ought to be provided to the brands’ customers irrespective of the retailer or
retailing channel.
In addition, there are several websites that retail counterfeit luxury goods,
with a claim of authenticity. Consumers may confuse the authorized e-retail-
ers with the counterfeiters, if the luxury brands don’t take measures to control
the online distribution of their goods and educate consumers on where to
purchase the authentic goods. Brands and e-retailers must therefore have an
agreement in e-retail practices and above all, the message to consumers
should be clear.
The ‘e-retail only’ strategy is still in its introductory phase in the luxury
fashion sector, therefore its long-term effect on the luxury brand equity is yet
to fully materialize.
Option two: aligned expertise
The aligned expertise strategy identifies e-retailing as a major source of the
core competence of luxury brands. This strategy indicates a high commitment
to the development of e-retail. It combines expertise in offline and online retail
strategies to produce a continuous outstanding experience for consumers. It
recognizes the internet as a key sales channel and gives it a prominent position
alongside offline retailing in the company’s overall strategy. This e-retail
option is capital-intensive and brands that adopt it must invest in technologi-
cal expertise for integrated retailing and customer service management. The
overall goal of this strategy is to provide a uniform high level of satisfaction
through integrated advanced technology, whether the consumer is shopping
online or offline. This is the most ideal e-retail option for luxury brands but
unfortunately, at the moment, no known luxury brand has adopted this option.
Option three: separate business
The brands that apply this strategic option recognize the importance of e-
retail but approach the channel with caution. The e-retail activities are there-
fore developed through a separate and independently managed company. An
example is eluxury.com owned by Louis Vuitton Moet Hennessey (LVMH),
the parent company of Louis Vuitton. LVMH uses eluxury.com as a platform
of e-retail in the US market for the products of several brands in its portfolio
such as Louis Vuitton, Christian Dior, DKNY and Marc Jacobs, among
others. This strategy differs from the e-retail strategy LVMH executes for
some of its brands like Louis Vuitton in the European market. Although this
strategic option provides a risk-free entry into e-retail, it also poses a risk of
compromising the unique individual brand identity through the mixed
message communications of the separate e-retail company and the luxury
brand. This strategy is most effective when both the online and offline retail
activities are aligned with similar marketing and branding strategies.
chapter 6 197digital luxury