Altagamma Social Luxury Index 2020

LUXURY IS MORE THAN WHERE YOU REQUIRE A USING A MULTI-DIMENSIONAL EVER A DYNAMIC CONTEXT DISTINCTIVE STRATEGY AND BALANCED SCORE CARD

TO PREDICT TRENDS IN ORDER TO BUILD AND DISTRIBUTE CONTENT TO MEASURE PERFORMANCES, UNRAVEL TO EVOLVE AND INNOVATE AT THE SPEED OF CULTURE OPPORTUNITIES, DISCOVER PREFERENCES

The competitive landscape is changing In order to stay relevant in people’s life, you The aim is to measure your brand's social rapidly and unpredictably, especially on need to monitor and assess your content media impact and consistency, revealing social media. Addressing change and performance, your media ecosystem possibilities among the most suitable ones predicting cultural evolution is key. maturity and your innovation edge. for your category.

8 categories of Altagamma members Millions relevant 9 languages 9 Mentions* 35+ digital media channels 80% (vs 5 millions in 2018) 1 tech platform

*The analysis focuses on 2019 spontaneous public conversations. No tracking of proprietary members’ accounts nor paid social media investments were considered. 3 OUR TECHNOLOGICAL PARTNER Modern

It enables MARKETING, ADVERTISING, RESEARCH, CARE AND ENGAGEMENT.

Across 35+ DIGITAL MEDIA CHANNELS including social media, messaging platforms, news, blogs and forums. + Unique CXM PLATFORM

With an UNIFIED FRONT-OFFICE ARCHITECTURE.

That is OMNI-CHANNEL And is built on CMX* DATA.

Copyright © 2020 Accenture. All rights reserved. *Legally available unstructured, unsolicited digital data from modern channels and millions of sites including forum, blogs, and reviews powered by AL 4 THE METHODOLOGY Measuring Social Performances on 5 Pillars

20% 20% 20% 20% 20%

Social Share of Sentiment Reach and Top Authors Presence Voice Analysis Engagement Resonance Quality of brands’ Total and average volume Total reach and Total mentions Net sentiment score social media presence of industry mentions engagement rate by KOLs

Channel coverage: Total volume of online Delta between Brands’ audience reach Sum of KOLs with 0/1 absence/presence of a 50% mentions generated by 100% percentage of positive 50% (earned + owned reach) 100% relevant number of specific brand on a the active members. and negative mentions. in absolute value. interactions/category. social media channel.

20% Channel KEY DRIVERS completeness. Adjustments based on Engagement rate per OF ANALYSIS 50% 50% the dimension of each category. Geographical and category. 20% linguistic consistency.

Channel activity 50% level: 3+ post / month.

0-10 0-10 0-10 0-10 0-10

SOCIAL PRESENCE SHARE OF VOICE

MAIN KPI: MAIN KPI: Quality of Social Presence Total Volume + Average of Industry Mentions Some luxury brands cover new A higher volume of channels and consolidate the conversations were previous presence generated by the with a complete page, with increasing virality of Asian linguistic and geographic celebrities. consistency and with an adequate posting rate.

SENTIMENT ANALYSIS REACH AND ENGAGEMENT

MAIN KPI: MAIN KPI: Net Sentiment Score Reach and Engagement Rate

A widespread increase in This year, Altagamma’s brand positive sentiment can be registered a diffused growth in the registered thanks to successful engagement rate. creative campaigns and Stronger leverage on audiences initiatives. reached by influencers.

9 Social Luxury Index

8 2019 Results

6 4,6 2019 saw an increase (+0,3) compared to the previous edition. 5 4,6 Average Social The score is the average of 5 pillars analyzed in 8 Altagamma industries. 4 4,3 Luxury Index 2019 Overall, the pillars show an improvement: in particular, the sentiment score has increased 3 sharply, while top authors' resonance slightly decreased. 2 Category Variability 1 3,3-7,3

one. Presence IMPROVEMENTS New social media channels are hot Social Presence Established social media are challenged by new platforms

Altagamma’s luxury brands performed well in this area of the Index: they strengthened their Social Presence and faced new Opportunities are like challenges, experimenting with new sunrises. If you wait too channels and new content approaches. long, you miss them.

Consolidation on Asian and Russian channels in Automotive : • +5% WeChat William Arthur Ward • +26% VK

Yachts +13%

Automotive +5% +26%

2018 WeChat 45% Local Social Media Channels 2018 registered a strong Social Only Weibo 37% New Emerging Presence of Altagamma members on Channels in Scope established social media, while, on ~28% VK 2% average, only 28% of brands were covering new local platforms (WeChat, Weibo, VK). Presence on local social media 2019 showed an improvement in Altagamma brands’ presence on local 2019 social media. WeChat 51% Only However, emerging channels such as Weibo 41% TikTok, Douyin and Little Red Book, still ~32% VK 4% result as weakly covered. Presence on local social media

TikTok and Chinese social channels are growing fast

TikTok, its Chinese version (Douyin) and Little Red Book are fast-growing channels in terms of active users: they ~8% are strongly dominant in highly populated Asian countries such as China and India and increasingly Altagamma’s members are present on emerging relevant for younger generations. local social media >80% of category <80% but >20% of category <20%of category members cover the channel members cover the channel members cover the channel

11/12 9/12 Channels covered; Channels covered; All channels proved to be All channels proved to be Complete, Complete, Consistent, Consistent, and Active. and Active.

Luxury 5.7 Luxury 5.4 Fashion 6.7 Automotive 7.4 Gucci 9.2 Lamborghini 9

TRENDINGLITTLE RED BOOK not presentnot majorityof the Presence, inSocial enhancingtheir forward steps positive Despite on these emerging channels.emerging theseon Altagamma’s brands are are stillbrands the Given their unique features and audience, they might become biggest opportunities to be invested in for the long run investedopportunities inthelong tobe for biggest TIKTOK Presence Social Social TWITCH . 12 TikTok: a 2019 opportunity Social Presence

TIKTOK APP IS “TRAINING WHEELS” FOR FUTURE INFLUENCERS AND CONTENT CREATORS:

TikTok is making it easier for them to become content creators. It allows them to easily create content that they would not otherwise be able to make as easily on their own, and gives them a framework they can play or create within.

DELIVERS AN IMMERSIVE EXPERIENCE:

TikTok allows you to have fun with full screen videos, 3D lenses and augmented reality.

FAST LEARNING ALGORITHM – ALWAYS PROVIDING THE “NEW” Binary Feed Followed accounts’ contents are separated from automatically proposed content, emerging thanks to Engagement Rates.

ENGAGEMENT IS THE KING 4% higher average Engagement Rates than Instagram. Achieving high Engagement Rates allows wide spreading branded contents to users which are not yet your fans.

SPONTANEOUS OR IGNORED Fast Scrolling features gives no room for brand- centered content which can be easily ignored. The brand’s message should pivot on spontaneous advocates and leave the stage to users’ entertainment.

Copyright © 2020 Accenture. All rights reserved. 14 TIK TOK Social TikTok is the channel for Presence The need for speed the new generation The fastest growing phenomenon 15 to 60 seconds to capture users’ attention and communicate your message. +68% of app downloaded between 2019 and 2020. <50 characters (emoji included) is the average comment length under +60% daily active users TikTok videos. between 2019 and 2020. A young platform for the young 315 TikTok App 400, mln download • 41% of users 320, 199 between 16-24 years old. 187 176 mln mln 156 • 70% of users 240, mln mln under 35 years old.

160, Early adopters in 2019 80, 11 assets 0, Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 20 assets

A SOCIAL COMMERCE EXPERIENCE:

Xiaohongshu is a social commerce in which users can find inspirations by looking at posts, decide to buy by looking at users' feedbacks, and buy directly within the app.

CLOSER TO CELEBRITIES:

Xiaohongshu also brings Chinese celebrities closer to their fans. Actress Fan Bingbing has apparently joked that she should stop reviewing products on the app because they get sold out and she can never find them.

LIVE STREAMING:

Introduced live-streaming, a feature already in some other popular shopping apps, which makes for a shopping experience that’s sort of mash-up of YouTube tutorials, Facebook Live and Amazon.

A good way to close the loop between content and e-commerce.

FAST LEARNING ALGORITHM – RECOMMENDATION MECHANISM It creates a customized homepage based on users’ browsing and search history. It also offers an “Explore” feature based on this same data. This function allows users to focus on topics they are interested in and sort out unwanted information.

TRAFFIC DISTRIBUTION - 80/20 RULE 80% of traffic comes from head accounts that make up only 20% of the community (mainly influencers and celebrities).

HIGH CONVERSION RATE 8% of Little Red Book's users make an order on its app after reading posts compared with 2.6% who do the same on Tmall.

Copyright © 2020 Accenture. All rights reserved. Sources: Dragonsocial, Value China, Capital Watch 17 LITTLE RED BOOK Social Little Red Book showed Presence higher Conversion Rates A platform for young females living in big cities

86% users are females. A fast growing phenomenon 84% are under 35 years old. +200% of app download 63% live in 1st and 2nd tier cities. between 2018 and 2019.

Little Red Book registered users volume (mln people). 300 Avg Altagamma posting in 2019 35 post

100

50 15

2015.6 2017.6 2018.6 2019.7

LIVE STREAMING:

Twitch is the Amazon streaming platform that allows users to interact directly with influencers, brand ambassadors or brands in real time.

It can entertain users especially when they are at home raising awareness about the brand and stimulating conversion at the same time.

FROM E-SPORTS AND GAMES TO OTHER INDUSTRIES:

Twitch has been focusing on gamers and e-sports brands, but engages a huge and varied audience that can be targeted by multiple industries.

IN GAME ACTIVATION Creating ad hoc items or events used or followed directly within a videogame is a good way to reach both players and watchers. WITHOUT INTRUSIVE ADVERTISING 63% of users have ad blockers. AFFILIATE MARKETING Facilitate and improve online purchases leveraging streamers. In February 2019, 19% of the outbound link from Twitch were towards Amazon. SPONSORSHIP Streamers and pro gamers are a great way to breach into sports enthusiasts and niche audiences due to the high level of engagement and quality of the relation they build with their followers.

3,6 mln avg monthly streamers. 15 mln global daily users.

+31% of viewers from March 8th to March 21st. And Watcher

+66% Italian views from February ’20. 68% millennials.

57% from Asian markets.

31% female. AVG CONCURRENT VIEWERS (000 people) 1440 Sportswear brand plays a role 1260 1070 In January 2019, Nike used Twitch 748 to introduce the launch of its Adapt BB 536 592 Self-Lacing Shoe. 351 208 102

2012 2013 2014 2015 2016 2017 2018 2019 2020

two. Share of Voice IMPROVEMENTS A Share of Voice improvement Share of Voice Active conversations involving KOLs became essential for brands

Altagamma’s luxury brands performed well in this area of the Index because they are able to increase the number of mentions received by qualified and relevant authors, especially during brand events People are not remembered and activations. for the number of times they fail, but for those times Strong impact of celebrities on online mentions they are successful.

Fashion Week Events Generation of mention peaks greater than 150k mentions. Thomas A. Edison Asian Ambassadorship Peaks of 49k mentions (Chanyeol) and 18k mentions (Suho).

Fashion Automotive Hard Luxury Food & Wine 48% 43% 4,5% 1,5% of total mentions of total mentions of total mentions of total mentions

190k 608k 44k 5,8k Avg sov Avg sov 27 7 6 Avg sov 18 Avg sov brands brands brands brands

Yachts Design & Furniture Others Hotellerie 0,5% 1% 1% 0,5% of total mentions of total mentions of total mentions of total mentions

6k 19,7k 2,5k 5,8k 19 Avg sov 5 Avg sov 14 Avg sov 8 Avg sov brands brands brands brands

Copyright © 2020 Accenture. All rights reserved. *compared to the previous edition, 4 brands have been excluded and 6 new ones added. 24 How celebrities have boosted your 2019 Share of Voice Share of Voice

BECOMING YOUR SHARING THEIR VIEWS PARTICIPATING TO ENGAGING WITH BRAND AMBASSADOR ON SPONTANEOUS POSTS BRANDED EVENTS YOUR COMMUNITIES

Celebrities’ engagement by The spontaneous sharing of By inviting celebrities to the The activities implemented Altagamma’s brands posts on social media by first row of their fashion by celebrities towards online boosted online celebrities contributed to shows, Altagamma’s brands communities intensified the conversations, generating increase the visibility of have increased users’ online relationship with their peaks of buzz over the year. Altagamma’s brands. conversations, strengthening members and enhanced the their image. Furthermore, Share of Voice of VIPs' outfits boosted online Altagamma’s brands. buzz.

Share of Voice trendline 2018 vs 2019 2018 2019 The graph shows a comparison between 2019 and 2018 in terms of Share of Voice, mentions and conversations.

Jan Feb Mar Apr May Jun Jul Aug Set Oct Nov Dec

2019 events that performed better than 2018 2018 2019

Better Performance in 2019

New York MET GALA

Milan Men’s Fashion Week

67.324 mentions in 2019 31.655 in 2018

51.028 mentions in 2019 19.568 in 2018

Jan Feb Mar Apr May Jun Jul Aug Set Oct Nov Dec

In general, 2019 trendline has showed a more sustained conversation level throughout the year in comparison to 2018, where online conversations are less intense. The peaks in 2019, although numerically greater than the previous year, have registered lower overall mentions.

2019 events that performed worse than 2018 2018 2019

Better Performance in 2018

Milan Gucci Cruise Fashion Week Billboard Collection Music Awards

30.740 mentions in 2019 54.741 mentions in 2019 49.289 mentions in 2019 86.510 in 2018 121.175 in 2018 77.004 in 2018

Jan Feb Mar Apr May Jun Jul Aug Set Oct Nov Dec

60.928 mentions 5th April, 2019

LIL NAS X surprised the country star BILLY RAY CYRUS with a RED CONVERTIBLE MASERATI to celebrate the success of their hit song «Old Town Road».

1.627 mentions 1.175 mentions 10th June, 2019 15th July, 2019

SAN PELLEGRINO announced The CEO of Domori (part of the Illy initial line-up of young candidates Group), ANDREA MACCHIONE has selected for the SAN PELLEGRINO been appointed PRESIDENT OF YOUNG CHEF EDITION 2020. PRESTAT, the chocolate brand supplier of the British Royal House.

1.549 mentions 1.211 mentions 29th March, 2019 22nd Sept, 2019

GEORGE CLOONEY boycotted the IVANKA TRUMP and Jared Kushner SULTAN OF BRUNEI’S HOTELS in arrived at HOTEL DE RUSSIE (owned protest of his nation’s new anti-gay by Sir Rocco Forte), in Rome, for the laws. dinner with WENDI DENG MURDOCH and a Secret Service agent.

4.162 mentions 2.793 mentions th 9th May, 2019 26 Nov, 2019

CHANYEOL attended ACQUA DI CHANYEOL, member of the musical PARMA’s CIPRESSO DI group EXO, made a gift to the FAN TOSCANA launching party. CLUB EXO-LS in occasion of his birthday.

37.618 mentions 29.592 mentions 56.815 mentions 42.605 mentions th th 14 Jan, 2019 19th Feb, 2019 7 May, 2019 28th May, 2019

Rapper JACKSON WANG MILAN FASHION WEEK EVENTS The MET GALA in New York KAI attended GUCCI CRUISE 2020 performed after Fendi Show generated peaks in Fashion, Hard stimulated ONLINE DISCUSSIONS. FASHION SHOW at the Capitoline DURING MILAN MEN’S Luxury and Others categories. The presence of the BRITISH SINGER Museum in Rome. FASHION WEEK FW20. HARRY STYLES boosted the online buzz (50% of the peak).

40.197 mentions 46.718 mentions 9.400 mentions th th 23 Sep, 2019 9th Nov, 2019 26 Nov, 2019

The share of voice related to FASHION The GUCCI’S DRESS worn by SELENA GOMEZ wore a VERSACE'S WEEK EVENTS generated a SINGLE SOKO during 2018 Gucci Cruise NEON DRESS at AMAS in Los BUZZ PEAK OVER A ONE WEEK show, at Alyscamps, has been Angeles. PERIOD, increased by the presence of compared to the outfit of Bunta ASAP ROCKY and LOU DOILLON at an Takakura, one of CRAYON SHIN- Altagamma member FASHION SHOW. CHAN ANIME'S CHARACTER, generating a huge online buzz.

3.215 mentions 2.599 mentions th 19 March, 2019 20th Apr, 2019

JUNMYEON (Suho) attended JUNMYEON (Suho) wore HELMUT NEWTON'S EXHIBITION BVLGARI’S ACCESSORIES during wearing his BVLGARI RINGS. his Singles Magazine Photoshoot.

60000 Prevalence of Fashion Share of Voice Fashion peaks of conversation reached a higher level of conversation compared to Design 50000 Fashion & Furniture, strongly leveraging major worldwide-known events. 40000

30000

20000

10000

0 01-01-2019 02-01-2019 03-01-2019 04-01-2019 05-01-2019 06-01-2019 07-01-2019 08-01-2019 09-01-2019 10-01-2019 11-01-2019 12-01-2019

900 805 mentions peak related to Salone del Mobile was stimulated by fashion brands 800 Design & Furniture mentioning Luxury maisons (Gucci, Versace, Missoni, Bulgari ...) showed their heritage and stylistic codes through 700 design and furniture’s proposals. 600 However, when compared to fashion events, Salone del Mobile can still be considered under-exploited by 500 Altagamma Brands. 400 300 200 100 0 01-01-2019 02-01-2019 03-01-2019 04-01-2019 05-01-2019 06-01-2019 07-01-2019 08-01-2019 09-01-2019 10-01-2019 11-01-2019 12-01-2019

32% 30% Automotive Automotive 280 k 226 k Made in Italy total mentions Made in Italy total mentions 51% 46% Fashion 6% Fashion 2,6% of total Altagamma’s of total Altagamma’s brand SOV 6% brand SOV 8% Design & Furniture Design & Furniture

3% 4% Food & Wine Food & Wine 3% 4% 1% Yachts 3% 3% Yachts 4% Others Others 1% Hard Luxury 1% Hard Luxury Hotellerie Hotellerie

2,6% of total volumes (8,8 mln) are composed of mentions Copyright © 2020 Accenture. All rights reserved. related to ‘Made in Italy’. 37 Total Made in Italy mentions Share of within each category Voice

YACHTS 21%

The larger the percentage of Made in Italy conversation on their total share of voice, the DESIGN & FURNITURE further they will be from the center of the 18% FOOD & WINE graph. 7%

Similarly to 2018, during 2019, Design & OTHERS HARD LUXURY 6% Furniture and Yachts brands confirmed as 2% those with the greatest portion of their SOV 20% 10% 0% 0% 10% 20% related to Made in Italy, therefore strongly associated to Italian craftsmanship and lifestyle. FASHION 2% HOTELLERIE 4%

AUTOMOTIVE 2%

The graph shows categories’ positioning to “Made in Italy,” based on how often users DESIGN & FURNITURE mention brands while also talking about Italian 19K mentions AUTOMOTIVE values. 69K mentions

HOTELLERIE The higher the volumes of Made in Italy YACHTS 2K mentions 9K mentions conversation about the category’s brands, the farther they will be from the center of the 120k 60k 10k HARD LUXURY graph. 8K mentions

Because of a greater overall share of voice OTHERS around Automotive and Fashion brands, their 2K mentions contribution to the Made in Italy is higher than other categories in absolute terms. FOOD & WINE 9K mentions

31% of total discussions about Made in Italy highlighted how the Italian style is influenced by historical legacy. 8% of mentions associated the concept of Made in Italy to innovation, 14% research and new creative proposals. of conversations recognized tailored products and handicraft techniques as distinctive and indicative of Italian brands.

Share of Voice 2019 2018

2.5 mln 1.7 mln mentions mentions

Best channels 62% 28%

Luxury 2.2 Luxury 2.0 Fashion 6.5 Fashion 7.2 Gucci 10 Gucci 10

Copyright © 2020 Accenture. All rights reserved. 41 Key conversational cross-category topics Share of Voice 2018 2019 2018 top trends (also in 2019) Top 3 category Emerging new trends in 2019 Top 3 category 84% of total SOV (+14% from 2018).

GLOCALITY SUSTAINABILITY 21% - "territory” and 7% - environmental sustainability. FOOD& “provenience” YACHTS DESIGN FOOD& YACHTS HOTELLERIE WINE WINE

PERSONALIZATION LUXURY 4% - personalized and 20% - luxury lifestyle. customized products. DESIGN YACHTS HOTELLERIE HARD YACHTS HOTELLERIE LUXURY

HERITAGE LIMITED EDITIONS 4% - limited editions. 19% - classic values, FOOD& YACHTS DESIGN heritage and legacy. DESIGN YACHTS HOTELLERIE WINE

CRAFTSMANSHIP HARD EVENTS 3% - craft & madein. DESIGN YACHTS 17% - public events. LUXURY DESIGN YACHTS HOTELLERIE

Collaborations Asian Wave

Partnerships and collaborations have produced The online interest generated by Chinese a high online impact. A consistent portion of and Koreans proved high relevance of luxury consumers purchased special editions brand ambassadors related to the music and collaborations, driven by Chinese industry. consumers demand and younger generations.

Luxury Streetwear Sustainability

The phenomenon powered the year’s Sustainability has influenced consumer biggest trends. By offering a larger purchase behavior, driven by selection of streetwear items, luxury environmental and ethical manufacturing brands targeted younger generations concerns. looking for less formal attire.

The resonance of M&A Festivals and Events

Online attention of worldwide users Cars festivals and events represented gathered around the notable a key opportunity for the discovery of process of merging between FCA the automotive world and its history, and PSA. both online and offline.

Sustainable Vehicles Vintage and Heritage

Recurrent online discussions Online users frequently refer to the about hybrid and electric engines values of classic and iconic style demonstrate a rising interest that shaped Italian brands’ glorious around sustainable and green past. mobility.

Asian Influence

Following the trend already outlined in 2018, Asian countries are becoming more and more relevant and visible: k- poppers, Asian boybands and singers stand out as the most engaging ambassadors for the industry. Material Refinement

Raw materials and gems are recurring topics in online Casual Luxury conversation around hard luxury products. Online users are welcoming traditional casual brands that offer unconventional luxury propositions.

Design of Light

For online discussion, light emerges as an active components of the items: it became the enabler of a new fruition also if it is not fully integrated within object. Natural Materials

Recurrent online conversations focused on natural materials such Augmented Design as wood and brick.

With the aim to ease the access to premium products to all costumers, brands are moving towards the approach based on AR and 3D modelling which resulted notably appreciated.

Limited Editions

Diamonds, collaborations, personalized and unique pieces: online users demonstrated rising interest in limited and iconic edition of their favorite products, from water to wine. Smart Food

From smart farming to blockchain technology, online users' Awards and Competitions conversations demonstrated high interest in technologies able to Following the trend of 2018, the bring new advance to the food food industry gained high visibility sector, while minimizing the impact due to awards and competitions like on the environment. the World 50 best. Online users proved to be extremely sensitive to sustainability themes addressed during events.

Location and View

Online user presence in 2019 conferred a new importance to the concepts of spaces and locations. Views, panoramas and landscapes were among the most discussed topics. Food Excellence

Chef and gourmet creations contributed to create visibility in the The Risk of Boycott sector, generating rising interest among users. Homophobic restrictions adopted by the Sultan of Brunei, owner of several luxury hotels worldwide, provoked George Clooney public blame and boycott actions, thus causing a reputational damage for the brands involved.

Emission Control

Brands’ proposition focusing on hybrid propulsion for luxury boats is raising as a viral topic during 2019.

Yacht Shows

Festivals, anniversaries and shows: online conversation of users Interiors focused on the celebration of navigation in the world. What’s inside the yachts? This is one of the most frequently discussed topics regarding navigation industry: furniture, materials and premium features.

three. Analysis IMPROVEMENTS Positive discussions on social media increased Sentiment Analysis Mainly thanks to events

Altagamma’s luxury brands performed well in this area of the Index because they were able to increase the number of positive engagement in users’ comments. Don't be into trends. Don't make fashion own you, but Limited Editions Brand Testimonials

San Pellegrino’s launch of limited- Harry Styles made the trek to you decide what you are, edition diamond bottle contributed Rome’s Capitoline Museum to to users’ strong appreciation and take in Gucci Cruise Show 2020. what you want to express positive comments. by the way you dress and Fashion Events Product Innovation the way to live.

Jennifer Lopez walked the Versace Kartell presented the AI runway during Milan Fashion Week Chair at the Salone del in a new version of her iconic Mobile 2019. Gianni Versace “Jungle Dress”.

Positive Neutral Negative

Food & Wine Yachts Others Design & Furniture

3% 5% 1% 3%

30% 31% 35% 36% Net sentiment Net sentiment Net sentiment Net sentiment 32% 31% 29% 28% 62% 59% 69% 66%

Hotellerie Fashion Hard Luxury Automotive

11% 3% 4% 8% 22% 26% 24% 35% Net Sentiment Net sentiment Net sentiment Net sentiment 24% 23% 20% 14% 54% 71% 72% 70%

Sentiment Analysis 2019 2018

68% 48%

Luxury 7.8 Luxury 6.2 Hotel 7.7 Hotel 9.2 Masseria 10 Masseria 10 San Domenico San Domenico

Success factors Boutique Hotel San Domenico 96% 92% Awards 2019 Wellness and Spa

Italian Culinary 91% Nature and Views 89% 82% Heritage and Past Tradition

four. Engagement IMPROVEMENTS Reach and Engagement is growing Reach & Engagement Especially via novelties and collaborations

Altagamma’s luxury brands performed well in this area of the Index because they adopted ad hoc strategies to increase Reach by engaging their own fan base with novelties or by collaborating with relevant KOLs. It is the mind that makes the body rich. Cristallo Resort Arcadia Yachts Collaborate with an Italian fashion Stood out as a top scorer in terms of brand on Facebook. engagement rate, especially thanks to its editorial plan on Sea Coral II. Andrew Carnegie

3,05% 1,9%

Avg category Avg category 0,63% 0,86%

In 2018, two different strategies to reach the online crowd emerged. Categories with large fan bases on their own leveraged on their Owned Reach through their social properties.

EARNED REACH Leverage third party sources & influencers 800k Hotellerie 0,35% The Hotellerie category, composed by brands with relatively small fan bases (niche brands), 700k leveraged third party sources and influencers in order to reach the widest possible audience. 600k

Others 500k 0,36% Design & Furniture 400k 0,25%

Fashion Food & Wine Automotive 300k 0,41% 0,83% 0,39%

200k Hard Luxury 0,34% 100k Build and nurture Yachts your own fan base 0,25%

OWNED REACH 20 mln 40 mln 60 mln 80 mln 100 mln 120 mln 140 mln

Copyright © 2020 Accenture. All rights reserved. The graph shows every category position according to their Earned and Owned Reach. The bigger the circles the higher the Average Engagement Rate (ER) by category (%) 57 Source: SalesForce, FanPageKarma Reaching VS Engaging 2019 Reach & Engagement

In 2019, most of the categories maintained the same strategy as in 2018. Food & Wine brands increased the Reach by involving external sources.

EARNED REACH

800k Hotellerie +0.3% engagement rate Hotellerie brands kept engaging with 0,63% for Hotellerie brands. most of the third parties and influencers. 700k

600k +0.6% engagement rate for Yachts brands

500k Yachts 0,86% Food & Wine +240k fans reached Food & Wine brands are trying to follow 400k 0,43% thanks to third parties Hotellerie category by involving authors sources and influencers. to increase the Reach. Others 0,18% 300k Design & Furniture 0,32% 200k Automotive Fashion 0,22% 0,24% Hard Luxury 100k 0,41% Fashion and Automotive brands maintained their focus on fan base, due to their larger potential Reach.

OWNED REACH 20 mln 40 mln 60 mln 80 mln 100 mln 120 mln 140 mln

Copyright © 2020 Accenture. All rights reserved. The graph shows every category position according to their Earned and Owned Reach. The bigger the circles the higher the Average Engagement Rate (ER) by category (%) 58 Source: SalesForce, FanPageKarma RICH & ENGAGEMENT BEST PERFORMERS Reach & Engagement 2019 2018

Top Engagement Rate Average Altagamma Top Engagement Rate Average Altagamma 1,9% 0,41% 1,7% 0,36%

Average 4.8 Average 4.7 Yachts 10 Automotive 10 Arcadia 10 Ducati 10

Top Owned Reach Average Altagamma Top Owned Reach Average Altagamma

69 mln fans 2,7 mln 58,6 mln fans 2,6 mln

Average 2.3 Average 2.2 Fashion 10 Fashion 10 Gucci 10 Gucci 10

Top Earned Reach Average Altagamma Top Earned Reach Average Altagamma

523,7 k fans 168,3 k 350 k fans 10,4 k

Average 2.4 Average 1.8 Hotel 10 Hotel 10 Belmond 10 Lungarno 10 Collection Copyright © 2020 Accenture. All rights reserved. Engagement rate: total interactions on total fan base; Owned reach: sum of fan bases 59 from official social pages; Earned reach: n° of users reached due to top authors activity RECOMMENDATIONS take - outs. KEY TAKEAWAYS 2019 Learnings for members 2019 Learnings for Altagamma

THE PATH TO KOLS MENTIONS ARE STILL DIGITALIZATION A POWERFUL STRATEGY CONTINUES FOR BRANDS TO GROW THEIR BASE New platforms should be locally Celebrity affiliations can grow a brand’s embraced and new trends on affinity with communities. KOL should consolidated ones should be adopted. fully reflect the brand values for a long- term strategy. BRANDS SHOULD OWN MADE IN ITALY AS IT SHOWED TO BE AN UNTAPPED OPPORTUNITY

THE TWO-FOLD STRATEGY TO CONTENT CURATION OF REACH LARGER AUDIENCES IS THEIR EDITORIAL PLANS CONFIRMED PAID OFF GRANDLY “Made In Italy” is still led by publishers and KOLs but can be utilized by luxury brands as a solid There are two main ways to grow in Reach Engagement Rates registered great growth driver, due to its enormous popularity and and Engagement: tapping into like-minded improvements, thanks to a growth of the Reach. KOL’s pre-existing fanbases or expanding breadth of content themes and the towards competitors’ ones when affinity relevance of their execution. allows.

AUDIENCE APPRECIATION PROVED TO BE RESPONSIVE

Novelties and collaborations positively boosted users’ opinion, when properly executed. Copyright © 2020 Accenture. All rights reserved. 61 UPDATE POST INSIGHTS COVID 19 Low brands-related Buzz, the focus was on the emergency

Overall conversations generally decreased 28% in the first 5 months of 2020 compared to 2019. Discussions about Covid19 increased constantly from March 20 onwards (+20% avg daily Covid19 SOV vs Jan-Feb ’20).

Sharp drop in conversations about 8 March ‘20 products, events and Covid19 Italian celebrities. Outbreak.

Feb ‘20 Mar ‘20 Apr ‘20 May ‘20

Cancellation Emergency Reaction & Solidarity Restart

7000

5250 8 March ‘20 Covid19 Italian 3500 Outbreak.

1750

Jan ‘20 Feb ‘20 Mar ‘20 Apr ‘20 May ‘20

CANCELLATION EMERGENCY REACTION & SOLIDARITY RESTART

In response to the crisis, YOOX NET-A-PORTER has built an ad hoc communication strategy aiming at:

Reassure customers, Increase customer engagement, Be relevant, explaining the measures undertaken to ensure the becoming an “enter-tailer” – an e-tailer that is with ad hoc newsletters that promote health and safety of both customers and employees. also in the business of entertaining its the purchase of home clothing. customers, sharing special content on social Stay close to the community, channels. describing charity initiatives including the support to the IEO Foundation and the donation of hardware and digital education packages to support homeschooling. Copyright © 2020 Accenture. All rights reserved. 66 How brands are talking to customers

LOUIS VUITTON’s SAINT LAURENT’s NOAH’s Newsletter Instagram post Instagram post

Louis Vuitton declares to maintain its Saint Laurent shares that their thoughts are Noah invites their Instagram followers to be unwavering commitment to ensure the health with all of us. They wish to offer moments of altruistic, trying to understand the real and safety of their clients, teams and positivity and temporary distraction meaning of the word, inviting to stop surrounding communities. continuing to share Saint Laurent's escapist socializing for a while in favor of a common dream. good.

DIOR’s PHILIPPE PLEIN’s DONATELLA VERSACE’s Newsletter Instagram post Twitter

Dior declares that preserving customers Philipp Plein states that their main priority is Donatella Versace shared a tweet saying that health is at the heart of all their thoughts and the health of their associates, customers and her gratitude goes to all the doctors, nurses actions. Their online stores remain accessible community. Sharing as well that they are and the entire Italian healthcare system, also and the ambassadors are at the entire taking all necessary steps to follow the WHO thanking the Chinese delegation of experts disposal to answer client questions. and local authorities' guidelines. that arrived in Rome.

CHANGE RETURN

ACT BEFORE SELECT THE INFORMATION JOIN THE COMMUNICATE TO CONVEY CONVERSATION

Engage with customers through editorial Only use real information from authoritative Do not stay indifferent, but take part in the content, virtual social gatherings and crowd- and trustworthy sources. conversation and be responsive to positive funding initiatives. messages.

PEOPLE OVER REASSURE WITH BE LOCALLY REVENUES EMPATHY RELEVANT

Communication should not be revenues- Adopt an increasingly reassuring tone of voice Customize the communication according to the driven. Avoid any in-your-face sales approach, and bet on relevance so that your communities events each country is facing, possibly in real value people over business. perceive your proximity and your utility. time.

The project was born from the need to face the current situation. It was created with the support of Accenture and represents a new standard for the digitalization of the fashion industry.

Based on a platform developed by an internal multifunctional team, it consists of a customized end-to-end modular technological infrastructure. The goal was to represent the style, product and atmosphere of the different brands of the group led by Renzo Rosso. Milano finanza

MILANO FINANZA

The first fashion digital platform for Milan Fashion Week and showroom campaigns will broadcast live streaming of the Milan fashion show’s schedule in July. It will be a digital fashion hub for brands, buyers, influencers, public and sponsors that will provide live events with relevant contents. A digital showroom area will be dedicated for showroom and buying sessions. A fashion market hub will host emerging brands and new designers. The public announcement will highlight the strategic role of Accenture in disrupting the iconic Fashion Week in Milan.

FASHION MARKET DIGITAL SHOWROOM HUB AREA

STEFANIA LAZZARONI DANTE D’ANGELO JANE REEVE

General Manager at Altagamma Chief Digital Marketing Officer at Valentino Chief Communications Officer at Ferrari

ALESSANDRO ZANOTTI GUIDO MERCATI DARIO MARINO GIANMARCO LORETI Accenture Leadership Accenture Leadership Client Account Leadership Senior Manager Digital Strategy Senior Manager

Live Dashboards & Real Time Insights