One-in-Five Luxury Purchases Are Made Online

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Dec. 9 (Bloomberg) -- NYU Stern School of Business Professor of Marketing Scott Galloway discusses digital retailing with Deirdre Bolton on Bloomberg Television's "Money Moves." (Source: Bloomberg)

Connected.

The nyu think tank for digital innovation just released its annual rankings of the top brands.

Scott galloway is with us.

So, burberry, i know that is just one of the ones that was on your radar screen.

What did you find?

Which ones are managing their social relationships the best?

Burberry is number one for the third year in a row, but there are some impressive smaller brands, like tory burch and kate spade, they are putting a lot of money into digital and it is paying off.

Digital, with the ones that you just named i know that there are these pop-up shops that they want to connect the best of all the worlds.

It is the perception of attribution, where people tend to look at these e- commerce sales as an indication of what is paying off, but you arm is -- missing the majority of the story here.

While 1, 2, and five her juices are made online, four out of five are influenced a digital.

For example, mobile commerce will only be a $30 billion business in three years.

But it has influenced more decisions?

$750 billion influenced by smaller screens.

Your digital presence influences a lot more.

How do you measure that?

That is tricky.

We spent a lot of time spent -- a lot of time thinking about that.

What we are finding is that these firms with strong digital iq's, there is a strong correlation between year on year revenue growth and shareholder return, which makes sense, because when you get good at digital, it is like working out.

You find that every other part of your life gets better.

That is so inspirational for the new year.

Drop and give me 20. if you become more data-driven, you start thinking about a younger consumer and emerging technologies as a platform.

Those kinds of skills lend themselves well to all kinds of things.

We are seeing the firms really committed to strong digital as having this kind of rising tide affect across the entire enterprise and we are seeing it meet the greater shareholder return, so digital is moving to the center in terms of making this a part of culture.

He said burberry was number one, gucci was number two?

The interesting thing there is that some of the great things they are doing or being shared across the entire enterprise, so there is real enterprise value as we track those brands.

That is what a multibrand enterprise conglomerate wants, to show that the tactic of leveling brands is paying off.

They had better show it, those margins are crazy.

That is exactly right.

They want to show that there is a reason to have more than one brand in an enterprise.

When you talk about some of these subjective qualities about the digital experience, how important is design?

Storytelling?

Super important, but i would say a lot of brands have aired on the side of creative -- errored on the side of creative.

The bottom line is that the web is another channel of distribution, it is about saving time, getting to the product in the right information.

Social media is about wasting time.

But i say that in the best way.

The videos, the fun, the learning about how the banana bag is crafted, you want to learn about that on the facebook page or follow the design on instagram, but when you get me to the site follow a funnel to the trend purchased on-site or in-store.

I like that a lot.

Social media is about wasting time, being online is about being educated?

This is a new channel.

The best brands are getting 20% of their sales with a greater percentage of it coming from online that is a multiple that

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

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