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	<title>L2: A Think Tank for Digital Innovation</title>
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	<link>http://www.l2thinktank.com</link>
	<description>L2: A Think Tank for Digital Innovation</description>
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		<title>New NYC Concept Store Tells a STORY</title>
		<link>http://www.l2thinktank.com/new-nyc-concept-store-tells-a-story/2012/</link>
		<comments>http://www.l2thinktank.com/new-nyc-concept-store-tells-a-story/2012/#comments</comments>
		<pubDate>Thu, 16 Feb 2012 12:19:15 +0000</pubDate>
		<dc:creator>johanna@L2thinktank.com</dc:creator>
				<category><![CDATA[Retail]]></category>
		<category><![CDATA[Uncategorized]]></category>

		<guid isPermaLink="false">http://www.l2thinktank.com/?p=19837</guid>
		<description><![CDATA[Thanks to STORY, a new boutique in Manhattan&#8217;s Chelsea neighborhood, access to romantic gifts (the really good, hard to find &#8230;]]></description>
			<content:encoded><![CDATA[<p>Thanks to <a href="http://thisisstory.com/">STORY</a>, a new boutique in Manhattan&#8217;s Chelsea neighborhood, access to romantic gifts (the really good, hard to find kind) will extend well past Valentine&#8217;s Day this year. Aptly-named, STORY is as much a concept as it is a business, if not more. &#8221;We want our retail environment to not just be about consumption but engagement through transactional storytelling,&#8221; STORY creator and veteran marketing consultant <a href="http://cubeventures.com/about.html">Rachel Shechtman</a> (Gilt, Bliss, AOL) said.</p>
<p><a href="http://www.l2thinktank.com/wp-content/uploads/2012/02/LOVE-FROM-OUTSIDE1.jpg"><img class="aligncenter size-full wp-image-19840" title="LOVE FROM OUTSIDE" src="http://www.l2thinktank.com/wp-content/uploads/2012/02/LOVE-FROM-OUTSIDE1.jpg" alt="" width="500" height="331" /></a></p>
<p>To achieve this, every four to six weeks, the entire store will undergo a complete theme-driven reinvention. To tell this month&#8217;s &#8220;love&#8221; story (which runs through March 12), Shechtman enlisted the help of strategic partner <a href="http://www.architizer.com/en_us/">Architizer</a> on the decor side and relied on her own seasoned eye to assemble the impressive 500+ item merchandise edit, which includes everything from VPL lingerie and Vosges chocolates to Baron Wells for Mens fragrance and Lafco candles.</p>
<p>&nbsp;</p>
<p>In addition to the store itself, STORY will also build its brand by hosting events that celebrate the current theme&#8211;outreach that helps Shechtman foster new business relationships and strengthen ties with her community. For its first collaboration, STORY has teamed up with online dating service <a href="http://dating.nerve.com/code/tickettoride">Nerve</a>, a partnership the site&#8217;s CEO Sean Mills calls &#8220;a great opportunity to give [us] a physical presence for the first time.&#8221;</p>
<p>&nbsp;</p>
<p>Marrying the charm of an independent shop with the luxury of a well-curated specialty store, STORY is a little like your favorite magazine meets your favorite social gatherings. With its fresh content, cross-platform theme reinforcement, and anticipation of what&#8217;s to come next (Shechtman is mum on that front, by the way), the STORY experience is truly a New York original.</p>
<p>&nbsp;</p>
<p>STORY is open now and located at 144 10th Avenue (at 19th Street) in New York City.</p>
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		<title>Custom-made Italian&#8230;riot-gear?</title>
		<link>http://www.l2thinktank.com/custom-made-italian-riot-gear/2012/</link>
		<comments>http://www.l2thinktank.com/custom-made-italian-riot-gear/2012/#comments</comments>
		<pubDate>Fri, 10 Feb 2012 23:04:28 +0000</pubDate>
		<dc:creator>johanna@L2thinktank.com</dc:creator>
				<category><![CDATA[Uncategorized]]></category>

		<guid isPermaLink="false">http://www.l2thinktank.com/?p=19791</guid>
		<description><![CDATA[It&#8217;s no secret that the Chinese are spending a lot of yuan right now. This year, in particular, the auspicious Year of &#8230;]]></description>
			<content:encoded><![CDATA[<p><a href="http://www.l2thinktank.com/wp-content/uploads/2012/02/riotgear1.jpg"><img class="alignleft size-full wp-image-19787" title="riotgear" src="http://www.l2thinktank.com/wp-content/uploads/2012/02/riotgear1.jpg" alt="" width="275" height="199" /></a>It&#8217;s no secret that the Chinese are spending a lot of <em>yuan</em> right now. This year, in particular, the auspicious Year of the Dragon, will mean even more gift-giving, personal indulgences, even an uptick in entrepreneurial investing. Point in case, state-owned Chinese clothing manufacturer China Garments&#8217; recent announcement to launch its own luxury menswear brand. The company&#8217;s experience in the fashion industry is limited to say the least&#8211;just military uniforms, Mao suits and riot-gear.</p>
<p>&nbsp;</p>
<p>Though the intended clientele of this new fashion house, dubbed <em>Sorgere </em>(a combination of two Italian and Chinese words), will be domestic Chinese businessmen, the construction and tailoring will all take place in Italy by the same company used by Dior Homme, Lanvin and other esteemed menswear lines. Adding to Sorgere&#8217;s cred, China Garments CEO Zhan Yingjie has lured industry veterans <a href="http://www.francescofiordelli.com">Francesco Fiordelli</a> (Ungaro, Hugo Boss) and <a href="http://www.raffaelecaruso.it/">Raffaele Caruso</a> (Raffaele Caruso Spa) to serve as fashion director and made-to-measure tailor, respectively.</p>
<p>&nbsp;</p>
<p>The major difference between a Sorgere suit and one from a more established luxury label is price. Zhan knows convincing China&#8217;s ruling class to trade their high status Milanese and Savile Row suits for a Chinese newcomer won&#8217;t be easy, so he&#8217;s pricing the entire collection 20 percent lower than the average $2,400 custom-made Zegna.</p>
<p>&nbsp;</p>
<p>Sorgere gets its runway reveal in Beijing next month at a private fashion show. No word yet on whether PLA soldiers will serve as models.</p>
<p>&nbsp;</p>
<p>(photo via <a href="http://www.reuters.com/article/2009/07/22/us-china-xinjiang-idUSTRE56L3PU20090722">Reuters</a>)</p>
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		<title>14 Days of Love at the Four Seasons</title>
		<link>http://www.l2thinktank.com/14-days-of-love-at-the-four-seasons/2012/</link>
		<comments>http://www.l2thinktank.com/14-days-of-love-at-the-four-seasons/2012/#comments</comments>
		<pubDate>Tue, 07 Feb 2012 21:08:16 +0000</pubDate>
		<dc:creator>johanna@L2thinktank.com</dc:creator>
				<category><![CDATA[Magazines]]></category>
		<category><![CDATA[Media]]></category>
		<category><![CDATA[Social Media]]></category>
		<category><![CDATA[Travel]]></category>
		<category><![CDATA[Uncategorized]]></category>

		<guid isPermaLink="false">http://www.l2thinktank.com/?p=19696</guid>
		<description><![CDATA[How incredible does a 14-day vacation sound right about now? Even better, a 14-day vacation at a Four Seasons resort &#8230;]]></description>
			<content:encoded><![CDATA[<p><a href="http://www.l2thinktank.com/wp-content/uploads/2012/02/fourseasonslove.jpg"><img class="alignleft size-full wp-image-19715" title="fourseasonslove" src="http://www.l2thinktank.com/wp-content/uploads/2012/02/fourseasonslove.jpg" alt="" width="300" height="347" /></a>How incredible does a 14-day vacation sound right about now? Even better, a 14-day vacation at a Four Seasons resort in the Seychelles? Or maybe the Maldives? So incredible it&#8217;s really not even fun to pretend. But how about, instead of a 14-day vacation <em>at</em> a Four Seasons, you and your loved one got to enjoy 14 days&#8217; worth of Valentine&#8217;s advice <em>from</em> the Four Seasons? And what if those ideas and tips came straight from the mouths of the hotel group&#8217;s finest concierges? Now through next Tuesday, fans and frequenters of Four Seasons resorts can visit any of the hotel group&#8217;s digital platforms and find a little something special.</p>
<p>&nbsp;</p>
<p>On Facebook, there&#8217;s a virtual &#8220;<a href="https://www.facebook.com/FourSeasons?sk=app_372910109390384">love bucket</a>&#8220;, from which you can select a tip or bit of romantic wisdom from a Four Seasons staff member. While you&#8217;re there, share where you&#8217;d spend your ideal Valentine&#8217;s Day and be entered to win a $2,500 gift card good at any one of the Four Seasons&#8217; nearly 90 international properties. There&#8217;s also a <a href="https://twitter.com/#!/search/%23fslovebucket">#FSlovebucket</a> hashtag, which continues the conversation on Twitter and Instagram. The Four Seasons Magazine also has a sweet treat in the form of elaborate date and gift ideas on its &#8217;14 Days of Love&#8217; <a href="http://magazine.fourseasons.com/concierge-recommends/14-days-of-love">virtual calendar</a>.</p>
<p>&nbsp;</p>
<p><a href="http://www.l2thinktank.com/wp-content/uploads/2012/02/borabora.jpg"><img class="alignright size-full wp-image-19714" title="borabora" src="http://www.l2thinktank.com/wp-content/uploads/2012/02/borabora.jpg" alt="" width="300" height="294" /></a>As interactive and creative as this Valentine&#8217;s Day campaign is, the last-minute, light in the wallet type should expect to look, not so much touch. A trip to Mount Otemanu in Bora Bora to listen to a ukelele trio on the beach, after all, takes some serious planning.</p>
<p>&nbsp;</p>
<p>(photos via <a href="http://fourseasons.com">Four Seasons</a>)</p>
<p>&nbsp;</p>
]]></content:encoded>
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		<title>Michael Kors Falls in Love With&#8230;</title>
		<link>http://www.l2thinktank.com/michael-kors-falls-in-love-with/2012/</link>
		<comments>http://www.l2thinktank.com/michael-kors-falls-in-love-with/2012/#comments</comments>
		<pubDate>Mon, 06 Feb 2012 16:32:51 +0000</pubDate>
		<dc:creator>johanna@L2thinktank.com</dc:creator>
				<category><![CDATA[e-commerce]]></category>
		<category><![CDATA[Fashion]]></category>
		<category><![CDATA[Media]]></category>
		<category><![CDATA[Retail]]></category>
		<category><![CDATA[Social Media]]></category>
		<category><![CDATA[Watches & Jewelry]]></category>

		<guid isPermaLink="false">http://www.l2thinktank.com/?p=19669</guid>
		<description><![CDATA[In anticipation of Valentine&#8217;s Day, Michael Kors is getting his social media effort in the mood with a new romance-themed &#8230;]]></description>
			<content:encoded><![CDATA[<p><a href="http://www.l2thinktank.com/wp-content/uploads/2012/02/kors2.jpg"><img class="alignleft size-medium wp-image-19673" title="kors" src="http://www.l2thinktank.com/wp-content/uploads/2012/02/kors2-233x300.jpg" alt="" width="233" height="300" /></a>In anticipation of Valentine&#8217;s Day, Michael Kors is getting his social media effort in the mood with a new romance-themed campaign. Throughout February, the Kors brand will foster online discussions with consumers about the people and places&#8211;and let&#8217;s be honest, the <em>things</em>&#8211;they are in love with this year. The main component of the campaign is the hashtag #FallingInLoveWith, which can be used across platforms like Twitter, Instagram and Facebook. As part of the campaign, Kors is also launching special features on its “<a href="http://www.destinationkors.com/">Destination Kors</a>” blog and <a href="http://pinterest.com/michaelkors/pins/">Pinterest page</a>. The designer&#8217;s e-commerce site is in on the love-fest, too, with a specially-curated &#8216;Falling in Love&#8217; <a href="http://www.michaelkors.com/store/catalog/templates/F0.jhtml?itemId=cat41702&amp;parentId=cat26702&amp;masterId=cat000000&amp;icid=home0a">lookbook</a>, complete with practical tips like: &#8220;Move all the sparkly stuff to the front of your closet&#8221;.</p>
<p>&nbsp;</p>
<p>Also on Twitter, the Kors team will partner with Marie Claire and Neiman Marcus to co-host a live chat series, the first installment of which begins today, February 6. Over the next two weeks, in the build-up to V Day, the brand will market the campaign with &#8217;10 Things Worth Falling in Love With&#8217; emails.  The photos featured in each of these messages will also be accessible via the Michael Kors Instagram feed.</p>
<p>&nbsp;</p>
<p>Although just launched, this new initiative has already garnered major online buzz for the American design house; over the last week, the Michael Kors Facebook page alone saw a spike in fan growth, adding approximately 3,000 new fans per day.</p>
<p>&nbsp;</p>
<p>If only all Valentine&#8217;s Day efforts were this successful&#8230;</p>
]]></content:encoded>
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		<title>Matthew Burns To Lead L2&#8242;s Efforts in Europe</title>
		<link>http://www.l2thinktank.com/matthew-burns-to-lead-l2s-efforts-in-europe/2012/</link>
		<comments>http://www.l2thinktank.com/matthew-burns-to-lead-l2s-efforts-in-europe/2012/#comments</comments>
		<pubDate>Fri, 03 Feb 2012 20:44:13 +0000</pubDate>
		<dc:creator>johanna@L2thinktank.com</dc:creator>
				<category><![CDATA[Uncategorized]]></category>

		<guid isPermaLink="false">http://www.l2thinktank.com/?p=19625</guid>
		<description><![CDATA[L2 is pleased to announce the hiring of Matthew Burns, who will serve as the lead for our rapidly expanding &#8230;]]></description>
			<content:encoded><![CDATA[<p><a href="http://www.l2thinktank.com/wp-content/uploads/2012/02/Matthew_photo11.jpg"><img class="alignleft size-medium wp-image-19638" title="Matthew_photo1" src="http://www.l2thinktank.com/wp-content/uploads/2012/02/Matthew_photo11-219x300.jpg" alt="" width="219" height="300" /></a>L2 is pleased to announce the hiring of Matthew Burns, who will serve as the lead for our rapidly expanding European business. Burns, who will be based in London, brings with him a decade of experience and industry expertise. &#8220;I joined L2 in part so I could return to the Prestige industry,&#8221; the Geneva native said. &#8220;But what really attracted me to the position was the chance to work for a firm that converts consumer love for brands into digital excellence that ultimately benefits shareholder value&#8221;. Prior to L2, Burns led global strategy for GlossyBox, the world&#8217;s largest e-commerce beauty products subscription company. Before that, he worked for several years at both McKinsey and Procter &amp; Gamble Prestige, where he worked across industries on marketing and strategy projects. A graduate of the University of Chicago and Wake Forest University, Burns has the distinction of being the youngest person to ever play on the Swiss National Basketball team.</p>
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		<title>Twitter Expands Its Expanded Profiles</title>
		<link>http://www.l2thinktank.com/twitter-expands-its-expanded-profiles/2012/</link>
		<comments>http://www.l2thinktank.com/twitter-expands-its-expanded-profiles/2012/#comments</comments>
		<pubDate>Thu, 02 Feb 2012 20:38:44 +0000</pubDate>
		<dc:creator>johanna@L2thinktank.com</dc:creator>
				<category><![CDATA[Uncategorized]]></category>

		<guid isPermaLink="false">http://www.l2thinktank.com/?p=19576</guid>
		<description><![CDATA[When Twitter launched expanded profile pages for brands at the end of last year, users adapted to the updated version &#8230;]]></description>
			<content:encoded><![CDATA[<p><a href="http://www.l2thinktank.com/wp-content/uploads/2012/02/andrea_blog.png"><img class="alignleft size-medium wp-image-19593" title="andrea_blog" src="http://www.l2thinktank.com/wp-content/uploads/2012/02/andrea_blog-219x300.png" alt="" width="219" height="300" /></a>When Twitter launched expanded profile pages for brands at the end of last year, users adapted to the updated version almost without realizing it. Considering that a typical Facebook redesign often involves getting lost trying to navigate an entirely new set of options and functions, how did Twitter manage such a seamless transition? Because they only added two new features: a large header banner and the ability to pin a promoted tweet (for free) to the top of the feed.</p>
<p>&nbsp;</p>
<p>Twitter&#8217;s reasoning behind these enhanced profiles was to give brands an opportunity to highlight their most important content and directly engage fans. Because pinned tweets have the ability to expand and display embedded photos or videos (as Burberry did in the above screenshot), many  prestige brands, in particular, can now include larger, dynamic visuals at the top of the screen. But the value-added doesn&#8217;t end there. Brands should consider leveraging seasonal campaigns, incentives, partnerships, and other engaging content (i.e., not just a 140-character post) to attract users’ attention and convert them to loyal followers.</p>
<p>&nbsp;</p>
<p>As of yesterday, enhanced profiles have been extended to just 21 brands and organizations, some of which include Volkswagen, Nike, NBC News and Al Jazeera. Twitter is expected to roll out more, including those for individuals, over the course of 2012.</p>
]]></content:encoded>
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		<title>Join the L2 Team</title>
		<link>http://www.l2thinktank.com/join-the-l2-team/2012/</link>
		<comments>http://www.l2thinktank.com/join-the-l2-team/2012/#comments</comments>
		<pubDate>Thu, 02 Feb 2012 17:24:22 +0000</pubDate>
		<dc:creator>johanna@L2thinktank.com</dc:creator>
				<category><![CDATA[Uncategorized]]></category>

		<guid isPermaLink="false">http://www.l2thinktank.com/?p=19570</guid>
		<description><![CDATA[Business is good over here at L2. So good, in fact, that we&#8217;re growing like a weed (a pretty one, &#8230;]]></description>
			<content:encoded><![CDATA[<p><a href="http://www.l2thinktank.com/wp-content/uploads/2012/02/l2logo.jpg"><img class="alignleft size-full wp-image-19573" title="l2logo" src="http://www.l2thinktank.com/wp-content/uploads/2012/02/l2logo.jpg" alt="" width="300" height="300" /></a>Business is good over here at L2. So good, in fact, that we&#8217;re growing like a weed (a pretty one, of course) and need more people to join our ranks. Whether you&#8217;re looking for an <a href="https://www.dropbox.com/s/eqnr3sc682mc0py/L2Intern2012.pdf">internship</a> or a full-time consultant, researcher or analyst position, be sure to click on over to our <a href="http://www.l2thinktank.com/careers/">Careers page</a> and do some exploring. L2 is based in New York City, but we also have opportunities available in Los Angeles, Europe and Shanghai. For more information on any of these, or to simply learn more about L2, please get in touch with Jennifer Napier (jennifer@l2thinktank.com).</p>
<p>&nbsp;</p>
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		<title>Instagram: Changing the Retail Lens</title>
		<link>http://www.l2thinktank.com/instagram-changing-the-retail-lens/2012/</link>
		<comments>http://www.l2thinktank.com/instagram-changing-the-retail-lens/2012/#comments</comments>
		<pubDate>Wed, 01 Feb 2012 21:14:10 +0000</pubDate>
		<dc:creator>johanna@L2thinktank.com</dc:creator>
				<category><![CDATA[Fashion]]></category>
		<category><![CDATA[Media]]></category>
		<category><![CDATA[Mobile]]></category>
		<category><![CDATA[Retail]]></category>
		<category><![CDATA[Social Media]]></category>
		<category><![CDATA[Watches & Jewelry]]></category>

		<guid isPermaLink="false">http://www.l2thinktank.com/?p=19556</guid>
		<description><![CDATA[The value proposition of Instagram, the iOS-exclusive photography app, is simple: Make photography fun, beautiful, and above all, easily shareable. &#8230;]]></description>
			<content:encoded><![CDATA[<p>The value proposition of <a href="Intragr.am">Instagram</a>, the iOS-exclusive photography app, is simple: Make photography fun, beautiful, and above all, easily shareable. Since launching last October, its viral growth (read: with no formal advertising) has been unprecedented, adding 12 million users in just as many months to reach a global download run-rate of <a href="http://techcrunch.com/2011/10/31/instagram-now-has-12-million-users-100k-weekly-downloads-in-china-alone/">one app per second. </a>As a result, Instagram has become increasingly popular with brands across verticals for its inherent social networking capabilities and as a tool to forge more vivid, personal relationships with fans and consumers.</p>
<p>&nbsp;</p>
<p>A recent article from <a href="http://adage.com/article/digital/brands-puma-ge-flocking-instagram/232121/">Ad Age</a> reported that, within the last year, major global brands like Puma and GE and even political figures like President Obama and Mayor Bloomberg have incorporated Instagram into their digital strategies. And while startups don’t officially partner with companies, there are roughly 200 brands, celebrities and organizations currently leveraging the platform’s reach.</p>
<p>&nbsp;</p>
<p>Brands are using Instagram in a variety of ways. Denim mainstay Levi’s is currently looking to Instagram to <a href="http://www.psfk.com/2012/01/levis-instagram-iamlevis.html">find the face of their next campaign</a> through encouraging users to tag their portraits with #iamlevis. <a href="http://ink361.com/#/users/8873242/photos">Tiffany &amp; Co.’s</a> Instagram account highlights its recent advertising campaigns, holiday windows and craftsmanship. Even brands without an official account still find ways to take advantage of the channel. Clothing line 7 For All Mankind, for instance, scours the platform for photos tagged #7FAM to blog about how people are wearing their products.</p>
<p>&nbsp;</p>
<p><a href="http://www.l2thinktank.com/wp-content/uploads/2012/02/VV_0119.jpg"><img class="alignleft size-medium wp-image-19557" title="VV_0119" src="http://www.l2thinktank.com/wp-content/uploads/2012/02/VV_0119-191x300.jpg" alt="" width="191" height="300" /></a>Specialty retailers are finding Instagram to be an especially engaging and cost-effective way to strengthen their online presence. Without spending a single dollar, companies can reach thousands of interested consumers to showcase products, promote events, and offer a porthole into daily work culture.</p>
<p>&nbsp;</p>
<p>L2 found swift adoption of Instagram in both the <a href="http://l2thinktank.com/research/specialty-retail-2011/">Digital IQ Index®: Specialty Retail</a> and <a href="http://l2thinktank.com/research/european-specialty-retail-2011/">Digital IQ Index®: European Specialty Retail</a>, as more than a quarter of brands in each Index had active accounts. Notably, the US-centric Specialty Retail report found more than double the average number of brand followers than European specialty retailers.</p>
<p>&nbsp;</p>
<p>As Instagram gains even more momentum, brands should explore ways to maximize the ROI of integrating Instagram into their current marketing mix. Whether using it as an independent marketing vehicle to increase brand awareness or as a part of a larger social media effort, Instagram’s visually-inviting platform and intimate user experience will help smaller brands, in particular, punch above their weight class.</p>
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		<title>Video: 5 Predictions For 2012</title>
		<link>http://www.l2thinktank.com/video-5-predictions-for-2012/2012/</link>
		<comments>http://www.l2thinktank.com/video-5-predictions-for-2012/2012/#comments</comments>
		<pubDate>Wed, 01 Feb 2012 03:19:11 +0000</pubDate>
		<dc:creator>johanna@L2thinktank.com</dc:creator>
				<category><![CDATA[China]]></category>
		<category><![CDATA[e-commerce]]></category>
		<category><![CDATA[Media]]></category>
		<category><![CDATA[Mobile]]></category>
		<category><![CDATA[Social Media]]></category>
		<category><![CDATA[Video]]></category>

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		<description><![CDATA[brightcove.createExperiences(); Over the past couple of weeks, we’ve been in 2012 prediction mode on the L2 blog. We’ve discussed the &#8230;]]></description>
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<p>Over the past couple of weeks, we’ve been in 2012 prediction mode on the L2 blog. We’ve discussed the increasingly important and lucrative roles <a href="http://www.l2thinktank.com/2012-predictions-brave-new-mobile-world/2012/"> mobile commerce</a> and <a href="http://www.l2thinktank.com/2012-predictions-tumblr-instagram-pinterest-move-to-the-mainstream/2012/">emerging social media darlings</a> Pinterest, Tumblr and Instagram will take on in the year ahead (and by contrast, the <a href="http://www.l2thinktank.com/2012-predictions-r-i-p-google/2012/">death knell</a> of another much-hyped, underwhelming platform). We touted <a href="http://www.l2thinktank.com/2012-predictions-digital-will-decide-luxurys-new-icons/2012/">digital as the new pathway</a> for prestige brands to achieve icon status. And because it wouldn’t be a prediction list without a prominent China mention, we also offered a perspective on how the <a href="http://www.l2thinktank.com/2012-predictions-luxury-e-commerce-will-be-chinas-domain/2012/">world’s fastest-growing luxury consumer base</a> will drive e-commerce not just in 2012 but for the foreseeable future.</p>
<p>&nbsp;</p>
<p>In the video above, we invite you to take a closer look at L2’s five boldest predictions for 2012.</p>
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		<title>2012 Predictions: Luxury e-Commerce Will Be China&#8217;s Domain</title>
		<link>http://www.l2thinktank.com/2012-predictions-luxury-e-commerce-will-be-chinas-domain/2012/</link>
		<comments>http://www.l2thinktank.com/2012-predictions-luxury-e-commerce-will-be-chinas-domain/2012/#comments</comments>
		<pubDate>Tue, 31 Jan 2012 13:30:40 +0000</pubDate>
		<dc:creator>johanna@L2thinktank.com</dc:creator>
				<category><![CDATA[China]]></category>
		<category><![CDATA[e-commerce]]></category>

		<guid isPermaLink="false">http://www.l2thinktank.com/?p=19378</guid>
		<description><![CDATA[Young, rich, digitally-native, and increasingly fixated on luxury. This is the new and future prestige buyer profile, and to nobody&#8217;s surprise, it&#8217;s &#8230;]]></description>
			<content:encoded><![CDATA[<p><a href="http://www.l2thinktank.com/wp-content/uploads/2012/01/cartier_china.jpg"><img class="alignleft size-medium wp-image-19383" title="cartier_china" src="http://www.l2thinktank.com/wp-content/uploads/2012/01/cartier_china-300x216.jpg" alt="" width="300" height="216" /></a>Young, rich, digitally-native, and increasingly fixated on luxury. This is the new and future prestige buyer profile, and to nobody&#8217;s surprise, it&#8217;s found almost exclusively in the far eastern economic boomcountry of China.</p>
<p>&nbsp;</p>
<p>From fashion and beauty to jewelry and automobiles, Chinese with money are bucking the country&#8217;s long-held tradition of saving (60 percent of households there do so, compared with just 35 percent in the U.S.) in favor of buying. This is especially true when the purchases in question project status, wealth, and a Westernized taste.</p>
<p>&nbsp;</p>
<p>Recognizing the billions in revenue potential, many luxury brands have expanded into China by way of new retail stores. This would be a relatively effective business strategy if, like New York City, Paris and London, citizens regularly left home and flocked to major cities for work, shopping or vacation stays. In China, though last year marked the first time in the country’s history that more people lived in urban centers than in rural towns, there are many more millionaires and billionaires who want the new Chanel fur winter boot who won’t make it to Beijing, Shanghai, Hangzhou and Guangzhou—the only four cities with Chanel boutiques—before they’re out of season.</p>
<p>&nbsp;</p>
<p>Enter e-commerce.</p>
<p>&nbsp;</p>
<p>We believe that the prestige brands that will win this market will be those that invest in robust e-commerce sites, outfitted with Chinese language capability and easy to navigate shipping options. Not only will people living in smaller cities and towns (where 75 percent of China’s future wealth creation is expected to take place) be able to buy their big-ticket items, but even more big-city luxury connoisseurs will take advantage—and more often. When unburdened by store hours and bad Beijing traffic, shoppers are likely to be happier, more impulsive and ultimately, <em>spendier</em>.</p>
<p>&nbsp;</p>
<p>Recent data from the Boston Consulting Group, which looked at online sales as a percentage of overall retail sales in the Skincare and Cosmetics industry, underscores e-commerce’s tremendous opportunity in the region. In 2005, online sales of domestic Chinese skincare and cosmetics brands accounted for just 2 percent of overall sales. In 2010, after implementing aggressive and innovative e-commerce strategies, this number jumped to 11 percent, a growth spike that outpaced even the most mature markets in the U.S. and the U.K.</p>
<p>&nbsp;</p>
<p>(Image via <a href="http://www.forbes.com/sites/anthonydemarco/2011/10/14/china-leads-world-in-luxury-spending/">Forbes</a>)</p>
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