Luxury in real time

It seems luxury brands are finally warming up to the advantages of the internet. So far, most high end brands have stayed away from promoting/ selling their products online for fear that it diminishes the brand's exclusivity.

However, an article in the Wall Street Journal says luxury companies are now designing high-tech sites to enhance their upscale appeal.

"Until a couple of years ago, brands were very cautious online," says James Gardner, CEO of createthe group, an interactive agency that is behind high fashion sites such as MiuMiu.com, Balenciaga.com, StellaMcCartney.com and MarcJacobs.com. "They hadn't really seen sites created that managed to remain elevated and appropriate for luxury brands. [But now, with the help of online video and interactive features] the product imagery can be very beautiful. Every component, every detail can be carefully crafted [on the Web], just as their products are."

A January 2007 survey by market research firm Luxury Institute found that 99% of those 21 years and older with a minimum household income of $150,000 had Internet access at home -- and 94% said they used broadband connections, which are amenable for video viewing. Similarly high numbers were reported for the use of the Internet in researching products and shopping. Naturally, as high-end consumers have gone on the Web, more luxury brands and high-end retailers have opened up online flagships (though they generally have lagged behind other industries' online offerings).

Prada.com's site, designed by celebrity architect Rem Koolhaas's OMA firm, showcases nearly 20 short films on the production process, including clips of artists sketching bags, the making of a Prada ballerina slipper and the hand-finishing of a perfume bottle. Showing the hands behind the luxury object only burnishes a brand's image, says Milton Pedraza, CEO of the Luxury Institute.

"[Luxury consumers] want to know that they are paying for craftsmanship," Mr. Pedraza says. "And it's a little more subtle but it's [also] important, they want to know that people who are making the product are treated well. [Rather] than shattering the imagery, it enhances the reasons why you willing to pay a premium."

"We're now experimenting with ways to make video a much bigger part of sites with products, [such as] showing videos of the products being worn or moving around," says Mr. Gardner. "[Designers] have seen that not only does [marketing online] not damage their brand, it's a critical success factor for going forward."

Image courtesy: Miu Miu.com