When you imagine the future of digital media and technology, it is
likely that the somewhat futuristic movie Minority
Report may feature somewhere in the spectrum of your thoughts, notably the
scene where Tom Cruise’s character walks into a shopping mall and is instantly
welcomed by a lineup of personalized messages flashing on transparent walls,
from adverts to product displays and direct messages, all tailored to
seamlessly match his preferences, habits and lifestyle. This is of course made
possible by the multiple technologies that are designed to “crack” the codes of
consumer behavior by effortlessly gliding into their lives and even mind. But is
this fictional setting possible in our world today, more so in luxury? The
answer is a clear and sound “yes”, as was witnessed at the Club e-Luxe International Summit held on Wednesday 6th
June at the Ritz Hotel, Paris.
Recognizing the forward march of digital media and its unquestionable
impact on the luxury consumer’s psyche and general disposition towards luxury
shopping, Luxe Corp chose the theme of E-Commerce,
F-Commerce & M-Commerce for this year’s summit. Before rushing to the
conclusion that online shopping has come of age (after all e-commerce has been
around for over fifteen years), it is noteworthy to mention that like every
aspect of technology, online selling is not static but constantly evolving.
This mere fact influenced the key topics and subject areas that emerged from
the summit’s theme; and they ranged from the familiar E, F and M-Commerce to the incipient V-Commerce (as in Video Commerce), A-Commerce (as in Advert Commerce), Email-Shopping (as in shopping from online Newsletters inside the
mailbox), E-Customization, E-Services,
Virtual Reality and a host of other intriguing technology and business facets.
Although e-commerce in luxury began with a focus on transactions and functions, today’s digital shopping environment is a far cry from this. E-shopping in the present day means first and foremost engaging with the client through interactivity and connecting with them emotionally through rich content, entertainment, storytelling, social exchanges, virtual collaborations, creative sourcing and everything in between. In fact the buzz words in today’s online selling space for luxury are “collaborative consumption”, “social selling” and “multi-media or trans-media storytelling and entertainment”. This means that the luxury online shopper must be courted, tantalized, wooed and above all enticed into becoming a “fan” before they deem a brand fit for shopping.
This context has raised more questions than ever, especially on how luxury
brands can stand out in a world where access to brand information is currently
at the fingertips of anyone remotely interested in luxury. The Club e-Luxe International Summit gathered some of the finest
and brightest minds in digital media and luxury in a highly stimulating day
where the latest innovations, tools, applications, systems, trends, strategies and
solutions were dissected through illuminating presentations, live DEMOs, debate
sessions, workshops and expositions.
LUXE CORP’s Executive Director Uché Okonkwo led the team of forward-thinking visionaries, through an insightful presentation
that focused on the evolution of luxury e-commerce, from
the arrival of the internet until the present strategies and techniques adopted
by the luxury industry. She highlighted the errors made by luxury brands in the
first phase of e-commerce, and indicated the current requirements and future
direction of e-commerce in the industry. She emphasized that the late arrival of the luxury industry in
the e-commerce landscape enabled the emergence of a market gap that was filled
by several parties, including independent retailers, discounters,
counterfeiters, auctioneers, lenders and others. This led to a loop-sided
position where luxury brands became the “outsiders” leading to the startling
reality that remains prevalent today, which is that the current structure of
luxury e-retail was set by independent e-retailers and luxury brands have been
forced to follow it without much choice. The presentation also revealed that luxury
consumers currently seek more than products and services online, but now view content,
entertainment, connecting, sharing, storytelling and creating as prerequisites prior
to purchase. Content especially has become a product of consumption in today’s
luxury e-commerce context. Uché Okonkwo identified the 6 areas that would be
prevalent in the immediate future of luxury e-commerce as Virtual Immersive
Platforms (including Real-Time 3D, Interactive 3D, Mobile 3D, Simulated
Social 3D), Content Consumption (including videos, animations,
magazines, blogs), Social & Collaborative Shopping (including
styling platforms, visual platforms, creative platforms), Web Channel
Disintegration (including the merging of self-commerce, social commerce,
mobile & advert commerce), Interactive Shopping (including email
shopping, shoppable videos, shoppable adverts), E-Personalization (including
customization, personalization, real-time demo views).
Jean-Louis Lesage and Virginie Baudelaire from the pioneering digital company NOVACOM, which specializes in 3D virtual platforms, then took the floor
and led the audience through one of the most powerful immersive virtual
experiences that exists in the luxury sector today. As the company that created
the Valentino Garavani Virtual Museum,
the first full 3D website in luxury, NOVACOM is not only a pioneer but an
enabler of the digital luxury evolution. The presentation focused on showcasing
the approaches required to create an immersive experiences online using
platforms that support real-time 3D integration. The presentation was followed
by a virtual visit and live demonstration of the Valentino Garavani Virtual
Museum an ultra-luxury online destination dedicated to showcasing over forty
decades of the designer’s work, featuring over 5,000 images, 180 videos and
virtual space that could be equated to 10,000 square meters of physical retail
space. They emphasized that immersive 3D platforms provide the most powerful
visual impact in digital media today and correspond to what luxury consumers
are currently seeking which includes exceptional experiences online as well as
ways to personalize, control and contribute to these experiences. They also revealed
that immersive 3D technology can easily be used to create a website, virtual
showroom or e-boutique as it has e-commerce applications. They may be adapted
for all mobile platforms including smart phones and tablets with no diminishing
factor on the visual impact on mobile phones. But the ultimate value for luxury
brands is that this platform allows brands to glamorize their heritage and
promote the engagement and ownership of the brand by the consumer, factors that
have become imperative.
Dr F. Joseph Pompei, CEO & Founder of HOLOSONICS
and inventor of the Audio Spotlight
sound technology gave a highly
engaging presentation on how sound & the senses may be used as
complementary shopping & engagement channels for luxury. He introduced
the Audio Spotlight Sound technology as a new revolution in both sound
technology and innovation; and highlighted the importance of sound as a sensory
trigger in brand experiences and its powerful high level of influence in
consumer decisions both consciously and unconsciously. He revealed that marketing
with sound is a reality that connects directly with the emotions of consumers
to influence their receptiveness to brand messages and advertisements. The
Audio Spotlight technology was therefore designed to provide brands with the
possibility to precisely target sound that will not disrupt other customers or
people in the same space, such as in a retail store, library, supermarket or
other public space. It functions in two ways; 1. Direction of audio through invisible
beams of isolated sound; and 2. Projection of audio which directs sound in the
same way that light can be projected. The technology basically provides beams
of sound that may be directed to specific people in any space or directed to specific
sections of any space, which means that only the people within the beam are
able to hear the sound. The benefits for luxury brands abound, as the technology
enables the design of marketing messages for a specific audience in a defined
private or public space. It helps each brand in a department store to have its
own particular music or even in-store events and fashion shows without
generating cacophony. It also enables a store to manipulate the perceived
source and location of sound in large spaces through sound projection. And best
of all, it may also be projected through public billboards, so when you’re
walking down the street, you may be the only one hearing the sound from a
billboard advert! Dr Pompei showed a highly impactful LIVE DEMO of how the
Audio Spotlight Sound technology works, to the delight of the audience.
Frédéric Goldzak of ANIMATIK STUDIO brought
some first-hand magic to the Club e-Luxe International Summit through a highly
interactive presentation and LIVE DEMO which he made as a conversation between
himself and his Hologram! As one of the pioneers of holographic technology in
the luxury space, Animatik Studio is at the forefront of virtual reality
experiences in luxury. His presentation focused on the magic of using
interactive technology to drive the shopping experience through holograms &
social media. Frédéric showcased the
technology behind Holographic projections in action and brought insight into key
areas of their integration in luxury marketing, events, communications, digital
media and other key areas. He emphasized that holograms enable luxury brands to
provide a WOW effect to their clients while engaging with them in a highly
interactive manner. He revealed that the possibilities of holographic
technologies include several interactive and visual applications, 3D mapping
and videologue (video dialogues). The audience were also pleased to learn that
developing holograms is both cost-effective and time-saving and cost as little
as 10% of a 30-second TV advert spot, from content development to execution.
The time-frame is also short but the results are long-lasting.
The Club e-Luxe International Summit also featured a “Sit-down
Conversation” between Simon Burstein,
CEO of BROWNS, the renowned British
Retailer of luxury fashion and Uché
Okonkwo, LUXE CORP’s Executive
Director, on the topic: “The Golden
Rules of Branded Content: How Digital Media is Re-defining Luxury
Communications & Commerce”. The session featured a series of
questions asked by both the moderator and the audience and focused on
highlighting the evolution of e-commerce in luxury, the requirements of selling
luxury both online and offline as well the changes in consumer needs and
expectations. Some of the key points of the presentation are the following.
§ Content is key in online selling today and Brown’s recently re-launched
e-commerce website is designed to focus on content. Browns strives to deliver
the same experience online as in the store and content is key to achieving
this.
§ Service remains very important for clients and content enables them have
a stronger shopping experience. There is nothing worse than being promised
something in the offering of a luxury store and not getting it. Browns lays a
lot of emphasis on service and has a dedicated in-house team producing content.
Providing information through content contributes to making the buying
experience fulfilling; so is service, so that customers are not disappointed. Content
hasn’t overtaken the importance of service but they must work hand-in-hand.
§ Physical and online shopping are inter-linked and shopping decisions may
be undertaken in the store and completed online or vice versa. It is important
to understand that it is the same clients so they should be given a consistent
high quality experience across all channels. Browns still witnesses resistance
to e-commerce from some of the luxury brands present in the store and some of
these brands prefer not to sell their pieces in the Browns online store.
The sharing of information via social media has become a fantastic way of promoting luxury brands as it
spreads the brand’s message faster.
The sharing of information via social media has become a fantastic way of promoting luxury brands as it
spreads the brand’s message faster.
Dr. Roberto Valenti of THIRDSIGHT, the Dutch company
specialized in digital signage and innovative
facial recognition technology
brought much-needed clarification to the somewhat controversial facial
recognition technology that enables the reading of the mood and disposition of
a person in order to personalize advertising messages for them. Speaking on the
topic of “The Age of the Digital Sign: Towards the New Era of Advertisement”,
he revealed that the mission behind the technologies developed by Thirdsight is
“to understand humans”. His presentation focused on how Thirdsight's
technologies enable brands to send out personalized and targeted messages
through allowing digital signages to detect, attract and interact with the
people according to their mood or interests. He explained that this works
through “Emotion Recognition Software” which scans facial expressions to
determine the mood & deliver appropriate adverts and content accordingly. Digital
signage technology can also be used to interpret consumer responses and help
them with their purchasing decisions. Other possibilities are in the area of
profiling consumers in the store, projecting images or content tailored to
their profiles right in front of them. This can instantly trigger a buying
decision. On the web however the technology uses their online behavior to
better understand their interests and tailor adverts to them. Dr. Valenti
showed fascinating video DEMOs of the application of this technology in several
outdoor contexts through digital and interactive billboards that merge the
virtual content with physical actions. The audience saw a live demonstration of
how interactive technology increases the attention of passers-by by a whopping 56%.
A Round Table session was held on the topic “Understanding How
Virtual Client Behavior & Relations are being Shaped by Interactive Media
& Digital Products”, featured Tom Adeyoola of METAIL, Albert Benguigui of AMERICAN SUPPLY, Frederic Goldzak of ANIMATIK STUDIO and Roberto Valenti of THIRDSIGHT and moderated by Loubna
Khalfi of LUXE CORP. The session
provided insights on key issues of digital innovation specifically on how
client behavior is influenced by technology. Each member of the panel gave his
views, referring to their areas of expertise, on the use of interactive
applications to encourage consumer engagement; the use of personalization to
convey the feeling of exclusivity; new technologies, best approaches for
content generation from both luxury brands and clients; and concerns
surrounding privacy data. Some of the main points raised during this
interactive session include the following.
§ Luxury is about giving a customer experience above and beyond everyone
else; the brands' digital strategy must reflect this.
§ Luxury brands want to evoke the feeling of exclusivity, for consumers to
experience something new & special. Interactive media does just that!
§ Luxury brands have lost out on major opportunities in utilizing
interactive media as tools of engagement with their clients. There is the
tendency to wait for “who will do it first”.
§ The simplification of technology & its accessibility to the masses
now allows brands to meet customer expectations. Luxury brands no longer have
an excuse to be lax online.
§ Tablets & mobiles shouldn’t be lumped together. What works for one
platform doesn't transfer in terms of user experience. Tablets are used for
browsing when relaxed; mobile is used on the go. They should be used to
differentiate & target users more effectively.
§ A virtual changing room is great but it remains a complement to actual
changing rooms. It won't replace them.
§ Authenticity may be more important than exclusivity sometimes. For
example Chinese consumers prefer physical to online stores as a safeguard
against counterfeits.
§ The future of digital luxury is about maintaining relevance, to own the
customer through every touch-point
§ Luxury brands make beautiful products and they therefore owe it to their
consumers that the internet experience is of equal perfection.
• Younger consumers are non-chalant about data privacy concerns and
technology companies know this and are using them to their advantage.
Martina King, CEO of AURASMA, brought interactivity and excitement to the event by
presenting her company’s fantastic virtual reality shopping solution on the
topic “When the Virtual World becomes Real: How Augmented Reality is
Re-Shaping & Re-defining the Luxury Shopping Experience”. She showcased
the latest virtual reality tools and platforms developed by highlighting the
extraordinary opportunities that augmented reality offers in luxury
communications and commerce, as well as its high impact on consumers. Aurasma,
which is the world's first visual browser interweaves the real world and the
virtual world through technologies that are breakthroughs in the way people interact with both the virtual and
real worlds as well as through mobile platforms such a smart phones and
tablets. Aurasma technology recognises half a million images from mobile devices,
both from underground trains and 10,000 feet above ground. The technology also works
in both 2D & 3D and since 2011, the company has used it on over 500
campaigns with over 3 million downloads worldwide. The technology also ensures
that the unsightly and detracting nature of QR codes are overcome, which is the
reason that it is based on image recognition, making it invisible. Augmented
reality technology can be used across business segments including launch
events, mobile networking, and even in newspapers adverts. The code for Aurasma
can be embedded in existing applications or white labeled to fit each brand. Aurasma’s
platforms are particularly suitable for luxury as they enable brands to
manipulate both the reality and fantasies of their consumers. The technology
has been used by Net-A-Porter and Dunhill recently and the tools are applicable
for events, communications, shopping and even training.
Alex Savic, CEO of NEXT WIDGETS, the
Swiss company at the forefront of A-Shopping, Email Shopping and Multi-Media
Shopping took the audience on an enlightening journey of the next wave of
evolution in e-commerce. Speaking on the topic “The Next Frontiers of E-Commerce:
Shopping Online from Movies, Adverts & Multi-Media Channels”, Alex
Savic provided key insights on the radical changes that are currently taking
place in the context of e-commerce including transactional advertising and
social commerce . He particularly highlighted the evolution of luxury
e-commerce towards shopping on interactive platforms such as banner
advertisements, email newsletters and other forms of interactive content. He
revealed that e-commerce functionality can be embedded almost anywhere on the
web, including a direct response option within a branding campaign. His company
Next Widgets develops applets that allow consumers to click and buy directly
inside the email newsletter. Abandoned e-commerce transactions on a brand’s
website can also be emailed to the consumer, for completion via email. The
technologies behind these experiences also enable consumers to click on an
online advertisement and immediately get to the product page and checkout
process while completely bypassing landing pages and the e-commerce website. He
emphasized that the keywords associated with interactive shopping are: Instant
access, interactivity, entertainment, sharing and control.
Following the series of illuminating
presentations and DEMOs by inspiring speakers, Luxe Corp took the audience into
its traditional Spotlights and Highlights which featured a major Raffle Draw during which a lucky
participant won the highly priced ZIKMUWireless Speaker designed by Philippe
Starck for the French technology company PARROT.
In addition each participant received
a Gift Bag containing luxury products from Luxe Corp’s Living Emotions series
and an innovative digital gadget offered to all participants by Oregon Scientific.
In keeping with our now renowned
tradition, the participants were treated to a 3-course French gastronomic lunch
overseen by the Michelin-star chef of the Ritz Hotel Paris, as well as sumptuous
“petites-fours”, “canapés”, “gateaux sales et sucrés” and all manners of finger-food
and drinks at the open bar that was laid out at the disposition of all
participants during the numerous breaks.
The Club e-Luxe International Summit ended with a much-deserved cocktail party where the chatter naturally centered around innovation, innovation and more innovation
The next Club e-Luxe event will be the Club e-Luxe Breakfast Seminar to be held on 8th January 2013 at the Hotel Le Bristol, Paris. The event will focus on the theme of Sensory Luxury – Using Digital Media as the Sixth Sense to Connect the Online & Offline Worlds of Luxury. As is now our tradition, the event will be fully curated by LUXE CORP and gather digital experts to share the latest innovations and technologies with luxury brands as well as offer insight and solutions for the most challenging related issues facing the industry.
To stay connected with Club
e-Luxe, visit the Luxe Corp website: www.luxe-corp.com
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