What can we learn from Kering’s success on luxury e-tailing platforms?
While online sales for the luxury industry grew 24% in 2017, Kering massively outperformed its competition, achieving a 73% year-over-year increase of its e-commerce revenue, with Gucci alone delivering a whooping 86% growth. L2’s Fashion Europe report finds that the largest brands in the Kering portfolio (Gucci and Saint Laurent) captured the second and highest visibility respectively on the search and category pages of the leading fashion e-tailing platforms in Europe, including Net-a-Porter and Farfetch.
Several initiatives helped to support this performance that other brands can replicate:
1. Leveraging e-tailer strength in search: E-tailers dwarf brands for visibility on Google against unbranded search queries. In addition to direct visibility, Gucci benefited from second-order visibility by being the third most-mentioned Index brand in e-tailer Shopping Ads in both the UK and Germany, potentially thanks to partnerships with e-tailers.
2. Trading exclusivity for visibility: By developing an exclusive “Gucci for Net-a-Porter” assortment of products, the brand benefited from sophisticated merchandising investments on the popular e-tailer platform (e.g. 360 Degree Shoppable Videos) on high traffic pages and superior visibility when it came to editorial content.
3. Maximising presence in editorial content: Gucci and Saint Laurent were the first and fourth most-mentioned brands respectively within Farfetch’s on-site editorial content in the UK. With a clear path-to-purchase and presence in the persistent navigation menu, editorial content can boost traffic to product pages.
4. Differentiating through fulfilment: Along with Chloé and Moncler, Gucci is one of only a handful of brands offering 90-minute delivery in London and Paris through Farfetch’s F90 fulfilment service. Saint-Laurent also offers the same service in Paris only.
By developing deeper win-win partnerships with e-tailers, Kering has demonstrated that fashion brands can boost their visibility at each stage of the consumer journey within the e-tailers’ digital ecosystems, driving superior e-commerce performance.