Tuesday, October 19, 2010

The Challenges of E-Commerce

The affinity for traditional commerce and marketing channels is strong among many purveyors of luxury goods, both in the fashion sector and elsewhere. In an international survey of 178 premium and luxury firms in 2008, Forrester Research ( FORR - news - people ) found that only one-third of them actively sold online, though 8 out of every 10 affluent consumers use the Internet to actively research and purchase luxury goods and services on a daily basis.

That number has risen significantly, but it is still strikingly low. Federico Marchetti, founder and chief executive of Italian retailer Yoox, estimates that half of luxury brands now sell directly online, though several others suggest that the percentage is higher, due largely to recession pressures.

Yet many brands, particularly European manufacturers of high-end wristwatches and other luxury goods, refuse to set up shop online.

 

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