as a retail location. Although the internet is an important retail location, a
large number of luxury fashion brands do not recognize it as such. The few
brands that acknowledge and utilize the Internet as a sales channel mostly
provide a sparse product range and limited delivery to a few destinations.
Also there are some luxury brands that have shown such a low commitment
to e-retail that they have implemented a website constituting of one page,
with neither information nor e-retail. The brands that have adopted this stance
also do not recognize their website as a retail location in their print media
advertisements.
chapter 6 183digital luxuryE-retail characteristics- Fast and convenient shopping
- More product variety and access
- Global availability
- Mass online class
- Lack of human contact
- Low switching cost (1-click)
Advantages of e-retail Disadvantages of e-retail
For the e-retailer For the e-retailer- Convenient location • High capital investment and
- Cost-effective ongoing costs
- Global audience • Complex logistics (related to
- Round the clock service global deliveries, returns,
- Opportunity for data mining exchanges and refunds)
and relationship marketing • Low impact sales - Small to large scale • Less impulse purchase
operations • Legal complications - Competitive advantage • Challenging post-sales
services
For the consumer For the consumer- Saves time • Security worries
- Extensive product variety • Delivery timing
- Convenient • Delivery costs
- Easy to use • Lack of human contact
- Up-to-date information • Non-physical goods
- Round the clock availability • After-sales services
- Product personalization difficulties
- Favourable prices • E-CRM inaccessibility
- Instant gratification
Figure 6.1 E-retail attributes
Source: Adapted from Dennis, Fenech and Merryllis (2004) E-Retailing, Routledge, London.