found on several e-retail-only websites include those of brands like Giorgio
Armani, Prada, Fendi, Burberry, Versace, Valentino, Diesel, Anne Klein,
Chanel, Gucci and Chloé, among several others.
The sale of luxury goods through secondary e-retail-only websites is a
source of high sales revenue and industry partnerships. It is also an avenue
for the enhancement of the luxury brand aura through highly functional and
interactive online experiences. However, this strategy ought to be managed
by luxury brands with tact in order to avoid long-term negative results. This
is because e-retailers who sell a mix of luxury and mass fashion brands could
expose the luxury brands to brand dilution in the long-term. Also indepen-
dent e-retailers that sell luxury products at discounted prices could foster a
possible loss of pricing control for luxury brands. This means that in some
cases, luxury brands that implement a ‘no-discount’ policy might not be able
to control independent e-retailers who practise price discounts. Therefore
there should be synergy between the strategies of the luxury brands and those
of the e-retailers. For example, in May 2006, notable e-retailer designersim-
ports.com featured the Fendi Zucchino Hobo bag with a price tag of US$269,
marked down from its original US$795 retail price. Another noteworthy e-
retailer bluefly.com has also featured several Gucci products sold at
discounted rates of up to 40 per cent. If Fendi and Gucci both implement
strict pricing strategies that do not include discounting, this could have a
negative impact on the brand equity. However, the discounting strategy is
often an agreement between the luxury brands and the independent retailers.
From the strategic viewpoint nonetheless, a consistent branding message196
luxury fashion brandingFigure 6.7 Roberto Cavalli at Yoox.com (May 2006). Yoox.com is also the
official e-retailer of goods from Armani, Dolce & Gabbana, Versace and
numerous other luxury brands