L2 Founder Scott Galloway recently sat down with Bloomberg’s ‘Money Moves’ to discuss how digital presence influences luxury purchases. Galloway said that even though one in five luxury goods are purchased online, four out of five are influenced by digital. Brands that measure their digital presence payoff in e-commerce sales are missing the majority of the story, he said. For example, mobile commerce will only be a $30 billion business in three years, but small screens influence $750 billion of in-store purchases.
L2 Think Tank assesses consumer brands’ digital competency based on 850 data points across 4 dimensions, and has found a positive correlation between ‘Digital IQ’ and year-on-year revenue growth. Galloway attributed that to the fact that skills needed for a strong digital presence – being data driven, connecting with a young audience and competency in new platforms – can lead to overall growth. Galloway was impressed by younger brands such as Tory Burch and Kate Spade, which have made large digital investments that are paying off. For the full Bloomberg interview, click here.