Ralph Lauren Corp. reported a telling figure in its latest financials: Online sales increased 25% in the second quarter. In general, Q2 sales jumped 24% to $1.7 billion.
This growth was fueled by a number of cutting-edge online ad initiatives, the Star Tribune reports. These initiatives included a 24-hour, touch-manipulated storefront window a la sci-fi thriller "Minority Report." In 2010, it held Ralph Lauren "4D" events in New York and London in which it beamed giant, high-resolution holographic images onto a building. These images, first of polo players, then transformed into perfume bottles. The actual fragrances were released into the crowd.
Luxury Goods Spending
Despite the recession and its lingering aftermath, luxury shoppers have been a constant for retailers. Growing transaction size increased year-over-year spend in the luxury jewelry, apparel/accessories, and department store sectors during Q2 2011, according to the American Express Business Insights Q2 2011 Spend Sights Report.
Underinvesting in Mobile
Targeting this crowd with advertising is a no-brainer, of course. However, few luxury brands have thrown themselves so whole-heartedly into the digital ad space as Ralph Lauren.
The inaugural L2 Prestige 100: Mobile IQ, a ranking, developed by NYU Stern Professor Scott Galloway, found 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.