Mobile IQ

L2 2012 L2ThinkTank.com
January 11, 2012
SCOTT GALLOWAY
NYU Stern
reGISTer nOW
Mobile
CLInIC
Welcome
SCOTT GALLOWAY Founder, L2
Digital Omnivores: Key Insights Into Todays
Connected Consumer
MArK DOnOvAn SVP Mobile, comScore, Inc.
Mobile is Dead, Long Live Mobile
AnDY WeISSMAn Partner, Union Square ventures
The Game Changer on the Path to Purchase
JereMY ArnOn Strategic Partner Development, Google
Q&A Session

evolving Strategy for Creative execution in Mobile
nUrI DJAvIT Partner & CEO, Last exit
HTML5: Going Web vs. Going App
JASOn BAPTISTe Cofounder & CEO, OnSwipe
Lessons from The Collection
MZ GOODMAn & SIMOne OLIver new York Times
Inuencing ReaI Life Networks
TAnUJ PArIKH Business Development Manager, GroupMe
Insights from Prestige 100

: Mobile IQ
MAUreen MULLen & COLIn GILBerT Research & Advisory, L2
Q&A Session
Welcome
SCOTT GALLOWAY Founder, L2
The Mobile Landscape in europe
JereMY COPP VP, Mobile, Europe, comScore, Inc.
evolving Strategy for Creative execution in Mobile
KenT vALenTIne Engagement Director, Last exit
retail Forever Transformed
CHUCK GOLDMAn Chiej Strcte Djjcer, Apperian, Inc.
Case Studies & Best Practices in Prestige Mobile
PATrICK SArKISSIAn CEO & Founder, Sarkissian Mason
Q&A Session

The Google Mobile Platform
rOBBIe DOUeK Head of Mobile Sales & Operations, Google France
L2 Mobile research
MAUreen MULLen & COLIn GILBerT Research & Advisory, L2
Hugo Boss: A Case Study
MArKUS ALLer Teamleader, Online Media, Hugo Boss
JOACHIM BADer Managing Director, CLAnMO GmbH
Q&A Session
nYC Paris
January 19, 2012 nYU Stern January 24, 2012 Palais Brongniart
reGISTer nOW
Module 1: Module 1:
Module 2:
Module 2:
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Mobile IQ
In the fourth quarter of 2010, more smartphones
were shipped than PCs for the rst 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 fve years,
m-commerce sales are set to quintuple.
3
On the years biggest
shopp|ng day, B|ack Fr|day, on||ne reta|| trafc rom mob||e
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.
lt now |ooks as | we are |n the 1edg||ng |nn|ngs o a mobile era.
Game Changer
The introduction of the iPad in April 2010 has escalat-
ed the mobile opportunity. Tablets register e-commerce
convers|on rates o our to fve 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

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 deve|oped a d|st|nct, |Pad-spec|fc exper|ence.
M-Commerce
We believe the game will be won or lost via develop-
ment 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 commerce-
enabled. Furthermore, use of such marketing tactics as mobile-
optimized search marketing, cross-platform mobile promotion,
and mobile display advertising is scant.
Mobile:
End of the Beginning
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.
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SCOTT GALLOWAY
Founder, L2
Clinical Professor of Marketing, NYU Stern
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 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

strengths and weaknesses and help managers achieve
greater return on incremental investment.
Like the platforms we are assessing, our methodology is
dynamic, and we hope you will reach out to us with comments
that |mprove our |nvest|gat|on and fnd|ngs. You can reach
me at scott@stern.nyu.edu.
Regards,
52%
Both
70%
Mobile App
66%
Mobile-
Optimized
Site
16%
Neither
PreSTI Ge 100

MOBI Le I nveSTMenTS
(December 2011)
2010 2011 2012 2013 2014 2015 2016
3
6
10
14
19
25
31
B
I
L
L
I
O
N
S

O
F

D
O
L
L
A
R
S
MOBI Le COMMerCe SALeS FOreCAST 20102016
United States
(Source: Forrester, June 2011)
cagr: 39%
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Methodology
MOBILe SITeS:
MOBILe-OPTIMIzeD SITeS:
Technology
navigation & Search
Social Media Integration
Customer Service
Product Page
Account & Check-Out
MOBILe APPLICATIOnS:
AvAILABILITY:
iOS (iPad Differentiation)
Android
Blackberry
Windows Phone Series 7
Symbian
MOBILe MArKeTInG:
Mobile SeO on Google & Bing
email: Mobile Compatibility & Cross-Promotion of Mobile Properties
SMS: Sign-Up & Activity
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.
30%
15%
40%
15%
Mobile IQ Classes
IQ Range Class
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.
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).
7089 CHALLenGeD
L|m|ted mob||e |nvestment re1ects
low prioritization relative to other
digital efforts.
<70 FeeBLe
Investment does not match
opportunity.
APP STORe PeRFORMANCe:
ratings
Comments
Update Frequency
Language Support
FUNCTIONALITY:
navigation
Pathway to Purchase
Personalization
Phone Feature Utilization
TABLeT exPeRIeNCe:
Compatibility
Ability to Transact
HTML5 Support
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Mobile IQ
Brand
ranking
rank Brand category Parent Mobile IQ class Description
1 SEPHOra Retail LvMH 164 Genius Long-standing, sustained, iterative investment in mobile pays off
2 NOrDSTrOM Retail Nordstrom, Inc. 156 Genius
New mob||e app |eaprogs peer eorts w|th frm ||nk between |n-app and
in-store experience
3 MacYS Retail Macys, Inc. 155 Genius
Active SMS program and Xmas app experience add unique elements to strong
mobile portfolio
4 NET-a-POrTEr Retail
Compagnie Financire
Richemont S.A.
143 Genius
Unique apps for local promotions, store exclusives, and spinoffs complement
strong mobile site
5 BLOOMINgDaLES Retail Macys, Inc. 135 Gifted Engaging, offer-centric mobile site overshadows generic iPad catalog app
6
LOccITaNE EN
PrOVENcE
Beauty & Skincare
LOccitane
International S.A.
133 Gifted Both mobile app and site feature weak aesthetics, but excel in functionality
6 TIFFaNY & cO. Watches & Jewelry Tiffany & Co. 133 Gifted What Makes Love True mobile app demonstrates strong geolocal aptitude
8 NEIMaN MarcUS Retail Neiman Marcus Group 125 Gifted
Differentiated app approach on iPhone (Gifts) vs. iPad (Catalog) works
to its advantage
9
INTErcONTINENTaL
HOTELS & rESOrTS*
Hospitality
InterContinental
Hotels Group plc
119 Gifted
Presence across our o the fve mob||e app p|atorms, "Conc|erge lns|der
Guides iPad app provides unparalleled local insights for 100+ global properties
10 ESTE LaUDEr Beauty & Skincare
este Lauder
Companies, Inc.
115 Gifted
Illumination iAd campaign and high-functioning mobile site compensate for
one-dimensional apps
11 aVEDa Beauty & Skincare
este Lauder
Companies, Inc.
113 Gifted
New My Style app invites users to upload personal hairstyle while mobile site
provides exclusive offers for mobile customers
12 raLPH LaUrEN Fashion
Ralph Lauren
Corporation
112 Gifted
Digital innovator demonstrates balanced investment across mobile app, mobile
site, tablet experience, and mobile advertising
13 SaKS FIFTH aVENUE Retail Saks, Inc. 111 Gifted Strong iPad catalog app compensates for low-impact mobile site
retail Beauty &
Skincare
Watches
& Jewelry
Hospitality Fashion
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Brand
ranking
rank Brand category Parent Mobile IQ class Description
13 YVES SaINT LaUrENT Fashion Gucci Group (PPR) 111 Gifted New mobile site brings fashion label in sync with advanced, beauty-centric apps
15 DaVID YUrMaN Watches & Jewelry David Yurman, Inc. 104 Average Mobile site launched in November is a welcome replacement for aging iPhone app
16
DIaNE VON
FUrSTENBErg
Fashion Diane von Furstenberg 102 Average
M-commerce does not carry over rom s|te to app, |nstead promotes exc|us|ves ||ke
Signature Skin iPhone covers, the App Wrap dress, and DVF-endorsed music
17 ErMENEgILDO ZEgNa Fashion
ermenegildo zegna
Holditalia S.p.A.
101 Average
Singular focus on iPad virtual store, which is consistently promoted across all
digital properties
17
MaNDarIN OrIENTaL
HOTEL grOUP
Hospitality
Jardine Matheson
Group
101 Average
Cities by MO provides expansion content for MOHotels app depending on
users destination or interest
17 rITZ-carLTON* Hospitality
Marriott International,
Inc.
101 Average
Simple, streamlined mobile site and World Concierge campaign on Foursquare
compensate for disappointing apps
20
FOUr SEaSONS HOTELS
aND rESOrTS
Hospitality
Four Seasons
Hotels, Inc.
100 Average Industry leader in Foursquare followers, with tips for 83 properties
20 gUccI Fashion Gucci Group (PPR) 100 Average
Sophisticated, technologically advanced Gucci Style app immerses user in
brand-curated content that extends well beyond the clothes
22 BUrBErrY Fashion Burberry Group plc 99 Average
Second highest-scoring mobile site in Fashion enables brand to compete without
investing in apps
22 cLINIQUE Beauty & Skincare
este Lauder
Companies, Inc.
99 Average
Early adopter of in-store iPad kiosks and one of only three beauty brands with an
active SMS campaign
22 JW MarrIOTT* Hospitality
Marriott International,
Inc.
99 Average
Universal Marriott International app allows booking at JW properties and
provides external links to strong mobile web assets
25 ParK HYaTT* Hospitality
Hyatt Hotels
Corporation
98 Average
Cross-brand "Hyatt" app a||ows book|ng at Park Hyatt hote|s, parent's mob||e s|te
provides extensive photo galleries of Park Hyatt properties
26 cLarINS Beauty & Skincare Clarins S.A. 94 Average
Strong search e|ements on mob||e s|te, ragrance re|ease (Th|erry Mug|er Ange|)
proves a fan favorite in the app store
retail Beauty &
Skincare
Watches
& Jewelry
Hospitality Fashion
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Brand
ranking
rank Brand category Parent Mobile IQ class Description
26 gIOrgIO arMaNI Fashion Giorgio Armani S.p.A. 94 Average
Touch-enabled mobile site compensates for unfocused, fragrance-centric app
store offering
26 OMNI HOTELS & rESOrTS Hospitality TRT Holdings 94 Average Mobile app and site do little to go beyond the basics
29 TOrY BUrcH Fashion Tory Burch LLC 92 Average Mob||e store fnder eatures Foursquare |ntegrat|on, no apps
30 BErgDOrF gOODMaN Retail Neiman Marcus Group 91 Average
Shoe Salon app and Foursquare Mayor specials prevent brand from falling too
far behind fellow retailers in absence of mobile site
31 cOacH Fashion Coach, Inc. 90 Average
Mobile users greeted with in-store signage that unlocks exclusive information on
Kristin collection
31 SOFITEL* Hospitality Accor 90 Average
Leverages Accor Hotels app and parents mobile site to its advantage, but
these assets d||ute Softe| brand
33 cHaNEL Fashion Chanel S.A. 89 Challenged
Fashion and accessories elements of mobile site still prove inaccessible, forcing
strict reliance on apps
33
cONraD HOTELS
& rESOrTS*
Hospitality Hilton Worldwide 89 Challenged
Unique app development for Conrad brand that proves interoperable with Hilton
Honors account
33 DOLcE & gaBBaNa Fashion
Dolce & Gabbana
Industria S.p.A.
89 Challenged
Fashion Channel replicated across both mobile site and apps, but stops short
of m-commerce
36 OrIgINS Beauty & Skincare
este Lauder
Companies, Inc.
88 Challenged
Mobile site features extensive user reviews of products but provides no way to
submit ones own opinions on the go
37 carTIEr Watches & Jewelry
Compagnie Financire
Richemont S.A.
87 Challenged
Multiple iPad apps and strong universal Cartier Bridal app, but mobile shopping
experience leads to Call an Advisor
37
FaIrMONT HOTELS
& rESOrTS
Hospitality
la||moul Ralhes
Hotels International
87 Challenged
Presidents Club participation allows guests to share stories, with user photos
appear|ng a|ongs|de ofc|a| property |mages
39 caLVIN KLEIN Fashion PvH Corporation 86 Challenged
CK One augmented rea||ty exper|ence ava||ab|e on three o the fve mob||e
platforms assessed
retail Beauty &
Skincare
Watches
& Jewelry
Hospitality Fashion
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Brand
ranking
rank Brand category Parent Mobile IQ class Description
40
WESTIN HOTELS
& rESOrTS*
Hospitality
Starwood Hotels &
Resorts Worldwide, Inc.
85 Challenged
lnnovat|ve ad campa|gn |n Weather Channe| |Pad app takeover, e|ght property-spec|fc
apps with limited functionality undercut superior utility of SPG cross-brand app
41 LOUIS VUITTON Fashion LvMH 84 Challenged
Innovative tie-in between Amble app and Foursquare does not save dead-end
mobile site experience
41 Mac cOSMETIcS Beauty & Skincare
este Lauder
Companies, Inc.
84 Challenged
Strong v|deo content and MAC Art|st prof|es on|y ex|st on mob||e s|te, not the
app store
43 LaNcME Beauty & Skincare LOral Group 82 Challenged
Advanced user-generated content element of mobile apps only partially
compensate for lack of mobile site
43 ST. rEgIS* Hospitality
Starwood Hotels &
Resorts Worldwide, Inc.
82 Challenged
E-But|er app prov|des guest-spec|fc unct|ona||ty that goes beyond the bas|c
guest services book
43 WaLDOrF aSTOrIa* Hospitality Hilton Worldwide 82 Challenged
Brochure-ware app mitigated by functional mobile site leveraging Hilton
Honors system
46 KIEHLS Beauty & Skincare LOral Group 81 Challenged
Clean mobile site navigation provides outlet for browsing but not buying
(Call to Order)
46 LE MrIDIEN* Hospitality
Starwood Hotels &
Resorts Worldwide, Inc.
81 Challenged
Heavy re||ance on "SPG" app or mob||e book|ngs, property-spec|fc app ||m|ted
to Dubai
48 BarE EScENTUaLS Beauty & Skincare
Shiseido Company,
Limited
80 Challenged
Be a Force of Beauty campaign incorporated QR codes tied to models bio,
look, and associated beauty products
49 raYMOND WEIL Watches & Jewelry Raymond Weil S.A. 79 Challenged December |aunch o ofc|a| app rounds out mob||e |nvestment
50 aUDEMarS PIgUET Watches & Jewelry
Audemars Piguet
Holding S.A.
76 Challenged
Comprehensive promotion of mobile footprint on site as brand extends app
experience to Android
50 rELaIS & cHTEaUX Hospitality n/a - Global Fellowship 76 Challenged
App Guides provide novel path to property discovery, but R&C remains the only
hospitality brand without a mobile site
50
SHaNgrI-La HOTELS
aND rESOrTS
Hospitality
Shangri-La Asia
Limited
76 Challenged
Tokyo and Man||a property apps do not extend to w|der resort porto||o, mob||e
site allows for limited property exploration
retail Beauty &
Skincare
Watches
& Jewelry
Hospitality Fashion
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Brand
ranking
rank Brand category Parent Mobile IQ class Description
53 HUgO BOSS Fashion
valentino Fashion
Group S.p.A.
75 Challenged
Site and apps still lack m-commerce, but do include innovative features like color
matching via camera image
53 JaEgEr-LEcOULTrE Watches & Jewelry
Compagnie Financire
Richemont S.A.
75 Challenged
My Reverso app provides user the freedom to visualize custom engraving
before reaching out to a concierge
55 SWarOVSKI Watches & Jewelry Swarovski AG 73 Challenged
SCVNGR hunt in London demonstrates willingness to experiment beyond the
app store
56 JUMEIraH Hospitality Jumeirah Group 71 Challenged
Em|rates Towers property c|a|ms so|e app, |Pad deau|ts to mob||e s|te des|gned
for smaller screen
57 MOrgaNS HOTEL grOUP Hospitality Morgans Hotel Group 69 Feeble
Sect|ons o mob||e s|te (C|ty Gu|des) revert back to ma|n s|te, |Pad deau|ts to
mobile optimized site designed for a smaller screen
58 PHILOSOPHY Beauty & Skincare Coty Inc. 68 Feeble Strong g|t fnder and nav|gat|on f|ters d|erent|ates mob||e s|te
58 VaLENTINO Fashion
valentino Fashion
Group S.p.A.
68 Feeble
Encyclopedic iPad app lacks personalized features, but mobile-optimized
shopping portal hints of progress
60 OMEga Watches & Jewelry The Swatch Group, Ltd. 66 Feeble Parallel mobile app/site designs feature comprehensive search tools
61 SMaSHBOX Beauty & Skincare
este Lauder
Companies, Inc.
65 Feeble
Innovative product QR codes direct users to video tutorial by makeup artist Lori
Tay|or, recent|y opt|m|zed ema|| market|ng or mob||e screens
61 VaN cLEEF & arPELS Watches & Jewelry
Compagnie Financire
Richemont S.A.
65 Feeble
Mobile placeholder site offers access to catalog and store locator, circumventing
1ash-heavy s|te
63 HUBLOT Watches & Jewelry LvMH 64 Feeble
360-degree product views, augmented reality features, and video content in app
do not distract from aging mobile site
63
rOSEWOOD HOTELS
& rESOrTS
Hospitality New World Hospitality 64 Feeble One of only two hospitality brands without an app store presence
65 BULgarI Watches & Jewelry LvMH 61 Feeble
Brand rep||cates a|| product-spec|fc apps across |Phone and |Pad w|thout
custom|zat|on, "Bu|gar| Touch" s|te |acks m-commerce
retail Beauty &
Skincare
Watches
& Jewelry
Hospitality Fashion
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Brand
ranking
rank Brand category Parent Mobile IQ class Description
66 BENEFIT cOSMETIcS Beauty & Skincare LvMH 59 Feeble
August test of in-store iPad kiosks demonstrates increasing innovation in mobile
space beyond HTML5 site
67 THE PENINSULa HOTELS Hospitality
Hongkong and Shanghai
Hotels, Limited
58 Feeble
Mobile site requires guest to call or email reservations desk, forcing reliance on
buggy app
67 rOLEX Watches & Jewelry Rolex Holding S.A. 58 Feeble
Strong demand for third-party reference apps demonstrates (missed) opportunity
beyond mobile site and tablet e-magazine
69 BarNEYS NEW YOrK Retail Istithmar PJSC 57 Feeble
Pema|ns the on|y reta||er |n the lndex to shy away rom the app store, no |onger
redirecting to mobile site
69 MONTBLaNc Watches & Jewelry
Compagnie Financire
Richemont S.A.
57 Feeble
Strong app presence and product spec|fc-promot|ons do not compensate or
lack of a mobile site
71 cHOParD Watches & Jewelry Chopard Holding S.A. 56 Feeble
App presence ocused exc|us|ve|y on "Happy D|amonds" co||ect|on, mob||e s|te
features simple photo gallery
72 HarrY WINSTON Watches & Jewelry Harry Winston, Inc. 52 Feeble
"Harry W|nston T|mep|eces" app has ||m|ted unct|ona||ty, HTML5 enab|es so||d
tablet experience
73 ELIZaBETH arDEN Beauty & Skincare elizabeth Arden 51 Feeble Mobile site for Prevage line of skincare products only
74 TODS Fashion Tods S.p.A. 50 Feeble
Limited mobile site and heavily promoted iPad apps are all about presentation,
not functionality
75 aLFrED DUNHILL Fashion
Compagnie Financire
Richemont S.A.
49 Feeble E-magazine iPad app tests mobile aptitude by mirroring Day 8 microsite
76 SHISEIDO Beauty & Skincare
Shiseido Company,
Limited
48 Feeble App store experience caters exclusively to Chinese market
77 BOBBI BrOWN Beauty & Skincare
este Lauder
Companies, Inc.
47 Feeble
Mobile-friendly email marketing demonstrates awareness of mobile consumers,
despite the lack of mobile apps/site
77 DE BEErS Watches & Jewelry LvMH 47 Feeble Lack of a mobile site and apps partially offset by move to HTML5
retail Beauty &
Skincare
Watches
& Jewelry
Hospitality Fashion
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Brand
ranking
rank Brand category Parent Mobile IQ class Description
79 IWc ScHaFFHaUSEN Watches & Jewelry
Compagnie Financire
Richemont S.A.
44 Feeble Best-in-class quarterly e-magazine content does not include comments/ratings
79 Marc JacOBS Fashion LvMH 44 Feeble
Popularity on Foursquare compensates for continuing lack of
mobile apps/site
79 PaNDOra Watches & Jewelry Pandora A/S 44 Feeble
Mob||e app w|th updatab|e cata|og and g|t fnder make up or the absence
of mobile site
82 cHLO Fashion
Compagnie Financire
Richemont S.A.
43 Feeble Mob||e s|te prov|des |ook book, but no m-commerce unct|ona||ty, no apps
83 VErSacE Fashion Gianni versace S.p.A 40 Feeble Lack of a mobile site and apps partially offset by move to HTML5
84 BOTTEga VENETa Fashion Gucci Group (PPR) 39 Feeble
Catalogs featured on main site require Flash player, but email marketing
is mobile friendly
84 NarS Beauty & Skincare
Shiseido Company,
Limited
39 Feeble
Full HTML5 site provides a strong asset from which to build a
mob||e-spec|fc exper|ence
84 Tag HEUEr Watches & Jewelry LvMH 39 Feeble
Mob||e s|te |s re|egated to |n-s|te map, mu|t|p|e apps pu||ed rom |Tunes store
during study period
87 cHrISTIaN DIOr Fashion
Christian Dior S.A.
| LvMH
37 Feeble
App presence only partially compensates for frustrating mobile
browsing experience
88 PraDa Fashion Prada Group 35 Feeble Site browsing experience proves untenable on mobile device
89 VacHErON cONSTaNTIN Watches & Jewelry
Compagnie Financire
Richemont S.A.
34 Feeble Snow Golf makes for a poor outing in an industry obsessed with apps
90 SK-II Beauty & Skincare Procter & Gamble 32 Feeble
F|ash a|| on s|te, meanwh||e, app store presence caters exc|us|ve|y
to Korean market
91 FENDI Fashion LvMH 31 Feeble Aging mobile site resembles brochure-ware
retail Beauty &
Skincare
Watches
& Jewelry
Hospitality Fashion
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Brand
ranking
rank Brand category Parent Mobile IQ class Description
92 SaLVaTOrE FErragaMO Fashion
Salvatore Ferragamo
S.p.A.
29 Feeble Seamless tablet experience has yet to migrate to the phone
93 PIagET Watches & Jewelry
Compagnie Financire
Richemont S.A.
28 Feeble
The brand's two product-spec|fc apps have not been updated s|nce August 2009
and August 2010, respectively
94 HErMS Fashion The Herms Group 26 Feeble No app, no mobile site
95 aLEXaNDEr McQUEEN Fashion Gucci Group (PPR) 25 Feeble Flash fail on homepage, but online store functions
96 BaLENcIaga Fashion Gucci Group (PPR) 24 Feeble Whatever you do, dont pinch and zoom
97 OScar DE La rENTa Fashion
Oscar de la Renta,
Limited
22 Feeble Flash fail exacerbates lack of mobile site/apps
98 BaccaraT Watches & Jewelry Baccarat Crystal 17 Feeble F|ash a||, re||es on Ne|man Marcus to ac|||tate m-commerce
99 MOVaDO Watches & Jewelry Movado Group, Inc 13 Feeble Site browsing experience proves untenable on mobile device
100 PaTEK PHILIPPE Watches & Jewelry Patek Philippe S.A. 8 Feeble Please Note: the next generation doesnt use Flash
retail Beauty &
Skincare
Watches
& Jewelry
Hospitality Fashion
*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
L2 2012 L2ThinkTank.com 14
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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.
Key
Findings
MOBI Le I Q DI STrI BUTI On
% of Brands per Mobile IQ Class
MOBILE IQ
<70
David Yurman
Diane von
Furstenberg
ermenegildo zegna
Mandarin Oriental
Ritz-Carlton
Four Seasons Hotels
& Resorts
Gucci
Burberry
Clinique
JW Marriott
Park Hyatt
Clarins
Giorgio Armani
Omni Hotels
& Resorts
Tory Burch
Bergdorf Goodman
Coach
Sohle|
MOBILE IQ
90109
MOBILE IQ
>140
Sephora
Nordstrom
Macys
NeT-A-PORTeR
MOBILE IQ
110139
Bloomingdales
LOccitane en Provence
Tiffany & Co.
Neiman Marcus
InterContinental Hotels & Resorts
este Lauder
Aveda
Ralph Lauren
Saks Fifth Avenue
Yves Saint Laurent
gIFTED
MOBILE IQ
7089
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
Morgans Hotel Group
Philosophy
valentino
Omega
Smashbox
van Cleef & Arpels
Hublot
Rosewood Hotels
& Resorts
Bulgari
Beuehl
The Peninsula Hotels
Rolex
Barneys New York
Montblanc
Chopard
Harry Winston
elizabeth Arden
Tods
Alfred Dunhill
Shiseido
Bobbi Brown
De Beers
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
aVEragE
cHaLLENgED
FEEBLE
gENIUS
10%
4%
23%
19%
44%
L2 2012 L2ThinkTank.com 15
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In the Company of Genius:
Sephora
Key
Findings
15
While there are four Genius brands in the
Prestige 100

, Sephora exists in a class

of its own.
The brands mobile site feature product videos
organ|zed by content type and f|terab|e by
brand. Other key features include a GPS-based
store locator, shopping list creator, order
history/tracking, and a section for mobile-
exclusive 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
Homepage
iPhone App Try It On Tool
iPad App Home Screen
Mobile Site
Product ratings
Mobile Site
video Library
L2 2012 L2ThinkTank.com 16
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Mind the Gap
A|though each o the fve |ndustr|es rev|ewed
contributes at least two brands to the top 20 of
the Index, retail stands apart. Of the 14 brands
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 frst to act|ve|y |nvest |n mob||e
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.
Key
Findings
180
140
110
90
70
0
R
e
t
a
il
n
=
9
H
o
s
p
it
a
lit
y
n
=
2
0
F
a
s
h
io
n
n
=
2
9
W
a
t
c
h
e
s
&
J
e
w
e
lr
y
n
=
2
4
B
e
a
u
t
y
&
S
k
in
c
a
r
e
n
=
1
8
AVG I Q
126
Disparity
107
AVG I Q
86
Disparity
62
AVG I Q
77
Disparity
101
AVG I Q
65
Disparity
90
AVG I Q
58
Disparity
125
G
e
n
i
u
s
F
e
e
b
l
e
C
h
a
l
l
e
n
g
e
d
A
v
e
r
a
g
e
G
i
f
t
e
d
MOBI Le I Q DI STrI BUTI On BY I nDUSTrY
(December 2011)
retail Beauty &
Skincare
Watches
& Jewelry
Hospitality Fashion
L2 2012 L2ThinkTank.com 17
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Good Genes
ln ||ne w|th our |ndustry-spec|fc observat|ons,
parent companies with a portfolio in retail or
hospitality typically perform above average in
terms of Mobile IQ.
O the |arger and more d|vers|fed 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.
Key
Findings
180
140
110
90
70
10
M
a
c
y
s
I
n
c
.
n
=
2
N
e
im
a
n
M
a
r
c
u
s
G
r
o
u
p
n
=
2
V
a
le
n
t
in
o
F
a
s
h
io
n
G
r
o
u
p
S
.p
.A
.
n
=
2
L
V
M
H
n
=
9
C
o
m
p
a
g
n
ie
F
in
a
n
c
i
r
e
R
ic
h
e
m
o
n
t
S
.A
.
n
=
1
0
G
u
c
c
i G
r
o
u
p
(
P
P
R
)
n
=
5
L
O
r

a
l G
r
o
u
p
n
=
2
S
t
a
r
w
o
o
d
H
o
t
e
ls
&
R
e
s
o
r
t
s
W
o
r
ld
w
id
e
n
=
3
M
a
r
r
io
t
t
I
n
t
e
r
n
a
t
io
n
a
l, I
n
c
.
n
=
2
H
ilt
o
n
W
o
r
ld
w
id
e
n
=
2
E
s
t

e
L
a
u
d
e
r
C
o
m
p
a
n
ie
s
, I
n
c
.
n
=
7
AVG I Q
145
Disparity
20
Disparity
34
Disparity
2
Disparity
7
Disparity
133
Disparity
115
Disparity
87
AVG I Q
108
AVG I Q
100
AVG I Q
72
AVG I Q
66
AVG I Q
63
AVG I Q
60
G
e
n
i
u
s
F
e
e
b
l
e
C
h
a
l
l
e
n
g
e
d
A
v
e
r
a
g
e
G
i
f
t
e
d
Disparity
68
AVG I Q
87
Disparity
1
AVG I Q
82
Disparity
5
AVG I Q
83
Disparity
7
AVG I Q
86
MOBI Le I Q DI SPerSI On BY OWnerSHI P
Organizations with More than One Brand represented in Index
(December 2011)
retail Beauty &
Skincare
Watches
& Jewelry
Hospitality Fashion
L2 2012 L2ThinkTank.com 18
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Mobile Commerce vs.
Mobile experience
In 2011, seven percent of all U.S. Internet
trafc came rom mob||e dev|ces. 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.
Key
Findings
7. Googles Battle
for the Mobile Web,
Michael Boland,
Search Engine Watch,
November 25, 2011.
MAI n SI TeS vS. MOBI Le SI TeS
Prevalence of Basic Features
(December 2011, N=66)
E-/M- Commerce
Enabled
Store Locator Video Product/
Property Search
Multiple
Languages
Order/
Reservation
Tracking
User Ratings Facebook
like API
67% 67%
23%
44%
20%
14%
9%
30%
82% 82%
79%
74%
41% 41%
27%
26%
= MAIN SITe
= MOBILe SITe
L2 2012 L2ThinkTank.com 19
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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 o 2011), |t does re1ect App|e's
demographic advantage.
9
Key
Findings
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.
Android
22%
Symbian
16%
Blackberry
7%
Windows Phone 7
2%
iOS
70%
196
67% 60% 50% 37% 27% 18%
According to Hunch data released in August, compared to Android users, iOS users are:
10
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
more likely to...
PreSTI Ge 100

APPLI CATI OnS ACrOSS SMArTPHOne PLATFOrMS

(December 2011)
# of Apps per Platform % of Brands in Index
L2 2012 L2ThinkTank.com 20
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Tablets: iOpportunity
App|e ended the frst ha| o 2011 w|th near|y
a 70 percent share of the global market for
tablets.
11
As a product class, tablet devices
have proven a boon to m-commerce. Tablet
shoppers demonstrate a conversion rate
o our to fve percent compared w|th 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.
Deve|opment o |Pad-spec|fc s|te exper|ences
also lags. While 66 percent of brands maintain
a mob||e s|te, on|y seven have an |Pad-spec|fc
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.
Key
Findings
TABLeT exPerI enCe
Site Optimization for Safari Browser on iPad
(December 2011)
Loads
iPad Site
Loads
Mobile Site
Loads Completely
Broken Site
Loads Partially
Broken Site
64%
9%
9%
11%
7%
Loads Site
62%
iPhone
45%
iPad
Both
= UNIQUE IPAD CONTENT
= REPLICATED ON
BOTH DEVICES
37%
16%
21%
DevI Ce- SPeCI FI C APP DeveLOPMenT FOr i OS PLATFOrM
(December 2011, N=100)
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.
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Brochure-Ware
While iPhone apps dominate, sophistication
lags across the Prestige 100

. The majority of
brands have a||ed to adopt p|atorm-spec|fc
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
|nc|ude |OS not|fcat|ons, on|y 16 percent
incorporate the phones camera, and a mere
fve percent ut|||ze the three-ax|s gyroscope
(the internal component that detects the de-
vices orientation in space and translates the
users movements via tilt, shake, and
other motions).
Key
Findings
Rich Media & Interactivity
51%
31%
17%
16%
9%
5%
V
id
e
o
C
o
n
te
n
t
G
P
S
S
u
p
p
o
r
t
N
o
tific
a
tio
n
s
C
a
m
e
r
a
A
u
g
m
e
n
te
d
R
e
a
lity
G
y
r
o
s
c
o
p
e
Social Media Integration
40%
39%
19%
16%
S
h
a
r
in
g
v
ia
E
m
a
il
V
ia
F
a
c
e
b
o
o
k
V
ia
T
w
itte
r
L
in
k
s
to
S
M
B
r
a
n
d
P
a
g
e
s


Personalization
28%
35%
22%
7%
5%
14%
In
-
A
p
p
A
c
c
o
u
n
t S
ig
n
-
In
B
o
o
k
m
a
r
k
in
g
S
e
a
r
c
h
In
-
A
p
p
L
a
n
g
u
a
g
e
S
w
itc
h
in
g
U
n
lo
c
k
a
b
le
C
o
n
te
n
t
M
in
i-
G
a
m
e
E
le
m
e
n
ts
i OS APPS
Prevalence of Basic Features
(December 2011)
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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-fve non-
English-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.
Key
Findings
14. The Importance
of Localization in App
Stores, App Annie,
November 9, 2011.
English Multi-Lingual French German Spanish Italian Portuguese Chinese Japanese Korean
90%
27%
19% 19%
11%
10%
8%
7%
3%
8%
( LACK OF) LOCALI ZATI On
Language Support for Apps Posted to U.S. App Store (iOS)
(December 2011)
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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
rat|ngs and s|gn|fcant user rev|ews |n
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

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).
Key
Findings
15. Chantal Tode,
Changes to iTunes
app ranking algorithm
will have wide impact:
experts, Mobile
Marketer, May 5, 2011.
TOP 10: MOST COMMenTS reCeI veD ( i OS APPS)
(January 2012, N=108)
SEPHORA:
Sephora to Go
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
0
1
0
0
1
5
0
2
0
0
2
5
0
3
0
0
3
5
0
5
0
4
0
0
285
264
215
167
138
115
111
98
231
220
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I OS APPS: USer SenTI MenT
number of ratings vs. number of Stars received
(December 2011, N=102)
Nordstrom
Giorgio Armani
Acqua for Life
Tiffany & Co.
Engagement Ring
Finder
Gucci
Style
Marriott International
Clarins
Thierry Mugler Angel
CLArInS:
Thierry Mugler Angel
(v1.2)
nordstrom
(v1.2)
Marriott
(v1.4)
Release
Year
Ratings
Stars
Comments
# OF rATInGS SUBMITTeD
note: Horizontal axis (# of ratings submitted) is graphed on a logarithmic scale.
august
2011
336
215
September
2011
264
264
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:
November
2011
302
220
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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.
Key
Findings
16. Mobile, Webmail,
Desktops: Where Are
We viewing email
Now? Return Path,
research study,
December 2011.
MOBI Le OPTI MI ZATI On OF eMAI L MArKeTI nG
(December 2011)
2%
11%
13%
24%
53%
78%
A
c
tiv
e
E
m
a
il M
a
r
k
e
tin
g
L
in
k
to
P
la
in
W
e
b
V
e
r
s
io
n
o
f
E
m
a
il
L
in
k
to
M
o
b
ile
-
O
p
tim
iz
e
d
V
e
r
s
io
n
o
f
E
m
a
il
L
in
k
to
A
p
p
s
L
in
k
to
M
o
b
ile
-
O
p
tim
iz
e
d
S
ite
L
in
k
to
O
th
e
r
M
o
b
ile
P
r
o
p
e
r
tie
s
regular, non-Mobile-
Optimized email
Html-Based email
In Mobile Browser
Plain-Text Mobile-
Optimized email
L2 2012 L2ThinkTank.com 26
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Check-in
On|y fve percent o Amer|cans use geo|oca|
apps at least once a month, but these active
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
ma|nta|n an ofc|a| Foursquare page, fve o
wh|ch were c|ass|fed as "zomb|e" accounts
(i.e., no recent activity registered from the
associated brand).
Key
Findings
17. Marketing via
Geosocial Apps: Why
and How, Melissa
Parrish, Forrester
Research, December
6, 2011.
0
20
40
60
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= NeW YORK CITY
=
MAINTAINS FOURSQUARe
BRAND PAGe
= SAN FRANCISCO
= INTeRNATIONAL
TOP 10: FOUrSQUAre BrAnD FOLLOWerS
(December 2011)
TOP 10: FOUrSQUAre LOCATI On CHeCK- I nS
(December 2011)
L2 2012 L2ThinkTank.com 27
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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
|ess than seven percent o trafc |n the .S.
and |ess than fve percent o trafc 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, |t |s est|mated that those fgures 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
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
frst page o Goog|e 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.
Key
Findings
18. Smartphones and
Tablets Drive Nearly
7 Percent of Total
u.S. |g|la| T|alhc,
comScore press
release, October 10,
2011.
19. Smartphones
and Tablets Drive
Nearly 5 Percent of
|g|la| T|alhc |u Eu5,
comScore press
release, October 26,
2011.
20. Mobile Paid
Search Share
to Skyrocket in
December; Remains a
S|gu|hcaul Ba|ga|u,
James Beveridge,
Performics blog,
November 22, 2011.
AverAGe GLOBAL MOnTHLY SeArCHeS FOr PreSTI Ge 100

BrAnDS
Desktop/Laptop vs. nOn-PC Devices
(Source: Google AdWords, November 2011)
86%
14%
Locations map
from the organic
results
17% of Avedas Global Monthly
Searches originate from mobile
devices, which the brand capitalizes
on with mobiIe-specic SEO.
Sponsored ad links
to mobile site
First curated result
features links to the
Iocation nder and
account access
= NON-PC DevICe
= DeSKTOP/LAPTOP
L2 2012 L2ThinkTank.com 28
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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 mobile-
related properties.
Key
Findings
SI Te- SPeCI FI C PrOMOTI On OF SOCI AL MeDI A eFFOrTS vS. MOBI Le eFFOrTS
(December 2011, N=70)
66%
82%
39%
28%
Mobile Apps
Promotion of mobile apps on Sephoras homepage
L2 2012 L2ThinkTank.com 29
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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 fnd, revea|, and watch |ocked
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 cross-
platform campaign was optimized for iOS,
Android, and Symbian devices.
Locked
Content
Billboard Augmented
reality Ads
Print Augmented
reality Ads
reveal, Find,
Watch
L2 2012 L2ThinkTank.com 30
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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 in-
store pickup. A calendar of upcoming events
at preferred stores further bridges the online/
o1|ne connect|on. Last|y, "Sty|e Prof|e"
provides users with the ability to browse a
curated product selection.
The Nordstrom app has already accumulated
nearly 200 comments in the iTunes Store.
StyIe ProIe 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
L2 2012 L2ThinkTank.com 31
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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-five-
point 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 Innite combinations
of featured YSL
beauty products
Before/After
comparison
Shopping list of
products used to
create unique looks
L2 2012 L2ThinkTank.com 32
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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.
Watch International e-mag
(issued quarterly)
Intuitive navigation,
bookmarking, and
social sharing APIs
Select product
promotion tied to
themes explored in
each issue
L2 2012 L2ThinkTank.com 33
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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
21. Karen Jacobs,
InterContinental
sees mobile bookings
sales rising, Reuters,
December 21, 2011.
Discovery of 100+ properties
Insider Tips pertaining
to destination
Interactive map with which
to plan travel itinerary
Introduction to resident Concierge
with push to reservation system
L2 2012 L2ThinkTank.com 34
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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.
LOccitanes
simple but highly
functional mobile
homepage
robust gift-generating
toolintroduced for the
holiday 2011 season
Includes customer
service, Facebook
Like API, and links
to social media
L2 2012 L2ThinkTank.com 35
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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 |Pad s|te that seam|ess|y re1ects 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 scroll-
through slideshow of related items on the
bottom of each product page.
ferragamo.com
main site with
Flash elements
Ferragamo's iPad-specic
experience replicates
main site functionality
22. Terrence OBrien,
iPad accounts for 97
percent of U.S. tablet
l|alhc ou||ue, engad-
get, June 24, 2011.
23. Kayla Hutzler,
Ferragamo misses
the mark with mobile
New York Times ads,
Luxury Daily, Septem-
ber 26, 2011.
L2 2012 L2ThinkTank.com 36
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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
w|thout |eav|ng the confnes o 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
or snow), then encouraged users to Wipe
Away Your Weather to reveal appealing
Westin getaways.
Weather Channels
redesigned iPad App
Westins Wipe
Away Your Weather
Campaign
24. Press Release,
Gartner Says World-
wide Mobile Advertis-
ing Revenue Forecast
to Reach $3.3 Billion in
2011, Gartner, June
16, 2011.
25. emily Steel &
Jessica vascellaro,
A Rare Apple Com-
promise, Wall Street
Journal, December 13,
2011.
26. Rimma Kats,
Westin Hotels & Re-
sorts bolsters mobile
bookings via TWC iPad
Sponsorship, Mobile
Commerce Daily,
October 24, 2011.
L2 2012 L2ThinkTank.com 37
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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.
Blog post announcing
app upgrade
Shoes About
Town powered by
Instagram launched
September 12, 2011
new and improved
iPhone app launched
August 30, 2011
L2 2012 L2ThinkTank.com 38
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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
ounder o F|rebrand Partners, an operat|ona| act|v|st frm 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 profes-
sionals 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 ac-
complishments 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
o the frm's Pub||c Serv|ce va|ue (PSv) methodo|ogy.
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 Univer-
sity 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 d|g|ta| strategy or both the frm 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, iconog-
raphy, 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 d|rector o a sma||, prest|g|ous des|gn frm |n Che|sea,
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. mar-
kets across multiple design disciplines and in multiple languages.
Aaron has a B.F.A. in Graphic Design from Iowa State University.
TeAM
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.
rESEarcH
Digital IQ Index

: The defn|t|ve benchmark or on||ne competence, D|g|ta| lQ lndex

reports score
brands against peers on more than 350 quantitative and qualitative data points, diagnosing their
digital strengths and weaknesses.
EVENTS
Forums: Big-picture thinking and game-changing innovations meet education and entertainment.
The largest gatherings of prestige executives in North America.
300+ attendees
Clinics: Executive education in a classroom setting with a balance of theory, tactics, and
case studies.
120 180 attendees
Working Lunches: Members-only lunches led by digital thought leaders and academics.
Topic immersion in a relaxed environment that encourages open discussion.
4080 attendees
MBA Mashups: Access and introduction to digital marketing talent from top business schools.
cONSULTI Ng
Advisory Services: L2 works with brands to garner greater return on investment in digital initiatives.
Advisory work includes Digital Roadmaps, Social Media Strategy, and Site Optimization engagements.
MEMBErSHI P
For membership info and inquiries: membership@L2ThinkTank.com
UPcOMI Ng rESEarcH
DIGITAL IQ InDex

reports:
Hospitality
Broadcast Media
Magazines
UPcOMI Ng MEMBEr BENEFI TS
Members Site:
In the rst quarter L2 wiII Iaunch reaI-time tracking of digitaI
metrics (vs. peers).
PreSTIGe 100

reports:


Brazil, Russia, India, China
Facebook IQ
UPcOMI Ng EVENTS
L2 Clinic Mobile
01.19.12 new York City
01.24.12 Paris
L2 Lunch Identifying Facebook Super Fans
02.23.12 new York City
L2 Clinic Mobile in APAC
03.02.12 Shanghai
L2 Lunch Google+ vs. Facebook
03.06.12 Paris
A THInK TAnK
for DIGITAL InnOvATIOn
51 East 12th Street, 2nd Floor
New York, NY 10003
W: L2ThinkTank.com
e: info@L2ThinkTank.com L2 2012 L2ThinkTank.com