L'Occitane, Westin Hotels & Resorts Are Digital Geniuses in Emerging Markets

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New L2 Study Ranks Digital Competence of Over 100 Iconic Brands in Brazil, Russia, and India

L2 Digital IQ Index: Brazil Russia India

L2 Digital IQ Index: Brazil Russia India

“Prestige brands have justifiably been busy developing strategies for China, but the time to focus on other large emerging markets is now,” says Professor Scott Galloway.

L’Occitane ranks #1 in both Brazil and Russia, and Westin Hotels & Resorts leads in India in the new L2 Digital IQ Index®: Brazil Russia India. The Index, the first study of its kind, was co-authored by Scott Galloway, Founder of L2 and Clinical Professor of Marketing at New York University Stern School of Business, and Doug Guthrie, Dean, The George Washington University School of Business.

The Index measures the aptitude of over 100 prestige brands across Beauty, Fashion, Watches & Jewelry, Specialty Retail, and Hospitality in some of the world’s fastest-growing markets: Brazil, Russia, and India. Luxury sales in these markets are growing twice as fast as the global luxury market, and are projected to reach a combined $205 Billion - or 20% of the global luxury market - by 2025. Double-digit growth in Internet penetration, over-indexing among the young affluent, suggests digital fluency in these emerging markets should be a priority for prestige brands. L2’s thesis is that success in these emerging markets is inextricably linked to digital competence.

“Prestige brands have justifiably been busy developing strategies for China, but the time to focus on other large emerging markets is now,” says Galloway. “Brazil, Russia, and India will combine for a quarter of the growth of the luxury industry over the next decade. The online medium presents a tremendous opportunity to reach these consumers who are increasingly connected, highly social, and who have an insatiable appetite for luxury.”

To download the complete rankings and report, go to: http://www.l2thinktank.com/research/digital-iq-brazil-russia-india/

To watch the video highlighting key findings, go to:
Top Ranked Brands in Brazil:

1.    L’Occitane
2.    Sephora / Sack’s
3.    Avon
4.    Melissa
5.    InterContinental Hotels & Resorts
6.    Natura
8.    Burberry
9.    JW Marriott
10.    Lancôme

Top Ranked Brands in Russia:

1.    L’Occitane
2.    Yves Rocher
3.    Dolce & Gabbana
4.    Estée Lauder
5.    Clinique
6.    TSUM
7.    Avon
9.    InterContinental Hotels & Resorts
10.    Bobbi Brown

Top Ranked Brands in India:

1.    Westin Hotels & Resorts
2.    ITC Hotel Group
3.    Burberry
4.    Macy’s
5.    Taj Hotels Resorts & Palaces
6.    InterContinental Hotels & Resorts
7.    Le Méridien
9.    L’Occitane
10.    JW Marriott

Key findings include:

  •     Prestige brands appear to underestimate the influence digital in emerging markets has on purchases in mature markets (e.g., by 2015, tourists will drive 60% of luxury purchases in Europe)
  • Only 22% and 27% of the brands benchmarked offer a site in Portuguese and Russian, respectively
  • As wealth grows across second tier cities, prestige brands appear to be fighting for the emerging middle class with the last year's weapons (print and bricks vs. mobile and e-commerce)
  • Despite skyrocketing mobile adoption, only four brands offer a mobile-optimized Portuguese site, and only five offer a mobile-optimized Russian site
  • 21% of brands have a market-specific Facebook page for the BRI markets
  • Paid search is virtually ignored: in Russia, only 9% of brands invest in Google.ru, while only 2% of brands invest in Russian search leader Yandex

About L2
L2 is a think tank for digital innovation. Founded by NYU Stern professor of marketing Scott Galloway, L2 helps prestige brands navigate the digital marketing landscape through events, research and advisory services. The L2 Digital IQ Index® is the largest and most robust study of its kind. Rankings are published annually across industries including Fashion, Watches & Jewelry, Specialty Retail, Beauty, Travel, and Fragrance. For more information, visit: http://www.l2thinktank.com

About the International Herald Tribune (global.nytimes.com)
The International Herald Tribune (IHT) is the premier international newspaper for opinion leaders and decision-makers around the globe. It combines the extensive resources of its own correspondents with those of The New York Times, is printed at 40 sites throughout the world and is for sale in more than 160 countries and territories. Based in Paris since 1887, the IHT is owned by The New York Times Company. For more information about the IHT, visit ihtinfo.com

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Linz Shelton
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