Industry Watch: Luxury Online Can Be Hard to Find
May 8, 2008
From MediaPost, November 2007
For high-end goods, a Web search may be futile
You can buy plane tickets, percale sheets and paper clips on the Web these days. But if you’re looking for a new Rolex, you’re out of luck.
That’s because the company doesn’t sell its watches on the Web and doesn’t plan to any time soon due to a belief that a refusal to sell on the Web policy is the best way to keep consumers from being duped by counterfeiters.
Rolex isn’t the only company playing the wallflower when it comes to the Web. Concerns about fraud and a fear that the Web isn’t a pristine enough environment for their products have kept many luxury marketers from fully embracing the Internet, says Milton Pedraza, CEO of the Luxury Institute.
But the decision to eschew the Web also poses problems for luxury brands, which are losing the opportunity to use the Internet as a sales channel. Michael Koziol, executive vice president, North America, for digital shop Nurun (which counts LVMH, Loews Hotels and Evian among its clients), offers that brands need to cede some control in favor of functionality.
“The Web is not a completely controllable medium like broadcast or print,” Koziol says, “but it offers marketers the best ability to not only reach but also engage a targeted group of consumers and allow them to truly interact with the brand.”
But even Koziol says that luxury brands should be choosy about where they put their ads; he’s a fan of Style.com, the blog DailyCandy, and the interactive online sections of The New York Times.
While luxury brands are reluctant to go online, their customers aren’t. One study by JupiterResearch found that affluent Internet users (those with annual household incomes of more than $100,000) spend three more hours online daily than their less affluent counterparts. And a recent study by the Luxury Institute, which bumped the income minimum up to $150,000, found that around 99 percent of the survey respondents used the Web to research products and services, and about 98 percent shopped online.
Message in a Bottle
The purported bathwater of choice for celebrities across the globe recently took its image even more upscale with the introduction of the Evian Palace bottle, the brand’s take on luxury bottled water that’s available only in restaurants, clubs and resorts.
The bottle features a stainless-steel spout, an engraved stainless steel coaster, and a training session in its proper use. To introduce this überwater to the public, the company chose a mix of print, digital, PR events and television product integration, with a campaign that targeted fine dining consumers and the restaurant trade. The digital portion kicked off in September and is running through December of this year on three sites: DailyCandy.com, CitySearch.com, and nymag.com (the online home of New York magazine).
The ad itself was highly stylized and interactive. Users could click on arrows at the base of the bottle, spinning it slowly around for a 360-degree view, or click through to an Evian Palace bottle microsite for more information. The ad also listed venues where users could find the bottle; mousing over the venues gave their location.
While statistics on the success of the campaign were not available as of press time, Evian is continuing to advertise online, and recently launched an integration with Second Life.
The High-End Dream Kitchen
There may be no finer fridge in which to chill your Evian than a Sub-Zero. Fashion maven Isaac Mizrahi’s got one - as visitors to Epicurious.com found out when the site featured a video tour of his kitchen. People who took the tour were shown a “Dream Kitchen Sweepstakes” advertisement running to the right of the video.
That initiative was a prime example of the integrative effort that Christopher Parr, consumer marketing manager for Sub-Zero, says is a key piece of their online marketing strategy. “There wasn’t really a destination for high-end kitchen appliances,” says Parr. “So we decided to create that destination with the help of Epicurious.” Users who click on the ad are taken to a Sub-Zero branded microsite where they can enter a contest to win a new kitchen, learn more about the featured brands, and build their own design portfolio. The online ad is supported by both targeted e-mail blasts and a print campaign, all designed to drive customers to the Dream Kitchen microsite and to highlight a premium class of appliances (which also features Wolf, a brand owned by Sub-Zero, and the brands Asko and Kohler, who partnered with Sub-Zero on the campaign).
“The process to select Sub-Zero…products differ than a common discount refrigerator you can buy at Best Buy and toss in the back of a pickup truck,” says Parr. “Our products are built-in, which usually evolves around a kitchen remodel or a new home.” To capture that customer’s attention online, says Parr, you need to educate them about design options and installation and “show them beautiful kitchens.”
The Dream Kitchen campaign has been running yearly on Epicurious since 2004, which makes Sub-Zero a trailblazer among luxury advertisers. “If you look at which luxury marketers were advertising in 2004, it really wasn’t a lot,” says Christine DeMaio, vice president and publisher of Epicurious and Concierge. “The fact that they recognized the Internet as a great way to identify and find people who are in the market is really smart.” The campaign’s repeat performance speaks to its success, and so do the numbers—DeMaio says that click-through rates on e-mails sent to the site’s registered user base are between three and seven percent, with “overall click-through rates well above industry average.”
Parr believes that the online luxury audiences are looking for substance, sticky environments where they can spend hours educating themselves about a brand, and an opt-in mechanism. “Once you capture their information, you can continue to wine and dine the customer,” he says. “That’s when the relationship really begins.”
The Original SUV
Like the people who market Sub-Zero, those who market Land Rover value integration. “When we work with publishers we don’t simply buy media online,” says Joao Machado, online associate director for Mediaedge.
Machado’s team worked with Land Rover to set strategy and objectives for a campaign to launch the all-new 2008 LR2, Land Rover’s answer to a premium compact SSUV. The online portion of the campaign ran in April and May of this year, with ads targeted to adults ages 25 to 54 who are professionals, tech enthusiasts and live active lifestyles, and featured content similar to that of the television and print pieces (so that consumers could make a connection between all media).
The Web ads ran on several sites, including CitySearch.com, FastCompany.com, Weather.com and Runner’s World Online, with each ad tailored to the site it appeared on. Land Rover also worked with CitySearch.com to put together a “sophisticated city guide,” offering entertainment, dining and nightlife information relevant to the LR2 core demographic and a co-branded microsite with an affluent-audience-focused sweepstakes.
The out-of-home wireless ads ran on JiWire, which provides free Wi-Fi to customers in targeted business and luxury hotels throughout the United States. The ads themselves appeared on both the welcome screens and confirmation pages of JiWire users.
For the mobile campaign, they worked with Enpocket (which represents Sprint) to run ads across the entire Sprint network. The ads drove demo-targeted users to an LR-specific WAP site where users were able to view LR2 screenshots, learn about product features and locate a Land Rover retailer.
All the ads gave the user the option to click through to a Land Rover site, and many did. “In April there was a 21 percent increase in site traffic from unique visitors,” says Jonathan Renker, associate account director at Wunderman, which produced all the creative assets for the campaign. Site traffic to the LR2 section of LandRoverUSA.com increased by 28 percent, and Renker noted a “fairly significant” spike in the Build Your Land Rover section of the site.
But the mobile campaign turned out to be the real star for Land Rover. “Mobile became a great source of interaction for those interested in learning more about LR2,” says Machado. “Conversion rates went well beyond any expectations.” Land Rover plans a full WAP site supporting all nameplates in 2008.
Luxury Luxury Interactive Conference
May 8, 2008
In June 2007, Luxury Interactive had over 300 senior level luxury brand executives from the top brands in the market in attendance. Based on feedback from our delegates, as well as months of research with luxury executives, we have created a program focused on:
In-depth content steered by the Luxury Interactive New York Advisory Council
Specific tactical implementations providing action points for you and your team members
Interactivity and audience engagement via lengthened presentations, question and answer Wrap-Up sessions and executive networking sessions each and every day
Detailed descriptions of all sessions, including speaker biographies and lifecycles of their case study or panel discussion
Key Components Of Luxury Interactive 2008 Experience:
Balancing brand-centricity with customer-centric marketing and identifying new marketing opportunities in the online channel that are growth-driving
Bridging the gap between presenting an enriching and engaging experience, while providing convenience and ease of use for your customers
Finding the right balance of being progressive and innovative without alienating any of your customer segments
How is Luxury Interactive defined?
This business to business conference is the only event where you can attend specific sessions that speak directly to your needs as a luxury brand:
Conveying your brand messaging effectively to today’s changing consumer to drive loyalty
Taking advantage of an interactive platform that fosters high-level networking and finds targeted solutions to your challenges
Capitalizing on unparalleled networking activities with your luxury peers with exclusive brand collaborations and strategic partnering opportunities in our new Brand Partnering Pavilion
Who Will Be Speaking at Luxury Interactive 2008
Our speaker faculty will consist of luxury brands, research and trend analysis firms, social networks,non-luxury retail experts and industry and e-commerce consultancies. Receive progressive content and insight from all facets of the industry. Here’s a sneak preview of the speakers you will hear on the program:
Tim Rendall, Product Manager, Facebook
Roxanne Ong, Director, CRM & Field Marketing, St. Regis & Luxury Collection
Darren Floyd, Director of E-Commerce, David Yurman
Milton Pedraza, CEO, Luxury Institute
Christopher Parr, Consumer Marketing Manager, Sub-Zero/Wolf
Marisa Thalberg, VP Global Online, Estee Lauder Companies
Mary Senin, Corporate Director E-Commerce Marketing, Ritz-Carlton
Dennis Syracuse, SVP of Sonystyle Retail, Sony
Joe Torpey, Internet Manager, BMW of America
Cecilia Pagkalinawan, Director Web & E-commerce, Frette
David Manela, VP Strategy and Business Development, Vivre
Peter Kim, Senior Analyst, Forrester Research
WEBSITE:
http://wbresearch.com/luxuryinteractive/
Sub-Zero and Wolf Unveil New Interactive Web Sites
May 8, 2008
Sub-Zero, Inc., and Wolf Appliance, Inc., leading manufacturers of premium refrigeration and cooking appliances, today announced a complete renovation to their Web sites, accessible at subzero.com and wolfappliance.com. The new sites reflect fresh thinking about how people use the Web for product information and ideas and also acts as a virtual showroom igniting visitors’ imagination about the possibilities for Sub-Zero and Wolf products.
Enhanced interactive tools and imagery for each of the brands are at the core of the sites’ changes. Sub-Zero’s commitment to food preservation is demonstrated throughout the sites with delicious images of cheeses, fruits and vegetable. The cooking confidence inspired by Wolf is underscored with customers’ own real-life stories about the challenging dishes they successfully executed.
Newly featured interactive kitchen vignettes set these sites apart from any other. With just a few simple clicks, it is easy to visualize design flexibility by changing appliance finishes, cabinets, walls, countertops, trim and floors to reflect personal style and color palette. Additionally, the Appliance Selector is the ultimate shopping tool for viewing and selecting Sub-Zero and Wolf products. Customized for the visitors’ dimensions and product interest, it allows visitors to start planning their dream kitchen.
Product pages allow consumers and designers to view appliances in different kitchen environments. The zoom feature brings visitors up close and personal to the pictures, while videos outline key product attributes.
The Web sites also extends the relationship with Sub-Zero and Wolf beyond purchase. When owners register their appliances online, they automatically receive e-mail updates on food storage, use and care as well as ongoing tips, recipes, and quick-start videos loaded into their online accounts. This feature educates consumers inside and out about their Sub-Zero refrigerator, freezer or wine storage unit and Wolf cooking equipment.
“Today’s affluent consumers are very savvy. They are taking education into their own hands, using the Internet to discover the latest design trends and kitchen appliances,” said Christopher Parr, consumer marketing manager of Sub-Zero, Inc., and Wolf Appliance, Inc. “Our goal is to provide the best interactive experience, in which visitors can learn what makes our brands unique and interact with the appliances in ways that are relevant to their needs.”
Kitchen designers, architects and builders also benefit from the new Web sites. They can view the online specification library, download CAD or request a trade kit that will supply them with the resources they need for easy planning and installation of Sub-Zero and Wolf appliances. The Design Resource Center is another tool created for trade professionals to learn about new and upcoming products as well as view articles and information written specifically for them.
Year after year, Sub-Zero and Wolf’s Web site traffic has continued to increase, which is in part attributed to aggressive online and off-line marketing and advertising campaigns. More than 8.5 million people visited the site in 2006, followed by a record-breaking month this March with 893,701 visits. The new Web site has twice as much content as before, including a unique emphasis on area farmers’ markets and locally grown food.
From customized recipes to installation specifications, the new site is the ultimate shopping tool and resource guide where owners, designers, builders and consumers all come together. Aside from physically testing the appliances, no questions go unanswered.
For more information regarding Sub-Zero and Wolf, visit subzero.com or call 1-800-222-7820 Print Page
Kelly Ripa to Launch New Electrolux Premium Kitchen Appliance Line in North America
May 8, 2008
In today’s fast-paced world where every day brings new challenges to balance or better our busy lives, one appliance maker just might have the edge. Electrolux, makers of premium appliances for fine homes and restaurants in Europe for over 70 years and Europe’s leading premium appliance brand, is introducing a new line of stylish, high-performance kitchen appliances exclusively for North America. Called Electrolux, the new line of premium kitchen appliances is designed to help today’s multi-tasking moms do what they need — and love — to do — better, faster and easier. Read more
Sub-Zero - Rated Top Green Brand
May 8, 2008
For Sub-Zero, it’s easy to be green. It’s a part of our heritage, the way we do business, as a privately held, family-owned company. For over 60 years, Sub-Zero has been a leader in food preservation and green products. Sub-Zero invented Dual Refrigeration; we created it to keep food fresher while using less energy in the long run.
For Sub-Zero, green is more than just an Energy Star rating. Even our largest refrigeration product, the Sub-Zero PRO 48, uses less energy per month than a 100-watt light bulb. From being built in the USA, to supporting organic farmers and food artisans, to using renewable energy, to extensive recycling, to sourcing environmentally friendly materials and supplies, to providing living wages to our factory workers - Sub-Zero & Wolf have been ‘green’ long before the term even existed.
As a result of more than 60 years of being green, Sub-Zero was ranked on the Top 10 list of Green Brands in 2007 by the ImagePower Green Brands Survey. In this independent, 3rd party research, more than 3000 consumers in the United States and the United Kingdom were polled to rate the most ‘green’ brands. They were asked to rank only the brands they were familiar with. The survey also indicated that an increased number of Americans are displaying positive green attitudes and behaviors, which illustrates that consumers are demanding that more companies implement sustainable business practices.
Top 10 Green Brands according to the ImagePower Green Brands Survey:
Whole Foods Market
Wild Oats Markets
Trader Joe’s
Toyota
Honda
Sub-Zero
Ikea
Body Shop
G.E.
Aveda
From Sub-Zero Green Kitchen Appliances
Sub-Zero Launches GrowAGreenKitchen.com
May 8, 2008
Americans are moving toward living greener lives. Eating habits and purchasing choices are changing and evidence now points to consumers seeking ways to create green environments in the home. Sub-Zero and Wolf’s Web sites have long provided tips and expertise in all things relating to refrigeration, cooking and kitchen design; but recently, the companies incorporated another facet to their already robust online tools, the microsite: GrowAGreenKitchen.com
GrowAGreenKitchen.com was built to provide consumers, builders and cooking enthusiasts alike with practical guidance on how to incorporate green solutions into their kitchen. The site is divided into three categories: energy tips, construction tips and everyday tips.
Clicks around the various components of the virtual kitchens reveal guidance ranging from recommendations on sustainable wood products to solutions for nontoxic cleaning supplies to ways to lower energy bills with innovative insulation ideas.
There are also easy tips that are easy to incorporate into day-to-day life, such as the recommendation to purchase your food from local farmers and merchants. On average, food travels 1,500 miles from the point of origin to the final location. Using homegrown resources greatly reduces the transportation impact.
“Today’s consumers are relying on the Internet as a resource to discover the latest in green solutions. Our goal is to provide the best interactive experience in which visitors can learn how to make changes — big and small —that will sustain both their families and the planet,” remarked Christopher Parr, consumer marketing manager at Sub-Zero, Inc., and Wolf Appliance, Inc.
In 2007, Sub-Zero was ranked on the Top 10 list of Green Brands, according to ImagePower Green Brands Survey. The independent, third-party research surveyed more than 3,000 consumers in the United States and the United Kingdom. Sub-Zero ranked sixth. Sub-Zero and Wolf’s company-wide commitment to energy efficiency and the environment extends into all facets of the company’s business. All Sub-Zero and Wolf appliances are manufactured in the United States, eliminating the significant environmental impact of internationally shipping materials and parts; seven Sub-Zero refrigerator models are Energy Star rated (even Sub-Zero’s largest refrigerator consumes less power than a 100-watt light bulb); all Sub-Zero and Wolf products meet the Environmental Protection Agency’s emission standards; and all scrap metal used in manufacturing is reused. The company is also strongly committed to responsible and sustainable food production and preservation, supporting local farmers and culinary professionals who are active in the locally-grown movement.
To learn more about this new online resource, please visit www.GrowAGreenKitchen.com. For additional information on Sub-Zero and Wolf products, visit subzero.com or call 1-800-222-7820. Print Page
Wolf Appliance Announces New Cooktop Models and Upgrades
May 8, 2008
Wolf Appliance, Inc., a leading manufacturer of premium cooking appliances, has introduced new 30-inch and 36-inch induction cooktop models and announced electric cooktop upgrades in its 15-, 30- and 36-inch models, underscoring Wolf’s continued commitment to industry innovation and leadership. “We are dedicated to providing our customers with a full range of cooking equipment that combines exceptional cooking performance with professional style at home,” said Jim Bakke, president and CEO of Sub-Zero, Inc. and Wolf Appliance, Inc. “We feel that these new and updated products allow for a more complete and diversified kitchen, specially outfitted to suit the needs of our customers.”
In 2005, Wolf was one of the first manufacturers to reintroduce induction cooktops to the American market. Induction cooking uses the transfer of magnetic energy rather than flames or electric elements to generate heat. When an iron or magnetic pan is placed on the cooktop, electricity passes through coils beneath the glass surface to produce a magnetic field that heats the pan directly. Within this magnetic field, molecules in the pan vibrate at very high frequencies, and the friction creates instant heat. The result: the cookware is the heating element.
This year, the company has expanded on its induction line to include increased efficiency, new size and style options, key features and design elements. For example, the new induction models incorporate cookware-sensing technology that automatically turns off a cooking zone after 30 seconds if an induction-compatible pot is not detected.
The 15-inch induction cooktop integrated module, as well as the new 30- and 36-inch induction cooktop models, boast the following features:
Speed: Because heating and adjustments are immediate, cooking can be up to 50 percent faster than traditional cooking methods.
Controllability: With more than 10 levels of power on every element, homeowners can keep sauces and melt chocolate at 50 watts of power or, with the touch of a finger, activate the “Hi-Power” feature to boil water in half the normal time. The even distribution of heat also ensures that there are no hot or burn spots.
Safety: Since less heat is released into the room with an induction cooktop, this means a cooler kitchen and cooler cooktop. This, in turn, leads to increased safety, since heat is generated only when cookware is present. Nearby spoons and forks will not be heated, and there are fewer risks of burned fingers. The controls include a lock feature and a singular “hot” indicator to help ensure child safety.
Simplicity: The surface does not heat up, so overflows and spills do not stick or burn, and the glass top can easily be wiped down. Also, with a timer countdown, enhanced diagnostics and easier installation options, the new 30- and 36-inch and updated 15-inch models are all effortlessly functional.
The upgraded electric cooktops incorporate several new features that make for sleeker design and ease of use, such as a new bridge element; updated ceramic cooktops on which the element surfaces are no longer outlined in off-white circles, but instead are subtly implied; countdown timers with a one- to 99-minute range; and improved diagnostics. All control panel key presses result in a confirmation tone that can be adjusted in both volume and frequency. Triple heating elements, standard on existing 36-inch models, will now be available on 15- and 30-inch models. These concentric rings deliver even, consistent temperature control for pots and pans of all sizes. The new bridge element has been incorporated on 30- and 36-inch models. This bridge element heats – or bridges – the space between elements to accommodate large pots and griddles.
New electric cooktop models will still incorporate Wolf’s True Melt and True Simmer settings for the utmost in temperature control. With the True Simmer feature, standard on all elements, sauces or stews can be simmered for hours at 200 degrees without boiling or scorching. The True Melt feature comes standard on one element and allows the user to melt items such as butter or chocolate at 120 degrees.
For more information about Wolf, visit wolfappliance.com or call 1-800-332-9513.
Wolf Appliance Debuts New Cooktop Hoods at K/BIS
May 8, 2008
Wolf Appliance, Inc., the industry leader in luxury cooking equipment, is debuting a new line of Cooktop Hoods at K/BIS in Chicago. The new hoods, which will become available in fourth-quarter 2008, underscore Wolf’s commitment to design flexibility and expert craftsmanship.
The new cooktop hoods come in four sizes: a 30-inch wall hood, a 36-inch wall hood, a 45-inch wall hood and a 42-inch island hood. Each stainless steel cooktop hood boasts a comprehensive set of features including an electronic control panel with a filter clean indicator, halogen lighting to illuminate the cooking surface and a dishwasher-safe filter.
These hoods may be ducted to the outside or non-ducted using a remote blower. Internal and in-line blowers are also available. Additionally, for spaces where ducting is not available, these hoods can be non-ducted using an internal blower that accepts a replaceable charcoal filter. “When we acquired Wolf in 2000, we knew we would continue to build out the line for years to come,” said Jim Bakke, president and CEO of Sub-Zero, Inc. and Wolf Appliance, Inc. “By adding these new hoods, we’re offering more options for designers to better equip the kitchens they build.”
The new hoods include a Heat Sentry Feature that automatically engages the hood and adjusts the blower speed when heat is sensed, and a Delay-Off Mode that automatically turns the unit off.
For more information about Wolf, visit wolfappliance.com or call 1-800-332-9513.
Viking Range Introduces New Generation Dual Fuel Ranges
May 8, 2008
Viking Range Corporation is pleased to introduce a new look and enhanced features to its Professional dual fuel 30”, 36”, 48”, and now 60”W. ranges. These new generation ranges maintain the Viking heritage as the creator of professional performance for the home and fortifies the Viking brand’s leadership position among ultra-premium appliances.
The newly restyled and enhanced Viking Professional Dual Fuel Ranges give consumers more options than ever before in regard to look, function and performance. New exterior design features include updated grate and oven door styling, zinc die-cast knobs with updated chrome bezels, and laser-etched control panel graphics. These ranges also have a full-width, larger diameter oven door handle and end caps. A larger window in the door allows consumers to get a better view of their dishes as they cook. And finally, larger diameter legs and an eight-inch high backguard give these ranges a heavier, more robust appearance.
This dual fuel ranges incorporate the Viking exclusive VSH™ (Vari-Simmer to High) patented sealed burner system. These 15,000 BTU burners are also equipped with an exclusive SureSpark™ ignition system which offers consistent and reliable ignition every time. Other surface configuration options include a thermostat-controlled griddle and an easy-clean grill. The ranges also feature the largest self-cleaning oven cavity in the industry and a dual concealed bake element. The Rapid Ready™ preheat system quickly heats the ovens to the desired temperature setting within minutes, making it one of the fastest in the industry. The Vari-Speed Dual Flow™ convection system, patented specifically by Viking, features a two-speed reversing system with the largest convection fan in the industry and ensures balanced airflow for even heat distribution. The oven also has an electric Gourmet-Glo™ glass enclosed infrared broiler which provides intense searing heat in a variety of broiling applications.
Additional new features which enhance the ranges’ oven performance and increase its value for consumers include three broil settings, a TruGlide™ full-extension oven rack, and additional halogen oven lights.
The Viking Professional Dual Fuel 30”, 36”, 48” and 60”W. Ranges are offered in all 24 exclusive color finishes with brass trim option. The 30”W. model is available now and the 36”, 48” and 60”W. models will become available throughout the year.
Viking Range Expands Color Palette
May 8, 2008
To further solidify its leadership role in design options, Viking Range Corporation has expanded its exclusive major appliance finishes from 14 to 24 color choices.
“The addition of these finishes will give consumers, architects and designers more options to coordinate with personal tastes,” said Jim Gregory, design relations manager. “The new colors reflect in-depth research into color trends for the foreseeable future.”
The new lineup of finish options will be Stainless Steel, Black, White, Metallic Silver, Graphite Gray, Stone Gray, Taupe, Biscuit, Cotton White, Oyster Gray, Golden Mist, Lemonade, Sage, Mint Julep, Sea Glass, Iridescent Blue, Viking Blue, Pumpkin, Racing Red, Apple Red, Burgundy, Plum, Chocolate, and Cobalt Blue.
All new Viking finishes are now available.