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Business

LVMH's digital drive takes time despite Apple hire

Opening sequence

Opening sequence

Business

LVMH's digital drive takes time despite Apple hire

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COMING UP:LVMH's digital drive takes time despite Apple hire

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Transcript

00:00:00
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00:00:01
Investors hoping a new digital strategy chief at LVMH would produce quick results, probably disappointed. The French Luxury Group poached Apple's former music executive Ian Rogers to catapult them into the digital sphere. Almost 12 months on, there are more tech savvy people on board, and LVMH got involved in the Paris technology startup fair.
00:00:23
But any clear impacts of the appointment's yet to become visible. Reuter's Astrid Wendlandt in Paris, explains why no company in the industry can ignore the web.>> The internet basically is the opposite of what the luxury world is about. It's about transparency, it's about accessibility. It's about being able to compare prices.
00:00:43
And luxury brands love the fact that there was a segmentation. Basically luxury brands now do not have a choice but to invest on building up their presence on the internet. Because consumers increasingly expect luxury brands to embrace the internet, even if they are reluctant.>> With over 70 brands under LVMH, the digital revolution is inevitably moving slowly.
00:01:05
Some companies are making great strides, Louis Vuitton and Fendi have plowed money into social media. Givenchy's designer has 1.7 million Instagram followers. And Sephora contacts customers via email or text message, to suggest products and offer discounts. But Celine sells very little on the Internet and has no ecommerce website of it's own.
00:01:27
>> Ian Roger's job is to make everybody understand how they need to embrace the internet. They need to have a really smart digital strategy if they want to be able to talk to the millennials and the consumers of tomorrow.>> At the moment about 8% of luxury sales are completed online.
00:01:46
Analysts expect that to rise to 20% within a decade, LVMH's internet transactions are thought to be around 5%.>>
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>> It'll need to step on the gas to ensure it doesn't get left behind.