LVMH and AT&T are going strong. The enterprise just signed on for another five years with the telecommunications company in a push to further merge luxury retail with technology. For the enterprise, which barely made Average in Gartner L2’s Digital IQ Index: Fashion, the deal could mean more consistent digital success across all its brands.
Currently, LVMH is one of the few enterprises that hasn’t managed to keep its individual brand scores within a tight distribution. For example, its brand Fendi flourishes as a Gifted brand with a robust website, strong video advertising, and above-average investments in mobile search and advertising. The brand also stands out with its interactive gaming campaign on Instagram Shopping, of which it was an early adopter. In contrast, LVMH-owned brand Pucci has the lowest site traffic out of all studied brands, due in part to poor social media reach, lack of web advertising, and anemic email marketing campaigns.
Though LVMH lags behind in some parts of its portfolio, it has begun to intensify investments, helping move some brands out of the Challenged category and improving its average Digital IQ by twelve points since the previous year. Additionally, 70% of LVMH brands have seen double-digit increases in Digital IQ, with four—Fendi, Givenchy, Loewe, and Loro Piana—seeing over twenty point increases. The enterprise has also tightened the gap between its best and worst performers by almost 10 points. Paired with the reinstated declaration of improved technology with AT&T, these investments could help the brand pull itself up by its bootstraps once and for all.