The ever so popular stigma attached to the Internet, in regards to luxury goods brands, is that presence online will undeniably cheapen the brands image in the eyes of affluent customers. Although this is mostly associated with the early days of the web, today many brands indeed have their own web sites filled with information regarding products, ambassadors and of course retailer/dealer locations. Even in 2007 where online purchasing is estimated to spike at 19% in the US alone, some U$260 billion1, almost all luxury brands stand by their in-store experience rather than combine eShopping convenience for their niche market. So if this stigma is in fact lifted for the Web 2.0, are luxury brands ready to recalibrate the experience for convenience?

Analyzing the luxury experience offline
The luxury experience can be boiled down to five important dimensions, which are: emotions, social experience, product, service and security. The offline experience plays well on these dimensions with the stores’ atmosphere stimulating the emotions and social experience expected by the customer. The products can be handled, inspected and sampled by oneself with the help of a knowledgeable staff member, thus solidifying the dimensions of service and security. However, with in-store sales there are many pitfalls that usually prove challenging to the affluent or super affluent customer. One of the biggest drawbacks is still that the location of a store is not always attainable for the inherent consumer, thus potentially limiting sales growth in retail shops and affecting the bottom-line.
In today’s society, the luxury experience must follow the path of the ‘tech’ happy consumer, who is not so reliant on the tradition path. This consumer can also be an Internet-savvy individual capable of making quick decisions with a simple access point to the web. Denying them of this convenience will surely down play the enthusiasm that the brand has built for its products and will likely push them to change their behaviour and look towards the competition.
With this evolution in consumer behaviour, the question is no longer “how do we trade experience for convenience” but rather “how do we create convenience coupled with a unique experience”. Enter the Internet.

Analyzing a luxury experience online
One of the biggest challenges shared by luxury brands of all types is the successful delivery of elegance and exclusivity to its online audience, which has come to expect the best. Transcending the offline experience online, while keeping the unique essence of the brand, is no small feat. Understanding that these sites are also available to the mainstream is important, but the key lies in the design and concept which is focused for only the very few. With the newly acquired web presence in the luxury realm, many seem to have overlooked one of the most important aspects that the Internet has to offer, online sales.
When referring to online sales, this is not the atypical shopping cart with a purchase button that we so commonly see. Like the in-store experience, the act of luxury online purchasing should keep all the undertones built by the brand and deliver a unique and sophisticated process worthy of the brands integrity. A well throughout process is truly the essence that will link the site with the in-store experience on a global purchasing stage.
Some of the more interesting features that the Internet can offer today are none other than cross-channel marketing and custom personalization options online. Cross-channel marketing has become a very crucial part of the Internet world. Because the Internet has advanced capabilities to track where and how customers find your homepage, these activities can be directly measured to offline and online campaigns. This allows brands to better understand marketing efforts of all types and customer behaviour like never before. Online personalization has also evolved enormously over the past few years and is growing in importance in relation to improving the overall experience. It is now possible to personalize content on a page for each specific individual that enters your site. Like entering a boutique for the second time, visitors can be recognized and we can show them the appropriate content, based on predetermined criteria’s, to reach out to the visitor on a more personal level, thus leveraging the ultimate in luxury experience online and measuring your return on investment.
It has been reported that a staggering 95% of luxury customers are connected through multiple access points2 and dedicate on average 5 hours to online shopping per week3.It has also been publicized1 that as some luxury products incorporate online purchasing, web site traffic has increased as high as 300%. This is simply to say that there is a direct correlation between offering convenience to your audience and site frequentation. Also, by simplifying the purchasing act and providing a secure luxury shopping environment, this will guarantee the authenticity of the brand and ultimately greatly improve satisfaction, for all dimensions. Most times retail shops do not offer the full line of products leading some to seek satisfaction with the competition or worse, with counterfeit goods.

The online reality
With the completions of the yearly WorldWatchReport4, created by IC-Agency, it was confirmed that counterfeit practices are on a constant increase on the global stage. The reality is that counterfeit versions of luxury watches are now easier to find online than the official brands. These carnivorous practices are not only providing a negative outlet for the luxury brand seekers, but are becoming the only option for many to buy online.
If we think of the fundamentals of economics, what we currently have is a high demand for a certain market with relatively no official supply online. The results are quite simple, being the counterfeit merchants are taking advantage of the lack of presence from the official sites. Affluent customers are not going to stop or change their purchasing habits online. And the longer the wait to occupy the field, the stronger and more pronounced the counterfeit market becomes.

The power of the web
Although online and offline experiences are quite different in practice, the goal remains the same. The main purpose of the boutique and the web site is still to bring a unique and unforgettable experience to the affluent customer. From the instant they enter the door or land on the homepage until the purchase is complete, the exclusiveness of the brand should be reflected throughout the experience fulfilling all dimensions.
Today’s affluent population lives in a brave new world filled with cross-media influences that can facilitate all types of sales leveraged by a technologically advanced format. In order to keep luxury brands in control and to meet all expectations, becoming available for the customers at the appropriate time is essential. The need for a strong multi-channel luxury experience has never been more important.
With changes in traditional values on a global scale, new possibilities are opening for all types of customers interested in the brand. Using new approaches will allow the affluent clients to decide when and where they want to make the purchase, using a payment method of their choice. This will not only make the brand more accessible, but also more attractive. With the luxury experience established offline, the need to mirror it online, in order to leverage all these new and effective channels, will surely help cater to the affluent public. This means holding true to such aspects as unique high quality images, brand signatures and client treatment procedures.
While having established the brands strongest and most appealing features offline, the challenge still remains in the delivery of the message online. Keeping brand integrity in check, the online luxury experience can not only unlock customer behaviour like never before, but also still deliver an unforgettable experience for all customers with practically no boundaries.


1 Source: Dickler, Jessica; Rich, online, and nowhere to buy, CNN Money July 07
money.cnn.com/2007/06/25/lifestyle/luxuryÐonlineÐshopping/?postversion=2007062511

2 Source: Cropp, Julie; Luxury Brands Consumers Want the Good Life Online To, June 07
www.forbes.com/businesswire/feeds/businesswire/2007/06/27/businesswire20070627005828r1.html

3 Source: Unity Marketing; Luxury Consumer Confidence Recovers at End of Third Quarter http://www.unitymarketingonline.com/cmsÐluxury/luxury/luxury3/luxury3Q2005.php

4 WorldWatchWeb; based on over 25 million searches globally, the study highlights the opportunities of prestigious watch brands in 5 key markets.
http://www.worldwatchreport.com


Source: Europa Star August-September 2007 Magazine Issue