Gucci and Michael Kors are considered geniuses as per a ranking given by business intelligence firm L2, for their digital competency. The top 10 is rounded out with gifted brands Fendi, Burberry, Louis Vuitton, Coach, Hugo Boss, Tory Burch, Kate Spade and Salvatore Ferragamo.
Brands have been ranked on a scale of genius, gifted, average, challenged and feeble. Luxury labels top this year’s ranking but L2 found luxury brands continue to lag in digital sophistication compared to other sectors.
Luxury fashion brands have become susceptible to growing threats from disruptor brands such as Everlane and Reformation, who have built their business models on digital competence and social media marketing. Such brands provide quality, craftsmanship, and a seamless shopping experience that are quickly becoming budget-friendly alternatives to the luxury brand consumer.
L2 benchmarks the digital performance of 90 fashion brands operating in the US by evaluating each brand’s e-commerce, digital marketing, social and mobile. Another finding was that 38 per cent of Index brands do not own the majority of branded search terms. In November 2017, 40 per cent paid search traffic on Céline’s branded search terms went to resale sites, and the label received only 18 per cent.