1. ®
Watches
SCOTT GALLOWAY
NYU Stern
& Jewelry
O C T O B E R 1 8 , 2 0 11
A Think TAnk
for DiGiTAL innOVATiOn
© L2 2011 L2ThinkTank.com

2. november 10, 2011 On November 10, L2 will host its third annual Innovation
Forum in New York City. Presented with NYU Stern School
The Morgan Library of Business, the Forum will address innovation in digital
marketing and implications for prestige brands in a
new York City TED-style event. Speakers include CEOs, Nobel Laureates,
and thought leaders from academia and industry.
To register, visit:
FORUM: http://L2innovationforum2011.eventbrite.com elements:
• high-velocity, provocative presentations by
thought leaders from industry and academia
• Conversations and panels with industry icons
and influencers
• Just-released Digital iQ index® research bench-
marking prestige brands in fashion, beauty,
accessories, and retail
• Trends, predictions, and best practices based
on a year’s worth of L2 research
• Performances by innovators in art, media, music,
and technology
• Countdown of the seven most innovative programs
The largest gathering of in prestige
prestige executives in North America To register, visit:
http://L2innovationforum2011.eventbrite.com
GREG LinDSAY TOM PhiLLiPS JULiAn TREASURE
hosts: speakers:
Author & Journalist CEO & Co-Founder Author, Sound Business
Aerotropolis: The Way Media6° Chairman, The Sound
We’ll Live Next Agency
TAMáS LOChER ViCTORiA RAnSOM DUnCAn WATTS
SCOTT GALLOWAY New speakers are being added daily. Co-Founder & CEO Founder & CEO Principal Research
Founder, L2 LOOKK.com Wildfire Scientist
Visit our event site for the most up-to-date list. Yahoo! Research
Professor of Marketing
NYU Stern
JEnniFER AAkER TiM hWAnG ThOMAS LOCkWOOD PAUL ROMER GEOFF WATTS
PETER hEnRY Professor, Stanford Chief Scientist, Pacific Author, Design Professor Co-Founder
Dean University Graduate Social Architecting Thinking and Building NYU Stern EDITD
NYU Stern School of Business Corporation Design Strategy
DAViD CAREY JOhn JAnnUZZi SOniA MARCiAnO kRiSTinE ShinE JOEL WEinGARTEn
MiChAEL LAZEROW President Editor Professor of Mangagement Vice President CEO & Founder
CEO & Founder Hearst Magazines Lucky Magazine & Organizations Popsugar Media StyleOwner
Buddy Media NYU Stern
DAVE GiLBOA ShERiL kiRShEnBAUM OREn MiChELS MARC SPEiChERT CAPTAin
Co-CEO & Co-Founder Research Scientist CEO & Founder Chief Marketing Officer DAViD WERnER
Warby Parker Webber Energy Group, Mashery L’Oréal USA U.S. Navy Office
University of Texas of Information
MELiSA GOLDiE CAThERinE LEVEnE MAUREEn MULLEn JOhn TOMiCh GABE ZiChERMAnn
EVP, Chief Creative Co-Founder & CEO Research & Advisory CEO & Co-Founder CEO
Officer ArtSpace L2 OneStop Gamification Co.
Calvin Klein, Inc

3. Digital iQ iNDex ®:
Watches & Jewelry Want to know more about your brand’s ranking?
COnTACT US
inTRODUCTiOn
Digital: It’s Time
In our first Digital IQ Index® measuring the category in isolation, nearly two thirds of the brands are classified as
Challenged or Feeble, and only two, Tiffany & Co. and Swarovski, achieved Genius and Gifted classifications
(respectively). Gray market concerns, counterfeit fears, limited pricing transparency, and retailer conflict all present
obstacles for organizations in this category to build and sell their brands online. However, with 67 percent of
consumers in the EU and half of those in the U.S. indicating that they research luxury goods online before making
a purchase, do Watches & Jewelry brands really have a choice?
Drive and Derive Two Ways
Just 29 percent of the brands in the Index boast e-commerce Digital also provides the opportunity to reduce offline marketing
capabilities. However, in a category where third-party distribu- investments. There are two ways to build shareholder value:
tion is not going away anytime soon, the missed opportunities to increase perceived value and/or reduce costs. Managers tend
drive potential consumers to authorized offline retail is even more to focus on the former when presented with new technology.
disappointing. Less than half of the brands link to a store locator However, social media’s true promise may lie in the less roman-
from the product page and just one third display product prices. tic notion of reducing (significantly) the costs of, and addiction
Tiffany is the only brand to provide in-store pick-up through its to, print. Brands that establish direct relationships with their
site, while TAG Heuer is the only brand to provide links to online customers via social media platforms have the opportunity to
retailers. Although Watches & Jewelry brands may never do excise the publisher’s tax.
significant volume directly, they can steal a page from the play-
book of most automobile brands and use their sites and social
media channels to push consumers to the next stage in the
purchase funnel.
© L2 2011 L2ThinkTank.com 3

4. Digital iQ inDex ®:
Watches & Jewelry
Want to know more about your brand’s ranking?
COnTACT US
inTRODUCTiOn
Dipping their toes
There are signs of life. All but three brands in the Index now The medium we are assessing is similar to our methodology in
maintain a presence on Facebook, with communities averaging that both are dynamic. We hope you will reach out to us with
more than 200,000 fans. Mobile site adoption is up from just 7 comments that improve our investigation and findings. You can
percent in 2010 to 39 percent this year. In addition, brands are reach me at scott@stern.nyu.edu.
slowly beginning to abandon flash-heavy sites that are difficult
to navigate in favor of streamlined experiences that are more
searchable, shareable, and product-centric.
SCOTT GALLOWAY
Founder, L2
Hubris Clinical Professor of Marketing, NYU Stern
While some industry icons move forward others continue to slip
further behind. With a YouTube channel launch and new iPad
applications, Cartier was one of this year’s biggest winners, but still
registers an “Average” IQ. The biggest disappointment is industry
heavyweight Rolex, which has fallen from Gifted in 2009 to Feeble
this year. Hubris has infected many of the Watches & Jewelry brands
with complacency online, and their stakeholders may pay a
heavy price.
Digital IQ = Shareholder Value
Our thesis is that digital competence is inextricably linked to
shareholder value. Key to managing and developing a competence
is an actionable metric. This study attempts to quantify the digital
competence of 35 global Watches & Jewelry brands. This year’s
ranking reflects brands’ efforts across the U.S. and Western
Europe. Our aim is to provide a robust tool to diagnose digital
strengths and weaknesses and help brands achieve a greater
return on incremental investments.
© L2 2011 L2ThinkTank.com 4

5. Digital iQ inDex ®:
Watches & Jewelry
Want to know more about your brand’s ranking?
CONTACT US
ABOUT ThE RAnkinGS
M E T h O D O LO G Y D i G i TA L i Q C L A S S E S
Site: 35% iQ Range iQ Class
effectiveness of brand site
140+ GEniUS
FunCTIOnALITY & COnTenT: 75% BRAnD TRAnSLATIOn: 25% Digital competence is a point
• Site Technology • Site Aesthetics
of differentiation for these brands.
• navigation, Product & Site Search • Messaging & imagery
Site content is searchable,
• Social Media integration
shareable, and mobile-optimized.
• Customer Service & Store Locator
Social media efforts complement
• Product Display & Content
broader digital strategy.
• E-Commerce & Transaction Orientation
• Account Sign-Up & Functionality
• innovation & interactivity 110–139 GiFTED
• Global E-Commerce Footprint Brands are experimenting and
• Branded Content
innovating across site, mobile, and
social platforms. Digital presence
Digital Marketing: 25% is consistent with brand image and
Search, display, and email marketing efforts larger marketing efforts.
• Search: Traffic, SEM, SEO, Web Authority
• Display Advertising & innovation: Text & Banner Ads, Retargeting, Cross-Platform Innovation Initiatives
90–109 AVERAGE
• Blog & Other User-Generated Content: Mentions, Sentiment
Digital presence is functional yet
• Email: Frequency, Language, Content, Social Media Integration, Promotion
predictable. Efforts are often siloed
across platforms. Sites often offer
Social Media: 25%
limited transaction-orientation.
Brand presence, community size, content, and engagement on major social media platforms
• Facebook: Likes, Growth, Post Frequency, Applications, Responsiveness, Content, Global Presence
70–89 ChALLEnGED
• Twitter: Followers, Growth, Tweet Frequency, Online Voice
Limited or inconsistent adoption of
• YouTube: Views, Number of Uploads, Subscriber Growth, Content, Interactivity
mobile and social media platforms.
Site lacks inspiration and utility.
Mobile: 15%
Compatibility, optimization, and marketing on smartphones and other mobile devices
<70 FEEBLE
• Mobile Site: Compatibility, Functionality, Transaction
• iOS Applications (iPhone & iPad): Availability, Popularity, Functionality, iPad Differentiation Investment does not match
• Android: Availability, Popularity, Functionality opportunity.
• innovation: SMS, Geolocal, Other Mobile Marketing Innovation
© L2 2011 L2ThinkTank.com 5

6. Digital iQ inDex ®:
Watches & Jewelry
Want to know more about your brand’s ranking?
COnTACT US
D i G i TA L i Q R A n k i n G
PARenT COMPAnY:
COMpagNie FiNaNCièRe RiCHeMONt S.a. OTHeR: pUBliClY tRaDeD
tHe SWatCH gROUp ltD. OTHeR: pRiVatelY OWNeD
lVMH
Rank Brand Parent Digital IQ Class Comments
A class by itself, Tiffany boasts the only m-commerce site and a flare for
1 TIFFAnY & CO. Tiffany & Co. 143 Genius cross-platform programming
2 SWAROVSKI Swarovski AG 124 Gifted Huge Facebook community, #1 Digital Marketing score and site traffic leader
Compagnie Financière Bridges Grande Tradition with digital best practices and notches top score for
3 JAeGeR-Le COuLTRe 108 Average Social Media
Richemont S.A.
4 DAVID YuRMAn Yurman Design, Inc. 107 Average Strong site coupled with Foursquare activity
Compagnie Financière Finally commandeering its own Facebook efforts; social media traction coupled with
5 CARTIeR 106 Average
Richemont S.A. iPad updates score biggest winner accolades
6 OMeGA The Swatch Group Ltd. 103 Average Content-rich iPad magazine and strongest mobile site in study
Live press conferences on Facebook and top-scoring YouTube channel somewhat
7 TAG HeueR LVMH 100 Average
compensate for sluggish site load
8 LOnGIneS The Swatch Group Ltd. 95 Average Leading (limited) e-commerce efforts in the watchmaker category
Compagnie Financière
9 MOnTBLAnC 92 Average Launched e-commerce right after data was cut, savvy Facebook programs delight
Richemont S.A.
Pandora Club sign-up available using Facebook connect bolsters a community more
9 PAnDORA Pandora A/S 92 Average than 800,000 strong
Mobile site absence is saved by F-commerce experimentation and Enchanted
11 BuLGARI LVMH 90 Average
Garden experience
11 HuBLOT LVMH 90 Average Early innovator is hurt by anemic Facebook growth
Compagnie Financière Award-winning iPad app coupled with strong Facebook growth and engagement
11 IWC SCHAFFHAuSen 90 Average keep brand ticking
Richemont S.A.
Audemars Piguet
14 AuDeMARS PIGueT 89 Challenged The Art of Timeless Precision needs online shopping
Holding S.A.
© L2 2011 L2ThinkTank.com 6

7. Digital iQ inDex ®:
Watches & Jewelry
Want to know more about your brand’s ranking?
COnTACT US
D i G i TA L i Q R A n k i n G
PARenT COMPAnY:
COMpagNie FiNaNCièRe RiCHeMONt S.a. OTHeR: pUBliClY tRaDeD
tHe SWatCH gROUp ltD. OTHeR: pRiVatelY OWNeD
lVMH
Rank Brand Parent Digital IQ Class Comments
Punching above its weight class with strong social presence, awaiting
15 RAYMOnD WeIL Raymond Weil S.A. 85 Challenged
mobile innovation
16 CHOPARD Chopard Holding S.A. 83 Challenged Elegant efficiency needs e-commerce best practices and mobile applications
16 MIKIMOTO K. Mikimoto & Co., Ltd. 83 Challenged YouTube absence hinders IQ; strongest e-commerce presence in the Index
March site launch improves IQ and threads the needle between brand and
18 De BeeRS LVMH 82 Challenged
commerce; next step: social media
Compagnie Financière Overachiever on Facebook and surprising #2 in Twitter followers signals
19 BAuMe eT MeRCIeR 81 Challenged
Richemont S.A. digital potential
Compagnie Financière
20 PIAGeT 79 Challenged Rewards and thanks Facebook fans but playing it safe on most digital fronts
Richemont S.A.
21 MOVADO Movado Group Inc. 78 Challenged What about 2011 Legends? Facebook content is stale
Only Android app in the study, but without a mobile-optimized site still not
22 BReITLInG Breitling S.A. 77 Challenged
fully compatible
22 HARRY WInSTOn Harry Winston, Inc. 77 Challenged Needs to add sparkle to predictable digital performance
Compagnie Financière
24 VAn CLeeF & ARPeLS 75 Challenged E-commerce could perhaps be the new chapter?
Richemont S.A.
Compagnie Financière Highest Facebook engagement rate in the study, but can’t overcome limited
25 VACHeROn COnSTAnTIn 71 Challenged
Richemont S.A. mobile presence
26 BuLOVA Citizen Watch Co., Inc. 68 Feeble Needs to adopt Twitter and YouTube
Department store e-commerce connection is a Genius move for this otherwise
27 BACCARAT The Baccarat Company 65 Feeble
disappointing digital experience
28 ROLeX Rolex Holding S.A. 64 Feeble Biggest digital disappointment in the sector
© L2 2011 L2ThinkTank.com 7

8. Digital iQ inDex ®:
Watches & Jewelry
Want to know more about your brand’s ranking?
COnTACT US
D i G i TA L i Q R A n k i n G
PARenT COMPAnY:
COMpagNie FiNaNCièRe RiCHeMONt S.a. OTHeR: pUBliClY tRaDeD
tHe SWatCH gROUp ltD. OTHeR: pRiVatelY OWNeD
lVMH
Rank Brand Parent Digital IQ Class Comments
Groupe Franck Muller
29 FRAnCK MuLLeR 48 Feeble Anticipating mobile app debut
Watchland S.A.
29 H.STeRn H.Stern Jewelers, Inc. 48 Feeble Facebook presence weak, site even weaker
Compagnie Financière
31 OFFICIne PAneRAI 47 Feeble Screensavers: Out. Social Media: In
Richemont S.A.
32 BuCCeLLATI Buccellati Holding Italia S.p.A 42 Feeble Dated
Graff Diamonds
32 GRAFF DIAMOnDS 42 Feeble Facebook newcomer has a lot of catching up to do
International Ltd.
Digital means more than a strong site experience; awaiting the social media
34 FABeRGÉ Fabergé S.A. 39 Feeble
Rebirth Of (this) Icon
35 PATeK PHILIPPe Patek Philippe S.A. 36 Feeble Last place in an uncompetitive race
© L2 2011 L2ThinkTank.com 8

9. Digital iQ inDex ®:
Watches & Jewelry
Want to know more about your brand’s ranking?
COnTACT US
kEY FinDinGS D i G i TA L i Q D i S T R i B U T i O n
% of Brands per Digital iQ Class
(Time) Standing Still
In our first-ever Watches & Jewelry Index, nearly two thirds of GenIuS
Watches & Jewelry brands are classified as Challenged or DIGITAL IQ
3% tiffany & Co.
Feeble and only two brands registered IQs of Genius or Gifted, >140
confirming the hypothesis that the category is one of the
biggest luxury laggards online. In comparison, in the digitally
GIFTeD
sophisticated Specialty Retail and Travel categories, both which DIGITAL IQ
ink considerable revenue through online channels, 42 percent Swarovski 3%
110–139
and 41 percent of brands, respectively, were Genius or Gifted.
Meanwhile the Fashion and Beauty categories register about
one third of brands in the Genius or Gifted ranks. Although AVeRAGe
Watches & Jewelry brands are beginning to invest in social Jaeger-leCoultre Montblanc
David Yurman pandora
media and mobile, transaction-orientation and digital marketing
DIGITAL IQ Cartier Bulgari
competence (search, email, retargeting, etc.) lag other 31%
90–109 Omega Hublot
industries. tag Heuer iWC Schaffhausen
longines
D i G i TA L i Q A C R O S S i n D U S T R i E S
% of Brands Classified as Genius or Gifted CHALLenGeD
audemars piguet Movado
Raymond Weil Breitling
42% Chopard Harry Winston
41%
DIGITAL IQ
Mikimoto Van Cleef 34%
33% De Beers
& arpels 70–89
32%
Vacheron
Baume et Mercier
Constantin
piaget
6%
FeeBLe
Bulova Officine panerai
Baccarat Buccellati
DIGITAL IQ
29% Rolex graff Diamonds
Specialty Travel Beauty Fashion Watches
<70
Franck Muller Fabergé
Retail & Jewelry
H.Stern patek philippe
Click icons to Download Research
© L2 2011 L2ThinkTank.com 9

10. Digital iQ inDex ®:
Watches & Jewelry
Want to know more about your brand’s ranking?
COnTACT US
kEY FinDinGS
In the Company of Genius
TiFFAnY & CO.
What Makes Love True
microsite and app bring
the magic of Tiffany & Co.
to life through authentic
One of the top sites in the
love stories, curated New
Index, Tiffany threads the
York experiences, and film
needle between brand
and music suggestions.
building and e-commerce.
© L2 2011 L2ThinkTank.com 10

11. Digital iQ inDex ®:
Watches & Jewelry
Want to know more about your brand’s ranking?
COnTACT US
kEY FinDinGS
In the Company of Genius
TiFFAnY & CO. (continued)
Tiffany’s Engagement
Ring Finder app blends
utility and shareability.
One of only two brands
The app allows users to
in the study with an
identify their ring size and
Instagram account.
comment on products on
a private Facebook wall.
Tiffany & Co. emails
provide communications
links to e-commerce,
customer service, social Even for products that
media properties, and aren’t sold via e-commerce,
mobile applications. such as engagement rings,
Tiffany provides pricing,
payment options, and
seamless handoff to an
in-store consulation.
© L2 2011 L2ThinkTank.com 11

12. Digital iQ inDex ®:
Watches & Jewelry
Want to know more about your brand’s ranking?
COnTACT US
kEY FinDinGS D i G i TA L i Q BY O W n E R S h i P S T R U C T U R E
170
Digital IQ by Ownership Structure
An analysis of Digital IQ by ownership structure suggests that
Genius
brands held by public companies register a significant advantage
online, arguably as a result of the emphasis (pressure) the Disparity
markets place on innovation. Public companies not affiliated 78
140 Tiffany & Co.
with a larger organization demonstrated the biggest Digital
IQ gains, up 11 percent year on year. Although small sample
sizes prevent us from drawing conclusions, The Swatch Group Disparity
narrowly outpaced other Watches & Jewelry conglomerates 88
Gifted
Swarovski
with an average IQ of 99 versus an average of 91 across the
LVMH portfolio and 83 for watch-giant Richemont. Richemont Disparity
registers a 61-point spread between the organization’s highest 110
Disparity
61
Jaeger-LeCoultre
Digital IQ (Jaeger-LeCoultre) and its lowest (Officine Panerai) 8 Disparity
Car tier
David Yurman
18
Average
suggesting that there are innovation silos and that brands AVG IQ
Omega
TAG Heuer
are not sharing best practices, a trend we have seen play out 99
Longines
across other organizations in the prestige category. 90 AVG IQ Pandora Montblanc
91 Bulgari
AVG IQ IWC Schaffhausen Audemars Piguet
Hublot
87
Challenged
Raymond Weil
AVG IQ
Chopard
De Beers
Movado
83 Baume et Mercier
Piaget
Mikimoto
Harry Winston Breitling
Van Cleef & Arpels
70
Vacheron AVG IQ
Bulova Constantin 69
Baccarat Rolex
Feeble
Officine Panerai Franck Muller
H.Stern
Buccellati
Fabergé Graff Diamonds
Patek Philippe
30
n= t d.
n= H
ad R:
n= ned :
t S re
R
M
4
Tr THE
Ow THE
n= ed
L
2
on ciè
n= .A .
LV
p
6
14
9
O
O
ou
em an
Gr
ch in
y
ly
Ri ie F
el
ch
ic
at
bl
at
gn
iv
Pu
Sw
pa
Pr
m
e
Th
Co
© L2 2011 L2ThinkTank.com 12

13. Digital iQ inDex ®:
Watches & Jewelry
Want to know more about your brand’s ranking?
COnTACT US
kEY FinDinGS
G R E AT E S T Y E A R - O V E R -Y E A R G A i n O R LO S S
2010 vs. 2011 Digital iQ Percentile Rank
Cartier Hublot
ChALLEnGED AVERAGE
-22% GiFTED AVERAGE
industry icon is finally on Facebook and introduced
ipad apps on the art of watchmaking and bridal
collection. Still needs significant site investments
+35% Others are starting to catch up with one of the early
digital content kings. earned media from 2010
World Cup isn’t a factor this year.
to compete with other icons of prestige.
David Yurman Piaget
AVERAGE AVERAGE -27% AVERAGE ChALLEnGED
Boasting the strongest site in the study,
e-commerce capability is a point of
differentiation this year. Making inroads
+30% early innovator maintains stronger digital presence in asia
than in U.S. and europe. Upgrades to site navigability and
purchase handoff are necessary for it to reverse trend.
with twitter launch.
Jaeger-LeCoultre Rolex
AVERAGE AVERAGE -30% ChALLEnGED FEEBLE
Strong social sharing, mobile site launch,
and Youtube channel catapults brand to #3. +30% Brand equity alone can no longer keep icon afloat.
absence from social platforms is taking its toll.
IWC Schaffhausen Fabergé
ChALLEnGED AVERAGE
-30% ChALLEnGED FEEBLE
early investments in Facebook have
resulted in one of the largest and most
engaged communities in watches.
+28% With only one brick and mortar store, online
innovation is a must for this iconic jeweler.
Chopard Van Cleef & Arpels
FEEBLE ChALLEnGED
-32% AVERAGE ChALLEnGED
Mobile site launch and modest social media
programming are enough to move brand up
an iQ class.
+27% another brand with early legacy investments, including
one of the first iphone apps. limited site sophistication
is becoming more and more of a liability.
© L2 2011 L2ThinkTank.com 13

14. Digital iQ inDex ®:
Watches & Jewelry
Want to know more about your brand’s ranking?
COnTACT US
kEY FinDinGS
Selling Is Knowing Y E A R - O V E R -Y E A R S E L E C T D i G i TA L & S O C i A L M E D i A G R O W T h
E-Commerce vs. non-E-Commerce
Only 29 percent of the brands in the Index boast e-commerce
(august 2010–august 2011)
capability, and Longines and Movado are the only pure
play watchmakers that sell online. Concerns about pricing
transparency, retail relationships, and inventory all provide
significant challenges for brands in the online channel.
However, our data indicates e-commerce capability is the
e-Commerce No e-Commerce Difference
strongest predictor of digital competence across channels.
When brands begin selling online, digital transitions from a
marketing cost to a P&L. Brands with e-commerce capability
average YOY 10% 5% 100.0%
register double the traffic growth, 85 percent higher Google traffic growth
search volume, and nearly triple the number of Facebook fans.
They also demonstrate broader adoption of digital marketing
tactics, such as search engine optimization and marketing and
email communication. average Monthly
google Searches 1,166,200 628,904 85.4%
average YOY 429% 115% 273.0%
Search growth
average Number
of Facebook Fans 330,668 116,897 182.9%
Swarovski nabbed
the #2 E-commerce
and #1 Traffic scores
in the study.
© L2 2011 L2ThinkTank.com 14

15. Digital iQ inDex ®:
Watches & Jewelry
Want to know more about your brand’s ranking?
COnTACT US
kEY FinDinGS
S i T E F E AT U R E S : W AT C h E S & J E W E L R Y S i T E S
Driving and Deriving 80% (august 2011)
WitH
E-commerce isn’t the only way to drive incremental revenue,
WitHOUt
49%
and there is evidence that a stronger digital presence can fuel
retail sales. A recent report by Fondazione Altagamma1 indicates 34%
29%
that 67 percent of EU luxury purchasers and 50 percent of 23%
U.S. consumers research a product online before they visit a
3% 3%
store. However, the majority of brands in the Watches & Jewelry
category are doing little to facilitate this handoff. Although 80
percent link to third-party retail locations, less than half link to
Link to Store Locator Display Product Shareable Gift Finder Link to Other In-Store
a store locator from the product page. TAG Heuer is the only from Product Page Price Wish List Online Retailers Pick-Up
brand that links directly to online third party retailers. Only one 20%
third of the brands display the product price, and Tiffany is the List 3rd Party
Locations in Store
only brand that offers in-store pick-up. Locator
51%
In Search of Search 66%
71%
77%
In a category rife with gray market and counterfeit products,
97% 97%
paid search represents one of the biggest missed opportunities.
Less than half of the brands are purchasing their own brand
keywords and fail to come up in the top three for paid ads. Instead, G O O G L E PA i D S E A R C h R E S U LT S : B R A n D S E A R C h T E R M S
this valuable search engine real estate is being seized by e-tailer, % of Results in Top Three Paid Ads
flash sites, and discounters such as eBay and Overstock.com. (august 2011) 2010 gOOgle
In 2010, 28 percent of the brands registered a discount or 2011 gOOgle
auction site in the top three paid results. That number has 45%
Brand Site
48%
exploded to 62 percent this year as brands continue to ignore
paid search. Not addressing paid search results is a giant “for
24%
sale” sign in the world’s biggest retail window: Google. Department Store 28%
83%
E-tailer / Flash Site
45%
28%
Discount / Auction Site 62%
1. “Digital luxury experience,” Fondazione altagamma, September 2011.
© L2 2011 L2ThinkTank.com 15

16. Digital iQ inDex ®:
Watches & Jewelry
Want to know more about your brand’s ranking?
COnTACT US
kEY FinDinGS
Social Integration S O C i A L M E D i A i n T E G R AT i O n
Social media and mobile adoption has increased dramatically % of Sites With Links to the Following
in Watches & Jewelry, but many brands still do not link to their (august 2011)
social and mobile properties from their brand sites, missing out WitH
on valuable opportunities to build communities and increase WitHOUt
interaction. Although 70 percent of brands maintain a Twitter
handle, only 46 percent link to their account from their sites and 31% 69%
only 40 percent allow products to be shared via Twitter. There
Facebook Page
are more links to brands’ Facebook pages, however Facebook
sharing functionality is limited and only one third of the brands
incorporate the Facebook “Share” or “Recommend” 54% 46%
API and just 14 percent include Facebook “Like” functionality
Twitter Account
on the product page. Data suggests that linking to social
media properties and incorporating product sharing features
can provide tangible results, and the amount of traffic coming 60% 40%
from and going to a brand site from social media properties
YouTube Channel
significantly correlates with Digital IQ.
66% 34%
Mobile Application
83% 17%
Online Forums & Communities
89% 11%
Blog
94% 6%
Mobile Website
© L2 2011 L2ThinkTank.com 16

17. Digital iQ inDex ®:
Watches & Jewelry
Want to know more about your brand’s ranking?
COnTACT US
kEY FinDinGS
Starting to Get Social SOCiAL MEDiA ADOPTiOn
Although community sizes, especially on Twitter and YouTube, % of Brands Present on the Following Social Media
remain small, social media adoption has exploded year-on- (September 2009, 2010, 2011)
2009
year as brands get serious about establishing direct relation-
89% 2010
ships with their consumers across the industry. The average
2011
Facebook fan base, almost 200,000, is driven up considerably 83%
by behemoths Tiffany (1.5 million) and Swarovski (1.4 million). 79%
Brands are growing fast and on average add 530 new fans
74%
per day. Post frequency has increased as well, with brands 71%
averaging about four per week. Twitter adoption has increased
significantly, but communities are still small, averaging just
under 5,000 followers. There is a direct correlation between the
number of tweets a brand has sent (which can reflect frequency
or be a proxy for legacy on the platform) and the number of
followers. Brands are averaging less than one tweet per day, 45%
suggesting that there is significant opportunity to amplify efforts 41%
on the platform. On YouTube, high viewership of brand content
is rare, and more than half of the top-viewed videos are on
non-brand channels.
26%
17%
Facebook Twitter YouTube
© L2 2011 L2ThinkTank.com 17

18. Digital iQ inDex ®:
Watches & Jewelry
Want to know more about your brand’s ranking?
COnTACT US
kEY FinDinGS
FA C E B O O k FA n R A C E BEST in TWEET
Top 10 Brands: “Likes” Top 10 Brands: Followers
(September 2010–September 2011) (September 2010–September 2011)
Tiffany & Co. 1,513,220 222%
Growth
@TiffanyAndCo 32,102 456%
Growth
Swarovski
1,396,429 173% @baumeetmercier 14,129 86%
Growth Growth
Pandora 624,857 N/A* @swarovski 12,800 429%
Growth
Bulgari 333,070 208%
Growth
@Bulgari_US 11,849 284%
Growth
TAG Heuer 249,367 254%
Growth
@DavidYurman 7,284 N/A**
Hublot 240,810 18%
Growth
@TAGHeuerOnline 5,816 312%
Growth
201,214 984%
IWC
Schaffhausen Growth
@Hublot 5,367 387%
Growth
Cartier 182,191 519%
Growth
@officialpandora 3,270 N/A*
# liKeS iN: # FOllOWeRS iN:
Sept. 2010 Sept. 2010
Piaget 182,132 503%
Growth
@vancleefarpels_ 2,892 285%
Sept. 2011 Growth Sept. 2011
Baume 4,843%
et Mercier 180,632 Growth
@Montblanc_US 2,598 329%
Growth
0
0
0
0
0
0
0
0
00
00
00
00
00
00
50
00
50
,0
,5
,0
0,
0,
0,
2,
5,
7,
10
12
15
25
50
75
* Data Not available
** launched post September 2010
© L2 2011 L2ThinkTank.com 18

19. Digital iQ inDex ®:
Watches & Jewelry
Want to know more about your brand’s ranking?
COnTACT US
kEY FinDinGS
TOP 10 YOUTUBE ViDEOS
Across Branded & non-Branded Channels
(august 2011)
Click to view videos:
BRaND CHaNNel
NON-BRaND CHaNNel
Cartier:
“Calibre de Cartier, 1,359,162
Mechanics of Passion”
Hublot:
“Jet Man”
939,026
Breitling:
“Formation flight with the 655,147
Breitling Wingwalkers!”
De Beers:
“Morning Surprise” 389,195
2006 Christmas Commercial
Tiffany & Co.:
“True Love Grows” 377,524
Omega:
“Omega Seamaster Automatic 353,646
Watch Review”
Patek Philippe:
“Birth of a Legend”
300,551
Pandora:
“New Pandora Beads Promo” 211,644
Piaget:
“Piaget Altiplano Ultra-Thin” 186,351
TAG Heuer:
“Grand Carrera”
176,079
0
0
00
0
0
00
00
00
00
0
,0
0,
0,
0,
0,
0
30
60
90
20
50
1,
1,
© L2 2011 L2ThinkTank.com 19