Okonkwo Prelims

(Joyce) #1

required in their appreciation. As a result, several luxury brands including
Chanel, Versace and Valentino are yet to adopt e-retail through their own
websites. Other brands like Hermès and Armani have launched limited e-
retail websites with a narrow product range distributed in a small number of
markets. Yet the products of other brands like Chloé and Roberto Cavalli are
retailed through separate e-commerce websites and e-malls. However, the
majority of the global luxury fashion brands have not currently implemented
e-retail activities.
The sensorynature of luxury goods has been particularly cited as one of
the major reasons for the slow adoption of e-retail by luxury brands. This is
because luxury consumers are known to appreciate the high aesthetics of
luxury products when viewed physically, through the utilization of the human
senses of sight, touch and feel. These senses also draw out the emotional and
psychological brand responses from consumers. As a result, luxury products
such as apparel, leather goods, jewellery, wristwatches, fragrances, cosmetics
and other accessories are classified as sensory goods. The online reproduction
of the sensory elements required for luxury goods retailing has been a major
source of concern for luxury brands. Also, the conventional luxury shopping
experience, which is summed up in the store visit, the immersion within the
highly creative and prestigious retail atmosphere and the interaction with the
products is sensed to be lacking online. The majority of luxury brands are of
the opinion that the e-retail shopping experience lacks these prominent
features and that a computer screen cannot reproduce the level of interaction
required for luxury goods retailing. The reality, however, is that the value of
luxury goods to consumers does not decrease as a result of the lack of some
of the sensory elements online. Also, there are current e-retail strategies that
can be used to replicate the sensory elements online, compensate for the lack
of human presence and enhance the shopping experience.
The current global retail environment requires e-retail as an indispensable
aspect of retailing and a means of reaching and satisfying luxury consumers.
The issues related to physically viewing and interacting with products before
purchase is becoming less important for consumers especially those with
prior experience with the brand. In addition, consumers increasingly utilize
both the offline and online channels in a single purchase, making e-retail a
complement of the overall shopping experience.
The major factor that has currently made the e-retail of luxury goods
mandatory is the luxury consumer psychology which has changed.
Convenience and accessibility which are both prominent benefits of e-retail
now rank high among their expectations. A wealthy luxury consumer living
in a Scottish village castle no longer wants to be obliged to travel to
Edinburgh or London to purchase luxury goods. Consumers desire to have the
luxury retail experience online and in the comfort of their homes or offices.
Since they now frequently interact with the internet, their level of expectation
of convenience from luxury brands has increased. The luxury consumer


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digital luxury
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