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DCF and vIndustry oaluation pverview arameters HPa_e ,1age ,1 I Points of view from EY global sector Digital tango with China and other industry professionals EY digital operating model research findings Fast-paced e-commerce development and the How do you build your e-reputation? ensuing governmental response triggered the need Appearance on respected websites to increase your credibility 13% 75% for a better understanding of e-commerce for luxury brands in China. EY- Operating Model Effectiveness Association with other brands of choice 11% 22% group interviewed 20 luxury brands in Mainland China between April and August 2015, investigating Review websites entries 11% 22% 11% 44% their digital market strategy, operating model and w operational transformation needs. Some highlights of Linking your brand with only certain e-commerce channels 13% 50% ervie the study are discussed below. v How do you control your e-reputation? try o How luxury brands maintain their brand image Indus Luxury brands use a number of approaches to Joint ventures with online KOLs 11.1% 11.1% 66.7% protect and maintain their image or “e-reputation.” According to our survey, best practices include: Promoting positive online conversations 22.2% 33.3% appearing only on respected websites, limiting the number of e-commerce channels through which their Initiating online forum discussion 22.2% 22.2% products are offered, working with key opinion leaders (KOL) and ensuring positive reviews on Censoring online conversations 11.1% 11,1% 44.4% products (see the graphic at right). Not important Less important Average Somewhat important Very important The luxury and cosmetics financial factbook 2016

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