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Why Luxury Brands Have a Difficult Time Online
With 94 percent of the ultra affluent in the United States regularly buying products online, according to a 2008 Unity Marketing study, why do so few premium brands sell their goods online? It would appear to be a fruitful space for the luxury goods and services market to penetrate. So, why the reluctance?
Last month, I wrote about how it would behoove the luxury market to become more adept with online strategies and make websites the focal point of business. But I also failed to discuss why the luxury industry has been slow to embrace the Web and how consumers' intentions, expectations,[url=http://www.holisteroutlet.cc]hollister outlet[/url], and behavior are completely different at a brickandmortar store than when they are perusing a site online.
A friend who graduated from the HEC School of Management's MBA program in Paris shared these thoughts with me: "Luxury brands have been having a hard time on the Internet because 'luxury' is an experience. It's something that you need to feel, taste, and touch with your own eyes and hands. A luxury product is there for you to dream. It's difficult to convey this 'feeling' online. This is precisely why the retail outlets creating the luxury experience there with the attentive service, luxurious interior design, and firstclass service so essential to a luxury brand. Superior customer service is the key to all true luxury brands. Luxury brands and the stores they have, indeed offer a luxe experience like none other. So why would you not create a similar experience online? As this economic downturn forces every sector to rechink how it does business in order to survive and thrive, there will be less people going into those stores to feel the experience. Instead, more people (no matter their economic standing), and certainly the next generation who are reared on texting, will embrace an online store with amazing photography and top cusotmer cervice (think Zappos, but more chic) with open arms dipped in diamonds.