Research company L2’s report, Digital IQ Index: Watches & Jewellery 2018, analysed the digital performance of heavy hitters including Swarovski, Pandora, Tiffany & Co and Alex and Ani.
Each company was ranked according to its website and e-commerce capabilities, digital marketing, social media impact and mobile compatibility. All companies were then ranked across five categories, the highest being ‘genius’ and the lowest being ‘feeble’. Tiffany & Co and Cartier were the only brands to be given ‘genius’ status.
The report stated: “After several years of declining sales, 2017 marked a return to growth for the watches and jewellery sector. Many brands can point to growing demand from the digitally native Millennial consumer, as well as renewed demand from the China market. [However], all watch and jewellery brands must provide clear paths to offline purchase on their sites.”
Snapchat vs Instagram
L2's research included research on how Snapchat and Instagram were used to promote jewellery sales. The majority preferred using the latter as it was more convenient to “grow existing Instagram followings rather than build a Snapchat following from scratch.”
“Instagram viewership has grown rapidly, with an estimated 300 million Instagram users viewing its stories content as of Q3 2017,” it stated. “Meanwhile, Snapchat boasts only 178 million active users, with user growth slowing to 2.9 percent per quarter — a far cry from the 7 percent growth seen only a year ago.”
It also highlighted that 68 per cent of brands used Instagram to link to product pages, store locations and additional information. It stressed the importance of retailers continuously using social media to keep their customers informed.
“Many brands posted Instagram content related to major events or holidays; [for example], Swarovski unveiled a variety of new products before Christmas by creating a virtual advent calendar,” the report added. “Montblanc used a similar strategy to create holiday gift guides, with interactive videos prompting users to click through to product pages. The brand posted between three to four times per week, making sure to feature fresh content while sticking to a recognisable aesthetic.
“Five watch brands used video content on Instagram to showcase their activity at large conventions, revealing an opportunity for more brands attending these events to use Instagram for publicity.”
L2 is a research company that identifies the digital strengths and weaknesses of retail brands. The report can be read here.
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