(Exane) Luxury good : The Social Media Boxing Ring

We continue to explore how brands are faring in terms of print media visibility and track the ratio of
editorial pages to purchased advertising pages (Brand Temperature H1 15 Readings). We expect
digital luxury to develop significantly in the next five years (Digital Frontier: The New Luxury World
of 2020). We think it is therefore important to check the digital temperature of luxury brands on the
internet too. We collaborate with Trendalytics to bring investors a quantitatively grounded
perspective on how luxury brands are doing in the social media world.

* Instagram is where the “social media boxing ring” seems to be today

* We measure how strongly luxury brands score by social actions per post on Instagram

* Investment conclusions may need to be counterintuitive
Investors can bank on journalists and their editorial media to be reasonably ahead of consumers,
making our “brand temperature” measures useful early indicators. Overwhelming social media
presence may be one of the signs of maturing popularity, so one of the possible hints of brand
trivialisation risk materialising.