There is new evidence to show that luxury brands have been unable to use effectively social media and networking sites. A new research by L2, a New York University Stern organization reveals that Swarovski and Tiffany & Co. are honorable exceptions. Bib brands like Rolex, Chopard and Cartier have ignored the web world even though research shows that 78% of internet users spend significant time on social network sites, while 66 percent use the Internet to conduct research before making a major purchase.
Swarovski has a strong Facebook presence and has created a flash-forward website featuring amazing customer service with live assistance, after-sales service and order tracking. Swarovski and Tiffany & Co. have the strongest presence on the web in the watch & jewelry segment. The L2 survey has ranked them both in the ‘Gifted’ class and given them a Digital IQ score of 139 and 138 respectively.
It is evident that digital presence fuels growth. Just creating a website or a page on facebook and twitter is not enough. Companies taking part in social-sharing, contributing content and interacting with other users have more than double the rate of growth than digitally inactive companies as per the L2 study. Do we need to say more?