Gucci and Michael Kors ranked most 'digitally competent' brands

By

Obi Anyanwu

Published
Nov 13, 2017

Business intelligence firm L2 has this year named Gucci the most digitally-competent' luxury brand in its 8th annual L2 Digital IQ Index: Fashion US 2017 Report. The Kering-owned Italian label was one of the two fashion labels to reach the report's top-level ranking, alongside Michael Kors.

 
The L2 Report benchmarks the digital performance of 90 fashion brands operating in the US, by evaluating each brand’s e-commerce, digital marketing, social and mobile performance. The Index brands included in the report are then classified as either 'genius', 'gifted', 'average', 'challenged', or 'feeble'.

The top 10 in the report was rounded out with 'gifted' brands Fendi, Burberry, Louis Vuitton, Coach, Hugo Boss, Tory Burch, Kate Spade and Salvatore Ferragamo, all of which attained the second-tier ranking.

The report found that luxury brands continue to “lag in digital sophistication behind other sectors,” according to L2 Associate Director Brian Lee.
 
Lee explained, “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."
 
The report also found that 38% of the brands surveyed do not own the majority of branded search terms, leading to increased competition from resale sites. For example, in November 2017, 40% of paid search traffic on Céline’s branded search terms went to resale sites, and the label received only 18%.
 
The brands have maximized social media to their benefit, particularly Instagram. The brands have increased their Instagram followings by an average of 53% and 12% of brands include shoppable tags in their Instagram posts.