Monday, April 21, 2008

Internet Marketing for Luxury Brands: Good or Evil?

Today Internet is a medium used by the majority of the global brands as an indispensable marketing tool. Its multiple benefits make it look like a panacea for the marketers’ problems. Still, some of the well-known brands consider online marketing damaging to their image. Those are luxury brands. Luxury goods have a rarity value which makes them more desirable, while Internet is available to the masses seeking a bargain.

Luxury designers invest heavily in retail outlets which play the most significant role in the overall luxury buying experience. Physical surrounding and personal attention of luxury stores continue to remain important to the customers, while online shopping is seen as being to mass and not exclusive.

Few of luxury brands such as Prada, Bulgari, Burberry, Gucci, Louis Vuitton, Bang & Olufsen, Tiffany's, Chanel sell their goods directly online. Real luxury brands don't have successful websites. They look like shiny brochures, take a lot of loading time and lack functionality. I am not sure about the peacefulness of my dreams tonight after seeing the image on the index page of Prada website.

Yet, few companies, such as LVMH (Mo√ęt Hennessy - Louis Vuitton) realize the importance of their online presence. LVMH owns the E-Luxury site on which it sells most of its brands augmented with selected products from other high fashion brands. Still, instead of using any of its brand sites for the online selling, the group has set up an independent site, with an unconnected brand.

While most of the luxury brands keep ignoring the Internet, the demand for global luxury online sales is on the increase. Recent reports indicate that the wealthy are almost all online and are pleased with making online purchases. Therefore, even considering that online shopping is much less fun than traditional, there's no reason not to use the Internet to share information about the brand and create desire. Internet marketing for luxury brands could be an opportunity to reinforce the brand as it exists in offline world stores.

Image: Bulgari website


Unknown said...

Nowadays the usage of internet is increasing rapidly. Moreover, the number of people marketing online has also increased. Internet has brought a major development in the business today.

C. Jeff Dyrek said...

Dear Irina,
Thank you very much for your blog. I saw your YouTube video that sent me to your blogsite so your marketing is working. I enjoyed your video and your blog and I have learned a lot about interactive marketing in different media types. What was especially interesting was the growth in mobile marketing and your current and projected expendatures in this area.

Mobile marketing is a huge area that Webmasters must use if they are going to catch the wave in future internet revenues.

I'm the Webmaster at and I need all of the help that I can get. Your blog and YouTube video are now linked to from my site. T

Thank you very much.

C. Jeff Dyrek

Florent Bondoux said...

For a better understanding of digital marketing potential for luxury brands, I strongly recommend to have a look at the WorldWatchReport 2009 market study findings deciphering the online demand for 25 luxury watch brands in 7 key export markets :



Unknown said...

I appreciate your idea here. Definitely it has a good content. Thank you for imparting more of your own thoughts. Good job!
standard USB sticks & Flash drives

Kevin Beamer said...

Well, what if the luxury brands establish an online market? Would they still be considered luxurious? They would still be, but the rarity of such brands would be reduced. Also, that would make their products a lot easier to imitate.