In this clip we're going to explore the world of digital fashion, meaning the e-commerce channel. Luxury companies and high end fashion companies have resisted this channel for a long time. For many years they associated digital with discounting and counterfeiting. Actually they were thinking the brand could be diluted. This is not the case anymore, a recent study by McKinsey and Altagamma found out that the evolution of pure e-retail sales will be from, 4% of total sales in 2012, to 6% of total sales expected for the year 2017. They have even predicted a greater impact on offline sales, something like 25%. 25% of offline sales is influenced by e-commerce and by the digital journey of the customer. Another key fact you may want to to know about this channel is that about 65% of the business online is made up of two categories: luxury accessories and beauty. The best format of e-commerce and e-tailing is the monobrand store online, in particular that of brands and department stores. Who are the players in the fashion digital world? We can break them down in to three typologies: The first being the full price players the second being those players that are selling off-price, let's say on-line outlets. And lastly the event or flash sales. Let's talk from the first: Full price sales. In this category we have two business models. The first is the business model of brand websites. Branded websites that might be managed by luxury or fashion brands. Managed by them or powered by the e-tailers. The second business model is the business model of multi-brand websites. In this case we have other two sub typologies let's say. And that type is so-called hybrids meaning those players that are, are started offline think about department stores Niemen Marcus. Or multi brand boutiques, Luisa Via Roma. That at a certain moment in time they engage in e-tailing quite successfully. So they have a hybrid model. A second business model in the full price arena is that of the pure play e-tailers. This is the case of brands such as, a platforms, such as ASOS, Net-a-porter, or Zalando. Going to the second typology, off price. This is the case of online outlets where the leader is the italian group Yoox. The third case, the third typology is that of event or flash sales. In this case, players are competing on timing, making available to the customer on the platform a certain assortment on a limited time. This is the case of Vente-Privee. Let's ask ourselves how are fashion and luxury companies competing in the digital arena? We can more or less group the strategies into three. Three main approaches to the digital channel. The first case is that of those players, usually big, with a digital multichannel approach, meaning that they are both present on their website or on multi branded platforms. Usually they make a full use of social media and they really engaged in this strategy. Gucci, Louis Vuitton, Diesel, Ralph Lauren. We have a second group of players that are approaching the digital channel being more focused on their own store, and digital store. And they use the digital as a marketing tool or as an entry point for aspirational customers. This is the case for instance of italian brand Tod's or Ferragamo or Celine. The third case is that of those players that are usually small companies quite niche or specialized in terms of product category. Think about Tom Ford, Berluti who actually use the digital world as a showroom. The future of the digital world is rapidly evolving. We expect that actually, the digital channel will become just a channel among the many others, with a lot of importance. And companies will develop more and more their branding strategy, and the branded customer experience for the online. There are also interesting examples of collaborations cooperations among players online, offline with the aim to better establish the brand awareness and the brand identity of the branded companies. This is, for instance, the case of Vente-Privée. That is a French company who introduced for the first time, the innovative model of online flash sales in Europe.