Each L2 report features a graph comparing the Digital IQ spread of companies owned by a single enterprise. While the graph is easy to ignore, it reveals key insights about the relationship between parent companies and brands. An enterprise with a wide disparity between top- and bottom-performing brands is not investing its components, leaving brands to do the heavy lifting. Additionally, these enterprises are not sharing resources and tapping economies of scale when building new sites, e-commerce components, and customer service assets. In L2’s Digital IQ Index: Watches & Jewelry The Swatch Group has the highest disparity, a 108-point difference between Tissot and Léon Hatot, which is the disparity of Richemont and LVMH brands’ Digital IQ scores combined.
Kering is another example where the parent company is doing little for its brands. While Kering has partnered with YOOX to build a common platform for all of the company’s fashion brands, just one Jewelry brand, Pomellato, leverages this investment. Richemont, over half of whose brands are ranked as Gifted in this year’s Index, has been steadily narrowing the disparity over the past two years by centrally coordinating a cycle of site refreshes for all of the conglomerate’s brands, as well as leveraging central customer service and other technology assets.
Who is the enterprise to watch in 2015? LVMH narrowed its brand disparity from 60 points in 2013 to 35 points this year (the lowest of all Watches & Jewelry enterprises in the 2014 report) by focusing on formerly Feeble Fred and Zenith.
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