Sunday, July 22, 2007

Logging on to luxe



Even though it's something of a paradox as far as luxury retail is concerned, I think every luxury company must have a well-designed, user-friendly website that allows customers to buy straight off the vitual shelf. This is simply because a lot of potential (and discerning) customers are internet savvy and it's hard to beat the convenience of shopping from home vis-a-vis the 'luxury store experience' every single time.

To prove this point, a 2006 report from eMarketer.com says that jewellery and luxury goods made up 7.5 per cent of total online sales in 2005, a figure expected to double to 14.1 per cent by 2010. While that may not be a large figure, it does show that an increasing number of customers are getting comfortable shopping online.

"There are enough seasoned online buyers who have had good experiences purchasing basic items such as books and DVDs online," says Jeffrey Grau, senior analyst at eMarketer, "so they have the confidence to take it to the next level and [make] a more complex, more sophisticated, expensive purchase."

SimplySoles in Washington, DC, is one e-tailer finding success in the luxury market. The company, which sells the best in women's footwear through its catalog and website, brings in an average of $325 on each sale. Sales surpassed $1 million last year.

That's as good a success story as any, no?

Pic courtesy: Getty Images

No comments: