Premium brands in the age of digital : What are the e-luxury codes ?

Premium brands in the age of digital : What are the e-luxury codes ?ESCP EAP – February 25th, 2008

NURUN IN BRIEFFounded in 1985, Nurun is a global interactive services company that specializes in interactive marketing and information technology.

Present in Canada, in the U.S., in Europe (France, Italy, Spain) and Asia (China).

Owned by Quebecor, 5th worldwide communication group ($10 billions revenue).

Some of our references in the Premium / Luxury sector : Louis Vuitton, Sofitel, Clarins, J.M. Weston, Sonia Rykiel, Kérastase, Giorgio Armani Parfums, Nina Ricci, Lancaster, Comptoir des Cotonniers…

I. FACTS THAT ARE ROCKING OLD SCHOOL CONCEPTIONS OFLUXURY

1. The richer you get, the less likely you'll set foot in a store

93% of individuals worth $10 million or more made online luxury purchases within the past 12 months, vs. 55% of all wealthy consumers

Source : Luxury Institute, July 2006

2. Luxury buyers are tech-savvy –in the smart sense

For luxury goods, nearly 80% of consumers turn first to the Internet to learn about companies and the products they sell

Source : Luxury Institute, July 2006

3. But they're also full of great common sense

Google and Yahoo! are the top sites visited by the wealthy in the US

Source : Market Wire, March 2007

4. Luxury doesn't just mean an expensive purchase

70% of luxury buyers consider that a luxurious experience is made by the quality of service

70% of luxury buyers consider that a luxurious experience is made by the quality of service

Source : « The Global Luxury Market » ,Conference Board, 2007

5. It doesn't matter where you got it–and online luxury isn't 'dirty'

Gucci.com is one of the company's fastest growing segments, with sales up 65 percent in 2006 from the prior year *

* CNN Money, June 2007

6. Luxury brands no longer hiding online

Source : TNS Media Intelligence, 2005 advertising investments

DIGITAL DEFINITELY

CHANGING THE FACE OF LUXURY

"What's exclusivity on a widely accessible media?"

Luxury isincreasinglybecoming a marketpositioning

Internet makes productsavailableanytime andanywhere to anyone

" How do you meet creative and service expectations when mass does it better online?"

Creative domination : immersive, demonstrative and spectacular settings

Initiated by online mass retailers, thoughtful services target specific user needs

"How do you create a sales ritual if there's no sales rep?"

Productscenographylives up to theonlinechallenge

Yet sales rituals remainbelow the realthing

LUXURY SHIFTING TO INTERACTIVE, CLIENT-CENTRIC AND EFFECTIVE

Link immersive experience to product discovery

http://www.sofitel.com

Root luxury legitimacy in excellence and legend

http://jmweston.com/

Emphasize services valuing the brand expertise

http://www.zegna.com/

Target and address specific customer enquiries

http://shop.nordstrom.com

Facilitate contact with brand experts1 2

http://www.reddoorspas.com/

Fulfill client satisfaction through ownership

http://www.20ltd.com/

Reward purchase with insider status

http://beauty.dior.com/

Online users do come to luxury websites for a reason

Benefit of use, offer or service is what will drive them to a website, and motivate revisit

Demanding customers anda strong competitiveenvironment justify a realisticcustomer-centric approach ofthose benefits

Taline MOURADIAN Strategic Planning Director, NURUN Francetaline.mouradian@fr.nurun.com

Thank you.