Deciphering Google Searches Seen as Luxury Investors' Must-Have
Want the new it bag?
If so, you may have your priorities all wrong. The essential for consumers looking to invest in luxury these days goes looking beyond the latest line of Gucci bags and belts. It’s Google searches.
Don't take just my word for it. If a brand can see that there has been a visible spike in Google searches against competitors then that's golden. Analysts at Macquarie confirm this is our strongest sign sign that a retailer is going from strength to strength.
The Leaders Of the Pack
Other than the obvious LVMH. You can also find the likes of Tiffany, Moncler and Prada at the top. Prada in particular has one of the highest correlations between Google searches and revenue growth, while Moncler is in the top two in Google growth trends showing increasing consumers’ interest in the brand.
Viewing trends on Google although volatile and extremely seasonal can be a good indicator of a brand’s “temperature,” the analysts said. They see these trends becoming more solid over time as consumers make more purchases online.
The report goes on to explore how global luxury has been in a 'structural slowdown' since 2014. This environment produces what it calls a 'market share game'. This is where “growth can be achieved only by improving conversion of existing store networks and increasing penetration of e-commerce operations."
Earlier this year, Gucci was the brand on everyones lips. How do we know? Because part of the report highlighted that it enjoyed the highest annual increase in interest. This highlights the strength of LVMH’s largest brands in fashion and leather, said the analysts, who see this continuing in 2017. This is why marketing campaigns are so key and how Gucci is a great example of a brand who has completely nailed the art direction in every which way. Think Burberry are doing well? The Burberry Group Plc may be very active on social media, but it’s still negative in Google searches.
