Analysis of the e-luxury sector
- The story of a drink like no other
- The specifics of a controversial product
- A high-end positioning
- An atypical Communication Mix
Since the start of the millennium 2000, the advent of the Internet has profoundly changed society, redefining the rules of the traditional economy, trade and consumption patterns. The emergence of e-commerce is the most representative example and its market has greatly democratized, and in effect, the number of active commercial sites has increased by 45% in 2005 as compared to 2004. Its sales grew by 34% over the same period.
Besides, selling online, it affects a growing number of sectors: food (Ooshop), electronics (Pixmania), and textiles through brand of ready-to-wear segments and even luxury goods.
This concerns mainly private sales of sites which only offer top-brand items removed from stock to a lesser extent. Nevertheless, recent initiatives have put in place online shopping sites for some major leading brands such as Dior, Louis Vuitton and Hermes and offered credibility to this distribution channel. This should create an impetus for the development of e-luxury.
To what extent does the Internet as a new distribution channel impact the business strategy of luxury market? In the first part, is to analyze the luxury market and present the situation of e-commerce and e-luxury. Then, in the second step, it will explain the opportunities and threats posed by e-luxury for big houses and finally will discuss the possible optimization strategies, illustrated by concrete examples already set up by retailers in the luxury sector.
Indeed, the word "luxury" is a generic term, everyone has their own perception, for some it is synonymous with space or time, for others it will be associated with the privilege to exclusivity. For many, the only luxury is all that is not essential, superfluous, something often talked about.
The marketing is based on four axes that are the pillars of the development of all strategies: price, distribution, product and communication, which is defined by the marketing mix. More specifically, the marketing of luxury based on a communication-based consistency of brand image and the cult of the namerecognition that allows the consumer through signs and codestimeless.
The distribution of these signs is therefore the specificity and originality of the policy of the marketing of luxury. Thus, the consistency ofluxury goods is not only exceptional quality but also builds on the brand, its name, its history. The marketing of a luxury brand is therefore based mainly on the management of its authenticity, brand and product are inseparable in terms of luxury.
The development of the Internet is one of the most striking phenomena of our economy in recent years. Having pushed the rulesof the traditional economy, the Web has established itself by finding its audience among a population weary of supply and commercialaging techniques of traditional societies.
The majority of players in the luxury market have a simple Internet presence with online store fronts do not or have very little added value in relation to the disclosure made on brochure paper.
However, other sites including sites marketing feedback collect personal information on their clients and prospect new clients in addition, one saw that these sites included community features.
Other sites are also to be considered, namely those of private sales.These sites are now experiencing a great success and is a great way to buy high quality products at unbeatable prices.
Tags: Luxury market ,internet shopping, analysis of e-luxury markets,