Internet will dramatically change the luxury industry.
During the Financial Times Business of Luxury Summit 2015 ', it was confirmed that the Internet will dramatically change the luxury sector.
One of the last sessions of the Financial Times Business of Luxury Summit 2015, the most important forum for the luxury industry that has been held in Monaco, was “Is the Internet the New China?” All panellists agreed that the Internet will dramatically change the luxury business, providing the impetus needed to combat stagnant growth in other areas.
Gian Giacomo Ferraris, CEO of Versace Gianni, pointed out during his speech at this global conference on luxury organized by the Financial Times “Clearly, if you ask me at this time whether this opportunity on the internet can replace China, I would say that the difference in sales is huge, but this is a great opportunity. ”
As China’s contribution to the growth of luxury slows down, the industry must find online development opportunities, according to panellists at the Financial Times Business of Luxury Summit, held earlier this week in Monte Carlo.
Internet, besides being a means to increase sales, serves to communicate and relate especially with new generations of consumers, so the long-term investment is profitable.
Versace allocates 20 per cent of its marketing budget to online developments, and has a specialized social media team. “Online platforms are not only for sell, they represent a way to interact with our clients, a way to create intelligence and create future. The luxury lifestyle means ensuring the future and if you do not attract the younger generation, you have no future, “said Ferraris. 70 per cent of consumers carry out online searches when buying products, and it is expected that in five years the number will increase to 90 per cent.
Digital platforms allow brands to connect and interact with consumers; Versace has recently published a song made especially for Donatella Versace by pop star Lady Gaga, as well as the advertising campaign starring the singer. The online store Versace, despite being relatively new and only available in nine countries, is growing 50 per cent annually.
During the Financial Times Business of Luxury Summit 2015, Peter Fitzgerald, President of Digital and Innovation Topics for the British Fashion Council and sales director of Google for the UK, talked about the possibilities and opportunities available from using data mining techniques or data mining as 100 billion monthly searches on Google can be used to discover trends and find new ideas for potential business.