Luxury executives are more determined than ever to take advantage of digital marketing technologies such as social media, video, email and search engine optimization, according to a new survey by Luxury Society. The study claims that luxury brands are taking advantage of up-and-coming digital innovations, which ultimately change the way almost all products are marketed and sold. Luxury Society surveyed more than 500 respondents from small and multinational companies. “Luxury executives seem more determined than ever before to take advantage of these exciting technologies, which are changing the way almost all products and services are marketed and sold,” said Phillipe Barnet, president of Luxury Society, Paris. “Ralph Lauren, Burberry, Gucci and Louis Vuitton have clearly benefited from their active involvement in the digital sphere in 2010,” he said. Luxury Society informs and connects CEOs, managers, journalists, consultants, designers and analysts from across the luxury sector. The findings of the report show there are opportunities within digital channels to promote a luxury brand and its products. Key findings The report found that luxury executives have been late to use digital media, but more than 75 percent are confident enough to embrace it. After branded Web sites, digital channels such as Facebook, email, SEO and content are the most used marketing tools, according to the report. Seven out of 10 respondents said that a Facebook page has been implemented for their company. Luxury brands should implement SEO to drive customers to their Web sites and into stores (see story). The Luxury Society study claims most luxury brands are using digital media to engage and connect with new and existing affluent customers. A whopping 85 percent of executives claim they use digital media successfully. Generating sales Fifty-five percent of luxury retailers surveyed claim that ecommerce sales make up less than 10 percent of total revenue. Luxury Society expects this number to increase drastically within the next three years. Although Luxury retailers are using ecommerce, they are launching Web-based storefronts mostly in the United States, Britain and Europe. Many brands are ignoring consumers in other prime regions of the world. Africa, Russia, Central Asia and the Middle East are predominately ignored by luxury retailers. According to the study, 58 percent of luxury executives are employing video content and using social media such as Facebook, Twitter and YouTube. Approximately 23 percent plan to use these consumer touch points in the future. “Virtual fashion shows, digital flagship stores, 3D advertising campaigns, augmented reality applications, iPad magazines, Facebook live-streams and Twitter-based customer service are just a few examples of the long list of digital innovations that luxury brands have pioneered this year,” Mr. Barnet said. Looking ahead Luxury brands are getting acquainted with the use of digital channels. Luxury Society found that digital marketing and ecommerce is going to keep advancing in the upcoming years. “We discovered that digital marketing budgets are set to significantly rise in three years time, reflecting executives’ recognition of digital as a cornerstone successful of marketing strategy,” Mr. Barnet said. Final Take Elizabeth Zelesny is editorial assistant at Luxury Daily, New York.