Jewelry and watch companies Facing new challenge
By http://www.nationaljeweler.com
Except for Tiffany & Co., jewelry and watch companies on average remain “Challenged” when it comes to effectively utilizing the Internet to boost their brand, a new study shows.
On Tuesday, digital think tank L2 released its annual Digital IQ index for specialty retail brands. It analyzes and evaluates the digital strategy of 64 specialty retail brands based on their Web site and efforts in the areas of digital marketing, social media and mobile.
A total of six jewelry and watch brands were included in this year’s study.
The index sorts the brands into five categories. “Genius” is the top category, reserved for brands that score 140 or higher and whose digital competence sets them apart from their competitors. Next is “Gifted” (110-139), “Average” (90-109), “Challenged” (70-89) and “Feeble” (less than 70).
The lone watch or jewelry brand to crack the top 20 was Tiffany & Co., ranking No. 19 and classified as Gifted. “A jewel of a mobile app and smart digital cross promotion,” the report states of Tiffany & Co.
Tiffany & Co. was classified as a Facebook “overachiever” based on how many “fans” it has versus the number of global organic monthly searches for its brand name on Google. It also had the fifth-highest number of upload views on YouTube.
The remainder of the jewelry and watch brands evaluated ranked as Average, Challenged or Feeble. Cartier, No. 43 with an IQ of 96 and classified as Average, has a “good-looking site but faulty site mechanics,” according to the report.
Swarovski was No. 45, Average with a Digital IQ of 94. “Social media properties shimmer, but site has lost its sparkle,” the report states.
Swatch ranked No. 47 with an IQ of 92, followed by Zales at No. 52 with a Digital IQ of 83, making it Challenged. The report stated: “enhancing mobile and YouTube offering would help.”
Tourneau ranked last in Digital IQ out of all brands evaluated, with an IQ of 43, classifying it as Feeble. The report noted that Tourneau and the only other brand classified as Feeble, apparel retailer Club Monaco, both had yet to embrace e-commerce.
While jewelry brands continue to lag in Digital IQ, the study shows that they are smarter than they were last year, at least. The average IQ of the watch and jewelry industry jumped 19 points year-over-year, from 69 to 88, which puts it at the top end of the Challenged range.
Only accessories posted a greater gain, climbing 30 points from 56 to 86.
Overall, the No. 1 retailer when it comes to Digital IQ is Macy’s, according to the study. The retailer, which ranks No. 5 on National Jeweler’s 2011 list of $100 Million Supersellers, scored 150 thanks to its strong social media presence and its “Magic of Macy’s” mobile site.
Rounding out the top five were Victoria’s Secret with a score of 145, Nordstrom with 143 and Sephora and Urban Outfitters, both with 136.
Other findings of the study include:
-- Brands’ Facebook “fans” are most receptive to product-related messaging. Posts that highlight or promote product garnered the highest interaction rate among fans at 0.14 percent, as compared to posts about contests (0.09 percent), sales (0.08 percent) or style commentary and advice (0.06 percent).
-- Zales had the second fastest-growing Facebook page in June and July with its fan base increasing 41 percent. Only furniture retailer Ethan Allen, up 83 percent, grew more during the period.
-- Cartier had the eighth fastest-growing Twitter account, with followers jumping 25 percent in June and July. It also had the third-highest number of upload views on YouTube.
L2 was founded by Scott Galloway, a clinical marketing professor at New York University’s (NYU) Stern School of Business who was a speaker at this year’s American Gem Society Conclave.
To view the entire report, visit L2ThinkTank.com.
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