Designing Premier Experiences | Barcelona 2007

Transcript

2. BARCELONA, SPAIN FEBRUARY 7TH, 2007 Or can you use the Internet to sell $13,000 necklaces?
3. DEFINING PREMIER EXPERIENCES IN A MASS MARKET MEDIUM BARCELONA, SPAIN FEBRUARY 7TH, 2007 Or can you use the Internet to sell $13,000 necklaces?
4. ABOUT ME
5. Matt Marcus Worldwide Director Gucci E-Business ABOUT ME
6. Matt Marcus Worldwide Director Gucci E-Business Strategist Innovation, and foresight planning ABOUT ME
7. Matt Marcus Worldwide Director Gucci E-Business Strategist Innovation, and foresight planning Industrial Designer The Institute of Design ABOUT ME
8. Matt Marcus Worldwide Director Gucci E-Business Strategist Innovation, and foresight planning Industrial Designer The Institute of Design Educator Parsons, Institute of Design ABOUT ME
10. Luxury fashion houses are culture engines
11. Luxury fashion houses are culture engines • 30 major luxury brands
12. Luxury fashion houses are culture engines • 30 major luxury brands • compelling visions of aspirational lifestyle
13. Luxury fashion houses are culture engines • 30 major luxury brands • compelling visions of aspirational lifestyle • 1 trillion dollar market
15. Spring Summer 05 Text
16. Spring Summer 05 Text • Design at least 3 collections per year
17. Spring Summer 05 Text • Design at least 3 collections per year • Manage local European artisans
18. Spring Summer 05 Text • Design at least 3 collections per year • Manage local European artisans • Delivered to a global market
19. Fall Winter 06
20. Fall Winter 06 • last season is out, season after season
21. Cruise 06
22. Cruise 06 H&M Zara Club Monaco
23. Cruise 06 H&M Zara Club Monaco 90 billion dollar counterfeit industry
24. Cruise 06 H&M Zara Club Monaco 90 billion dollar counterfeit industry • Fast fashion steals share
25. Cruise 06 H&M Zara Club Monaco 90 billion dollar counterfeit industry • Fast fashion steals share • Counterfeit on your doorstep
26. Spring Summer 07
27. Spring Summer 07
28. Spring Summer 07 • Carefully managed to maintain pricing
29. Spring Summer 07 • Carefully managed to maintain pricing • To support handmade goods
30. Spring Summer 07 • Carefully managed to maintain pricing • To support handmade goods • To provide profit for investment/expansion
31. Spring Summer 07 • Carefully managed to maintain pricing • To support handmade goods • To provide profit for investment/expansion • The rarity principle
32. The Rarity Principle
33. The Rarity Principle awareness
34. The Rarity Principle awareness purchasers
35. The Rarity Principle awareness purchasers • Maximize influence over the mass market • Minimize the size of the purchasing base • Never be perceived as overexposed Premium brands must be desired by many but consumed by few
36. The Rarity Principle awareness purchasers dream value • Maximize influence over the mass market • Minimize the size of the purchasing base • Never be perceived as overexposed Premium brands must be desired by many but consumed by few
37. dream value “the strong desire to participate in the brand without ever having owned the brand”
38. Well managed brands are rewarded with global recognition year-after-year
39. Well managed brands are rewarded with global recognition year-after-year
40. Well managed brands are rewarded with global recognition year-after-year • 85 year old brand
41. Well managed brands are rewarded with global recognition year-after-year • 85 year old brand • 2 billion dollars in revenue
42. Well managed brands are rewarded with global recognition year-after-year • 85 year old brand • 2 billion dollars in revenue • Balanced global portfolio
43. “Luxury merchants were concerned [the Internet] would cheapen their brand. The Internet is thought of as the place to go for bargains,.” eMarketer's senior analyst, Jeff Grau
44. And they had a right to be concerned based on the major players of the day
45. And they had a right to be concerned based on the major players of the day
46. And they had a right to be concerned based on the major players of the day
47. And they had a right to be concerned based on the major players of the day
48. Early entrants found their product migrating from channel to channel, far out of their brand control
49. Early entrants found their product migrating from channel to channel, far out of their brand control
50. Early entrants found their product migrating from channel to channel, far out of their brand control
51. Early entrants found their product migrating from channel to channel, far out of their brand control
52. And industry “innovators” merely followed the models set by Amazon and eBay, delivering undifferentiated brand experiences
53. And industry “innovators” merely followed the models set by Amazon and eBay, delivering undifferentiated brand experiences
54. And industry “innovators” merely followed the models set by Amazon and eBay, delivering undifferentiated brand experiences
55. And industry “innovators” merely followed the models set by Amazon and eBay, delivering undifferentiated brand experiences
56. And industry “innovators” merely followed the models set by Amazon and eBay, delivering undifferentiated brand experiences
57. And industry “innovators” merely followed the models set by Amazon and eBay, delivering undifferentiated brand experiences • Designed to retail usability standards
58. And industry “innovators” merely followed the models set by Amazon and eBay, delivering undifferentiated brand experiences • Designed to retail usability standards • Instantly accessible to all
59. And industry “innovators” merely followed the models set by Amazon and eBay, delivering undifferentiated brand experiences • Designed to retail usability standards • Instantly accessible to all • “science of the common denominator”
60. fully supported interactions sales tone consultative tone self-service interactions 2001 Industry Analysis
61. Saks yahoo NiemanMarcus Amazon fully supported interactions sales tone consultative tone eLuxury Hermes self-service interactions 2001 Industry Analysis
62. Saks yahoo NiemanMarcus Amazon fully supported interactions sales tone consultative tone Gucci eLuxury Hermes self-service interactions 2001 Industry Analysis
63. Saks yahoo NiemanMarcus Amazon fully supported interactions sales tone consultative tone Gucci eLuxury Hermes self-service interactions 2001 Industry Analysis
64. BRAND AWARE PRODUCT AWARE PRODUCT CURIOUS PRODUCT TRIAL PRODUCT COMMITTED BRAND COMMITTED
65. BRAND AWARE PRODUCT AWARE PRODUCT CURIOUS PRODUCT TRIAL PRODUCT COMMITTED BRAND COMMITTED
66. Gucci.com 2001
67. Gucci.com 2001
68. Gucci.com 2001
69. Gucci.com 2001
70. Gucci.com 2001
72. “A pampering service, personalized even though it's over a computer. Excellent. No less than what I would expect from a respected label!”
73. “ I thought it was one of the best services I've used on the Internet. ”
74. “…it felt like shopping in New York and not ordering from some telemarketer. ”
75. New Jersey California Michigan New York Florida Texas All state average Average Proximity to a store 40 56 61 70 91 121 129 miles
76. New Jersey California Michigan New York Florida Texas All state average Average Proximity to a store 40 56 61 70 91 121 129 miles
77. The rarity principle suggest that traditional metrics for online success are not effective in the luxury space mass market luxury
78. The rarity principle suggest that traditional metrics for online success are not effective in the luxury space mass market luxury Mass market success metrics
79. The rarity principle suggest that traditional metrics for online success are not effective in the luxury space mass market luxury • low number of clicks to purchase Mass market success metrics
80. The rarity principle suggest that traditional metrics for online success are not effective in the luxury space mass market luxury • low number of clicks to purchase • high conversion rates Mass market success metrics
81. The rarity principle suggest that traditional metrics for online success are not effective in the luxury space mass market luxury • low number of clicks to purchase • high conversion rates • low percentage of dropped carts Mass market success metrics
82. The rarity principle suggest that traditional metrics for online success are not effective in the luxury space mass market luxury • low number of clicks to purchase • high conversion rates • low percentage of dropped carts Mass market success metrics Rarity principle success metrics
83. The rarity principle suggest that traditional metrics for online success are not effective in the luxury space mass market luxury • low number of clicks to purchase • high conversion rates • low percentage of dropped carts Mass market success metrics • high number of unique visitors Rarity principle success metrics
84. The rarity principle suggest that traditional metrics for online success are not effective in the luxury space mass market luxury • low number of clicks to purchase • high conversion rates • low percentage of dropped carts Mass market success metrics • high number of unique visitors • high number of dropped carts Rarity principle success metrics
85. The rarity principle suggest that traditional metrics for online success are not effective in the luxury space mass market luxury • low number of clicks to purchase • high conversion rates • low percentage of dropped carts Mass market success metrics • high number of unique visitors • high number of dropped carts • low conversion rates Rarity principle success metrics
86. The rarity principle suggest that traditional metrics for online success are not effective in the luxury space mass market luxury • low number of clicks to purchase • high conversion rates • low percentage of dropped carts Mass market success metrics • high number of unique visitors • high number of dropped carts • low conversion rates • high average purchase value Rarity principle success metrics
87. Today the majority of luxury firms are rolling out their online store strategies
88. Today the majority of luxury firms are rolling out their online store strategies
89. Today the majority of luxury firms are rolling out their online store strategies
90. 1998 Today the majority of luxury firms are rolling out their online store strategies
91. 1998 2001 Today the majority of luxury firms are rolling out their online store strategies
92. 1998 2001 2003 Today the majority of luxury firms are rolling out their online store strategies
93. 1998 2001 2003 2007 Today the majority of luxury firms are rolling out their online store strategies
94. “Gucci abandons the original [online] shopping metaphor. The content is almost exclusively the interface. This is certainly more entertaining than your average website.” Doug Mack - CEO Scene7
95. External Forces: Media Transformation mass broadcasting to niche casting (brand casting)
96. External Forces: Media Transformation mass broadcasting to niche casting (brand casting)
97. External Forces: Internet Technologies webpages to websites to web applications
98. External Forces: Internet Technologies webpages to websites to web applications
99. External Forces: Device Development from desktop to TV to palmtops
100. External Forces: Device Development from desktop to TV to palmtops
101. External Forces: Device Development from desktop to TV to palmtops
102. Build a global, commerce enabled, media platform - befitting of the Gucci brand
103. Over 8 million visits to Gucci.com from regions world wide
104. 68% 4% Over 8 million visits to Gucci.com from regions world wide
105. 68% 4% 1.7% 1.4% Over 8 million visits to Gucci.com from regions world wide
106. 68% 4% 2% 2% 1.7% 1.4% Over 8 million visits to Gucci.com from regions world wide
107. 68% 4% 2% 2% 2% 2% 1.7% 1.4% 1.3% Over 8 million visits to Gucci.com from regions world wide
108. 68% 4% 2% 2% 2% 2% 1.7% 1.4% 1.3% .9% Over 8 million visits to Gucci.com from regions world wide
109. Cruise show brandcast to select international press
110. Cruise show brandcast to select international press
111. Over 60,000 downloads for our inaugural podcast
112. Over 60,000 downloads for our inaugural podcast
113. What can we expect in the near future...
115. THANK YOU
116. EMARKETING 23 ecards to a world wide list of 350,000 individuals Generated trackable online sales of 1.4 MM euros
117. EMARKETING 23 ecards to a world wide list of 350,000 individuals Generated trackable online sales of 1.4 MM euros
118. EMARKETING 23 ecards to a world wide list of 350,000 individuals Generated trackable online sales of 1.4 MM euros Banners delivered 46 million impressions and over 500K clicks Generating trackable online sales of 23K euros Google keyword advertising delivered 14 million impressions and 450K clicks Generating trackable online sales of 385K euros (a 2 for 1 return on investment)