3 Reasons Why Luxury Brands Aren’t Selling Online

It’s getting to the point in the ‘Digital Age’ when consumers expect to be able to purchase online. The majority of retailers have some sort of online presence; offerings vary from limited stock, to the same products that are in stores, with some retailers selling extra ‘online exclusives’ on their websites. But everything is not always for everyone, and the exception to the rule in this case seems to be luxury retailers. So far in the digital revolution these exclusive suppliers have managed to stay away from the hype and have a largely subdued online presence. Mostly their websites are informative and simply serve to harbour a presence on the web (to stop others faking their presence and damaging the brand) and enhance their brand image. Luxury retailer’s websites, such as Louis Vuitton and Marc Jacobs, use largely flash based sites to show photos or videos of recent catwalks and give information on the collections and the location of stores.

Any purchase of luxury brands online tends to be done via ‘Secret Sales’ sites, such as Brand Alley and Exxio.com, where consumers can get luxury brands at discount prices and the brands themselves can get rid of old stock while maintaining exclusivity. These sites are proving incredibly popular with consumers, and this coupled with the new Selfridges website launching last month has prompted some serious thought about the potential for luxury brands to sell direct to consumers online.

Why wait till now?

There are a number of very valid reasons why many luxury retailers have not yet embraced the power of the web; a number of these reasons can be overcome (more on that later), but nevertheless there are more obstacles to a successful offline and online marketing plan for luxury retailers than there is for the conventional high street retailer.

1. Accessibility

Or lack thereof in the ‘real world’. The whole premise of a luxury brand relies on it’s exclusivity to the fashion elite and financially better off. By my estimation I’d say that 60% of consumers have never even set foot in a ‘luxury’ store. If these brands opened up their sites and collections on the internet then the online footfall would increase dramatically as consumers, with the world at their fingertips, went exploring the latest collections and trends. Although the majority of these new customers would still not have the financial means to make a purchase, simply the accessibility of the products to the mass market would devalue the brands image in the eyes of the loyal luxury customer.

2. Environment

The online environment is very different to that of a physical store. Offline, brands can differentiate themselves through their store environment with the look and feel of luxurious materials and exquisite décor and displays. Other factors that come into play offline include customer service levels and other ancillary items such as carrier bags, packaging and even simply ‘being seen’ around these stores adds to the image building nature of these products. It is harder to communicate these atmospheric factors online; without an innovative website design and advanced rich media technology luxury brands risk blending into the online landscape.

3. Fakes

Finally, one of the biggest concerns for luxury retailers is the counterfeit market. Currently, fraudulent manufacturers make imitations of luxury products by using their knowledge of the design from pictures and limited views of the physical product. By going online, luxury retailers automatically display their products for all to see. With 360 degree rotation, zoom functionality and videos, all designed to more closely replicate the offline shopping experience; retailers are also opening up their products to counterfeit suppliers looking for the same comprehensive detail information to create products that look like originals. This obviously creates a dilemma for luxury e-tailers and is perhaps the only concern that is more difficult to overcome.

Overcoming the obstacles

Although the above concerns are certainly founded, luxury retailers thinking of venturing online need not turn around at the first hurdle. There are a number of ways to replicate the inspiring experiences customers get offline on a website. There are also ways to maintain exclusivity and replicate the luxury environment that attracts loyal customers to the brand, while still making products accessible to other potential customers that could increase sales and revenue in the longer term.

Firstly, there are a wide range of new technologies and rich media applications that can enhance websites and engage visitors, encouraging them to make a purchase. By presenting products with lifestyle imagery and advanced merchandising tools brands can soon build up a visitor experience that rivals that of their offline store. Next, to maintain exclusivity and discourage fraudsters, luxury websites can employ a register only system, either requiring an invite or some sort of pre-communication with the brand to be able to log in and view products for purchase.

But if selling direct to the consumer still doesn’t seem appealing there are many other ways in which luxury brands can engage with their audience online. As proven by the success of Burberry’s ‘Art of Trench’ and Marc Jacobs extensive Twitter activity, the power of the internet can be used to reach potential customers while still maintaining an exclusive, luxury experience.