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The Digital Age

Building a Brand Experience and "Phygital" Marketing


2013 Luxury & Fashion Industry Conference
Conrad Hong Kong | Hong Kong
18 October 2013
Lorenzo de Martinis, Milan
Francesca Gaudino, Milan
Paolo Sbuttoni, Hong Kong

The digital age:


challenges and
opportunities
2013 Baker & McKenzie

Seize the Opportunities of the Digital Age


Web 3.0 scenario: main concepts

seamless, continuous, everytime, everywhere

virtual, bi-directional and one-to-one conversation

Set the scene for luxury

increasing demand for luxury online

translate brand look and feel in online presence

integrate online and physical environments

2013 Baker & McKenzie

A phygital strategy for


luxury brands
2013 Baker & McKenzie

A man travelling in stile

From CRM to CEM


Customer centric approach

customer wishes: the new competitive battleground

customer: your new trend setter

customer loyalty: the ultimate goal

It is not just about selling: the brand experience

2013 Baker & McKenzie

Legal constraints for


phygital
2013 Baker & McKenzie

Legal Constraints Fencing Phygital


Data Privacy: web 3.0 lives on customer information
Internalization vs externalization of IT platform and
services
Consumer laws
Advertising/marketing laws
IPR protection navigating third party IPRs
UGC
Reputation / crisis management; internal threats
Relationship with existing offline distribution chain
2013 Baker & McKenzie

Data Privacy
2013 Baker & McKenzie

Data Privacy
Asia Pacific Overview
Example: Hong Kong developments on use of
customer data for marketing
Customer data checklist: key questions to consider
when using customer data for marketing / advertising

2013 Baker & McKenzie

10

Asia Pacific Overview


South Korea:
Personal Information
Protection Act 2011

Thailand: Draft law


sent to Parliament in
2012

China: Provisions
regulating Internet
Information Services/
NPC Decision on
strengthening the
protection of internet
information
Hong Kong: Personal
Data (Privacy)
Amendment Ord
(amendments in full
effect on 1/4/2013)

India: The Information


Technology
(Reasonable Security
Practices and
Procedures and
Sensitive Personal
Data or Information)
Rules, 2011

Taiwan: PDPA 2010 in


effect from 1 October
2012

Philippines:
Data Privacy Act
(August 2012)
Cybercrime
Prevention Act
(September 2012)

Malaysia: PDPA 2010


(date for coming into
force yet to be set)
Singapore: PDPA
passed 15 October
2012; sunrise
period until 2/1/14
and 2/7/14

Vietnam: Provisions
spread across the Civil
Code, the IT Law, the
Penal Code and the
Telecommunications
Law.

Australia:
Amendments come
into effect in March
2014
11

Asia Pacific overview


Australia China

Comprehensive
data protection
law in force

Hong
Kong

India Indonesia Japan

Comprehensive
law has passed
but is not yet in
force

1
2

Taiwan Thailand Vietnam

Draft
comprehensive
law has been
proposed
Regulations/
Guidelines

Malaysia Philippines Singapore South


Korea

12 and 18 month sunrise period for substantive provisions


Proposed for consultation
2013 Baker & McKenzie

12

Where we are now?


Australia

China

Hong
Kong

India

Indonesia

Japan

Malaysia

Philippines

Singapore

South
Korea

Taiwan

Thailand

Vietnam

Distinguishes between data


collection and data
processing

Registration/notification
requirements

(certain
(certain
industries) industries)

International data transfer


specifically regulated

(certain
industries)

Mandatory breach notification

(certain
industries)

(certain
industries)

(certain
industries)

Criminal sanctions

^
(certain
offences)

(certain
industries)

Privacy Officer required

(public
institutions)

Exemptions for employee


data

^
(certain cases)

Workplace surveillance laws

Recent, upcoming, or
proposed reforms

Specific provision on

personal data
2013 Baker & McKenzie

(certain
industries)

^ Provision has been enacted but is not yet in force

13

Penalties
Australia

Civil and criminal penalties range from AU$340,000 for individuals or AU$1.7 million for corporations

China

Infringement of privacy right can give rise to injunctive relief + compensatory damages under Tortious liability law.
Administrative penalties may be imposed for violating NPC Decision

HK

Civil and criminal penalties up to HK1 million for personal data for direct marketing + 5 years imprisonment

Indonesia

No sanctions under EIT law and Regulation 82

India

Damages for breach of IT Act. No limit on amount recoverable

Japan

Statutory penalty imprisonment up to 3 years and/or fine up to JPY500,000

Malaysia

Up to RM500,000 fine and/or imprisonment of up to 3 years

Philippines

Up to Php1,000,000 + imprisonment of up to 5 years

Singapore

Civil fines up to $1million; Criminal max fine of S100,000 and/or imprisonment of up 12 months for obstruction or making of
false statements to mislead.

Korea

Fine up to KRW 50 million / imprisonment for up to 5 years

Taiwan

Up to NT200,000

Thailand

Fine of suspension / revocation of telecoms licence


Criminal penalties under Credit Bureau Act + draft Privacy law

Vietnam

Fine up to VNP20,000,000

2013 Baker & McKenzie

14

Hong Kong

Direct Marketing New Provisions


INFORMATION TO BE
INFORMATION
PROVIDED TO DATA SUBJECT EASILY READABLE /
UNDERSTANDABLE
USE OF
PERSONAL
DATA IN
DIRECT
MARKETING

Intention to so use the data


Data user will not so use the
data unless with data subjects
consent
Kind of personal data
Classes of marketing subjects

PROVISION OF
PERSONAL
DATA FOR USE
IN DIRECT
MARKETING

Intention to so provide the data


Data user will not so provide the
data unless with data subjects
written consent
Data is to be provided for gain
(if applicable)
Kind of personal data
Classes of persons provided
with data
Classes of marketing subjects

2013 Baker & McKenzie

RESPONSE
CHANNEL

CONSENT

(oral or in
writing)

PENALTY FOR
NON
COMPLIANCE

HK$500,000 +
3 years
imprisonment

If provision of
data is for gain:
HK$1 Million +
5 years
imprisonment

(in writing)

(in writing)

(in writing)

If provision of
data is not for
gain:
HK$500,000 +
3 years
imprisonment

15

Customer data checklist


What kind of data is it (name/contact info, cookies,
location data?)
Where is data from (internal/partner/public domain)?
Can you use the data for the intended purpose? Check
policies, consents
What format will you market to customers? SMS, viral
marketing, emails: consider anti spam laws (e.g. HK,
China)
Can you transfer the data (external processors,
partners, cross border)?
What is your data retention / security policy?
2013 Baker & McKenzie

16

The Digital Age


Building a Brand Experience and "Phygital" Marketing
2013 Luxury & Fashion Industry Conference
Conrad Hong Kong | Hong Kong
18 October 2013
Lorenzo de Martinis, Milan
Francesca Gaudino, Milan
Paolo Sbuttoni, Hong Kong