L2 Prestige100 - Mobile IQ 2012

Mobile IQ L2 2012 L2ThinkTank.com

January 11, 2012

SCOTT GALLOWAYNYU Stern

reGISTer nOW

MobileCLInIC

Welcome SCOTT GALLOWAY Founder, L2

Digital Omnivores: Key Insights Into Todays Connected Consumer MArK DOnOvAn SVP Mobile, comScore, Inc.

Mobile is Dead, Long Live Mobile AnDY WeISSMAn Partner, Union Square ventures

The Game Changer on the Path to Purchase JereMY ArnOn Strategic Partner Development, Google

Q&A Session

evolving Strategy for Creative execution in Mobile nUrI DJAvIT Partner & CEO, Last exit

HTML5: Going Web vs. Going App JASOn BAPTISTe Cofounder & CEO, OnSwipe

Lessons from The Collection MZ GOODMAn & SIMOne OLIver new York Times

Influencing Real Life Networks TAnUJ PArIKH Business Development Manager, GroupMe

Insights from Prestige 100: Mobile IQ MAUreen MULLen & COLIn GILBerT Research & Advisory, L2

Q&A Session

Welcome SCOTT GALLOWAY Founder, L2

The Mobile Landscape in europe JereMY COPP VP, Mobile, Europe, comScore, Inc.

evolving Strategy for Creative execution in Mobile KenT vALenTIne Engagement Director, Last exit

retail Forever Transformed CHUCK GOLDMAn Chief Strategy Officer, Apperian, Inc.

Case Studies & Best Practices in Prestige Mobile PATrICK SArKISSIAn CEO & Founder, Sarkissian Mason

Q&A Session

The Google Mobile Platform rOBBIe DOUeK Head of Mobile Sales & Operations, Google France

L2 Mobile research MAUreen MULLen & COLIn GILBerT Research & Advisory, L2

Hugo Boss: A Case Study MArKUS ALLer Teamleader, Online Media, Hugo Boss JOACHIM BADer Managing Director, CLAnMO GmbH

Q&A Session

nYC ParisJanuary 19, 2012 nYU Stern January 24, 2012 Palais Brongniart

reGISTer nOW

Module 1: Module 1:

Module 2:

Module 2:

http://l2mobileclinic2012-L2EventsLandingPage.eventbrite.com/http://www.weezevent.com/L2-Clinic-Mobile

L2 2012 L2ThinkTank.com 3

Want to know more about your brands Mobile IQ?CONTACT US

Mobile IQ

In the fourth quarter of 2010, more smartphones were shipped than PCs for the first time.1 By 2015, more users will access the Internet wirelessly via a mobile device than

from a wired Ethernet connection.2 Over the next five years,

m-commerce sales are set to quintuple.3 On the years biggest

shopping day, Black Friday, online retail traffic from mobile

devices comprised 14.3 percent of page views, up from 5.6

percent last year, and mobile sales ballooned to 9.8 percent of

online sales, up from 3.2 percent last year.4 Throughout the past

decade, analysts have relentlessly predicted The Year of Mobile.

It now looks as if we are in the fledgling innings of a mobile era.

Game ChangerThe introduction of the iPad in April 2010 has escalat-ed the mobile opportunity. Tablets register e-commerce conversion rates of four to five percent versus three percent on

traditional PCs.5 The user demographics for the iPad and other

tablets illuminate the opportunity for prestige brands: 20 percent

of individuals with $1 million or more in investable assets own

a tablet and spend 50 percent more time on the device than

on their smartphone.6

APPealPrestige brands have been prudish with mobile. The mobile strategy for most brands has been dominated by

blind investments in iOS apps that lack utility and stickiness.

Seven in 10 brands in the Index maintain at least one iOS app, but

less than a third of all apps produced are commerce-enabled.

Use of features such as notifications, geolocation, and

language specification is more limited. Less than a fifth of

brands have developed a distinct, iPad-specific experience.

M-CommerceWe believe the game will be won or lost via develop-ment and optimization of robust, device-agnostic mobile commerce sites. Although two-thirds of brands currently maintain a mobile site (the majority launched within

the past year), only 67 percent of these sites are commerce-

enabled. Furthermore, use of such marketing tactics as mobile-

optimized search marketing, cross-platform mobile promotion,

and mobile display advertising is scant.

Mobile:End of the Beginning

1. Smartphone Shipments Surpass PCs for the First

Time. Whats Next? Chloe Albanesius, PC Magazine,

February 8, 2011.

2. IDC: Mobile Internet to Pass PCs by 2015, Mark Hachman, PC Magazine,

September 12, 2011.

3. Mobile Commerce Forecast: 2011 to 2016,

Sucharita Mulpuru, Forrester, June 17, 2011.

4. Shoppers Research Deals via Mobile and Online Ahead of 2011 Black Friday Sales,

Miranda Miller, Search Engine Watch, November 28, 2011.

5. Tablets: Ultimate Buying Machines, Dana Mattioli,

Wall Street Journal, September 28, 2011.

6. Why Millionaires Love Steve Jobs (and the iPad),

Robert Frank, WSJ Blog: The Wealth Report,

August 25, 2011.

http://www.L2ThinkTank.commailto:info%40L2ThinkTank.com?subject=Facebook%20IQ%20-%20Inquiryhttp://www.pcmag.com/article2/0,2817,2379665,00.asphttp://www.pcmag.com/article2/0,2817,2379665,00.asphttp://www.pcmag.com/article2/0,2817,2379665,00.asphttp://www.pcmag.com/article2/0,2817,2392796,00.asphttp://www.pcmag.com/article2/0,2817,2392796,00.asphttp://forrester.com/rb/Research/mobile_commerce_forecast_2011_to_2016/q/id/58616/t/2http://forrester.com/rb/Research/mobile_commerce_forecast_2011_to_2016/q/id/58616/t/2http://searchenginewatch.com/article/2128289/Shoppers-Research-Deals-via-Mobile-and-Online-Ahead-of-2011-Black-Friday-Saleshttp://searchenginewatch.com/article/2128289/Shoppers-Research-Deals-via-Mobile-and-Online-Ahead-of-2011-Black-Friday-Saleshttp://searchenginewatch.com/article/2128289/Shoppers-Research-Deals-via-Mobile-and-Online-Ahead-of-2011-Black-Friday-Saleshttp://online.wsj.com/article/SB10001424052970204010604576597151983657300.htmlhttp://online.wsj.com/article/SB10001424052970204010604576597151983657300.htmlhttp://blogs.wsj.com/wealth/2011/08/25/why-millionaires-love-steve-jobs-and-the-ipad/?mod=WSJBloghttp://blogs.wsj.com/wealth/2011/08/25/why-millionaires-love-steve-jobs-and-the-ipad/?mod=WSJBlog



Mobile IQ

SCOTT GALLOWAY

Founder, L2

Clinical Professor of Marketing, NYU Stern

Iconic, but Immobile

While more than half the brands in the Index maintain both an app and a mobile site, 16 percent of brands have yet to produce either. Icons such as Herms, Patek Philippe, Bottega Veneta, and Marc Jacobs rely exclusively on

their traditional site experience, which in some cases proves

inaccessible on mobile devices. Mobile competence may be a

crystal ball for a brands global prospects. Ground zero for growth

in prestige exists in emerging markets among a burgeoning

middle class who are increasingly turning to a small screen to

learn about and ultimately purchase prestige brands products.

Mobile IQ = Innovations Canary in the Coal Mine

Our thesis is that competence in mobile is inextricably linked to shareholder value in the prestige industry. Key to managing and developing a competence is an actionable metric. This study attempts

to quantify the mobile and tablet competence of Prestige

100 brands. Our aim is to provide a robust tool to diagnose

strengths and weaknesses and help managers achieve

greater return on incremental investment.

Like the platforms we are assessing, our methodology is

dynamic, and we hope you will reach out to us with comments

that improve our investigation and findings. You can reach

me at [email protected].

Regards,

52%Both

70%Mobile App

66%Mobile-

OptimizedSite

16%Neither

PreSTIGe 100 MOBILe InveSTMenTS

(December 2011)

2010 2011 2012 2013 2014 2015 2016

3

6

10

14

19

25

31

BIL

LIO

NS

OF

DO

LL

AR

S

MOBILe COMMerCe SALeS FOreCAST 20102016

United States

(Source: Forrester, June 2011)

cagr: 39%

mailto:scott%40stern.nyu.edu?subject=Prestige%20100%C2%AE%20Mobile%20IQ%20Inquiry



Mobile IQ

Methodology

MOBILe SITeS:

MOBILe-OPTIMIzeD SITeS: Technology

navigation & Search

Social Media Integration

Customer Service

Product Page

Account & Check-Out

MOBILe APPLICATIOnS:

AvAILABILITY: iOS (iPad Differentiation)

Android

Blackberry

Windows Phone Series 7

Symbian

MOBILe MArKeTInG:

Mobile SeO on Google & Bing

email: Mobile Compatibility & Cross-Promotion of Mobile Properties

SMS: Sign-Up & Activity

InnOvATIOn & InTeGrATIOn:

Integration: Promotion of Mobile Efforts on Site, Facebook, and Twitter

Geolocal: Presence & Activity on Foursquare

Innovation: Mobile Ad Campaigns, QR Codes, Mobile Wallet Support, etc.

30%

15%

40%

15%

Mobile IQ Classes

IQ Range Class

140+ GenIUSMobile competence is a point of differentiation. Brands pursue a device-agnostic app/site strategy, embrace m-commerce, and consciously integrate mobile across wider digital footprint.

110139 GIFTeDBrands demonstrate high-quality, high-impact approach to mobile within a select dimension, sometimes at the expense of a wider mobile offering.

90109 AverAGeEfforts are siloed and inconsistent. Mobile presence suggests explicit preference for site versus app strategy or is primarily concentrated in low-cost entry platforms (e.g., geolocal).

7089 CHALLenGeDLimited mobile investment reflects low prioritization relative to other digital efforts.



Mobile IQ

Brand ranking

rank Brand category Parent Mobile IQ class Description

1 SEPHOra Retail LvMH 164 Genius Long-standing, sustained, iterative investment in mobile pays off

2 NOrDSTrOM Retail Nordstrom, Inc. 156 Genius New mobile app leapfrogs peer efforts with firm link between in-app and in-store experience

3 MacYS Retail Macys, Inc. 155 Genius Active SMS program and Xmas app experience add unique elements to strong mobile portfolio

4 NET-a-POrTEr Retail Compagnie Financire Richemont S.A. 143 GeniusUnique apps for local promotions, store exclusives, and spinoffs complement strong mobile site

5 BLOOMINgDaLES Retail Macys, Inc. 135 Gifted Engaging, offer-centric mobile site overshadows generic iPad catalog app

6 LOccITaNE EN PrOVENcE Beauty & Skincare

LOccitane International S.A. 133 Gifted Both mobile app and site feature weak aesthetics, but excel in functionality

6 TIFFaNY & cO. Watches & Jewelry Tiffany & Co. 133 Gifted What Makes Love True mobile app demonstrates strong geolocal aptitude

8 NEIMaN MarcUS Retail Neiman Marcus Group 125 Gifted Differentiated app approach on iPhone (Gifts) vs. iPad (Catalog) works to its advantage

9INTErcONTINENTaL HOTELS & rESOrTS* Hospitality

InterContinental Hotels Group plc 119 Gifted

Presence across four of the five mobile app platforms; Concierge Insider Guides iPad app provides unparalleled local insights for 100+ global properties

10 ESTE LaUDEr Beauty & Skincare este Lauder Companies, Inc. 115 GiftedIllumination iAd campaign and high-functioning mobile site compensate for one-dimensional apps

11 aVEDa Beauty & Skincare este Lauder Companies, Inc. 113 GiftedNew My Style app invites users to upload personal hairstyle while mobile site provides exclusive offers for mobile customers

12 raLPH LaUrEN Fashion Ralph Lauren Corporation 112 GiftedDigital innovator demonstrates balanced investment across mobile app, mobile site, tablet experience, and mobile advertising

13 SaKS FIFTH aVENUE Retail Saks, Inc. 111 Gifted Strong iPad catalog app compensates for low-impact mobile site

retailBeauty &Skincare

Watches& Jewelry

HospitalityFashion



Mobile IQ

Brand ranking


13 YVES SaINT LaUrENT Fashion Gucci Group (PPR) 111 Gifted New mobile site brings fashion label in sync with advanced, beauty-centric apps

15 DaVID YUrMaN Watches & Jewelry David Yurman, Inc. 104 Average Mobile site launched in November is a welcome replacement for aging iPhone app

16 DIaNE VON FUrSTENBErg Fashion Diane von Furstenberg 102 Average

M-commerce does not carry over from site to app; instead promotes exclusives like Signature Skin iPhone covers, the App Wrap dress, and DVF-endorsed music

17 ErMENEgILDO ZEgNa Fashion ermenegildo zegna Holditalia S.p.A. 101 AverageSingular focus on iPad virtual store, which is consistently promoted across all digital properties

17 MaNDarIN OrIENTaL HOTEL grOUP Hospitality

Jardine Matheson Group 101 Average

Cities by MO provides expansion content for MOHotels app depending on users destination or interest

17 rITZ-carLTON* Hospitality Marriott International, Inc. 101 AverageSimple, streamlined mobile site and World Concierge campaign on Foursquare compensate for disappointing apps

20 FOUr SEaSONS HOTELS aND rESOrTS

Hospitality Four Seasons Hotels, Inc. 100 Average Industry leader in Foursquare followers, with tips for 83 properties

20 gUccI Fashion Gucci Group (PPR) 100 Average Sophisticated, technologically advanced Gucci Style app immerses user in brand-curated content that extends well beyond the clothes

22 BUrBErrY Fashion Burberry Group plc 99 Average Second highest-scoring mobile site in Fashion enables brand to compete without investing in apps

22 cLINIQUE Beauty & Skincare este Lauder Companies, Inc. 99 AverageEarly adopter of in-store iPad kiosks and one of only three beauty brands with an active SMS campaign

22 JW MarrIOTT* Hospitality Marriott International, Inc. 99 AverageUniversal Marriott International app allows booking at JW properties and provides external links to strong mobile web assets

25 ParK HYaTT* Hospitality Hyatt Hotels Corporation 98 AverageCross-brand Hyatt app allows booking at Park Hyatt hotels; parents mobile site provides extensive photo galleries of Park Hyatt properties

26 cLarINS Beauty & Skincare Clarins S.A. 94 Average Strong search elements on mobile site; fragrance release (Thierry Mugler Angel) proves a fan favorite in the app store


Watches& Jewelry

HospitalityFashion



Mobile IQ

Brand ranking


26 gIOrgIO arMaNI Fashion Giorgio Armani S.p.A. 94 Average Touch-enabled mobile site compensates for unfocused, fragrance-centric app store offering

26 OMNI HOTELS & rESOrTS Hospitality TRT Holdings 94 Average Mobile app and site do little to go beyond the basics

29 TOrY BUrcH Fashion Tory Burch LLC 92 Average Mobile store finder features Foursquare integration; no apps

30 BErgDOrF gOODMaN Retail Neiman Marcus Group 91 Average Shoe Salon app and Foursquare Mayor specials prevent brand from falling too far behind fellow retailers in absence of mobile site

31 cOacH Fashion Coach, Inc. 90 Average Mobile users greeted with in-store signage that unlocks exclusive information on Kristin collection

31 SOFITEL* Hospitality Accor 90 Average Leverages Accor Hotels app and parents mobile site to its advantage, but these assets dilute Sofitel brand

33 cHaNEL Fashion Chanel S.A. 89 Challenged Fashion and accessories elements of mobile site still prove inaccessible, forcing strict reliance on apps

33 cONraD HOTELS & rESOrTS* Hospitality Hilton Worldwide 89 ChallengedUnique app development for Conrad brand that proves interoperable with Hilton Honors account

33 DOLcE & gaBBaNa Fashion Dolce & Gabbana Industria S.p.A. 89 ChallengedFashion Channel replicated across both mobile site and apps, but stops short of m-commerce

36 OrIgINS Beauty & Skincare este Lauder Companies, Inc. 88 ChallengedMobile site features extensive user reviews of products but provides no way to submit ones own opinions on the go

37 carTIEr Watches & Jewelry Compagnie Financire Richemont S.A. 87 ChallengedMultiple iPad apps and strong universal Cartier Bridal app, but mobile shopping experience leads to Call an Advisor

37 FaIrMONT HOTELS & rESOrTS HospitalityFairmont Raffles

Hotels International 87 ChallengedPresidents Club participation allows guests to share stories, with user photos appearing alongside official property images

39 caLVIN KLEIN Fashion PvH Corporation 86 Challenged CK One augmented reality experience available on three of the five mobile platforms assessed


Watches& Jewelry

HospitalityFashion



Mobile IQ

Brand ranking


40 WESTIN HOTELS & rESOrTS* Hospitality

Starwood Hotels & Resorts Worldwide, Inc. 85 Challenged

Innovative ad campaign in Weather Channel iPad app takeover; eight property-specific apps with limited functionality undercut superior utility of SPG cross-brand app

41 LOUIS VUITTON Fashion LvMH 84 Challenged Innovative tie-in between Amble app and Foursquare does not save dead-end mobile site experience

41 Mac cOSMETIcS Beauty & Skincare este Lauder Companies, Inc. 84 ChallengedStrong video content and MAC Artist profiles only exist on mobile site, not the app store

43 LaNcME Beauty & Skincare LOral Group 82 Challenged Advanced user-generated content element of mobile apps only partially compensate for lack of mobile site

43 ST. rEgIS* Hospitality Starwood Hotels & Resorts Worldwide, Inc. 82 ChallengedE-Butler app provides guest-specific functionality that goes beyond the basic guest services book

43 WaLDOrF aSTOrIa* Hospitality Hilton Worldwide 82 Challenged Brochure-ware app mitigated by functional mobile site leveraging Hilton Honors system

46 KIEHLS Beauty & Skincare LOral Group 81 Challenged Clean mobile site navigation provides outlet for browsing but not buying (Call to Order)

46 LE MrIDIEN* Hospitality Starwood Hotels & Resorts Worldwide, Inc. 81 ChallengedHeavy reliance on SPG app for mobile bookings; property-specific app limited to Dubai

48 BarE EScENTUaLS Beauty & Skincare Shiseido Company, Limited 80 ChallengedBe a Force of Beauty campaign incorporated QR codes tied to models bio, look, and associated beauty products

49 raYMOND WEIL Watches & Jewelry Raymond Weil S.A. 79 Challenged December launch of official app rounds out mobile investment

50 aUDEMarS PIgUET Watches & Jewelry Audemars Piguet Holding S.A. 76 ChallengedComprehensive promotion of mobile footprint on site as brand extends app experience to Android

50 rELaIS & cHTEaUX Hospitality n/a - Global Fellowship 76 Challenged App Guides provide novel path to property discovery, but R&C remains the only hospitality brand without a mobile site

50 SHaNgrI-La HOTELS aND rESOrTS

Hospitality Shangri-La Asia Limited 76 ChallengedTokyo and Manila property apps do not extend to wider resort portfolio; mobile site allows for limited property exploration


Watches& Jewelry

HospitalityFashion



Mobile IQ

Brand ranking


53 HUgO BOSS Fashion valentino Fashion Group S.p.A. 75 ChallengedSite and apps still lack m-commerce, but do include innovative features like color matching via camera image

53 JaEgEr-LEcOULTrE Watches & Jewelry Compagnie Financire Richemont S.A. 75 ChallengedMy Reverso app provides user the freedom to visualize custom engraving before reaching out to a concierge

55 SWarOVSKI Watches & Jewelry Swarovski AG 73 Challenged SCVNGR hunt in London demonstrates willingness to experiment beyond the app store

56 JUMEIraH Hospitality Jumeirah Group 71 Challenged Emirates Towers property claims sole app; iPad defaults to mobile site designed for smaller screen

57 MOrgaNS HOTEL grOUP Hospitality Morgans Hotel Group 69 Feeble Sections of mobile site (City Guides) revert back to main site; iPad defaults to mobile optimized site designed for a smaller screen

58 PHILOSOPHY Beauty & Skincare Coty Inc. 68 Feeble Strong gift finder and navigation filters differentiates mobile site

58 VaLENTINO Fashion valentino Fashion Group S.p.A. 68 FeebleEncyclopedic iPad app lacks personalized features, but mobile-optimized shopping portal hints of progress

60 OMEga Watches & Jewelry The Swatch Group, Ltd. 66 Feeble Parallel mobile app/site designs feature comprehensive search tools

61 SMaSHBOX Beauty & Skincare este Lauder Companies, Inc. 65 FeebleInnovative product QR codes direct users to video tutorial by makeup artist Lori Taylor; recently optimized email marketing for mobile screens

61 VaN cLEEF & arPELS Watches & Jewelry Compagnie Financire Richemont S.A. 65 FeebleMobile placeholder site offers access to catalog and store locator, circumventing flash-heavy site

63 HUBLOT Watches & Jewelry LvMH 64 Feeble 360-degree product views, augmented reality features, and video content in app do not distract from aging mobile site

63 rOSEWOOD HOTELS & rESOrTS Hospitality New World Hospitality 64 Feeble One of only two hospitality brands without an app store presence

65 BULgarI Watches & Jewelry LvMH 61 Feeble Brand replicates all product-specific apps across iPhone and iPad without customization; Bulgari Touch site lacks m-commerce


Watches& Jewelry

HospitalityFashion



Mobile IQ

Brand ranking


66 BENEFIT cOSMETIcS Beauty & Skincare LvMH 59 Feeble August test of in-store iPad kiosks demonstrates increasing innovation in mobile space beyond HTML5 site

67 THE PENINSULa HOTELS HospitalityHongkong and Shanghai

Hotels, Limited 58 FeebleMobile site requires guest to call or email reservations desk, forcing reliance on buggy app

67 rOLEX Watches & Jewelry Rolex Holding S.A. 58 Feeble Strong demand for third-party reference apps demonstrates (missed) opportunity beyond mobile site and tablet e-magazine

69 BarNEYS NEW YOrK Retail Istithmar PJSC 57 Feeble Remains the only retailer in the Index to shy away from the app store; no longer redirecting to mobile site

69 MONTBLaNc Watches & Jewelry Compagnie Financire Richemont S.A. 57 FeebleStrong app presence and product specific-promotions do not compensate for lack of a mobile site

71 cHOParD Watches & Jewelry Chopard Holding S.A. 56 Feeble App presence focused exclusively on Happy Diamonds collection; mobile site features simple photo gallery

72 HarrY WINSTON Watches & Jewelry Harry Winston, Inc. 52 Feeble Harry Winston Timepieces app has limited functionality; HTML5 enables solid tablet experience

73 ELIZaBETH arDEN Beauty & Skincare elizabeth Arden 51 Feeble Mobile site for Prevage line of skincare products only

74 TODS Fashion Tods S.p.A. 50 Feeble Limited mobile site and heavily promoted iPad apps are all about presentation, not functionality

75 aLFrED DUNHILL Fashion Compagnie Financire Richemont S.A. 49 Feeble E-magazine iPad app tests mobile aptitude by mirroring Day 8 microsite

76 SHISEIDO Beauty & Skincare Shiseido Company, Limited 48 Feeble App store experience caters exclusively to Chinese market

77 BOBBI BrOWN Beauty & Skincare este Lauder Companies, Inc. 47 FeebleMobile-friendly email marketing demonstrates awareness of mobile consumers, despite the lack of mobile apps/site

77 DE BEErS Watches & Jewelry LvMH 47 Feeble Lack of a mobile site and apps partially offset by move to HTML5


Watches& Jewelry

HospitalityFashion



Mobile IQ

Brand ranking


79 IWc ScHaFFHaUSEN Watches & Jewelry Compagnie Financire Richemont S.A. 44 Feeble Best-in-class quarterly e-magazine content does not include comments/ratings

79 Marc JacOBS Fashion LvMH 44 Feeble Popularity on Foursquare compensates for continuing lack of mobile apps/site

79 PaNDOra Watches & Jewelry Pandora A/S 44 Feeble Mobile app with updatable catalog and gift finder make up for the absence of mobile site

82 cHLO Fashion Compagnie Financire Richemont S.A. 43 Feeble Mobile site provides look book, but no m-commerce functionality; no apps

83 VErSacE Fashion Gianni versace S.p.A 40 Feeble Lack of a mobile site and apps partially offset by move to HTML5

84 BOTTEga VENETa Fashion Gucci Group (PPR) 39 Feeble Catalogs featured on main site require Flash player, but email marketing is mobile friendly

84 NarS Beauty & Skincare Shiseido Company, Limited 39 FeebleFull HTML5 site provides a strong asset from which to build a mobile-specific experience

84 Tag HEUEr Watches & Jewelry LvMH 39 Feeble Mobile site is relegated to in-site map; multiple apps pulled from iTunes store during study period

87 cHrISTIaN DIOr Fashion Christian Dior S.A. | LvMH 37 FeebleApp presence only partially compensates for frustrating mobile browsing experience

88 PraDa Fashion Prada Group 35 Feeble Site browsing experience proves untenable on mobile device

89 VacHErON cONSTaNTIN Watches & Jewelry Compagnie Financire Richemont S.A. 34 Feeble Snow Golf makes for a poor outing in an industry obsessed with apps

90 SK-II Beauty & Skincare Procter & Gamble 32 Feeble Flash fail on site; meanwhile, app store presence caters exclusively to Korean market

91 FENDI Fashion LvMH 31 Feeble Aging mobile site resembles brochure-ware


Watches& Jewelry

HospitalityFashion



Mobile IQ

Brand ranking


92 SaLVaTOrE FErragaMO Fashion Salvatore Ferragamo S.p.A. 29 Feeble Seamless tablet experience has yet to migrate to the phone

93 PIagET Watches & Jewelry Compagnie Financire Richemont S.A. 28 FeebleThe brands two product-specific apps have not been updated since August 2009 and August 2010, respectively

94 HErMS Fashion The Herms Group 26 Feeble No app, no mobile site

95 aLEXaNDEr McQUEEN Fashion Gucci Group (PPR) 25 Feeble Flash fail on homepage, but online store functions

96 BaLENcIaga Fashion Gucci Group (PPR) 24 Feeble Whatever you do, dont pinch and zoom

97 OScar DE La rENTa Fashion Oscar de la Renta, Limited 22 Feeble Flash fail exacerbates lack of mobile site/apps

98 BaccaraT Watches & Jewelry Baccarat Crystal 17 Feeble Flash fail; relies on Neiman Marcus to facilitate m-commerce

99 MOVaDO Watches & Jewelry Movado Group, Inc 13 Feeble Site browsing experience proves untenable on mobile device

100 PaTEK PHILIPPE Watches & Jewelry Patek Philippe S.A. 8 Feeble Please Note: the next generation doesnt use Flash


Watches& Jewelry

HospitalityFashion

*Hospitality brands that leverage mobile assets maintained by a parent company and/or shared by sister brands (reward programs, booking systems, etc.) receive credit for those components



Mobile IQ

DispersionAlmost half the brands in the Index register

as Feebledemonstrating widespread

underinvestment in mobile by a considerable

portion of the prestige sector. The disparity

between the Index leader (164 IQ points)

and the Index laggard (8 IQ points) suggests

that this mobile gap is more the result of

nonparticipation than subpar performance.

With a median score of only 76, the majority

of brands are just beginning to make mobile

investments, while a select few early investors

are pulling away from the pack.

Key Findings

MOBILe IQ DISTrIBUTIOn

% of Brands per Mobile IQ Class

MOBILE IQ

140

Sephora

Nordstrom

Macys

NeT-A-PORTeR

MOBILE IQ

110139

Bloomingdales

LOccitane en Provence

Tiffany & Co.

Neiman Marcus

InterContinental Hotels & Resorts

este Lauder

Aveda

Ralph Lauren

Saks Fifth Avenue

Yves Saint Laurent

gIFTED

MOBILE IQ

7089

Chanel

Conrad Hotels & Resorts

Dolce & Gabbana

Origins

Cartier

Fairmont Hotels & Resorts

Calvin Klein

Westin Hotels & Resorts

Louis vuitton

MAC Cosmetics

Lancme

St. Regis

Waldorf Astoria

Kiehls

Le Mridien

Bare escentuals

Raymond Weil

Audemars Piguet

Relis & Chateaux

Shangri-La Hotels & Resorts

Hugo Boss

Jaeger-LeCoultre

Swarovski

Jumeirah

Morgans Hotel Group

Philosophy

valentino

Omega

Smashbox

van Cleef & Arpels

Hublot

Rosewood Hotels & Resorts

Bulgari

Benefit

The Peninsula Hotels

Rolex

Barneys New York

Montblanc

Chopard

Harry Winston

elizabeth Arden

Tods

Alfred Dunhill

Shiseido

Bobbi Brown

De Beers

IWC Schaffhausen

Marc Jacobs

Pandora

Chlo

versace

Bottega veneta

Nars

Tag Heuer

Christian Dior

Prada

vacheron Constantin

SK-II

Fendi

Salvatore Ferragamo

Piaget

Herms

Alexander McQueen

Balenciaga

Oscar de la Renta

Baccarat

Movado

Patek Philippe

aVEragE

cHaLLENgED

FEEBLE

gENIUS

10%

4%

23%

19%

44%



Mobile IQ

In the Company of Genius: Sephora

Key Findings

15

While there are four Genius brands in the

Prestige 100, Sephora exists in a class

of its own.

The brands mobile site feature product videos

organized by content type and filterable by

brand. Other key features include a GPS-based

store locator, shopping list creator, order

history/tracking, and a section for mobile-

exclusive offers.

Sephoras iPhone app and mobile site share

the same basic look and feel, with the latter

offering additional features such as a Beauty

Advice section, Try It Ona tool that allows

the user to adjust skin tone and nail polish

color on a virtual hand, and barcode scanning

functionality to augment in-store shopping.

The brands iPad app features how-to videos with

a side-by-side mirror powered by the devices

camera, allowing users to see their own faces

while following makeup application instructions.

Mobile Site Homepage

iPhone App Try It On Tool

iPad App Home Screen

Mobile Site Product ratings

Mobile Site video Library



Mobile IQ

Mind the GapAlthough each of the five industries reviewed

contributes at least two brands to the top 20 of

the Index, retail stands apart. Of the 14 brands

that achieved Genius or Gifted status, half

were retailers.

Hospitality plays runner-up to retail, hovering

just below Average. Catering to a peripatetic

customer set, hospitality brands have been

among the first to actively invest in mobile

platforms. However, many investments from

the 2009 timeframe are beginning to show their

agemore than 15 percent of hospitality apps

have not been updated in the past 12 months.

KeyFindings

180

140

110

90

70

0

Retai

l

n=9

Hosp

itality

n=20

Fash

ion

n=29

Watch

es &

Jewe

lry

n=24

Beau

ty &

Skinc

are

n=18

AVG IQ

126

Disparity

107

AVG IQ

86

Disparity

62

AVG IQ

77

Disparity

101

AVG IQ

65

Disparity

90

AVG IQ

58

Disparity

125

Gen

ius

Feeb

leCh

alle

nged

Aver

age

Gift

ed

MOBILe IQ DISTrIBUTIOn BY InDUSTrY

(December 2011)


Watches& Jewelry

HospitalityFashion



Mobile IQ

Good GenesIn line with our industry-specific observations,

parent companies with a portfolio in retail or

hospitality typically perform above average in

terms of Mobile IQ.

Of the larger and more diversified parent

companies, Este Lauder is the only

organization for which the portfolios average

score skews toward the upper range of the

disparity. Six of the seven Este Lauder

brands register a mobile site score above

the Index average, demonstrating consistent

performance in one of the four dimensions.

Key Findings

180

140

110

90

70

10

Macy

s Inc

.

n=2

Neim

an M

arcus

Grou

p

n=2

Valen

tino F

ashio

n Grou

p S.p.

A.

n=2 LV

MH

n=9

Comp

agnie

Fina

ncir

e Rich

emon

t S.A.

n=10

Gucc

i Grou

p (PP

R)

n=5

LOra

l Grou

p

n=2

Starw

ood H

otels

& Re

sorts

Worl

dwide

n=3

Marri

ott In

terna

tiona

l, Inc

.

n=2

Hilto

n Worl

dwide

n=2

Este

Laud

er Co

mpan

ies, In

c.

n=7

AVG IQ

145

Disparity

20

Disparity

34

Disparity

2

Disparity

7

Disparity

133

Disparity

115

Disparity

87 AVG IQ

108 AVG IQ

100

AVG IQ

72 AVG IQ

66 AVG IQ63 AVG IQ60

Gen

ius

Feeb

leCh

alle

nged

Aver

age

Gift

ed

Disparity

68

AVG IQ

87

Disparity

1 AVG IQ

82

Disparity

5 AVG IQ

83

Disparity

7 AVG IQ

86

MOBILe IQ DISPerSIOn BY OWnerSHIP

Organizations with More than One Brand represented in Index

(December 2011)


Watches& Jewelry

HospitalityFashion



Mobile IQ

Mobile Commerce vs. Mobile experienceIn 2011, seven percent of all U.S. Internet

traffic came from mobile devices. Many

Prestige 100 brands are catching on to the

growing importance of robust, multifunctional

mobile sites. While Google estimates that

just 21 percent of its advertisers have mobile

sites, two-thirds of brands in the Index

maintain them, and 67 percent of those sites

are m-commerce enabled.7

However, participation in m-commerce does not

fully capture the quality of the mobile experience.

In aggregate, across every category measured,

mobile sites examined consistently failed to

replicate key features and functionalities found

on the main sites including videos, product

search, and user ratings.

Key Findings

7. Googles Battle for the Mobile Web,

Michael Boland, Search Engine Watch,

November 25, 2011.

MAIn SITeS vS. MOBILe SITeS

Prevalence of Basic Features

(December 2011, N=66)

E-/M- CommerceEnabled

Store Locator Video Product/Property Search

MultipleLanguages

Order/Reservation

Tracking

User Ratings Facebooklike API

67% 67%

23%

44%

20%

14%

9%

30%

82% 82%

79%

74%

41% 41%

27% 26%

= MAIN SITe= MOBILe SITe

http://searchenginewatch.com/article/2127356/Googles-Battle-for-the-Mobile-Webhttp://searchenginewatch.com/article/2127356/Googles-Battle-for-the-Mobile-Web



Mobile IQ

iWorldIn mid-December 2011, the millionth app

was released in the mobile marketplace.8

Approximately 15,000 apps are currently

released every week, a pace of development

that exceeds every competing form of media.

Seventy percent of Prestige 100 brands

have produced apps for mobile devices.

Development efforts are skewed heavily

toward the iOS platform. Every brand that

supports an app has developed for the iOS

platform and average nearly three unique

apps for Apple devices. While this investment

does not map to device market share (Gartner

estimates that Android represented 52.5

percent of smartphone sales in the third

quarter of 2011), it does reflect Apples

demographic advantage.9

KeyFindings

8. One Million Mobile Apps, and Counting at

a Fast Pace, Shelly Freierman, New York

Times, December 11, 2011.

9. Gartner Says Sales of Mobile Devices

Grew 5.6 Percent in Third Quarter of 2011;

Smartphone Sales Increased 42 Percent,

Press Release, Gartner, November 15, 2011.

10. Android vs. iPhone: Battle of the

Mobile Operating Systems, Amanda

Green, Hunch, August 15, 2011.

Android22%Symbian16%

Blackberry7%Windows Phone 72%

iOS70%196

67% 60% 50% 37% 27% 18%According to Hunch data released in August, compared to Android users, iOS users are:10

Have an Annual Household Income of $200k or more

Have an American Express card

Have visited more than five countries

Have a graduate degree

Live in a city Be women

more likely to...

PreSTIGe 100 APPLICATIOnS ACrOSS SMArTPHOne PLATFOrMS

(December 2011)

# of Apps per Platform % of Brands in Index

http://www.nytimes.com/2011/12/12/technology/one-million-apps-and-counting.html?emc=eta1http://www.nytimes.com/2011/12/12/technology/one-million-apps-and-counting.html?emc=eta1http://www.nytimes.com/2011/12/12/technology/one-million-apps-and-counting.html?emc=eta1http://www.gartner.com/it/page.jsp?id=1848514http://www.gartner.com/it/page.jsp?id=1848514http://www.gartner.com/it/page.jsp?id=1848514http://www.gartner.com/it/page.jsp?id=1848514http://www.gartner.com/it/page.jsp?id=1848514http://www.gartner.com/it/page.jsp?id=1848514http://blog.hunch.com/?p=51781http://blog.hunch.com/?p=51781http://blog.hunch.com/?p=51781http://blog.hunch.com/?p=51781



Mobile IQ

Tablets: iOpportunityApple ended the first half of 2011 with nearly

a 70 percent share of the global market for

tablets.11 As a product class, tablet devices

have proven a boon to m-commerce. Tablet

shoppers demonstrate a conversion rate

of four to five percent compared with three

percent on a PC.12 Even when compared directly

to smartphones, 25 percent of dual owners

surveyed by Ipsos demonstrate a preference

to purchase on sites while using a tablet.13

Despite the evidence underscoring the growing

need to cater to tablet users, prestige brands

have been slow to adapt. Although 37 percent

of all brands have a presence on both the

iPhone and iPad, only 16 percent have created

a unique experience for iPad users rather than

simply replicating the same app across

both devices.

Development of iPad-specific site experiences

also lags. While 66 percent of brands maintain

a mobile site, only seven have an iPad-specific

experience. Furthermore, 11 percent of brands

in the Index are redirecting to their mobile site

on the iPad, often failing to take advantage of

the uptick in potential conversion. Of the 82

percent of brands that default to the PC site,

eighteen percent lack full functionality because

of the lingering presence of Adobe Flash

components, which iOS does not support.

KeyFindings

TABLeT exPerIenCe

Site Optimization for Safari Browser on iPad

(December 2011)

LoadsiPad Site

LoadsMobile Site

Loads CompletelyBroken Site

Loads PartiallyBroken Site

64%9%

9%

11%7%

Loads Site

62%iPhone

45%iPad

Both

= UNIQUE IPAD CONTENT

= REPLICATED ON BOTH DEVICES

37%16%21%

DevICe-SPeCIFIC APP DeveLOPMenT FOr iOS PLATFOrM


11. Media Tablet and eReader Markets Beat Second Quarter

Targets, Forecast Increased for 2011, According to IDC,

IDC, Press Release, September 14, 2011.

12. Tablets: Ultimate Buying Machines, Dana Mattioli, Wall

Street Journal, September 28, 2011.

13. eMarketer, Tablet Owners Most Active

in M-Commerce, October 19, 2011.

http://online.wsj.com/article/SB10001424052970204010604576597151983657300.htmlhttp://online.wsj.com/article/SB10001424052970204010604576597151983657300.htmlhttp://www.emarketer.com/Article.aspx?R=1008650http://www.emarketer.com/Article.aspx?R=1008650http://www.emarketer.com/Article.aspx?R=1008650



Mobile IQ

Brochure-WareWhile iPhone apps dominate, sophistication

lags across the Prestige 100. The majority of

brands have failed to adopt platform-specific

functionality that keeps the user experience

sticky. Less than a third of apps provide

integration with the iPhones GPS and native

mapping software. Adoption of other features

is even further behind: 17 percent of apps

include iOS notifications, only 16 percent

incorporate the phones camera, and a mere

five percent utilize the three-axis gyroscope

(the internal component that detects the de-

vices orientation in space and translates the

users movements via tilt, shake, and

other motions).

Key Findings

Rich Media & Interactivity

51%

31%

17%16%

9%

5%

Video

Conte

nt

GPS S

uppo

rt

Notifi

catio

ns

Came

ra

Augm

ented

Realit

y

Gyros

cope

Social Media Integration

40%39%

19%

16%

Shari

ng vi

a Ema

il

Via Fa

cebo

ok

Via Tw

itter

Links

to SM

Bran

d Pag

es

Personalization

28%

35%

22%

7%

5%

14%

In-Ap

p Acc

ount

Sign-I

n

Book

marki

ng

Searc

h

In-Ap

p Lan

guag

e Swi

tching

Unloc

kable

Conte

nt

Mini-

Game

Elem

ents

iOS APPS

Prevalence of Basic Features

(December 2011)



Mobile IQ

Language BarriersWithin the U.S. iTunes Store, only 27 percent

of the 196 apps reviewed provide support for

more than one language, and only 14 apps

provide trilingual support for English, French,

and German. According to data from App

Annie, the U.S. accounts for 28 percent of the

download market for free iOS apps.14 France

and Germany are among the top-five non-

English-speaking markets for apps, together

representing seven percent of the download

market.

Unlike Asian markets, content within the

European iTunes Stores closely mimics that of

the U.S. For instance, in the French iTunes Store

87 percent of Prestige 100 brands produce

mirrored content with no perceptible alteration.

Only 23 percent of the apps have French

language support (versus 96 percent with

English language support) and only 21 percent

have changed the description of the app to

more effectively cater to a French audience.

Key Findings

14. The Importance of Localization in App

Stores, App Annie, November 9, 2011.

English Multi-Lingual French German Spanish Italian Portuguese Chinese Japanese Korean

90%

27%

19% 19%

11% 10%8%

7%

3%

8%

(LACK OF) LOCALIZATIOn

Language Support for Apps Posted to U.S. App Store (iOS)

(December 2011)

http://www.appannie.com/blog/localization-entry/http://www.appannie.com/blog/localization-entry/http://www.appannie.com/blog/localization-entry/



Mobile IQ

The Impact of Public OpinionIn May, ABI Research reported that the iTunes

Store ranking algorithm would begin taking

into account qualitative information such

as user reviews and frequency of usage.15

This additional wrinkle in iTunes SEO has

put newfound emphasis on garnering high

ratings and significant user reviews in

addition to downloads.

The speed with which these apps have

garnered a positive reputation is reflected

in their relative standing in the App Store.

In December, Nordstrom had the highest

placement among the five Prestige 100

brands appearing on the Top-200 Free iPhone

Apps listed in the Lifestyle category (#13).

Similarly, Marriott had the highest placement

among the six Prestige 100 brands appearing

on the Top-200 Free iPhone Apps listed in the

Travel category (#26).

Key Findings

15. Chantal Tode, Changes to iTunes

app ranking algorithm will have wide impact:

experts, Mobile Marketer, May 5, 2011.

TOP 10: MOST COMMenTS reCeIveD ( iOS APPS)

(January 2012, N=108)

SEPHORA:Sephora to Go

CLARINS:Thierry MuglerAngel

MACYS:Macys iShop

NORDSTROM:Nordstrom

MARRIOTT INTERNATIONAL, INC.:Marriott International

HILTON WORLDWIDE:Hilton

STARWOOD HOTELS& RESORTS:

SPG Mobile App

BERGDORF GOODMAN:Todays Shoe

INTERCONTINENTALHOTELS GROUP:

Priority Club Rewards

LANCME:Lancme Make-Up

010

015

020

025

030

035

050 400

285

264

215

167

138

115

111

98

231

220

http://www.mobilemarketer.com/cms/news/content/9870.htmlhttp://www.mobilemarketer.com/cms/news/content/9870.htmlhttp://www.mobilemarketer.com/cms/news/content/9870.htmlhttp://www.mobilemarketer.com/cms/news/content/9870.html



Mobile IQ

IOS APPS: USer SenTIMenT

number of ratings vs. number of Stars received


Nordstrom

Giorgio ArmaniAcqua for Life

Tiffany & Co.Engagement Ring Finder

GucciStyle

Marriott International

ClarinsThierry Mugler Angel

CLArInS: Thierry Mugler Angel

(v1.2)

nordstrom(v1.2)

Marriott(v1.4)

Release

Year

Ratings

Stars

Comments

# OF rATInGS SUBMITTeD

note: Horizontal axis (# of ratings submitted) is graphed on a logarithmic scale.

august

2011

336

215

September

2011

264

264

The volume of ratings and comments associated with an app is largely

a function of the time elapsed since release. Only three Prestige 100

apps released in the past year appear on both the top-10 lists for overall

comments and a favorable combination of quantity vs. quality of ratings:

November

2011

302

220



Mobile IQ

email OptimizationDuring the second half of 2011, mobile

email open rates increased 34 percent, with

consumers opening 23 percent of all emails

on their mobile devices.16 Although 78 percent

of Prestige 100 brands engage in email

marketing, only 24 percent have links to

mobile-optimized versions of their email

content, and 55 percent opt to provide

links to plain HTML versions.

Low-hanging fruit abounds. Within their

marketing emails, just 18 percent of brands

with mobile sites have links to their mobile

properties and only 19 percent of the brands

with mobile apps include download links to

the corresponding app store.

Key Findings

16. Mobile, Webmail, Desktops: Where Are

We viewing email Now? Return Path,

research study, December 2011.

MOBILe OPTIMIZATIOn OF eMAIL MArKeTInG

(December 2011)

2%

11%13%

24%

53%

78%

Activ

e Ema

il Mark

eting

Link t

o Plai

n Web

Versi

on of

Email

Link t

o Mob

ile-O

ptimi

zed

Versi

on of

Email

Link t

o App

s

Link t

o Mob

ile-O

ptimi

zed Si

te

Link t

o Othe

r Mob

ile Pr

opert

ies

regular, non-Mobile-Optimized email

Html-Based email In Mobile Browser

Plain-Text Mobile-Optimized email

http://www.returnpath.net/landing/emailonthemove/http://www.returnpath.net/landing/emailonthemove/http://www.returnpath.net/landing/emailonthemove/http://www.returnpath.net/landing/emailonthemove/



Mobile IQ

Check-inOnly five percent of Americans use geolocal

apps at least once a month, but these active

users represent a high-value demographic. They

skew younger, register higher income, and are

twice as likely to share product information.17

Prestige 100 brands registered high check-in

growth at retail locations and local properties

across the six cities L2 examined during the

study period (New York City, San Francisco,

London, Paris, Milan, and Tokyo). Across all

cities, total check-ins generated by the 94

brands with a detectable Foursquare presence

increased by nearly 30 percent, from 540,000

to 700,000 over a four-week period.

Nonetheless, only 27 brands in the Index

maintain an official Foursquare page, five of

which were classified as zombie accounts

(i.e., no recent activity registered from the

associated brand).

Key Findings

17. Marketing via Geosocial Apps: Why

and How, Melissa Parrish, Forrester

Research, December 6, 2011.

0

20

40

60

80

100

120

140

160

180

Louis

Vuitto

n

Marc

Jaco

bsGu

cci

(in th

ousa

nds)

Macy

s

Bloom

ingda

les

Hugo

Boss

MAC

Index

Avera

ge

Four

Seas

ons H

otels

and R

esort

s

Tory

Burch

Lanc

me

170,357

65,923

49,918

38,24432,191 31,367

20,098 18,412 15,79711,330 8,699

Morga

ns Ho

tel Gr

oup

Macy

s

142,229

62,41748,827

36,159 31,727 30,89922,612 21,782 18,066 17,077

7,080

Bloom

ingda

les

Seph

ora

InterC

ontin

ental

Hotel

s

Nords

trom

Barne

ys Ne

w Yo

rk

Saks

Fifth

Aven

ue

Le M

eride

n

Index

Avera

ge

Westi

n Hote

ls

and R

esor

ts

= NeW YORK CITY

= MAINTAINS FOURSQUARe BRAND PAGe

= SAN FRANCISCO= INTeRNATIONAL

TOP 10: FOUrSQUAre BrAnD FOLLOWerS

(December 2011)

TOP 10: FOUrSQUAre LOCATIOn CHeCK-InS

(December 2011)

http://www.forrester.com/rb/Research/marketing_via_geosocial_apps_why_and_how/q/id/61072/t/2http://www.forrester.com/rb/Research/marketing_via_geosocial_apps_why_and_how/q/id/61072/t/2http://www.forrester.com/rb/Research/marketing_via_geosocial_apps_why_and_how/q/id/61072/t/2



Mobile IQ

Searching On The GoFourteen percent of global monthly Google

searches for Prestige 100 brands originate

from mobile devices, which is significant

given that non-computer devices account for

less than seven percent of traffic in the U.S.

and less than five percent of traffic among

the EU5 (France, Germany, Italy, Spain, and

the U.K.).18,19

Paid mobile search is rapidly growing in

importance. In October 2011, mobile accounted

for approximately 15 percent of all clicks and 13

percent of all impressions on Google. During

December, it is estimated that those figures rose

to 25 and 20 percent, respectively.20

Despite strong evidence for the need to

customize traditional SEM/SEO efforts for

mobile platforms, few Prestige 100 brands

appear to be taking proactive steps. Of

search returns rendered on a mobile device,

only 13 percent of brands have links to any

element of their mobile presence on the

first page of Google returns. Fewer than 25

percent include customer service or contact

info. Just over a third of the brands have store

locators and/or maps returned in their results.

Key Findings

18. Smartphones and Tablets Drive Nearly

7 Percent of Total U.S. Digital Traffic,

comScore press release, October 10,

2011.

19. Smartphones and Tablets Drive

Nearly 5 Percent of Digital Traffic in EU5,

comScore press release, October 26,

2011.

20. Mobile Paid Search Share

to Skyrocket in December; Remains a

Significant Bargain, James Beveridge, Performics blog,

November 22, 2011.

AverAGe GLOBAL MOnTHLY SeArCHeS FOr PreSTIGe 100 BrAnDS

Desktop/Laptop vs. nOn-PC Devices

(Source: Google AdWords, November 2011)

86%

14%

Locations map from the organic

results17% of Avedas Global Monthly Searches originate from mobile devices, which the brand capitalizes on with mobile-specific SEO.

Sponsored ad links to mobile site

First curated result features links to the location finder and

account access

= NON-PC DevICe= DeSKTOP/LAPTOP

http://www.comscore.com/Press_Events/Press_Releases/2011/10/Smartphones_and_Tablets_Drive_Nearly_7_Percent_of_Total_U.S._Digital_Traffichttp://www.comscore.com/Press_Events/Press_Releases/2011/10/Smartphones_and_Tablets_Drive_Nearly_7_Percent_of_Total_U.S._Digital_Traffichttp://www.comscore.com/Press_Events/Press_Releases/2011/10/Smartphones_and_Tablets_Drive_Nearly_7_Percent_of_Total_U.S._Digital_Traffichttp://www.comscore.com/Press_Events/Press_Releases/2011/10/Smartphones_and_Tablets_Drive_Nearly_7_Percent_of_Total_U.S._Digital_Traffichttp://www.comscore.com/Press_Events/Press_Releases/2011/10/Smartphones_and_Tablets_Drive_Nearly_5_Percent_of_Digital_Traffic_in_EU5http://www.comscore.com/Press_Events/Press_Releases/2011/10/Smartphones_and_Tablets_Drive_Nearly_5_Percent_of_Digital_Traffic_in_EU5http://www.comscore.com/Press_Events/Press_Releases/2011/10/Smartphones_and_Tablets_Drive_Nearly_5_Percent_of_Digital_Traffic_in_EU5http://www.comscore.com/Press_Events/Press_Releases/2011/10/Smartphones_and_Tablets_Drive_Nearly_5_Percent_of_Digital_Traffic_in_EU5http://blog.performics.com/search/2011/11/mobile-paid-search-share-to-skyrocket-in-december-remains-a-significant-bargain.htmlhttp://blog.performics.com/search/2011/11/mobile-paid-search-share-to-skyrocket-in-december-remains-a-significant-bargain.htmlhttp://blog.performics.com/search/2011/11/mobile-paid-search-share-to-skyrocket-in-december-remains-a-significant-bargain.htmlhttp://blog.performics.com/search/2011/11/mobile-paid-search-share-to-skyrocket-in-december-remains-a-significant-bargain.htmlhttp://blog.performics.com/search/2011/11/mobile-paid-search-share-to-skyrocket-in-december-remains-a-significant-bargain.html



Mobile IQ

Cross-PromotionMobile efforts often sit in isolation from the

overall digital footprint of Prestige 100 brands.

Only 28 percent of the brands in the Index are

developing mobile apps promote them on

their main sites. In contrast, 82 percent of the

brands link to their Facebook pages and 66

percent to their Twitter accounts.

Only three brands maintain custom tabs on

Facebook dedicated to mobile properties.

Within a sample of 50 consecutive wall posts,

20 brands linked to their iOS app pages in the

iTunes Store, four linked to their apps in the

Android marketplace, three linked to their mobile

sites, and nine linked to other mobile-related

properties like Foursquare and Instagram.

Within a sample of 100 consecutive tweets,

just 13 brands linked to their iOS apps in

the iTunes Store, one linked to its app in the

Android marketplace, three linked to their

mobile sites, and 12 linked to other mobile-

related properties.

Key Findings

SITe-SPeCIFIC PrOMOTIOn OF SOCIAL MeDIA eFFOrTS vS. MOBILe eFFOrTS


66%

82%

39%

28%

Mobile Apps

Promotion of mobile apps on Sephoras homepage



Mobile IQ

Flash of Genius

Augmented reality Goes MainstreamIn March 2011 Calvin Klein began a global

campaign designed to relaunch CK One as

a lifestyle brand for the digital generation. The

360-degree campaign spanned television,

print, billboard, online advertising, social

media, and mobile.

The mobile component of CK One encouraged

users to find, reveal, and watch locked

multimedia content by scanning print material

and billboardseffectively bridging

the traditional media and digital media

components of the campaign. The supporting

technology leveraged image recognition

instead of QR codes to enable discovery. The

campaign yielded 117 million impressions of

the augmented reality print ads. The cross-

platform campaign was optimized for iOS,

Android, and Symbian devices.

Locked Content

Billboard Augmented reality Ads

Print Augmented reality Ads

reveal, Find, Watch



Mobile IQ

Flash of Genius

Mobile Pick Me UpIn November, Nordstrom launched a new app

catapulting the brand to mobile leadership

in the competitive retail category. The apps

built-in barcode scanner allows customers

to determine whether a particular product is

available at a local Nordstrom, including in-

store pickup. A calendar of upcoming events

at preferred stores further bridges the online/

offline connection. Lastly, Style Profile

provides users with the ability to browse a

curated product selection.

The Nordstrom app has already accumulated

nearly 200 comments in the iTunes Store.

Style Profile guides you to collections of distinct looks

Buy, Bookmark, Share, or Pick-Up In-Store

Upcoming events at My Stores bridges in-app and in-store experiences



Mobile IQ

Flash of Genius

Mirror, Mirror on the DeviceVirtual makeup apps have become table

stakes in the beauty industry, making

differentiation increasingly difficult. YSLs

ColorMirror app, released on the iPhone

and iPad in October, successfully pulls

away from the pack, providing enough

functionality to meet the needs of both

makeup enthusiasts and professionals.

The app showcases all available shades

and colors for nearly 40 products in 12

categories. With advanced layering and

opacity options, this toolbox provides the

user with freedom to experiment on a virtual

model or an imported photo. The sixty-five-

point biometrics ensures imported images

are optimized to work precisely with the

paintbrush tools. Most importantly, the app

steadily builds an informative basket of

items used to create a unique look for

offline purchase.

Biometric recognition of user image

Blank Canvas Infinite combinations of featured YSL beauty products

Before/After comparison

Shopping list of products used to

create unique looks



Mobile IQ

Flash of Genius

Mobile as Media PlatformSince late 2010, IWC has been porting the

quarterly edition of its Watch International

magazine, conceived by German design

studio Ringzwei, to the iPad. The content

found in these digital issues is diverse,

spanning sporting events, celebrity profiles,

technical innovations, and examples of

cutting-edge design.

This e-mag distinguishes itself from others

in several ways. It features superior,

consistent design that mimics the aesthetics

showcased in the companys redesigned

site (launched February 2011). Furthermore, it

has several compelling interactive elements:

additional content is unlocked by changing

the orientation of the device, content is

easily shareable, and entries to sweepstakes

are solicited from readers within the app itself.

Watch International e-mag (issued quarterly)

Intuitive navigation, bookmarking, and social sharing APIs

Select product promotion tied to

themes explored in each issue



Mobile IQ

Flash of Genius

MultiplatformBrands in the Index struggle with multi-platform

app development. Through the Priority Club

Rewards app (shared with numerous sister

brands), prospective guests can book rooms

at InterContinental properties on iOS, Android,

BlackBerry, and Windows devices.

InterContinental Hotels Group (IHG) produces

seven additional apps for iOS, including the

innovative Concierge Insider Guides. This

iPad app provides exploration of more than

120 global hotels. Each property has an

introductory video from the resident concierge,

insider tips, shopping and eating destinations,

and an interactive map highlighting local

points of interest. The app pushes users

to check room availability and to make a

reservation through a web-based agent.

These investments appear to be paying off.

IHGs revenues from mobile booking in 2011

are expected to exceed its previous forecast

of $130 million (up from $38 million in 2010

and $2.5 million in 2009).21

21. Karen Jacobs, InterContinental

sees mobile bookings sales rising, Reuters,

December 21, 2011.

Discovery of 100+ properties

Insider Tips pertaining to destination

Interactive map with which to plan travel itinerary

Introduction to resident Concierge with push to reservation system

http://www.reuters.com/article/2011/12/21/uk-intercontinental-idUSLNE7BK02H20111221http://www.reuters.com/article/2011/12/21/uk-intercontinental-idUSLNE7BK02H20111221http://www.reuters.com/article/2011/12/21/uk-intercontinental-idUSLNE7BK02H20111221



Mobile IQ

Flash of Genius

See the French SitesFrench beauty brand LOccitane demonstrates

several best practices across the Index. It

remains the only beauty brand and one of

only 19 brands in the Index with multiple

language settings on its mobile site. The

sites persistent navigation and search

utility highlight LOccitanes commitment

to m-commerce. During the 2011 holiday

season, LOccitane introduced a Gift Finder

tool to help users determine appropriate gifts

based on gender, ingredients, and price.

In addition, LOccitane was one of only seven

brands to offer an FAQ section and one

of only eight brands to offer feedback on

mobile site functionality. Inclusion of email,

Facebook Like and Tweet APIs allow users

to share their favorite products.

LOccitanes simple but highly functional mobile homepage

robust gift-generating toolintroduced for the

holiday 2011 season

Includes customer service, Facebook Like API, and links to social media



Mobile IQ

Flash of Genius

Tablet rasaThe vast majority of brand sites (91 percent)

are viewable on Apples iPad tablet, which

as of October 2011 accounts for 97 percent

of all U.S. tablet impressions.22 Considerably

few, however, have developed an iPad or

tablet-optimized experience.

Salvatore Ferragamo, which was criticized for

not developing a mobile site in conjunction

with its banner ads on the New York Times

iPhone app last fall, has developed a

robust iPad site that seamlessly reflects the

aesthetic and most of the functionality of the

fashion brands main, nonmobile site.23

Although that site is run with Adobe Flash,

Ferragamos iPad offering looks, feels and

acts like ferragamo.com. The formers

m-commerce experience mirrors the latters

e-commerce experience, including a scroll-

through slideshow of related items on the

bottom of each product page.

ferragamo.com main site with

Flash elements

Ferragamos iPad-specific experience replicates main site functionality

22. Terrence OBrien, iPad accounts for 97 percent of U.S. tablet

traffic online, engad-get, June 24, 2011.

23. Kayla Hutzler, Ferragamo misses

the mark with mobile New York Times ads, Luxury Daily, Septem-

ber 26, 2011.

http://www.engadget.com/2011/06/24/ipad-accounts-for-97-percent-of-us-tablet-traffic-online/http://www.engadget.com/2011/06/24/ipad-accounts-for-97-percent-of-us-tablet-traffic-online/http://www.engadget.com/2011/06/24/ipad-accounts-for-97-percent-of-us-tablet-traffic-online/http://www.luxurydaily.com/ferragamo-misses-the-mark-with-mobile-ads-lacks-mobile-site/http://www.luxurydaily.com/ferragamo-misses-the-mark-with-mobile-ads-lacks-mobile-site/http://www.luxurydaily.com/ferragamo-misses-the-mark-with-mobile-ads-lacks-mobile-site/



Mobile IQ

Flash of Genius

Wipe Away Your WeatherThe market for mobile ads is quite

fragmented. The total U.S. market in 2011

was a mere $630 million ($3.3 billion

globally), albeit growing at 43 percent

annually.24 Moreover, no single platform has

established dominance, with the top three

domestic playersGoogle, Millennial Media,

and Applesplitting 58 percent of mobile

display ad revenue.25 This landscape affords

broad opportunity for experimentation and

innovation by brands.

In October, Westin sponsored The Weather

Channels redesigned 3D iPad app. Users

could browse properties and book rooms

without leaving the confines of the app.27

Most notably, the advertisement began by

taking over the home screen with virtual bad

weather to match local conditions (e.g, rain

or snow), then encouraged users to Wipe

Away Your Weather to reveal appealing

Westin getaways.

Weather Channels redesigned iPad App

Westins Wipe Away Your Weather

Campaign

24. Press Release, Gartner Says World-wide Mobile Advertis-ing Revenue Forecast

to Reach $3.3 Billion in 2011, Gartner, June

16, 2011.

25. emily Steel & Jessica vascellaro,

A Rare Apple Com-promise, Wall Street

Journal, December 13, 2011.

26. Rimma Kats, Westin Hotels & Re-sorts bolsters mobile

bookings via TWC iPad Sponsorship, Mobile

Commerce Daily, October 24, 2011.

http://www.gartner.com/it/page.jsp?id=1726614http://www.gartner.com/it/page.jsp?id=1726614http://www.gartner.com/it/page.jsp?id=1726614http://www.gartner.com/it/page.jsp?id=1726614http://www.gartner.com/it/page.jsp?id=1726614http://online.wsj.com/article/SB10001424052970204336104577094872512502942.html?mod=WSJ_hp_LEFTTopStories&utm_source=Triggermail&utm_medium=email&utm_term=SAI Chart Of The Day&utm_campaign=SAI_COTD_121311http://online.wsj.com/article/SB10001424052970204336104577094872512502942.html?mod=WSJ_hp_LEFTTopStories&utm_source=Triggermail&utm_medium=email&utm_term=SAI Chart Of The Day&utm_campaign=SAI_COTD_121311http://www.mobilecommercedaily.com/2011/10/24/westin-hotels-resorts-bolsters-mobile-bookings-via-twc-ipad-sponsorshiphttp://www.mobilecommercedaily.com/2011/10/24/westin-hotels-resorts-bolsters-mobile-bookings-via-twc-ipad-sponsorshiphttp://www.mobilecommercedaily.com/2011/10/24/westin-hotels-resorts-bolsters-mobile-bookings-via-twc-ipad-sponsorshiphttp://www.mobilecommercedaily.com/2011/10/24/westin-hotels-resorts-bolsters-mobile-bookings-via-twc-ipad-sponsorship



Mobile IQ

Flash of Genius

Shoes About TownBergdorf Goodmans Todays Shoe app has

been around for two yearsan eternity on the

iTunes Store. In late August, the brand released

the third version of the app, incorporating

several requested features: sort by designer,

shopping cart, and social sharing.

While these features are welcome additions,

the wider efforts of the digital team deserve

equal praise. Instead of releasing the new

and improved app in a vacuum, Bergdorf timed

the upgrade to coincide with a parallel digital

effort, all building up to the re-launch of the

physical Shoe Salon on Two. On September 12,

Bergdorf introduced the Instagram-powered

Shoes About Town map, which displays user

submitted, geo-tagged images of footwear

over a stylized map of Manhattan.

In this instance, Bergdorf demonstrated a

mobile strategy that integrated disparate

efforts, experimented with an emerging

platform, and revitalized an aging asset.

Blog post announcing app upgrade

Shoes About Town powered by

Instagram launched September 12, 2011

new and improved iPhone app launched August 30, 2011



Mobile IQ

SCOTT GALLOWAY Clinical Professor of Marketing, nYU Stern Founder, L2

Scott is a Clinical Professor at the NYU Stern School of Business where he teaches brand strategy and luxury marketing and is the founder of L2, a think tank for prestige brands. Scott is also the founder of Firebrand Partners, an operational activist firm that has invested more than $1 billion in U.S. consumer and media companies. In 1997, he founded Red Envelope, an Internet-based branded consumer gift retailer. In 1992, Scott founded Prophet, a brand strategy consultancy that employs more than 120 profes-sionals in the United States, Europe, and Asia. Scott was elected to the World Economic Forums Global Leaders of Tomorrow, which recognizes 100 individuals under the age of 40 whose ac-complishments have had impact on a global level.

Scott has served on the boards of directors of Eddie Bauer (Nasdaq: EBHI), The New York Times Company (NYSE: NYT), Gateway Computer, eco-America, and UC Berkeleys Haas School of Business. He received a B.A. from UCLA and an M.B.A. from UC Berkeley.

COLIn GILBerT L2

Colin is a strategic consultant with more than three years ofexperience working at the nexus of the public and privatesectors. Serving as a principal at the Civitas Group inWashington, D.C., he helped lead research, advisory, anddue-diligence engagements for a range of clients spanningtechnology start-ups, defense contractors, and governmentagencies and specialized in matters pertaining to cloudcomputing, cybersecurity, and online privacy. Colin receiveda B.A. in History from Stanford University and an M.P.A.from the London School of Economics. While completinghis graduate studies abroad, he worked with Accenture toconstruct case material used to demonstrate the versatilityof the firms Public Service Value (PSV) methodology.

MAUreen MULLen L2

Maureen leads L2s research and advisory practice where she helped develop the Digital IQ Index. She has benchmarked the digital marketing, e-commerce, and social media efforts of more than 300 brands across pharma, auto, luxury, specialty retail, beauty, and the public sector. Maureen also has led digital strategy consulting engagements for a variety of Fortune 1000 clients. Before joining L2, Maureen was with Triage Consulting Group and led managed care payment review and payment benchmarking projects for hospitals, including UCLA Medical Center, UCSF, and HCA. Maureen has a B.A. in Human Biology from Stanford Univer-sity and an M.B.A. from NYU Stern.

JOn WeInBerG L2

Jon Weinberg began his career as a strategist andcopywriter at The Moderns, a boutique Manhattan-basedbranding consultancy, where he worked with clients rangingfrom start-ups to Fortune 1000 corporations. Whilethere, he managed digital strategy for both the firm andits clients. Jon received an A.B. in Government with asecondary in Near Eastern Language and Civilizationsfrom Harvard University, where he served as an associateeditor for the Harvard International Review.

CHrISTIne PATTOn L2

Christine is a brand and marketing consultant with more than 15 years of experience creating brand identities and marketing communications for aspirational and luxury brands. As creative director of L2, she leads the translation of the L2 brand across all touchpoints, with a particular focus on the visual packaging of L2s research. She began her career at Cos, where she developed the brand and oversaw its evolution from concept through growth to

100 restaurants. Since then she has provided creative direction for a wide array of clients, including the launch of Kidville and CosmoGIRL! magazine. Christine received a B.A. in Economics and Journalism from the University of Connecticut and an M.B.A from NYU Stern.

JeSSICA BrAGA L2

Jessica, a freelance art director, specializes in identity, iconog-raphy, event graphics, and invitations. She began her career in fashion, designing textiles and prints at Elie Taharis studio in New York City, and then focused on the Elie Tahari brand aesthetic and consistency in design across its many developing disciplines. Desiring to explore other facets of design, she went on to become the art director of a small, prestigious design firm in Chelsea, where she focused on event graphics, digital and print collateral, and brand aesthetics for companies both large and small. Jessica holds a B.F.A. in Graphic Design, and an A.A.S. in Illustration from Rochester Institute of Technology.

AArOn BUnGe L2

Aaron is a freelance graphic designer who specializes in print design, branding and identity, packaging, and web design. His approach is both aesthetic and functional, characterized by clear, intelligent design appropriate to the project at hand. He began his career tailoring projects for the Chinese, Australian, and U.S. mar-kets across multiple design disciplines and in multiple languages. Aaron has a B.F.A. in Graphic Design from Iowa State University.

TeAM

L2 is a think tank for digital innovation.

We are a membership organization that brings together thought leadership from academia and industry to drive digital marketing innovation.

rESEarcH

Digital IQ Index: The definitive benchmark for online competence, Digital IQ Index reports score

brands against peers on more than 350 quantitative and qualitative data points, diagnosing their

digital strengths and weaknesses.

EVENTS

Forums: Big-picture thinking and game-changing innovations meet education and entertainment.

The largest gatherings of prestige executives in North America.

300+ attendees

Clinics: Executive education in a classroom setting with a balance of theory, tactics, and

case studies.

120 180 attendees

Working Lunches: Members-only lunches led by digital thought leaders and academics.

Topic immersion in a relaxed environment that encourages open discussion.

4080 attendees

MBA Mashups: Access and introduction to digital marketing talent from top business schools.

cONSULTINg

Advisory Services: L2 works with brands to garner greater return on investment in digital initiatives.

Advisory work includes Digital Roadmaps, Social Media Strategy, and Site Optimization engagements.

MEMBErSHIP

For membership info and inquiries: [email protected]

UPcOMINg rESEarcH

DIGITAL IQ InDex reports:

Hospitality

Broadcast Media

Magazines

UPcOMINg MEMBEr BENEFITS

Members Site:

In the first quarter L2 will launch real-time tracking of digital

metrics (vs. peers).

PreSTIGe 100 reports:

Brazil, Russia, India, China

Facebook IQ

UPcOMINg EVENTS

L2 Clinic Mobile

01.19.12 new York City

01.24.12 Paris

L2 Lunch Identifying Facebook Super Fans

02.23.12 new York City

L2 Clinic Mobile in APAC

03.02.12 Shanghai

L2 Lunch Google+ vs. Facebook

03.06.12 Paris

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