BizJournals Portfolio

Recent Blog Posts

Oct 12 2011 3:40pm EDT

Label Them Digitally Gifted

Kate Spade, Facebook

Are those worried cries of “Ooh-la-la!” at Europe’s fashion houses that we hear?

Coveted brands like Chanel and Hermès are merely of “average IQ,” finds a new luxury study, which says that tech-savvy U.S. brands are beating the leggings off their rivals across the pond when it comes to digital innovations.

Europe takes its fashion industry very seriously—and given the annual pilgrimages American editors make to shows in Paris and Milan to see the likes of Chanel, Chloé, and Versace on their home-turf runways, it’s clear that we do too.

But on the digital platform, in which brands are increasingly interacting with consumers, the New World has it all over the Old, with the notable exception of British luxury brand Burberry, the report finds.

On Tuesday, New York University think tank Luxury Lab, or L2 , released its third annual Digital IQ Index ranking fashion brands according to their online competence. The data, which was based on brand proficiency in areas such as social media and mobile commerce abilities, took a cue from IQ ratings and rated brands on a scale that ranged from "genius" to "feeble."

Although Burberry took the No. 1 spot, 10 of the top 15 brands are from the United States, including Kate Spade (2); Coach and Gucci (tied for 3); Tory Burch (tied for 5 with Italy’s Dolce & Gabbana); Ralph Lauren (7); and Michael Kors (10).

Rounding out the top 15 were Donna Karan (11), Diane von Furstenberg (12), Marc Jacobs and Calvin Klein (tied for 13), and John Varvatos (15).

Meanwhile, Chanel, Christian Dior, Yves Saint Laurent, Valentino, and Fendi all clocked in with “average” IQs. Prada, Hermès, Salvatore Ferragamo, Versace, Balenciaga, and Chloé were placed in the “challenged” category. Chanel and Christian Dior were both criticized in the report for not selling their fashion merchandise online, while Hermès and Prada were tsk-tsked for slighting social media, with the former not doing enough this year and the latter absent from the scene entirely.

Europe didn’t completely lose out though, thanks to Burberry and Louis Vuitton, which came in at No. 9 and got props for its Amble app for travelers and its leadership on Foursquare. L2 cites Burberry’s new global site launch earlier this year, which received strong e-commerce ratings, as one reason for its digital supremacy.

“The brand continues to innovate across social platforms, including a recent livestream Tweet Walk, and has extended its fan acquisition strategy to emerging platforms (in addition to conquering Facebook, Burberry is No. 1 on Twitter, No. 1 in YouTube Uploaded views, and No. 1 in Instagram Followers, the report notes).

The company known for its signature plaid was also one of the first to launch a mobile commerce site back in April. But American designers weren't far behind: Tory Burch launched m-commerce at the same time, and Coach bagged itself a presence in June.

The report also notes that heritage doesn’t seem to matter in the digital sphere. Kate Spade, established in 1993 is an infant compared with the likes of Hermès, established in 1837, or even Gucci and Chanel, which date back to the 1920s. But it ranked in the “genius” class on the list for its “smart e-commerce” tactics and a “strong social and mobile presence.”

One example of that social outreach: Kate Spade has already posted fresh runway shots from its 2012 Spring collection—months before it will reach stores—and it also posted images of its spring ad campaign with Bryce Dallas Howard on Facebook, garnering comments from fans, like “I adore the shoes in this photo! What a cute ad! The colors are perfection."

All stuff that a digital genius like Spade—a former fashion-magazine editor who came up with a wildly successful idea for handbags—must surely like to hear.


Get more business intelligence from Portfolio.com:

  • Jobs Council Pitches Obama: President Barack Obama's Council on Jobs and Competitiveness has presented a raft of ideas to float entrepreneurs. The president, meanwhile, continues to push his own jobs agenda.
  • Groupon Keeps Mum on Totals: Did someone say quiet period? Well, Groupon seems to be taking that requirement very seriously these days by no longer publicizing the number of deals sold in an effort to keep armchair accountants from guessing at its revenues.
  • NYC Protests Get Personal Against the Rich: Frustrated demonstrators descended on one of New York City's ritziest neighborhoods to denounce the widening gap between the rich and nonrich and support extending a tax surcharge against the state's wealthiest citizens.


Teresa Novellino writes for Portfolio.com

Comments

If you are commenting using a Facebook account, your profile information may be displayed with your comment depending on your privacy settings. By leaving the 'Post to Facebook' box selected, your comment will be published to your Facebook profile in addition to the space below.


Connect With Portfolio.com

Come on, like us—you know you want to.

Follow us and if you're an innovative entrepreneur, we'll return the favor.

Today's top stories, conversation starters, and the back nine business bites.

spotlight on

People & Ideas

Whisky To-Go-Go

Now there's a company that let's you taste your knowledge of fine blended Scotches by mixing a whisky of your own. Read More