This document discusses how digital technology is changing luxury brands and the customer experience. Some key points made are: - Wealthy consumers are more likely to make luxury purchases online than visit stores in person. They also use the internet to research brands and products. - Luxury buyers are tech-savvy and visit websites like Google and Yahoo first for information. - Luxury is now defined more by the quality of customer service than just expensive products. Brands need to focus on interactive and client-centric digital experiences that emphasize services, address customer needs, and reward loyalty. Providing insider access and fulfilling the ownership experience online are also important in the digital age of luxury.

1. Premium brands in the age of digital :
What are the e-luxury codes ?
ESCP EAP – February 25th, 2008

2. NURUN IN BRIEF
Founded in 1985, Nurun is a global interactive services company
that specializes in interactive marketing and information
technology.
Present in Canada, in the U.S., in Europe (France, Italy, Spain) and
Asia (China).
Owned by Quebecor, 5th worldwide communication group ($10
billions revenue).
Some of our references in the Premium / Luxury sector : Louis
Vuitton, Sofitel, Clarins, J.M. Weston, Sonia Rykiel, Kérastase,
Giorgio Armani Parfums, Nina Ricci, Lancaster, Comptoir des
Cotonniers…

3. I. FACTS THAT ARE
ROCKING OLD SCHOOL
CONCEPTIONS OF LUXURY

4. 1. The richer you get,
the less likely you'll set foot in a store

5. 93% of individuals worth $10 million or more
made online luxury purchases within the past 12
months, vs. 55% of all wealthy consumers
Source : Luxury Institute, July 2006

6. 2. Luxury buyers are tech-savvy
–in the smart sense

7. For luxury goods,
nearly 80% of
consumers turn first
to the Internet to
learn about
companies and the
products they sell
Source : Luxury Institute,
July 2006

8. 3. But they're also full of great
common sense

9. Google and Yahoo! are the top sites visited by the
wealthy in the US
Source : Market Wire, March 2007

10. 4. Luxury doesn't just mean
an expensive purchase

11. 70% of luxury buyers
consider that a luxurious
experience is made by the
quality of service
70% of luxury buyers
consider that a luxurious
experience is made by the
quality of service
Source : « The Global Luxury Market » ,Conference Board, 2007

12. 5. It doesn't matter where you got it
–and online luxury isn't 'dirty'

13. Gucci.com is one of the company's fastest growing segments, with sales up 65 percent
in 2006 from the prior year *
* CNN Money, June 2007

14. 6. Luxury brands no longer hiding online

15. Source : TNS Media Intelligence, 2005 advertising investments

16. DIGITAL
DEFINITELY
CHANGING THE FACE
OF LUXURY

17. "What's exclusivity on a widely accessible
media?"
Luxury is
increasingly
becoming a
market
positioning
Internet
makes products
available
anytime and
anywhere to
anyone

18. " How do you meet creative and service
expectations when mass does it better online?"
Creative domination : immersive, demonstrative and spectacular settings
Initiated by online mass retailers, thoughtful services target specific user needs

19. "How do you create a sales ritual if there's no
sales rep?"
Product
scenography
lives up to the
online
challenge
Yet sales
rituals remain
below the real
thing

20. LUXURY SHIFTING
TO INTERACTIVE,
CLIENT-CENTRIC
AND EFFECTIVE

21. Link immersive experience to product discovery
http://www.sofitel.com

22. Root luxury legitimacy in excellence and legend
http://jmweston.com/

23. Emphasize services valuing the brand expertise
http://www.zegna.com/

24. Target and address specific customer enquiries
http://shop.nordstrom.com

25. Facilitate contact with brand experts
1 2
http://www.reddoorspas.com/

26. Fulfill client satisfaction through ownership
http://www.20ltd.com/

27. Reward purchase with insider status
http://beauty.dior.com/

28. Online users do
come to luxury
websites for a
reason
Benefit of use, offer or
service is what will drive them
to a website, and motivate
revisit
Demanding customers and
a strong competitive
environment justify a realistic
customer-centric approach of
those benefits

29. Thank you.
Taline MOURADIAN
Strategic Planning Director, NURUN France
taline.mouradian@fr.nurun.com