The article out this morning on Business of Fashion, "Does Digital Finally Have a Seat at the Table?", points out both interesting data points and insightful analysis (often from the trusty resource Luca Solca from BNP Paribas, seemingly the only luxury expert in banking). As someone interested in luxury, but aware of the opportunities in digital, the numbers look good.
Article highlights:
- Digital is where the consumers are, making up for slowing growth in China
- eCommerce is expected to be 9 percent of the global personal luxury goods market by 2019, with a value of $27 billion. More pressing is the fact that online currently influences over 60 percent of luxury purchases
- Chief Digital Officers need to merge the marketing and IT sides of digital in order to permeate the entire organization (hint hint, consulting firms)
- Those who have outsourced eCommerce to companies like Yoox Net-a-Porter will have to reclaim customer data in order to glean any insights and find correct attribution
“[At] digitally mature companies, digital strategy is fully integrated into overall business strategy, negating the need for a specific chief of digital. “As in the case of Burberry, the alternative is to have the CDO and the CEO roles coincide,” says Luca Solca.
“In the 1920s businesses had chief electricity officers because it was such a new thing,” adds Ashley Friedlein. “This feels like that; a moment in time that will pass.””