L2 Research Mobile IQ 2012

January 11, 2012
SCOTT GALLOWAY NYU Stern
Mobile IQ
L2 2012 L2ThinkTank.com
Mobile
nYC
reGISTer nOW
CLInIC
January 19, 2012 nYU Stern
Paris
reGISTer nOW
January 24, 2012 Palais Brongniart
Module 1: Welcome
SCOTT GALLOWAY Founder, L2
Module 1: Welcome
SCOTT GALLOWAY Founder, L2
Digital Omnivores: Key Insights Into Todays Connected Consumer

MArK DOnOvAn SVP Mobile, comScore, Inc.
The Mobile Landscape in europe

JereMY COPP VP, Mobile, Europe, comScore, Inc.
Mobile is Dead, Long Live Mobile

AnDY WeISSMAn Partner, Union Square ventures
evolving Strategy for Creative execution in Mobile

KenT vALenTIne Engagement Director, Last exit
The Game Changer on the Path to Purchase

JereMY ArnOn Strategic Partner Development, Google
retail Forever Transformed

CHUCK GOLDMAn Chief Strategy Officer, Apperian, Inc.
Q&A Session
Case Studies & Best Practices in Prestige Mobile

PATrICK SArKISSIAn CEO & Founder, Sarkissian Mason
Module 2: evolving Strategy for Creative execution in Mobile

nUrI DJAvIT Partner & CEO, Last exit
Q&A Session
HTML5: Going Web vs. Going App

JASOn BAPTISTe Cofounder & CEO, OnSwipe
Module 2: The Google Mobile Platform

L2 Mobile research
rOBBIe DOUeK Head of Mobile Sales & Operations, Google France
Lessons from The Collection

MZ GOODMAn & SIMOne OLIver new York Times
MAUreen MULLen & COLIn GILBerT Research & Advisory, L2
Influencing Real Life Networks

TAnUJ PArIKH Business Development Manager, GroupMe
Hugo Boss: A Case Study

MArKUS ALLer Teamleader, Online Media, Hugo Boss JOACHIM BADer Managing Director, CLAnMO GmbH
Insights from Prestige 100: Mobile IQ

MAUreen MULLen & COLIn GILBerT Research & Advisory, L2
Q&A Session
Q&A Session
Want to know more about your brands Mobile IQ? CONTACT US
Mobile IQ
Mobile:
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.
End of the Beginning

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.
APPeal
Prestige 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.
Game Changer
The introduction of the iPad in April 2010 has escalated 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
M-Commerce
We believe the game will be won or lost via development 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 commerceenabled. Furthermore, use of such marketing tactics as mobileoptimized search marketing, cross-platform mobile promotion, and mobile display advertising is scant.
Mobile IQ
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 App
PreSTIGe 100 MOBILe InveSTMenTS (December 2011)
70%
52%
Both
MobileOptimized Site
66%
Neither
16%
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
MOBILe COMMerCe SALeS FOreCAST 20102016 United States (Source: Forrester, June 2011)
31
strengths and weaknesses and help managers achieve greater return on incremental investment. Like the platforms we are assessing, our methodology is that improve our investigation and findings. You can reach me at scott@stern.nyu.edu. Regards,
BILLIONS OF DOLLARS
dynamic, and we hope you will reach out to us with comments
cagr: 39%
19 14 10 6 3
25
SCOTT GALLOWAY
Founder, L2 Clinical Professor of Marketing, NYU Stern
2010 L2 2012 L2ThinkTank.com
2011
2012
2013
2014
2015
2016
Mobile IQ
Methodology
Mobile IQ Classes
40%
MOBILe SITeS:
MOBILe-OPTIMIzeD SITeS:
Technology navigation & Search Social Media Integration Customer Service Product Page Account & Check-Out
IQ Range
Class
TABLeT exPeRIeNCe:
Compatibility Ability to Transact HTML5 Support
140+
GenIUS
Mobile 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
GIFTeD
Brands demonstrate high-quality, high-impact approach to mobile within a select dimension, sometimes at the expense of a wider mobile offering.
30%
MOBILe APPLICATIOnS:
AvAILABILITY:
iOS (iPad Differentiation) Android Blackberry Windows Phone Series 7 Symbian
APP STORe PeRFORMANCe:

ratings Comments Update Frequency Language Support
FUNCTIONALITY:
navigation Pathway to Purchase Personalization Phone Feature Utilization
90109
AverAGe
Efforts 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).
15%
MOBILe MArKeTInG:
Mobile SeO on Google & Bing email: Mobile Compatibility & Cross-Promotion of Mobile Properties SMS: Sign-Up & Activity
7089
CHALLenGeD
Limited mobile investment reflects low prioritization relative to other digital efforts.
15%
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.
< 70
FeeBLe
Investment does not match opportunity.
Mobile IQ
Brand ranking
rank Brand
1 2 3 4 SEPHOra NOrDSTrOM MacYS NET-a-POrTEr
Beauty & Skincare
Fashion
Hospitality
retail
Watches & Jewelry
category
Retail Retail Retail Retail
Parent
LvMH Nordstrom, Inc. Macys, Inc. Compagnie Financire Richemont S.A. Macys, Inc. LOccitane International S.A. Tiffany & Co. Neiman Marcus Group InterContinental Hotels Group plc este Lauder Companies, Inc. este Lauder Companies, Inc. Ralph Lauren Corporation Saks, Inc.
Mobile IQ class
164 156 155 143 Genius Genius Genius Genius
Description
Long-standing, sustained, iterative investment in mobile pays off New mobile app leapfrogs peer efforts with firm link between in-app and in-store experience Active SMS program and Xmas app experience add unique elements to strong mobile portfolio Unique apps for local promotions, store exclusives, and spinoffs complement strong mobile site Engaging, offer-centric mobile site overshadows generic iPad catalog app Both mobile app and site feature weak aesthetics, but excel in functionality What Makes Love True mobile app demonstrates strong geolocal aptitude Differentiated app approach on iPhone (Gifts) vs. iPad (Catalog) works to its advantage Presence across four of the five mobile app platforms; Concierge Insider Guides iPad app provides unparalleled local insights for 100+ global properties Illumination iAd campaign and high-functioning mobile site compensate for one-dimensional apps New My Style app invites users to upload personal hairstyle while mobile site provides exclusive offers for mobile customers Digital innovator demonstrates balanced investment across mobile app, mobile site, tablet experience, and mobile advertising Strong iPad catalog app compensates for low-impact mobile site
5 6 6 8 9 10 11 12 13
BLOOMINgDaLES LOccITaNE EN PrOVENcE TIFFaNY & cO. NEIMaN MarcUS INTErcONTINENTaL HOTELS & rESOrTS* ESTE LaUDEr aVEDa raLPH LaUrEN SaKS FIFTH aVENUE
Retail Beauty & Skincare Watches & Jewelry Retail Hospitality Beauty & Skincare Beauty & Skincare Fashion Retail
135 133 133 125 119 115 113 112 111
Gifted Gifted Gifted Gifted Gifted Gifted Gifted Gifted Gifted
Mobile IQ
Brand ranking
rank Brand
13 15 16 17 17 17 20 20 22 22 22 25 26 YVES SaINT LaUrENT DaVID YUrMaN DIaNE VON FUrSTENBErg ErMENEgILDO ZEgNa MaNDarIN OrIENTaL HOTEL grOUP rITZ-carLTON* FOUr SEaSONS HOTELS aND rESOrTS gUccI BUrBErrY cLINIQUE JW MarrIOTT* ParK HYaTT* cLarINS
Beauty & Skincare
Fashion
Hospitality
retail
Watches & Jewelry
category
Fashion Watches & Jewelry Fashion Fashion Hospitality Hospitality Hospitality Fashion Fashion Beauty & Skincare Hospitality Hospitality Beauty & Skincare
Parent
Gucci Group (PPR) David Yurman, Inc. Diane von Furstenberg ermenegildo zegna Holditalia S.p.A. Jardine Matheson Group Marriott International, Inc. Four Seasons Hotels, Inc. Gucci Group (PPR) Burberry Group plc este Lauder Companies, Inc. Marriott International, Inc. Hyatt Hotels Corporation Clarins S.A.
Mobile IQ class
111 104 102 101 101 101 100 100 99 99 99 98 94 Gifted Average Average Average Average Average Average Average Average Average Average Average Average
Description
New mobile site brings fashion label in sync with advanced, beauty-centric apps Mobile site launched in November is a welcome replacement for aging iPhone app 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 Singular focus on iPad virtual store, which is consistently promoted across all digital properties Cities by MO provides expansion content for MOHotels app depending on users destination or interest Simple, streamlined mobile site and World Concierge campaign on Foursquare compensate for disappointing apps Industry leader in Foursquare followers, with tips for 83 properties Sophisticated, technologically advanced Gucci Style app immerses user in brand-curated content that extends well beyond the clothes Second highest-scoring mobile site in Fashion enables brand to compete without investing in apps Early adopter of in-store iPad kiosks and one of only three beauty brands with an active SMS campaign Universal Marriott International app allows booking at JW properties and provides external links to strong mobile web assets Cross-brand Hyatt app allows booking at Park Hyatt hotels; parents mobile site provides extensive photo galleries of Park Hyatt properties Strong search elements on mobile site; fragrance release (Thierry Mugler Angel) proves a fan favorite in the app store
Mobile IQ
Brand ranking
rank Brand
26 26 29 30 31 31 33 33 33 36 37 37 39 gIOrgIO arMaNI OMNI HOTELS & rESOrTS TOrY BUrcH BErgDOrF gOODMaN cOacH SOFITEL* cHaNEL cONraD HOTELS & rESOrTS* DOLcE & gaBBaNa OrIgINS carTIEr FaIrMONT HOTELS & rESOrTS caLVIN KLEIN
Beauty & Skincare
Fashion
Hospitality
retail
Watches & Jewelry
category
Fashion Hospitality Fashion Retail Fashion Hospitality Fashion Hospitality Fashion Beauty & Skincare Watches & Jewelry Hospitality Fashion
Parent
Giorgio Armani S.p.A. TRT Holdings Tory Burch LLC Neiman Marcus Group Coach, Inc. Accor Chanel S.A. Hilton Worldwide Dolce & Gabbana Industria S.p.A. este Lauder Companies, Inc. Compagnie Financire Richemont S.A. Fairmont Raffles Hotels International PvH Corporation
Mobile IQ class
94 94 92 91 90 90 89 89 89 88 87 87 86 Average Average Average Average Average Average Challenged Challenged Challenged Challenged Challenged Challenged Challenged
Description
Touch-enabled mobile site compensates for unfocused, fragrance-centric app store offering Mobile app and site do little to go beyond the basics Mobile store finder features Foursquare integration; no apps Shoe Salon app and Foursquare Mayor specials prevent brand from falling too far behind fellow retailers in absence of mobile site Mobile users greeted with in-store signage that unlocks exclusive information on Kristin collection Leverages Accor Hotels app and parents mobile site to its advantage, but these assets dilute Sofitel brand Fashion and accessories elements of mobile site still prove inaccessible, forcing strict reliance on apps Unique app development for Conrad brand that proves interoperable with Hilton Honors account Fashion Channel replicated across both mobile site and apps, but stops short of m-commerce Mobile site features extensive user reviews of products but provides no way to submit ones own opinions on the go Multiple iPad apps and strong universal Cartier Bridal app, but mobile shopping experience leads to Call an Advisor Presidents Club participation allows guests to share stories, with user photos appearing alongside official property images CK One augmented reality experience available on three of the five mobile platforms assessed
Mobile IQ
Brand ranking
rank Brand
40 41 41 43 43 43 46 46 48 49 50 50 50 WESTIN HOTELS & rESOrTS* LOUIS VUITTON Mac cOSMETIcS LaNcME ST. rEgIS* WaLDOrF aSTOrIa* KIEHLS LE MrIDIEN* BarE EScENTUaLS raYMOND WEIL aUDEMarS PIgUET rELaIS & cHTEaUX SHaNgrI-La HOTELS aND rESOrTS
Beauty & Skincare
Fashion
Hospitality
retail
Watches & Jewelry
category
Hospitality Fashion Beauty & Skincare Beauty & Skincare Hospitality Hospitality Beauty & Skincare Hospitality Beauty & Skincare Watches & Jewelry Watches & Jewelry Hospitality Hospitality
Parent
Starwood Hotels & Resorts Worldwide, Inc.
Mobile IQ class
85 84 84 82 82 82 81 81 80 79 76 76 76 Challenged Challenged Challenged Challenged Challenged Challenged Challenged Challenged Challenged Challenged Challenged Challenged Challenged
Description
Innovative ad campaign in Weather Channel iPad app takeover; eight property-specific apps with limited functionality undercut superior utility of SPG cross-brand app Innovative tie-in between Amble app and Foursquare does not save dead-end mobile site experience Strong video content and MAC Artist profiles only exist on mobile site, not the app store Advanced user-generated content element of mobile apps only partially compensate for lack of mobile site E-Butler app provides guest-specific functionality that goes beyond the basic guest services book Brochure-ware app mitigated by functional mobile site leveraging Hilton Honors system Clean mobile site navigation provides outlet for browsing but not buying (Call to Order) Heavy reliance on SPG app for mobile bookings; property-specific app limited to Dubai Be a Force of Beauty campaign incorporated QR codes tied to models bio, look, and associated beauty products December launch of official app rounds out mobile investment Comprehensive promotion of mobile footprint on site as brand extends app experience to Android App Guides provide novel path to property discovery, but R&C remains the only hospitality brand without a mobile site Tokyo and Manila property apps do not extend to wider resort portfolio; mobile site allows for limited property exploration
LvMH este Lauder Companies, Inc. LOral Group

Hilton Worldwide LOral Group

Shiseido Company, Limited Raymond Weil S.A. Audemars Piguet Holding S.A. n/a - Global Fellowship Shangri-La Asia Limited
Mobile IQ
Brand ranking
rank Brand
53 53 55 56 57 58 58 60 61 61 63 63 65 HUgO BOSS JaEgEr-LEcOULTrE SWarOVSKI JUMEIraH MOrgaNS HOTEL grOUP PHILOSOPHY VaLENTINO OMEga SMaSHBOX VaN cLEEF & arPELS HUBLOT rOSEWOOD HOTELS & rESOrTS BULgarI
Beauty & Skincare
Fashion
Hospitality
retail
Watches & Jewelry
category
Fashion Watches & Jewelry Watches & Jewelry Hospitality Hospitality Beauty & Skincare Fashion Watches & Jewelry Beauty & Skincare Watches & Jewelry Watches & Jewelry Hospitality Watches & Jewelry
Parent
valentino Fashion Group S.p.A. Compagnie Financire Richemont S.A. Swarovski AG Jumeirah Group Morgans Hotel Group Coty Inc. valentino Fashion Group S.p.A. The Swatch Group, Ltd. este Lauder Companies, Inc. Compagnie Financire Richemont S.A. LvMH New World Hospitality LvMH
Mobile IQ class
75 75 73 71 69 68 68 66 65 65 64 64 61 Challenged Challenged Challenged Challenged Feeble Feeble Feeble Feeble Feeble Feeble Feeble Feeble Feeble
Description
Site and apps still lack m-commerce, but do include innovative features like color matching via camera image My Reverso app provides user the freedom to visualize custom engraving before reaching out to a concierge SCVNGR hunt in London demonstrates willingness to experiment beyond the app store Emirates Towers property claims sole app; iPad defaults to mobile site designed for smaller screen Sections of mobile site (City Guides) revert back to main site; iPad defaults to mobile optimized site designed for a smaller screen Strong gift finder and navigation filters differentiates mobile site Encyclopedic iPad app lacks personalized features, but mobile-optimized shopping portal hints of progress Parallel mobile app/site designs feature comprehensive search tools Innovative product QR codes direct users to video tutorial by makeup artist Lori Taylor; recently optimized email marketing for mobile screens Mobile placeholder site offers access to catalog and store locator, circumventing flash-heavy site 360-degree product views, augmented reality features, and video content in app do not distract from aging mobile site One of only two hospitality brands without an app store presence Brand replicates all product-specific apps across iPhone and iPad without customization; Bulgari Touch site lacks m-commerce
10
Mobile IQ
Brand ranking
rank Brand
66 67 67 69 69 71 72 73 74 75 76 77 77 BENEFIT cOSMETIcS THE PENINSULa HOTELS rOLEX BarNEYS NEW YOrK MONTBLaNc cHOParD HarrY WINSTON ELIZaBETH arDEN TODS aLFrED DUNHILL SHISEIDO BOBBI BrOWN DE BEErS
Beauty & Skincare
Fashion
Hospitality
retail
Watches & Jewelry
category
Beauty & Skincare Hospitality Watches & Jewelry Retail Watches & Jewelry Watches & Jewelry Watches & Jewelry Beauty & Skincare Fashion Fashion Beauty & Skincare Beauty & Skincare Watches & Jewelry
Parent
LvMH
Hongkong and Shanghai Hotels, Limited
Mobile IQ class
59 58 58 57 57 56 52 51 50 49 48 47 47 Feeble Feeble Feeble Feeble Feeble Feeble Feeble Feeble Feeble Feeble Feeble Feeble Feeble
Description
August test of in-store iPad kiosks demonstrates increasing innovation in mobile space beyond HTML5 site Mobile site requires guest to call or email reservations desk, forcing reliance on buggy app Strong demand for third-party reference apps demonstrates (missed) opportunity beyond mobile site and tablet e-magazine Remains the only retailer in the Index to shy away from the app store; no longer redirecting to mobile site Strong app presence and product specific-promotions do not compensate for lack of a mobile site App presence focused exclusively on Happy Diamonds collection; mobile site features simple photo gallery Harry Winston Timepieces app has limited functionality; HTML5 enables solid tablet experience Mobile site for Prevage line of skincare products only Limited mobile site and heavily promoted iPad apps are all about presentation, not functionality E-magazine iPad app tests mobile aptitude by mirroring Day 8 microsite App store experience caters exclusively to Chinese market Mobile-friendly email marketing demonstrates awareness of mobile consumers, despite the lack of mobile apps/site Lack of a mobile site and apps partially offset by move to HTML5
Rolex Holding S.A. Istithmar PJSC Compagnie Financire Richemont S.A. Chopard Holding S.A. Harry Winston, Inc. elizabeth Arden Tods S.p.A. Compagnie Financire Richemont S.A. Shiseido Company, Limited este Lauder Companies, Inc. LvMH
11
Mobile IQ
Brand ranking
rank Brand
79 79 79 82 83 84 84 84 87 88 89 90 91 IWc ScHaFFHaUSEN Marc JacOBS PaNDOra cHLO VErSacE BOTTEga VENETa NarS Tag HEUEr cHrISTIaN DIOr PraDa VacHErON cONSTaNTIN SK-II FENDI
Beauty & Skincare
Fashion
Hospitality
retail
Watches & Jewelry
category
Watches & Jewelry Fashion Watches & Jewelry Fashion Fashion Fashion Beauty & Skincare Watches & Jewelry Fashion Fashion Watches & Jewelry Beauty & Skincare Fashion
Parent
Compagnie Financire Richemont S.A. LvMH Pandora A/S Compagnie Financire Richemont S.A. Gianni versace S.p.A Gucci Group (PPR) Shiseido Company, Limited LvMH Christian Dior S.A. | LvMH Prada Group Compagnie Financire Richemont S.A. Procter & Gamble LvMH
Mobile IQ class
44 44 44 43 40 39 39 39 37 35 34 32 31 Feeble Feeble Feeble Feeble Feeble Feeble Feeble Feeble Feeble Feeble Feeble Feeble Feeble
Description
Best-in-class quarterly e-magazine content does not include comments/ratings Popularity on Foursquare compensates for continuing lack of mobile apps/site Mobile app with updatable catalog and gift finder make up for the absence of mobile site Mobile site provides look book, but no m-commerce functionality; no apps Lack of a mobile site and apps partially offset by move to HTML5 Catalogs featured on main site require Flash player, but email marketing is mobile friendly Full HTML5 site provides a strong asset from which to build a mobile-specific experience Mobile site is relegated to in-site map; multiple apps pulled from iTunes store during study period App presence only partially compensates for frustrating mobile browsing experience Site browsing experience proves untenable on mobile device Snow Golf makes for a poor outing in an industry obsessed with apps Flash fail on site; meanwhile, app store presence caters exclusively to Korean market Aging mobile site resembles brochure-ware
12
Mobile IQ
Brand ranking
rank Brand
92 93 94 95 96 97 98 99 100 SaLVaTOrE FErragaMO PIagET HErMS aLEXaNDEr McQUEEN BaLENcIaga OScar DE La rENTa BaccaraT MOVaDO PaTEK PHILIPPE
Beauty & Skincare
Fashion
Hospitality
retail
Watches & Jewelry
category
Fashion Watches & Jewelry Fashion Fashion Fashion Fashion Watches & Jewelry Watches & Jewelry Watches & Jewelry
Parent
Salvatore Ferragamo S.p.A. Compagnie Financire Richemont S.A. The Herms Group Gucci Group (PPR) Gucci Group (PPR) Oscar de la Renta, Limited Baccarat Crystal Movado Group, Inc Patek Philippe S.A.
Mobile IQ class
29 28 26 25 24 22 17 13 8 Feeble Feeble Feeble Feeble Feeble Feeble Feeble Feeble Feeble
Description
Seamless tablet experience has yet to migrate to the phone The brands two product-specific apps have not been updated since August 2009 and August 2010, respectively No app, no mobile site Flash fail on homepage, but online store functions Whatever you do, dont pinch and zoom Flash fail exacerbates lack of mobile site/apps Flash fail; relies on Neiman Marcus to facilitate m-commerce Site browsing experience proves untenable on mobile device Please Note: the next generation doesnt use Flash
*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
13
Mobile IQ
MOBILe IQ DISTrIBUTIOn
Key Findings
Dispersion
Almost 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.
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 Bloomingdales LOccitane en Provence Tiffany & Co. Neiman Marcus InterContinental Hotels & Resorts este Lauder Aveda Ralph Lauren Saks Fifth Avenue Yves Saint Laurent
% of Brands per Mobile IQ Class

Sephora
gENIUS
4%
Nordstrom
MOBILE IQ
Macys NeT-A-PORTeR
>140
gIFTED
MOBILE IQ
David Yurman Diane von Furstenberg ermenegildo zegna Mandarin Oriental Ritz-Carlton Four Seasons Hotels & Resorts
JW Marriott Park Hyatt Clarins Giorgio Armani Omni Hotels & Resorts Tory Burch Bergdorf Goodman Coach Sofitel
110139
10%
aVEragE
19%
MOBILE IQ
Gucci Burberry Clinique
90109
cHaLLENgED
Morgans Hotel Group Philosophy valentino Omega
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
MOBILE IQ
7089
23%
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
FEEBLE
44%
MOBILE IQ
<70
14
Mobile IQ
Key Findings
In the Company of Genius:
Mobile Site Homepage
Sephora
of its own.
While there are four Genius brands in the Prestige 100, Sephora exists in a class 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 mobileexclusive 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 Product ratings Mobile Site video Library iPhone App Try It On Tool iPad App Home Screen
15
Mobile IQ
Key Findings
Mind the Gap
Although each of the five industries reviewed contributes at least two brands to the top 20 of 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.
90
Challenged Genius
Beauty & Skincare
Fashion
Hospitality
retail
Watches & Jewelry
M O B I L e I Q D I S T r I B U T I O n BY I n D U S T r Y (December 2011)
180
Disparity
the Index, retail stands apart. Of the 14 brands
107
140
AVG IQ
Disparity
101
125
Disparity
Disparity
Gifted
126
Disparity
62
90
110
Average
AVG IQ
86
AVG IQ
70
77
AVG IQ
65
AVG IQ
58
Feeble
Re t n= ail 9
sp it n= ality 20
Sk in c n= are 18
Fa s n= hion 29
Ho
&
ty
au
W at
Be
ch
es
&
Je w n= elr y 24
16
Mobile IQ
Key Findings
Good Genes
In line with our industry-specific observations, parent companies with a portfolio in retail or 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.
90
Challenged Genius
Beauty & Skincare
Fashion
Hospitality
retail
Watches & Jewelry
M O B I L e I Q D I S P e r S I O n BY O W n e r S H I P Organizations with More than One Brand represented in Index (December 2011)
180
Disparity
hospitality typically perform above average in
Disparity
20
133
Disparity
140
Gifted
145
Disparity
AVG IQ
115
34
Disparity
68
Disparity
110
Average
108
AVG IQ
Disparity
AVG IQ
87
100
AVG IQ
Disparity
Disparity
AVG IQ
87
86
AVG IQ
Disparity
AVG IQ
83
82
Disparity
70
AVG IQ
72
AVG IQ
66
AVG IQ
63
AVG IQ
60
10
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17
Mobile IQ
Key Findings
Mobile Commerce vs. Mobile experience
In 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.
67% 67% 82% 82%
MAIn SITeS vS. MOBILe SITeS Prevalence of Basic Features (December 2011, N=66)
79% 74%
= =
MAIN SITe MOBILe SITe
44% 41% 41%
30% 27% 23% 20% 14% 9% 26%
7. Googles Battle for the Mobile Web, Michael Boland, Search Engine Watch, November 25, 2011.
E-/M- Commerce Enabled
Store Locator
Video
Product/ Property Search
Multiple Languages
Order/ Reservation Tracking
User Ratings
Facebook like API
18
Mobile IQ
Key Findings
iWorld
In 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
P r e S T I G e 1 0 0 A P P L I C AT I O n S A C r O S S S M A r T P H O n e P L AT F O r M S (December 2011) # of Apps per Platform % of Brands in Index

iOS
196
70%
Android
22% 16% 7% 2%
Symbian
Blackberry Windows Phone 7
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.
According to Hunch data released in August, compared to Android users, iOS users are:10
67% 60% 50% 37% 27% 18%

more likely to...
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
19
Mobile IQ
Key Findings
Tablets: iOpportunity
Apple ended the first half of 2011 with nearly a 70 percent share of the global market for tablets. As a product class, tablet devices
11
D e v I C e - S P e C I F I C A P P D e v e LO P M e n T F O r i O S P L AT F O r M (December 2011, N=100)
62%
iPhone
37%
Both
16% 21%
= UNIQUE IPAD CONTENT = REPLICATED ON

BOTH 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
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.
45%
iPad
TA B L e T e x P e r I e n C e Site Optimization for Safari Browser on iPad (December 2011)

Loads iPad Site Loads Mobile Site
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.
7% 11%
Loads Completely Broken Site
9% 9%
Loads Site
64%
Loads Partially Broken Site
20
Mobile IQ
iOS APPS Prevalence of Basic Features (December 2011)
Key Findings
Brochure-Ware
While 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 devices orientation in space and translates the users movements via tilt, shake, and other motions).
Rich Media & Interactivity 51%
Social Media Integration
Personalization
40%
39% 35%
31% 28%
22% 19% 17% 16% 16% 14%
9% 7% 5% 5%
sc op e
m er a
lity
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Su pp or
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en
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ific
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21
Mobile IQ
Key Findings
Language Barriers
Within 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 nonEnglish-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.
90%
( L A C K O F ) LO C A L I Z AT I O n Language Support for Apps Posted to U.S. App Store (iOS) (December 2011)
27%
19% 11%
19% 10% 7% 3%
8%
8%
English
Multi-Lingual
French
German
Spanish
Italian
Portuguese
Chinese
Japanese
Korean
14. The Importance of Localization in App Stores, App Annie, November 9, 2011.
22
Mobile IQ
Key Findings
The Impact of Public Opinion
In 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
TOP 10: MOST COMMenTS reCeIveD (iOS APPS) (January 2012, N=108)
SEPHORA: Sephora to Go
285
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 INTERCONTINENTAL HOTELS GROUP: Priority Club Rewards LANCME: Lancme Make-Up
264
231
220
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).
215
167
138
115
111
98
15. Chantal Tode, Changes to iTunes app ranking algorithm will have wide impact: experts, Mobile Marketer, May 5, 2011.
50
10
15
20
25
30
35
40
23
Mobile IQ
IOS APPS: USer SenTIMenT number of ratings vs. number of Stars received (December 2011, N=102)
Giorgio Armani Acqua for Life Clarins Thierry Mugler Angel
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:
Nordstrom
CLArInS: Thierry Mugler Angel (v1.2)

Marriott International Tiffany & Co. Engagement Ring Finder
nordstrom (v1.2)
Marriott (v1.4)
Release
September
November
august
Year
2011 264
2011 302
2011 336
Gucci Style
Ratings
Stars
Comments
264
220
215
# OF rATInGS SUBMITTeD note: Horizontal axis (# of ratings submitted) is graphed on a logarithmic scale.
24
Mobile IQ
Key Findings
email Optimization
During 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.
Plain-Text MobileOptimized email
M O B I L e O P T I M I Z AT I O n O F e M A I L M A r K e T I n G (December 2011)
78%
53%
regular, non-MobileOptimized email
24%
13%
11%
2%
Lin Ve k to rs P ion la of in W Em eb Lin ail kt o M ob Ve ile rs -O ion pt of imiz Em ed ail
kt
16. Mobile, Webmail, Desktops: Where Are We viewing email Now? Return Path, research study, December 2011.
ke
Ap
ize
ar
ail
Lin
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im
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ile
tiv
ob
Ac
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ob
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Pr o
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pe
Html-Based email In Mobile Browser
ps
tin
Si
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es
te
Lin
25
Lin
kt
Mobile IQ
T O P 1 0 : F O U r S Q U A r e B r A n D F O L LO W e r S
Key Findings
Check-in
Only five percent of Americans use geolocal apps at least once a month, but these active
(in thousands)
(December 2011)
180 160 140 120 100 80 60 40 20 0 65,923 49,918 38,244 32,191 31,367 20,098 18,412 15,797 11,330 8,699 170,357
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).
bs
Hu go Bo ss
ge
A C ea so an ns d H Re ot so els r ts
ys
Gu cc i
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co
Vu it
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Ja
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uis
xA
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T O P 1 0 : F O U r S Q U A r e LO C AT I O n C H e C K- I n S (December 2011)
142,229
Fo u
rS
To r
La
nc
le
to
= = = =
36,159 31,727 30,899 22,612 21,782 18,066 17,077
MAINTAINS FOURSQUARe BRAND PAGe NeW YORK CITY SAN FRANCISCO INTeRNATIONAL
62,417
48,827
7,080
le s W es an tin d H Re ot so els r ts
om
Av en ue
ys
Yo rk
17. Marketing via Geosocial Apps: Why and How, Melissa Parrish, Forrester Research, December 6, 2011.
er ide
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Se
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rd
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en
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26
Mobile IQ
Key Findings
Searching On The Go
Fourteen 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
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.
A v e r A G e G LO B A L M O n T H LY S e A r C H e S F O r P r e S T I G e 1 0 0 B r A n D S Desktop/Laptop vs. nOn-PC Devices (Source: Google AdWords, November 2011)
= =
NON-PC DevICe DeSKTOP/LAPTOP
14%
86%
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.
17% of Avedas Global Monthly Searches originate from mobile devices, which the brand capitalizes on with mobile-specific SEO.
First curated result features links to the location finder and account access
Locations map from the organic results
Sponsored ad links to mobile site L2 2012 L2ThinkTank.com
27
Mobile IQ
Key Findings
Cross-Promotion
Mobile 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 mobilerelated properties.
SITe-SPeCIFIC PrOMOTIOn OF SOCIAL MeDIA eFFOrTS vS. MOBILe eFFOrTS (December 2011, N=70)
82% 66% 39%
28%
Promotion of mobile apps on Sephoras homepage
Mobile Apps
28
Mobile IQ
Flash of Genius
Augmented reality Goes Mainstream
In 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 crossplatform campaign was optimized for iOS, Android, and Symbian devices.
reveal, Find, Watch Locked Content Print Augmented reality Ads
Billboard Augmented reality Ads
29
Mobile IQ
Flash of Genius
Mobile Pick Me Up
In 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 instore 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
30
Mobile IQ
Flash of Genius
Mirror, Mirror on the Device
Virtual 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-fivepoint 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
Shopping list of products used to create unique looks Before/After comparison L2 2012 L2ThinkTank.com
31
Mobile IQ
Flash of Genius
Mobile as Media Platform
Since 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.
Intuitive navigation, bookmarking, and social sharing APIs Watch International e-mag (issued quarterly)
Select product promotion tied to themes explored in each issue
32
Mobile IQ
Flash of Genius
Multiplatform
Brands 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
Interactive map with which to plan travel itinerary Insider Tips pertaining to destination Introduction to resident Concierge with push to reservation system Discovery of 100+ properties
21. Karen Jacobs, InterContinental sees mobile bookings sales rising, Reuters, December 21, 2011.
33
Mobile IQ
Flash of Genius
See the French Sites
French 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.
Includes customer service, Facebook Like API, and links to social media LOccitanes simple but highly functional mobile homepage
robust gift-generating toolintroduced for the holiday 2011 season
34
Mobile IQ
ferragamo.com main site with Flash elements
Flash of Genius
Tablet rasa
The 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 scrollthrough slideshow of related items on the bottom of each product page.
Ferragamos iPad-specific experience replicates main site functionality
22. Terrence OBrien, iPad accounts for 97 percent of U.S. tablet traffic online, engadget, June 24, 2011. 23. Kayla Hutzler, Ferragamo misses the mark with mobile New York Times ads, Luxury Daily, September 26, 2011.
35
Mobile IQ
Flash of Genius
Wipe Away Your Weather
The 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
24. Press Release, Gartner Says Worldwide Mobile Advertising Revenue Forecast to Reach $3.3 Billion in 2011, Gartner, June 16, 2011. 25. emily Steel & Jessica vascellaro, A Rare Apple Compromise, Wall Street Journal, December 13, 2011. 26. Rimma Kats, Westin Hotels & Resorts bolsters mobile bookings via TWC iPad Sponsorship, Mobile Commerce Daily, October 24, 2011.
Westins Wipe Away Your Weather Campaign
or snow), then encouraged users to Wipe Away Your Weather to reveal appealing Westin getaways.
Weather Channels redesigned iPad App L2 2012 L2ThinkTank.com
36
Mobile IQ
Flash of Genius
Shoes About Town
Bergdorf 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.
new and improved iPhone app launched August 30, 2011
Blog post announcing app upgrade
Shoes About Town powered by Instagram launched September 12, 2011
37
Mobile IQ
TeAM
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 professionals 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 accomplishments 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 of experience working at the nexus of the public and private sectors. Serving as a principal at the Civitas Group in Washington, D.C., he helped lead research, advisory, and due-diligence engagements for a range of clients spanning technology start-ups, defense contractors, and government agencies and specialized in matters pertaining to cloud computing, cybersecurity, and online privacy. Colin received a B.A. in History from Stanford University and an M.P .A. from the London School of Economics. While completing his graduate studies abroad, he worked with Accenture to construct case material used to demonstrate the versatility of 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 University and an M.B.A. from NYU Stern. JOn WeInBerG L2 Jon Weinberg began his career as a strategist and copywriter at The Moderns, a boutique Manhattan-based branding consultancy, where he worked with clients ranging from start-ups to Fortune 1000 corporations. While there, he managed digital strategy for both the firm and its clients. Jon received an A.B. in Government with a secondary in Near Eastern Language and Civilizations from Harvard University, where he served as an associate editor 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, iconography, 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. markets across multiple design disciplines and in multiple languages. Aaron has a B.F.A. in Graphic Design from Iowa State University.
38
UPcOMINg EVENTS
L2 Clinic Mobile
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.
01.19.12 new York City 01.24.12 Paris
L2 Lunch Identifying Facebook Super Fans rES E a r cH

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.
02.23.12 new York City
L2 Clinic Mobile in APAC 03.02.12 Shanghai
EVENT S
Forums: Big-picture thinking and game-changing innovations meet education and entertainment. The largest gatherings of prestige executives in North America.
L2 Lunch Google+ vs. Facebook 03.06.12 Paris
300+ attendees
Clinics: Executive education in a classroom setting with a balance of theory, tactics, and case studies.
120 180 attendees

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L2 Research Mobile IQ 2012

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L2 Research Mobile IQ 2012

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January 11, 2012

SCOTT GALLOWAY NYU Stern

January 19, 2012 nYU Stern

January 24, 2012 Palais Brongniart

SCOTT GALLOWAY Founder, L2

SCOTT GALLOWAY Founder, L2

Digital Omnivores: Key Insights Into Todays Connected Consumer

The Mobile Landscape in europe

Mobile is Dead, Long Live Mobile

evolving Strategy for Creative execution in Mobile

The Game Changer on the Path to Purchase

retail Forever Transformed

Case Studies & Best Practices in Prestige Mobile

Module 2: evolving Strategy for Creative execution in Mobile

HTML5: Going Web vs. Going App

Module 2: The Google Mobile Platform

rOBBIe DOUeK Head of Mobile Sales & Operations, Google France

Lessons from The Collection

MAUreen MULLen & COLIn GILBerT Research & Advisory, L2

Influencing Real Life Networks

Hugo Boss: A Case Study

Insights from Prestige 100: Mobile IQ

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

End of the Beginning

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

PreSTIGe 100 MOBILe InveSTMenTS (December 2011)

Mobile IQ = Innovations Canary in the Coal Mine

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

Founder, L2 Clinical Professor of Marketing, NYU Stern

2010 L2 2012 L2ThinkTank.com

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

APP STORe PeRFORMANCe:

InnOvATIOn & InTeGrATIOn:

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

Beauty & Skincare

Watches & Jewelry

135 133 133 125 119 115 113 112 111

Gifted Gifted Gifted Gifted Gifted Gifted Gifted Gifted Gifted

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

Beauty & Skincare

Watches & Jewelry

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

Beauty & Skincare

Watches & Jewelry

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

Beauty & Skincare

Watches & Jewelry

LvMH este Lauder Companies, Inc. LOral Group

Hilton Worldwide LOral Group

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

Beauty & Skincare

Watches & Jewelry

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

Beauty & Skincare

Watches & Jewelry

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

Beauty & Skincare

Watches & Jewelry

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

Beauty & Skincare

Watches & Jewelry

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

% of Brands per Mobile IQ Class