5 Digital Predictions for 2012

5 predictions on digital developments that will affect prestige businesses in 2012. L2 is a think tank for digital innovation. We help our prestige brand members increase their Digital IQ. We have identified seven trends in 2012 that we believe will affect how prestige brands build their brand online. Mobile and iPad Commerce will triple in 2012. For the first time In Q4 2010, shipments of smart phones and tablets exceed shipments of PCs globally. U.S. consumers spend 94 minutes a day on mobile apps versus just 72 minutes browsing the web. Affluent users are even more active. While 7 percent of overall web traffic in the U.S. is registered from a mobile device, 14 percent of search volume for prestige brands occurs on a smart-phone. The iPad only heightens these statistics. Many prestige brands have registered conversion rates 2 to 3 times higher on an iPad than on a traditional PC. Over the past 24 months prestige brands have made significant investments in building their Facebook communities. However, while many icons including Chanel, Dior and Gucci boast pages of 5 million plus strong, brands are still trying to unlock how to monetize their communities. Some brands including Diane von Furstenberg, L'Occitane and Tory Burch have turned to F-commerce. While these initiatives generate significant press and signal innovation to their consumers often conversion rates and sales are a fraction of what they see on other digital channels. The powerful data around Facebook return on investment is the incremental traffic the platform generates. Burberry recently passed 10 million fans. In 2010 1.9% of traffic to Buberry.com originated from Facebook. In 2011 the percentage of traffic from Facebook skyrocketed to 29%. Furthermore Burberry fans are 10 times more likely to visit the Burberry site suggesting they aren't only advocates but also customers. Tumblr, Instagram and Pinterest are words you'll hear more of. Emerging platforms, Tumblr, Instagram and Pintere