Okonkwo Prelims

Option four: channel integration

Channel integration involves the effective streamlining of both the online

and offline retail channels. Brands that adopt this option recognize the pres-

ence of an online consumer group and provide a trading platform to satisfy

them without compromising the strong emphasis placed on offline retail

activities. This e-retail option is the most feasible for luxury fashion brands

at the moment as it effectively aligns the online and offline retailing activ-

ities and utilizes internal resource fits in its management. This option also

recognizes that real space (offline) and cyberspace (online) are not mutually

exclusive because frequently, consumers use both spaces during their

purchase evaluation process. For example, a customer may obtain pricing

information online and visit the store for the ‘purchase experience’ while

others may visit the store to ‘feel and look’ at the products and then

purchase online at their convenience. An additional indicator is that e-retail

continuously influences offline store visits both for shopping and through

return and exchanges of purchased goods. Consumers are also likely to

make a purchase in the store while returning or exchanging a product they

bought online. Although several luxury brands are yet to adopt complete

channel integration, the

brands that have shown the

most inclination to this

strategy are Dior and André

Ross (Figures 6.8 and 6.9).

At the time of writing, Dior

had implemented a multi-

country e-retail strategy

198

luxury fashion branding

Figure 6.8 The Dior online

boutique (October 2006)

Figure 6.9 The André Ross

online boutique (August

2006)

These brands are closest to

adopting the Channel

Integration strategy. They

also indicate the highest

commitment to e-retail in the

luxury goods sector so far