Written by: Nithin Narayanan
Internet has increasingly playing a greater role in the retail sector worldwide. Now luxury brands have also hopped on to the bandwagon. One thing that luxury products or retail stores need to exuberate a sense of exclusivity. Earlier this was done by meticulously designing each store. But internet was avoided by luxury brands before but now they can't do so anymore.
Internet is truly a democratic medium every one can express their opinion. To create Exclusivity in such a medium is an uphill task. Many brands do not offer their customers facility to buy merchandise online. The reason behind this is still unknown. Customers are buying more items online than before. It may not be true in developing countries, but this trend is fast catching up.
One major hindrance that luxury brands face is that customers are still price sensitive online. They are primarily so called 'Bargain Hunters'.
But there is a niche market for luxury goods on the web. Websites of Giorgio Armani and LVHM have facility to purchase their goods online. Now fashion shows across the fashion capitals are made available online live.
Internet is fast changing. There is a generation that growing up which does not know a world without ipod or Facebook. Hence to cater to future customers brand presence online is crucial.
In developing countries like India retail rentals have touched the sky. Many stores of international brands which have JVs with domestic companies are unable to sustain operations and have shut quite a few numbers of stores. Retailers cant Break-Even, even after a good number of months of operation. In such a scenario internet is a viable option in this high costing time for business.