MSIN0029: DIGITAL CONVERSATIONS & MARKETING
INDIVIDUAL ASSIGNMENT
WORD COUNT: 1,967
AN ANALYSIS OF CHRISTIAN DIOR'S DIGITAL MARKETING
OVERVIEW
OVERVIEW
Christian Dior is a luxury goods company ranked #1 in the Vogue Business Index 2021, reflecting their “consistently high performance across all five pillars and an unrivalled cross-channel digital strategy” (Vogue Business, 2021)
1946
Monsieur Christian Dior started his own haute couture establishment
2016
Marie Grazia Chiuri appointed Creative Director
2020
The Fashion and Leather Goods Group represented 47% of the Christian Dior group’s total revenue (Christian Dior, 2020)
NOW...
Dior is a top luxury fashion brand worth over $7b (Statista, 2021a)
Brand Value of Dior Worldwide from 2016-2021 (in US millions) (Statista, 2021a)
STRATEGIC DIRECTION
As a luxury company, Dior’s overarching strategy involves selective retailing and pursuing a single objective: "transforming shopping into a unique experience.” (Christian Dior, 2020)
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According to the Annual Report, the Group values include:
Creativity & innovation
Excellence in quality
Cultivating entrepreneurial spirit
Proactively making a difference in the world
Dior was name-checked by LVMH as a “standout brand” in 2020, with Morgan Stanley estimating Dior’s sales alone in excess of €5,462 million (Maguire, 2021)
Fashion & Leather Goods Group Highlights of 2020 (Christian Dior, 2020)
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CHALLENGES
CHALLENGES
COVID-19
Impact of COVID-19 on global personal luxury goods market 2019-2020, based on market size change % (Statista, 2021b)
The luxury fashion industry was undoubtedly disrupted by COVID-19, with McKinsey suggesting 2020 was the “worst year for the fashion and luxury industry” (Balchandani and Berg, 2021)
Post-pandemic behavior changes have impacted 73% of marketers strategies (WARC, 2021)
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As the world shifted online, Dior saw an acceleration in the uptake of online services as “clients rapidly evolved their purchasing behaviour” and expected new services; which Dior's CEO, Beccari, suggests will remain after the pandemic (Guilbault, 2021)
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COMPETITIVE LANDSCAPE
The Annual Report refers to the highly fragmented nature of the luxury market, which consists of large, international brands in addition to smaller, independent brands (Christian Dior, 2020)
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According to the Vogue Business Index, Dior’s main competitors are Louis Vuitton and Gucci (ranked 86 and 85 respectively)
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Brands are continuously increasing investment into digital platforms; for example, 66% of marketers will increase investment into TikTok in 2022 (WARC, 2021)
Dior's Main Competitors, Vogue Business Ranking 2021
COMPETITOR INSIGHT:
GLOBAL PERFORMANCE
Dior has a relatively low & static market share in the UK Apparel market (0.2%) in comparison to Asian Apparel markets, including Japan (0.4%)
Dior Apparel Market Share % (based on Retail Value RSP) in Japan vs. UK (Euromonitor, 2022b)
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DIGITAL VALUE CREATION (DVC)
DIGITAL VALUE CREATION (DVC)
DVC Framework (Cooray & Duus, 2021)
Average monthly WeChat Index by brand (millions) (Oct 20-Mar 21) (Maguire, 2021)
Dior has a “localized approach” towards their digital infrastructure in order to build relationships with consumers by staying relevant in every market (Maguire, 2021)
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By taking digital risks, Dior reinforces the importance of “building local online communities on local platforms”
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Dior has situated itself on prominent digital channels used heavily in Asia (highest geographic source of revenue, >49% SEE OVERVIEW)
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Dior is the most searched brand on WeChat, with a total of 579 million views over 7 fashion shows (Maguire, 2021)
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DIGITAL CONSUMER ENGAGEMENT
Dior is rated the leading luxury brand on Facebook, Instagram, YouTube and Google out of the top 60 luxury brands (Maguire, 2021)
DIOR'S DIGITAL CHANNELS (Dior, 2022; Maguire, 2021)
LIVE-STREAMING
RUNWAY SHOWS
High-impact runway shows streamed & shared across multiple platforms (Website, WeChat, TikTok, YouTube)
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Dior was the first brand to launch on Chinese Live-Stream App, BilliBilli
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The Cruise 2020 show was streamed during lockdown and attended virtually by 20 million people across all channels
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Streamed shows: Travis Scott Collaboration in Paris, 400-capacity Cruise 2022 show in Panathenaic stadium, Athens , Paris couture show against a 350-metre-long tapestry
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Generated 249 million views across platforms & reached 92 million views on Douyin alone (China’s TikTok)
DIGITAL PRODUCT LAUNCHES
E.G. MICRO-BAG CHALLENGE
YouTube + TikTok's with careful product placement with more than 325 digital talents supporting the launch on their social accounts
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Resulted in a media impact value (MIV) of $9 million
VAR FILTERS
Virtual try-ons across platforms like WeChat, Instagram and Snapchat
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Beccari says this allows Dior to connect consumers with products, even when physical stores were closed (Maguire, 2021)
INNOVATIVE COLLABORATIONS
WGSN found exclusive collaborations as the top way to attract the luxury consumer (78%)(WGSN, 2020):
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DIOR x Technogym
Limited edition series of fitness products available at Dior pop-ups (Technogym, 2022)
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DIOR x D-AIR Lab
Intelligent clothing line (airbags, ergonomic panels & integrated technology) to produce clothes in a new, experimental light (D-AIR, 2022)
Under the DVC framework, Dior has explored new digital competences in their infrastructure through integrating evolving technology to stay relevant
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By integrating physical experiences into digital outputs, Dior has engaged with millions of individuals around the world to build stronger relationships with consumers
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CONSUMER JOURNEY MAPPING
CONSUMER JOURNEY MAPPING
The Sticky Journey Model is relevant to Dior as a fashion brand, highlighting the fast-paced industry, where consumer expectations & demands are always changing to make their lives “more exciting” (Siebert et al., 2020)
THE LUXURY CONSUMER
OMNICHANNEL APPROACH: % of respondents who purchase offline & consider at least one digital touchpoint "very important" (Luxhub, 2015)
"What services do people expect from luxury brands?" (Luxhub, 2015)
*Online survey with 6.400 interviews to affluent 25-65 y/o consumers across 8 markets (US, China, UK, Spain, France, Italy, Germany and Middle East (Saudi Arabia and United Arab Emirates)
They shop across channels & are continuously demanding seamless experiences integrated across all touch points (Saghiri et al., 2017), increasing the importance of an
omnichannel approach with multiple digital touch points
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They primarily purchase products offline (after online research/exposure) & expect customization
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Karadag and Erdogmus (2020) suggest this ‘Omnichannel Dream’ is the best way to engage with luxury consumers
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An enhanced journey (in yellow) implements additional digital touchpoints, following the DVC framework and consumer trends/expectations above, to build stronger consumer relationships through creating new, digital experiences to streamline journeys
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Dior creates strong digital value in the ‘Search & Evaluate’ stage through a strong social media presence; however, they lack digital marketing initiatives in the ‘Buy/Access’ + ‘Use & Post-Experience’ phase
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As the Sticky Journey Model indicates, the Dior consumer journey is never-ending with rapidly evolving consumer demands, requiring Dior to implement further digital initiative during Phases 2 & 3 to create a truly omnichannel approach (Karadag and Erdogmus, 2020)
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TRIP
TRIP
CUSTOMER PULL
RESPONSIVENESS
DIOR AR App
Augmented Reality Experience App (BUT can only be used at specific Dior environments)
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VAR Try-on
Digital tool as a response to closure of physical stores during lockdown
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Brand Collaborations
See DVC, responding to evolving consumer demands through collaborations to produce innovative products
TRIP Framework (Cooray & Duus, 2019)
CUSTOMER PULL
PERSONALISATION
Personalised Dior Products:
Digital mock-ups of personalised handbags, belts, accessories & shoes (in-store + online)
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VAR Try-on:
Social media filters to enable visualisation of customised products
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ORGANISATIONAL PUSH
TRANSPARENCY
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DREAM IN GREEN!
Internal programme to monitor & ensure sustainability and ethical practices (e.g. protection of natural resources, fair treatment of all employees) (Dior, 2022)
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Positive Luxury Butterfly
The Positive Luxury Butterfly Mark certification attests to the authenticity of Dior's sustainability strategy (Dior, 2022)
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Internal Charters
LVMH has various Charters covering Environment, Recruitment, Laws, Animal Sourcing and Relations with Models (Dior, 2020)
ORGANISATIONAL PUSH
INTELLIGENCE
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HEURITECH
Dior was one of Heuritech’s first customers – AI software that uses data to predict fashion trends in understanding consumers (Heuritech, 2022)
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Social Media Feedback
Beccari: “When it comes to reach, we look at what people are searching for on Google, how the brand is mentioned, and obviously the traffic flow to the site” (Maguire, 2021)
% increase in brand search volume in 2021 (Maguire, 2021)
Transparency and Personalization scored the lowest (3.8 & 3.9)
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Personalization: Dior has customization for products
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Within their digital marketing, there is a lack of personalization during Phase 2, and especially Phase 3, of the journey
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Transparency: Dior’s limited initiatives surrounding sustainability and ethics can be strengthened through an increased commitment to the planet
Personalization + Transparency as interconnecting dimensions (Cooray & Duus, 2019)
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RECOMMENDATIONS
RECOMMENDATIONS
1. ‘THE DIOR COLLECTIVE’: DIGITAL MEMBER'S PLATFORM
An online ‘loyalty programme’ is recommended to implement into 'My Dior Account' (on dior.com) to increase ‘Personalization’ and ‘Transparency’ by digitally engaging with consumers throughout their entire shopping journey
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‘The Dior Collective’ is a Member’s Club for all Dior consumers, with the highest spending consumers gaining access to the highest rewards
Upon every purchase, consumers will receive a personalized QR code sticker to direct them to ‘My Dior Collective Membership’ on the website, aiming towards a fully omnichannel approach
Customer loyalty operates differently in the luxury fashion industry and many brands within this industry do not offer loyalty programs, but rather reward their highest spending customers with invitations to shows and concierge services (Chitrakorn, 2021)
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Points based systems are not used, and the focus is around “creating intimacy with customers and building brand ambassadors” (Guilbault, 2021)
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Exclusivity and status is crucial for luxury purchases (Chitrakorn, 2021)
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Therefore, it will operate with spending stages, encouraging consumers to spend more to receive the most exclusive rewards (e.g. early access to new collections, exclusive events, backstage, concierge service, social media features)
Indexed consumer view on whether a brand provides a sense of elevated status vs. purchase intent
Replace ‘Dior Advisor’ with AI assistant advisor for pre and post-purchase questions
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Aims to create an online platform to conveniently meet all customer needs, offering personalised services & reward spending at Dior
= creates digital value through staying relevant to consumers
= engages with consumers throughout their entire journey
= offers personalised experiences for consumers
2. ‘DIOR RE-BORN’: PRELOVED DIOR (AI) PLATFORM
In increasing ‘Transparency’ and 'Personalisation', Dior can introduce a ‘Dior Reborn’ initiative where Dior Collective Members can apply via the platform by uploading images of the product condition & purchase proof to be approved by AI Image Analysis
→ send preloved Dior products to Dior
→ refurbished and resold on the platform (Dior Collective)
This exclusive, digital programme increases convenience and will encourage Members to resell/purchase preloved goods directly from the website
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Implement VAR to enable consumers to virtually try on reborn products
Euromonitor recognizes the pursuit of preloved as a top 10 consumer trend in 2022, as consumers are increasingly willing to purchase preloved goods
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Prominently, this will increase Dior’s sustainability profile ('Transparency') → improving brand reputation (Euromonitor, 2021)
Willingness to purchase second-hand by age (% of respondents) (Euromonitor, 2021)
Under the DVC framework, this will add to Dior’s digital competences by evolving with consumer trends through increased transparency regarding Dior’s sustainability throughout the consumer journey across digital touchpoints
= this will contribute to adding value to Dior’s consumer post-experience by digitally engaging with all Members and meeting different consumers expectations simultaneously
3. #MYDIORLOOK: AI LOOK CREATOR
In increasing ‘Personalisation’, Dior can implement a ‘look creator’ feature on their website where users can input preferences and choose a product for AI to build a look around using Dior clothes, shoes, bags and accessories
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This will increase convenience for consumers looking for matching items & high-spenders building an outfit, whilst also encouraging individuals to share their personalised looks on social media
As the consumer journey map highlighted, the ‘Buy/Access’ Phase lacks digital initiatives to retain consumers; as such, the look creator aims to encourage existing consumers to purchase additional products to complete their looks & encourages new consumers to try-on looks and purchase items
Dior ambassadors can share their looks on their platforms and link the products to allow consumers to purchase the look/items from the look directly
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Dior can also allow consumers to shop different ambassador’s look (e.g. Shop Anna Taylor-Joy’s Party Look)
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Forbes has suggested “influencers will take over the entire marketing funnel” in 2022 and found that in 2019 more than 130 million Instagram users taped on shoppable posts each month
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They predict a large increase in sponsored posts for shoppable products in 2022 (El Qudsi, 2022)
SHOP ANNA TAYLOR-JOY'S DIOR PARTY LOOK
Aims to encourage interaction with Dior products, and ultimately enhanced shopping experiences
= new digital experience offering personalised engagement with users to create digital value to stay relevant
WORD COUNT: 639
TOTAL WORD COUNT: 1,967
APPENDIX
REFERENCES
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