When LVMH hired former Apple music executive Ian Rogers to craft a digital strategy, investors may have hoped for some quick results. If so, they are probably disappointed. Mis Womersley reports
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 start-up fair. But any clear impact of the appointment yet to become visible. Reuters Astrid Wendlandt in Paris explains why no company in the industry can ignore the web. (SOUNDBITE) (English) ASTRID WENDLANDT, REUTERS REPORTER, SAYING: "The internet is basically the opposite of what the luxury world is about. it's about transparency, its about accessibility, it's about being able to compare prices, and luxury brands loved the fact that there was a segmentation." With over 70 brands under LVMH, the digital revolution is inevitably moving slowly. Some companies are making great strides... Louis Vuitton and Fendi have ploughed money into social media. Givenchy's designer has 1.7 million Instagram followers. And Sephora contacts customers via e-mail or text message to suggest products and offer discounts. But Celine sells very little on the internet and has no e-commerce website of its own. (SOUNDBITE) (English) ASTRID WENDLANDT, REUTERS REPORTER, SAYING: "Ian Rogers job is to make everybody understand how THAT they need to embrace the internet and have to come up with (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. Analysts expect that to rise to 20 percent within a decade. LVMH's internet transactions are thought to be around 5 percent.