BY AURELIA MITCHELL DURANT Globalization has become a reality for the planet. The very loose and fluid definition of globalization is summed in an often-quoted quote by former Secretary-General of...
Originally posted 2015-01-27 09:00:55.
While most fashion brands have come embrace the idea of incorporating online shopping into their business models, about forty percent of luxury brands such as Celine and Chanel do not sell via the web. These brands usually feel negatively towards online because they view the internet as somehow damaging to their business.
However, according to the latest “The Sky is Rising” research, studies show that this fear is completely misplaced. Companies that chose to incorporate online shopping into their business model have found it to be useful and helpful. An obvious benefit is that online shopping makes it convenient for consumers to purchase merchandise without ever leaving the comfort of their home. This in turn has opened up new geographical markets. The internet allows for companies to better connect with their customers. It also offers new ways to compile research on the market and consumer habits. Finally it has created new communities that have become more connected and more importantly supportive of brands.
The internet has been a major driving force in growing the luxury goods market. It has expanded brand recognition and has essentially created countless new opportunities for these brands to explore.
The Burberry Group is an example of a luxury brand that has adopted the internet into its business model. They were the first to allow customers to purchase products online and pick them up at stores. In 2010, Burberry allowed customers to purchase clothes directly from their runway shows as it was streamed live on the web. A spokeswoman for the company says that digital “is a fundamental part of our brand from both a commercial and marketing perspective…It allows us to have a closer relationship with our customers.”
Therefore, while the internet has created new challenges for traditional luxury brands, the companies that have chosen to embrace it instead of fight it, have acquired many new opportunities and advantages. The result of “The Sky is Rising” research is that the internet is not hurting luxury brands.