DIGITAL R&D LABORATORY INNOVATION FOR THE MULTICHANNEL INTEGRATION

SUMMARY: 1. WHAT IS LEVI'S LAB PURPOSE? 2. LEVI'S LAB SCOPE OF WORK? 3. WHAT ARE OUR OBJECTIVES? 4. OUR FIVE COMMANDMENTS 5. HOW DOES IT WORK? 6. PHASING & METHODOLOGY 7. WHAT ARE WE CONCRETELY INVESTIGATING?

LEVI'S LAB PURPOSE

LEVIS LAB WHAT IS LEVI'S LAB PURPOSE?

Driving digital innovations for a seamless multichannel performance  Detect & leverage new digital mechanics that will enhance Levi's equity and business and bring them to life.  Define how out-of-the-browser digital can help positioning Levi's as a modern, state-of-the-art brand through communication, retail and relationship. In a nutshell: an ante-chamber for innovative interactive approaches, with a clear focus on short term achievable mechanics and installation (not only R&D)

LEVIS LAB WHAT IS IT LEVI'S LAB PURPOSE? We need to keep in mind 3 main filters:
Contribution to brands equity  Activation efficiency  Conversion potential

LEVI'S LAB SCOPE OF WORK

LEVIS LAB PRIORITY: FOCUS ON RETAIL ACTIVITY

Because retail is the key high-end contact to generate business Because brand apparel stores are increasingly challenged by competitors initiative and consumers demands (looking for strong specific attractive concept store, with a personality) Because consumers mind is changing : need more freedom in store, look for in-store experience, wish another relationship with salesperson (less pressure/pervasive, more on-demand expertise, demand for a standalone, or specific experience) Because brick and mortar stores need to evolve in order to justify people to visit them vs. online stores Because on/off complementarily is the key to seamless multichannel experience

DIGITAL & RETAIL ARE THE TWO PREFERRED COMMUNICATION & SALES CHANNELS

LEVIS LAB GLOBAL SPECTRUM

Branded entertainment Retail experience Retails services Multichannel services Activation/conversation CRM/loyalty Geolocalisation This could also includes : Outdoor, event, interactive ATL (cf. 501 Who do you want to unbutton campaign) Permanent background: R&D laboratory (how digital and technology could transform Levi's activity in the next 10 years?)

OBJECTIVES

LEVIS LAB OBJECTIVES FOR LEVIS

Support retail strategy, help reinforcing store added-value. Support key cities strategy: Demonstrate how digital will help retail (vs. compete with retail) Reinforce brand equity & stores attractiveness Generate more footfall and in-store conversion Take a first concrete step for a multichannel experience Permanently Feed Levis newness Leverage digital investment (ROI) Generate buzz Learn and anticipate the future: leadership education, innovation R&D, real consumers feedback

LEVIS LAB CONSUMERS BENEFITS

Seamless multichannel experience Benefit from better and innovative services Enrich and simplify buying session Benefit of a more personalized Levis (in-store) experience Get new reasons to appreciate, remind, and (re)visit a Levis store

METHODOLOGY & PHASING

LEVIS LAB OUR FIVE COMMANDMENTS

1. Every Levi's Lab initiative has a clear and measurable business purpose (specific KPIs per mechanics, tracking tools, survey) 2. Start from real consumers insights to choose technology (dont select a technology just because its cool or new) 3. Respect privacy, intimacy and consumer control 4. Focus on scalable mechanics (vs. one-shot) 5. Be consistent with Levi's new marketing positioning, premiumization, and TTL communications

LEVIS LAB PROGRESSIVE TEST&LEARN

ONCE CONCEPT & MECHANICS ARE CLEARLY DEFINED, A STEP-BY-STEP IMPLEMENTATION:
1. IN-VITRO DEPLOYMENT: Installation in HQs store in Brussels Tests & optimizations (tracking, focus group, A/B testing) 2. IN VIVO DEPLOYMENT: Installation in one flagship store selected among key cities Tests & optimizations (tracking, in store interviews, A/B testing) 3. PILOT: one per country (up to 10 key cities) 4. ROLL OUT: 1st step - O&O network (50) 2d step OLS network in key cities (100) 3d step OLS complete network including franchisees (500+)

PARTNERSHIP

LEVIS LAB CORE TEAM, KEY ASSOCIATES: LEVI'S + DUKE.

LEVIS : roles and responsibilities Allows Associates to bring non-Levi's-competitors to visit the Lab. Buys the hardware once Lab phase is over Provides the content to displays, in partnership with Duke Allows Associates to communicate on the partnership Website, PR, Case studies (after an explicit validation of the messages by Levi's).

LEVIS LAB CORE TEAM, KEY ASSOCIATES: LEVI'S + DUKE

 DIGITAL AGENCY : roles and responsibilities Helps Levi's in strategic choices (choices of partners, technologies, where and how to use them) Works on first concept & mock-ups Produce initial digital contents & adapt these for a in-store use Manage different stakeholders

LEVIS LAB EXTENDED TEAM, A POOL OF VARIOUS PARTNERS

TECHNOLOGY PARTNER: roles and responsibilities Helps to find the good technologies and the right technologic partners: screen manufacturers, RFID, mobile phone interactivity Project management on technical side Provides Levi's & Duke with surveys, tracking reports

LEVIS LAB EXTENDED TEAM, A POOL OF VARIOUS PARTNERS

Universities/schools: Penninghen IPAG Sciences Po Engineering school Hard/Software partners: Microsoft LG/Samsung To be continued

WHAT ARE WE CONCRETELY

INVESTIGATING?

LEVIS LAB VERY FIRST STEP OF MULTICHANNEL INTEGRATION

DIGITAL LEVERAGING FOR BERLIN STORE GRAND OPENING  FROM EU.LEVI.COM WEBSITE TO STORES:
Touch screen Fit Guide (adapted from website content) 501 Timeline spin-off (adapted from website content) Archives & product details diaporamas (selection of Levis assets) Unbuttoned TV

LEVIS LAB TOUCH SCREEN: INTERACTIVE FIT GUIDE

Next Steps: Real connexion to stock from Levi's Store (09) Connexion to e-com / CRM / profile info + automatic recognition via RFID? (10)

LEVIS LAB HISTORY WALL : 501 TIMELINE + DIAPORAMA

LEVIS LAB WALL OF SHELVES : UNBUTTONED TV + DIAPORAMA

LEVIS LAB NEXT INVESTIGATION AREA

RFID Chips
What for How Increase personalisation and recognition in-store Loyalty card (automatic recognition by vendor, buying historic, personalized advice), RFID on products tag (intelligent fitting room), automatic recognition for instore online buying etc. Sales increase, cross/up selling factor, frequency RFID in a department store:
http://youtube.com/watch?v=7hCmbq54h3Q

KPIs Example

Possible alternative : mobile/smartphone

LEVIS LAB RFID CHIPS (EXAMPLE)

 RFID chips - Application in a dept store (RFID)
http://youtube.com/watch?v=7hCmbq54h3Q

LEVIS LAB NEXT INVESTIGATION AREA

Interactive windows
What for How KPIs Example Increase store appeal, sneak peak of Levi's offer, first street contact Fit guide, interactive experience (i.e. Uniqlo), interaction with whole windows surface Footfall increase, sales increase, equity Uniqlo / Uniqlock (inspiration for windows)
http://www.uniqlo.jp/uniqlock/ ;

LEVIS LAB INTERACTIVE WINDOWS (EXAMPLE)

 Uniqlo / Uniqlock (Window) http://www.uniqlo.jp/uniqlock/

LEVIS LAB NEXT INVESTIGATION AREA

In-store zoning
What for How Enhance in-store experience, events, answer to consumer request for more specific stores purpose Entertaining interactive application, in store participation, and in a wider scale, geolocalisation services Interaction rate, brand equity, sales, recommendation/viral Apple Store:
http://www.youtube.com/watch?v=74AY1hfr7Yg&feature=related

KPIs Example

Nike (Magic book)

http://www.youtube.com/watch?v=PnDNI5F_r-U

LEVIS LAB IN-STORE ZONING (EXAMPLE)

LEVIS LAB IN-STORE ZONING (EXAMPLE)

 Nike (Magic book) http://www.youtube.com/watch?v=PnDNI5F_r-U

LEVIS LAB
NEXT INVESTIGATION AREA

Advanced sales tools / nexgen shop assistant

What for How Enhance in-store service, reinforce salesperson added value, support brand equity Interactive fit guide (standalone), interactive fit guide (tablet for salespersons) an later, intelligent fitting room Conversation rate, sales increase, cross/up selling factor Adidas innovative center :
http://www.youtube.com/watch?v=gQBFaVfBi9w

KPIs Example

LEVIS LAB NEXGEN SHOP ASSISTANT (EXAMPLE)

LEVIS LAB NEXGEN SHOP ASSISTANT (EXAMPLE)

 Adidas (Innovative center) http://www.youtube.com/watch?v=gQBFaVfBi9w

THANKS