Earlier this month La Conférence Luxe & Digital gathered almost two hundred industry representatives, experts and journalists from Russia, France and the United States to share their experience and views on today’s digital trends in the luxury and fashion industry.
Previously staged in Paris since 2010 and Moscow last year, the event was coordinated this year with the Moscow Mercedes Benz Fashion Week.
Two dozen speakers made one thing clear: Russia is taking over the Internet, with 65 million active users as of this spring – the highest number in Europe. Domestic online retail still represents modest volumes – $13 billion spent online in 2012, according to East-West Digital News – but is growing at such fast pace that it may exceed the $50 billion mark by the end of the decade.
Paradoxically, Russia’s e-commerce leader is not Russian but American, judging by the $400 million cross-border sales volume to Russia registered by eBay last year.
While many still think of eBay as a place to buy and sell secondhand items via auction, eBay Russia CEO Vladimir Dolgov offered a different picture in his presentation. As much as 65% of the items sold on the platform are bought at a fixed price (‘’buy it now’’) and 70% of them are brand new, Dolgov noted.
“Technology has always moved merchandising to new frontiers,” Dolgov believes. “In retail, a shop window display aims to both communicate the brand image and trigger consumers’ desire to buy. The eBay revolution here is that it offers shops and brands a single window to display” their offers anywhere in the world.
In Russia, fashion is eBay’s top category, right before technology. The site’s Russian version, which was enhanced recently, focuses on bringing content to its users and offering fashion inspiration and advice.
“Tools and teal are amazing, but they are not a strategy,” noted Emmanuel Vivier, co-founder of the HUBInsitute, which organized the event. “Using social networks doesn’t ultimately make a brand social. It’s important to use those new tools with creativity and utility. Everything new a brand offers to its customer must be something they find useful. Brands should become the media instead of buying them,” the HUBInstitute speaker said.
Social networks should not be forgotten and are a very effective lever to reach customers – especially the younger generation. “Many digital studies predict that over the next decade, digitally-obsessed millennials will become the next major luxury buyers. They should be targeted through the channels they naturally consume,” said Anna Znamenskaya, CEO of Tinkoff Digital, а Russian developer of innovative Internet and mobile advertising technologies.
Social media now a mandatory tool
A key strategy for these brands is to invest in social networks advertising on Vkontakte and Facebook, for example, as well as in in-game ads.
Highlighting the new “fashion and social media convergence,” Elena Merzlyakova of Starcom MediaVest Group explained that it is now mandatory for fashion brands to have a presence on platforms such as Pinterest, Tumblr or Instagram – which has already attracted 1.4 million users in Russia – to effectively reach their audience.
In the social media world, bloggers and YouTubers should not be neglected. Their opinions are regarded as gold by their devoted followers.
Mercedes’ experience also shows us that digital can harmoniously complement traditional marketing campaigns. The launch of the new Class A included the creative involvement of the audience via digital devices and social networks. And their livestream of the Moscow fashion week was a real success, with over 300,000 unique users during the five days of the event.
3D printing and connected objects are seen by many as the next big things, and brands should keep a close eye on them. 3D printing may revolutionize retail even in fashion, as suggested by the 3D printed dresses shown recently at the Paris Fashion Week.
