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Inexplicably, Luxury Brands Underinvest in Mobile

Sephora secured the top spot in the inaugural L2 Prestige 100: Mobile IQ, a ranking, developed by NYU Stern Professor Scott Galloway.

However, the IQ distribution reveals a significant, widespread underinvestment in mobile, as nearly half the brands were designated as Feeble.

The report found that only two-thirds of prestige brands maintain a mobile-optimized site, and one-third of these mobile development efforts do not yet support commerce.

Also, while 70% of brands have mobile apps, fewer than 20% of brands have created unique app content for tablet devices such as the iPad, which register high usage among affluent consumers.

Luxury Brands and Their Place on the Internet

Luxury brands have struggled to make sense of their place on the internet, in social media and now, apparently, m-commerce.  They are making strides however: it appears as though they may succeed on Facebook as a commerce channel where other brands have not: a number of high profile brands launched Facebook storefronts in recent months, Women’s Wear Daily reports.

Gilt Groupe launched its Facebook store in August with a Facebook store. Oscar de la Renta became the first luxury brand to launch an F-commerce initiative entirely on the social medium. In May, Bulgari launched a Facebook storefront with jewelry retailing for $12,000 and up.

A Wealthier Crowd

But given the demographics of mobile purchasers it is puzzling why more luxury brands are not reaching out in this space as well.

Mobile shoppers tend to be wealthier than the general mobile audience, according to a report released by Millennial Media and comScore. Thirty-four percent of mobile retail users earn $100,000 or more annually, 26% more than the 27% of overall mobile users in this income bracket.

In addition, 18% of mobile users earn $75,000 to $99,000 20% more than the 15% of overall mobile users who do so.

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