A strong digital presence is now integral to business growth, says The Business of Fashion, with leading luxury companies welcoming the presence of chief digital officers to emphasise the importance of online in overall brand growth.
CDOs now exist at Westfield, and fashion house Saint Laurent, but most recently LVMH welcomed Ian Rogers, who was formerly senior director of iTunes. Chairman and chief executive of the firm Bernard Arnault said of the appointment: “I am happy to welcome Ian into our group to strengthen our digital ecosystem. He will build on the foundations laid by Thomas Romieu, take the houses to the next level and explore new opportunities for the group in the digital sphere.”
Managing director of luxury goods at Exane BNP Luca Solca says the creation of chief digital officers is just the beginning of the digital revolution: “A revolution needs leaders. This is a signal LVMH has embraced digital for real; [that it] will be more and more integrated in its business,” he says. “A very senior role is required to lead the way, promote cooperation and remove roadblocks.”
CDO of Westfield Kevin McKenzie explains the position establishes the growing importance of a specified digital strategy division: “The company recognised that the consumer was changing in the way that they purchased and the influence that they have from digital, and they thought it would be a good idea to hire someone to help educate them on digital trends, to articulate some thoughts and ideas on what that could mean for the business, and ultimately to develop a strategy for products and services.”
Luxury e-commerce was worth only five per cent in 2014 but by 2019 will be worth nine per cent, at a value of $UA27 billion. It’s now certainly a case of if you can’t beat ‘em join ‘em if you want to remain in business, with Solca stating in his report ‘Digital Frontier: The New Luxury World of 2020’: “The development of digital capabilities will be a necessary condition for survival.”
