 page 41
Exane – presentation Specialising in European equities, Exane is active in three businesses:
– Cash Equities: under the brand name Exane BNP Paribas, Exane provides institutional investors with a range of services, such as research,
sale and execution on European equities;
– Equity Derivatives: Exane Derivatives has built a robust structured products franchise, based on its longstanding leadership in European
convertible bonds and options;
– Asset Management: Exane Asset Management is one of the leaders in long/short equity fund management in Europe.
The agreement between Exane and BNP Paribas, signed in 2004 and strengthened in 2010 and 2011, was renewed in its entirety in April 2015
for a five-year period, revolves around three core elements:
– An operational partnership in European cash equities where BNP Paribas conferred exclusivity on secondary equity brokerage and the
distribution of primary market activity to Exane under the Exane BNP Paribas brand;
– A balance sheet partnership, which is particularly well suited to our Equity Derivatives business, providing financing and support for our rating;
– A capital partnership uniting the strength of BNP Paribas with the independence of Exane.
Exane works primarily with institutional clients worldwide (pension funds, fund managers for banks and insurers and hedge funds), and markets
its derivatives products to a broader pool of clients comprising private asset managers and investment advisors. Exane has a workforce of
c.900 employees operating from offices in Paris, London, Frankfurt, Geneva, Madrid, Milan, New York, Stockholm and Singapore. Exane BNP
Paribas equity research team covers over 602 companies. UK companies represent the biggest part of our coverage universe (25% of covered
market cap), followed by France (16%) and USA (8%). Our research receives regular acclaim in leading industry surveys.
For further information, log on to our website at www.exane.com
ContactLab presentation ContactLab is a market leader in digital direct marketing products and services and a strategic partner for enterprise clients who wish to
manage a customer engagement model on a global scale.
With offices in Milan, Paris and Munich, over 1000 customers, 15 years of experience and more than 130 specialists, ContactLab provides
comprehensive solutions to enable top clients and brands to meet and exceed their business objectives through sophisticated CRM programs
with their customers and prospects.
ContactLab is exclusively dedicated to the Enterprise segment with strong focus and expertise in the luxury industry, supporting leading brands
worldwide in multiple languages, with a special tang towards Asian markets - in particular China - and emerging markets.
Over the years, ContactLab has expanded its offering by including added value services to its leading technological platform for outbound
messaging enabling the uptake of digital marketing as a user-centric strategic tool for business growth.
ContactLab’s solutions are based on a triple player approach: - Technology: focusing on digital direct multichannel messaging with a solid platform developed in-house since 2001, offering the highest level
of security, scalability and deliverability.
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strategy, to the creative concept, to project execution, to the analysis of email impact on the bottom-line.
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segmentation and data mining on complex databases, interpolating email shipments with e-commerce and retail transactions.
The ContactLab offering also includes Market Research products and services with a dedicated team aiming to identify behavioural trends by
applying the CAWI methodology. ContactLab produces and publishes multi-country reports on European digital behaviours on a regular basis.
ContactLab has also created and developed NewsletterMonitor, a freeware internet application for competitive benchmarking, to monitor, track,
analyze and compare over 4 million emails sent by more than 15,000 brands over the last 7 years.
ContactLab was founded by Massimo Fubini, an internet industry veteran and an opinion leader in the New Media and Digital Direct Marketing
arena since 1995. He gained experience in Internet security in the mid-nineties, working for the military. He contributed to the network security
rules for the Italian public administration. He has been a member of the Technical Committee at Audiweb - AssoComunicazione web sector for
7 years. He is a recognized keynote speaker on direct marketing and privacy topics.
For more information visit our website www.contactlab.com and www.newslettermonitor.com.
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ContactLab This report is co-authored by Exane and ContactLab and draws upon research and analysis of both Exane and ContactLab.
ContactLab does not make investment recommendations, in this report or otherwise, and nothing in this report should be interpreted as an
opinion by ContactLab either on market forecasts or on the prospects of specific companies.
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Exane BNP Paribas Research & ContactLab Luxury Goods 4 March 2016 page 42
DISCLOSURE APPENDIX
Analyst Certification We, Melania Grippo, Guido Lucarelli, Luca Solca, (authors of or contributors to the report) hereby certify that all of the views expressed in this report accurately reflect our personal view(s) about the company or companies and securities discussed in this report. No part of our compensation was, is, or will be, directly, or indirectly, related to the specific recommendations or views expressed in this research report.
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