{"id":18054,"date":"2016-11-18T15:34:17","date_gmt":"2016-11-18T20:34:17","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-rctom\/submission\/when-it-comes-to-digital-net-a-porter-is-keeping-luxury-retail-on-its-heels\/"},"modified":"2016-11-18T15:34:17","modified_gmt":"2016-11-18T20:34:17","slug":"when-it-comes-to-digital-net-a-porter-is-keeping-luxury-retail-on-its-heels","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/when-it-comes-to-digital-net-a-porter-is-keeping-luxury-retail-on-its-heels\/","title":{"rendered":"When it Comes to Digital, Net-a-Porter is Keeping Luxury Retail on its Heels"},"content":{"rendered":"

The rapid increase in digitalization has changed the business environment across industries and geographies dramatically.\u00a0 Within the retail channel, digitalization has brought unique opportunities and threats, altering the ways in which brands connect to and interact with consumers. \u00a0While many brands have long considered a robust digital presence as a necessity, the issue of whether or not to go digital becomes more complex when it comes to luxury retailers.\u00a0 For these companies, digital\u2019s free-flow of information runs counter to their historic reliance upon an exclusive, tightly-controlled brand image to retain their aspirational appeal.[1]<\/a><\/p>\n

Benefitting from their ubiquitous brand equity, most luxury retailers have been slow to embrace digitalization, instead relying upon conventional methods such as magazine advertisements to engage with customers.[2]<\/a>\u00a0 However, the proliferation of the internet has drastically changed consumer purchasing habits \u2013 and Net-a-Porter has emerged to capitalize upon this trend in the luxury space.<\/p>\n

\"homepage\"<\/a><\/p>\n

Net-a-Porter, a digital luxury fashion retailer, has disrupted the traditional luxury business model by enriching the customer\u00a0shopping experience.\u00a0 By analyzing the ways in which customers are interacting with brands as well as studying their changing consumption and purchasing habits, the company has created a unique, seamless omni-channel presence\u00a0across a variety of mediums in mobile, tablet and desktop.<\/p>\n

Analyzing a study of 10,000 of its most valuable clients, Net-a-Porter realized that 88 percent of those surveyed preferred to find fashion inspiration via fashion magazines, with 80 percent preferring print media.[3]<\/a>\u00a0 Rather than forcing consumers to convert to a new medium to receive this information, Net-a-Porter responded with an updated version of the traditional print magazine \u2013 PORTER.<\/p>\n

Upon first glance, PORTER may seem like any other fashion magazine; however, as the saying goes, you shouldn\u2019t judge this book by its cover.<\/p>\n

\"porter\"<\/a><\/p>\n

PORTER allows readers to instantly shop what they read, and in most major cities both domestically and internationally, to have their purchases arrive the same or next day.\u00a0 Upon opening its glossy pages, the reader is given directions on how to shop the magazine.<\/p>\n

\"phonemagazine\"<\/a><\/p>\n

The first instruction is to download the Net-a-Porter app, which is equipped with a scanner that enables the reader to hover his or her phone over any page in the issue.\u00a0 Upon doing so, a \u2018shop\u2019 icon will appear, displaying the brand, price, and a \u2018buy\u2019 button for any items available from Net-a-Porter.\u00a0 It also displays other color options the item may come in, as well as other related items on the site.[4]<\/a><\/p>\n

PORTER offers many other interactive features as well.\u00a0 For instance, the \u2018find\u2019 label brings readers to a topic page featuring other items in that category; \u2018see more\u2019 allows readers to explore all of the items displayed by the model, and \u2018concierge\u2019 allows readers to connect with the company\u2019s 24-hour concierge service to find a specific item in the magazine that is not available in the company\u2019s e-commerce store.<\/p>\n

\"scan\"<\/a><\/p>\n

The company\u2019s strategy with PORTER has thus far been successful in getting consumers to engage with the content. \u00a0In a 2015 reader survey, Porter found that items were scanned 85,000 times, representing an interaction rate of approximately 78 percent.[5]<\/a><\/p>\n

Through PORTER, Net-a-Porter was able to combine customer\u2019s preferred medium of finding content with their increasingly preferred way of purchasing content, creating a unique and interactive buying experience.<\/p>\n

Net-a-Porter has recently further expanded into innovative digital technologies, tapping into the social media trend with the launch of its social network, the Net Set.\u00a0 Through creating a profile on this platform, users gain access to a live feed of globally trending fashion items.\u00a0 They are also able to follow friends, celebrities, trendsetters, and \u201cstyle tribes\u201d to see which items people are browsing, posting as style inspiration, and ultimately purchasing from Net-a-Porter\u2019s current stock of items.\u00a0 In addition, users are able to upload their own personal photos to the site and receive recommendations of matching clothes and accessories.[6]<\/a><\/p>\n

\"netset\"<\/a><\/p>\n

Through PORTER and the Net Set, Net-a-Porter has found ways to challenge luxury retail\u2019s traditional model of engaging with customers. \u00a0As the relationship between brands and customers evolves towards more interactive mediums, Net-a-Porter has positioned itself ahead of the curve among luxury retailers. Going forward, Net-a-Porter remains dedicated to innovating new technology platforms to interact with customers in unique ways.\u00a0 Mobile remains the company\u2019s main focus, as 95% of luxury shoppers are mobile-equipped.[7]<\/a> \u00a0As such, I believe Net-a-Porter should continue to further integrate image recognition into their rapidly expanding mobile offering. Doing so, the company can ensure it has the digital platform necessary to reach consumers and deliver products through\u00a0the mechanisms that customers prefer.<\/p>\n

Word Count: 752<\/p>\n

[1]<\/a> Morisset, Denis.\u00a0 \u201cAre Luxury Brands Disrupted by the Digital Revolution?\u201d, ESSEC Business School, <\/em>May 15, 2015, http:\/\/www.essec.edu\/en\/news\/are-luxury-brands-disrupted-digital-revolution, accessed November 2016.<\/p>\n

[2]<\/a> Morisset, Denis.\u00a0 \u201cAre Luxury Brands Disrupted by the Digital Revolution?\u201d, ESSEC Business School, <\/em>May 15, 2015, http:\/\/www.essec.edu\/en\/news\/are-luxury-brands-disrupted-digital-revolution, accessed November 2016.<\/p>\n

[3]<\/a> Lazauskas, Joe. \u201cThe New Model: How Net-a-Porter Keeps the Fashion Industry on Its Heels\u201d, September 3, 2015,\u00a0https:\/\/contently.com\/strategist\/2015\/09\/03\/the-new-model-how-net-a-porter-keeps-the-fashion-industry-on-its-heels<\/a>, accessed November 2016.<\/p>\n

[4]<\/a> Milnes, Hilary. \u201cHow Net-a-Porter built a digital shopping experience in a print magazine\u201d, February 18, 2016, http:\/\/digiday.com\/brands\/net-porter-built-digital-shopping-experience-print-magazine<\/a>, accessed November 2016.<\/p>\n

[5]<\/a> Milnes, Hilary. \u201cHow Net-a-Porter built a digital shopping experience in a print magazine\u201d, February 18, 2016, http:\/\/digiday.com\/brands\/net-porter-built-digital-shopping-experience-print-magazine<\/a>, accessed November 2016.<\/p>\n

[6]<\/a> Codinha, Alessandra. \u201cTaking Net-a-Porter\u2019s New Social Network for a Test Drive\u201d, May 6, 2015, http:\/\/www.vogue.com\/13259351\/new-net-a-porter-app-the-net-set<\/a>, accessed November 2016.<\/p>\n

[7]<\/a> YOOX Net-a-Porter Group, Roadshow Presentation, November 2016, http:\/\/cdn3.yoox.biz\/cloud\/ynap\/uploads\/2016\/11\/1479317387667_YNAP_ROADSHOW_PRESENTATION_9M2016_vPublished_lowres.pdf<\/a>, accessed November 2016.<\/p>\n","protected":false},"excerpt":{"rendered":"

Innovation in digital technology is the latest trend in luxury retail.<\/p>\n","protected":false},"author":2683,"featured_media":18055,"comment_status":"open","ping_status":"closed","template":"","categories":[788,1036,15,2372,912],"class_list":["post-18054","hck-submission","type-hck-submission","status-publish","has-post-thumbnail","hentry","category-digital","category-digital-retail","category-fashion","category-fashion-technology","category-luxury-retail"],"connected_submission_link":"https:\/\/d3.harvard.edu\/platform-rctom\/assignment\/digitization-challenge-2016\/","yoast_head":"\nWhen it Comes to Digital, Net-a-Porter is Keeping Luxury Retail on its Heels - Technology and Operations Management<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/when-it-comes-to-digital-net-a-porter-is-keeping-luxury-retail-on-its-heels\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"When it Comes to Digital, Net-a-Porter is Keeping Luxury Retail on its Heels - 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