Luxury Bands Need Omni Media Strategy: Achille

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Feb. 19 (Bloomberg) -- Antonio Achille, Partner and Managing Director at Boston Consulting Group, discusses using digital technology to enhance luxury brands and sales. He speaks on Bloomberg Television’s “The Pulse.” (Source: Bloomberg)

A sector that has good growth prospects going forward.

The subtleties within the sector are becoming increasingly interesting.

We have lots of luxury ceos sitting in the chair that you are sitting in.

We talked to hunter this week, we talked to lvmh.

All these countries -- companies are telling us relatively the same thing.

Digital is a growing part of their business.

They are still trying to figure out how to use it.

Most of them don't see it as a channel for sales but a channel for communication.

How is that going to evolve?

We are quite positive about the fact that luxury will be growing.

The capabilities required to grow would be diverse.

When we talk about digital, the most obvious things about sales that are done online.

This accounts for 7% of the total luxury town over -- turnover.

What is important to recognize, that is just the top of the iceberg.

When we look at sales that are digital-influenced, we go up to 50% or 60%. what do we mean by digital-influenced?

Sales that may be stored online where people get influenced on the choice of the brand, but then the final transaction is still happening in the store.

Being able to engage both in terms of crm and consistency with pricing with this customer that does not see divisional -- digital is a separate channel will be quite key for success of the brand going forward.

You have just described what another ceo said to us earlier on this week.

That is how he sees his business, part of a communication where the customer wants to come in and touch the physical.

You look at what burberry is doing, much more digitally integrated.

You can now buy the music on itunes.

Angela ahrdendts is going to apple.

Is burberry's model the future or are we going to continue to see companies like this doing what they are doing?

Have we gotten to the point where we understand the super high-end hard luxury companies, how they are going to do business?

Burberry pushed digital to the next frontier.

There is a space for making a competitive advantage out of that.

That is not the only thing.

We started and we saw that one receipt does not fit all.

For the younger generation, digital is very appealing.

They are willing to have digital immersion in the stores.

Like burberry is doing, the catwalk within the store.

When we go instead to consider what is appealing to more senior and baby boomer generations in europe, they are more willing to engage with us more in a different environment.

It is very important to segment your customer base, to recognize what it takes to win in your specific segments.

Use digital not as a creator but a specific commercial letter.

As the generations change, presumably the digital impact is going to change as well.

That is very true.

When we look at a market like china or korea, where the aspirational consumer tends to be quite younger, differently also in terms of digital, they want to engage.

They want to have the opportunity to have an impact on some areas that were typically unidirectional he managed by a brand.

The site of burberry allows the consumer to interact in choosing the color of the trench and the like.

And interaction from consumer that goes to have an impact on the courre aspect of the brand.

Another strong aspect of this is -- more than 70% of consumers in the luxury space are spontaneously becoming ambassadors of the brand.

Being able to engage them in the proper way is going to be very key.

I know you have a plane to catch.

We will let you go.

Thank you very much indeed for joining us.

Let's stay with luxury.

It is time for our special series, the highlight.

Swiss ski resorts are getting pricier and pricier but you

This text has been automatically generated. It may not be 100% accurate.


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