LVMH’s Digital Drive Takes Time Despite Apple Hire
Paris: When LVMH hired former replica louis vuitton bags from china Apple music executive Ian Rogers to craft a digital strategy, investors may have hoped for some high quality replica handbags china quick results. If so, they are probably disappointed.
Almost a year later, aside from drafting in more digitally savvy people and taking part in cheap louis vuitton bags from china a technology start up fair, his impact on the world’s biggest luxury goods group has yet to become visible.
Changing mentalities and priorities at LVMH takes time, according to sources close to the 78 billion euro ($88 billion) group controlled by France’s richest man, Bernard Arnault.
LVMH’s online strategy appears inconsistent across its more than 70 businesses and brands. Some labels such as Louis Vuitton and Fendi aaa replica designer handbags have made great strides along with cosmetics retailer Sephora, but Celine stands out as an apparent laggard.
Mr Arnault hired Mr Rogers, a 44 year old American who once worked with the Beastie Boys hip hop band, to challenge the digital mindset of his executives. Rivals Prada and Hermes are revamping their websites to offer a wider choice of products and communicate better about the brand with videos, photos and drawings, on top of other digital content.
Online sales have become the industry’s most important engine of growth. Analysts expect internet transactions will represent 20 per cent of all luxury sales in a decade, up from 7 8 per cent now. LVMH’s total online sales are less than 5 per cent, they estimate.
Adapting to the Web, to sell and communicate with customers is a challenge for many in the business.
“A luxury brand that avoids the Perfect Quality Louis Vuitton Replica internet is effectively refusing to engage with its customers where they are increasingly spending time and money replica louis vuitton handbags ,” he said. “It is not listening to what its customers want, which is dangerous in any consumer facing industry.”
More than 60 per cent of luxury goods purchases, online or in store, depend on what customers see on the Web about the brand, analysts say. Some customers browse online and then buy in stores, while others engage in “showrooming” they check out products at a store and then buy online.
“For many luxury firms, digital is a hard new reality,” the Boston Consulting Group (BCG) said in a report last week. “They have to confront the new tension between their traditional world of exclusivity and the web world of access for everyone.”
It took the industry time to ditch the assumption that the purchasing experience could replica louis vuitton never be as good online as in stores on the most fashionable streets of European cities.
Even now, some question the rush to go digital, such as appealing to mass audiences on Instagram, the industry’s most widely used social media app in Europe and North America.
Patrick Grant, a designer at Savile Row tailors Norton and Sons in London, said brands should occupy a rarefied world of luxury and specialness and “step away from the noise and spam of Instagram bloggers and floggers”.
“Why Designer Louis Vuitton Replica Handbags does a fashion brand need to have a million followers on Instagram? It doesn’t feel like fashion to me,” Mr Grant told BBC radio during London Fashion Week earlier this month.
Another stumbling block may be that some industry executives are struggling to adjust personally. One consultant in the industry told Reuters of clients who still rely on their secretaries to print out emails and type up their replies.
“How do you want these people to put the internet at the top of their priorities?” the consultant said.
LVMH’s digital revolution may be slow partly due to its decentralised nature, with each of its businesses taking different approaches to using technology and the internet.
For example, some LVMH managers believe brands should show online which replica louis vuitton bags items are available and where. Others argue that if aaa replica designer handbags customers know what they want is out of stock, this discourages them from visiting the high quality designer replica handbags wholesale store where they might have bought something different from what they were initially looking for.
“Making stocks public is one of many topics being discussed,” said a person who is close to the group.
France, Discount Replica Louis Vuitton Bags along with Italy, is less digitally “mature” than other markets, BCG said in its report based on a survey of about 10,000 consumers in 10 countries. Only 31 per cent of French luxury shoppers said they had researched their last product online and bought it in a store, compared with 47 per cent in the US and Brazil, and 46 per cent in Japan.
Jeans and sweaters
Group insiders say Mr Arnault liked the style and attitude of Mr Rogers who appears in jeans and sweaters like most Silicon Valley entrepreneurs, in contrast to the typical LVMH boss in a well tailored suit.
Mr Rogers is chief digital officer but does not sit on LVMH’s 11 strong executive committee chaired by Mr Arnault. However cheap louis vuitton bags from china , “internally, people respect him because of his track record”, said one luxury consultant whose clients include LVMH and did not wish to be identified.
After working with the Beastie Boys and Yahoo, Rogers spent less than a year at Apple after it had paid about $3 billion in 2014 for Beats, the music streaming and headphones company he led www.dolabuy.su , backed by Elton John and Pharrell Williams.
Mr Rogers steered LVMH’s participation this spring at the Paris technology start up fair Viva Technology, where the group’s TAG Heuer company presented its internet connected smart watch.