WORLD / Wall Street Journal Exclusive
Luxury brands spin a new web
By CHRISTINA PASSARIELLO (WSJ)
Updated: 2006-11-05 10:29
http://online.wsj.com/public/article/SB116259447467713071-_TTWJWL6VJZvuHg9t
q0FREKbQrU_20061111.html?mod=regionallinks
There's a change in store for holiday shoppers this season. Over the past
year, many of the world's biggest luxury brands, from Marni to Michael
Kors, that were previously hard to find on the Web, have opened online
stores.
The decision to sell directly to consumers online is a first for these
brands, many of which have long shunned the practice as a mass-market
affair. That's forced shoppers to seek out the hottest handbags and
apparel elsewhere, often from a small group of luxury e-commerce sites
like Net-A-Porter.com or Neimanmarcus.com, that have exclusive agreements
with the labels. Some are treading carefully into these new waters --
shipping only to Europe, for example, or carrying a limited selection --
and few plan to offer any special deals for the holidays.
But for US shoppers, the new sites nevertheless give more choice than
ever before -- and more of a chance to compare prices. Within the last
several months, Bottega Veneta, Dior and DKNY have all launched new
online stores. Italian fashion brand Gucci, which is owned by France's
PPR, has redesigned its site in time for the holidays, while Vuitton and
Dior have both launched their first direct-to-consumer sites, though
neither ship to the US
The Internet's reputation as a host for discount shopping and
bargain-basement deals, epitomized by retailers like eBay and Amazon, has
until now been a turn off for luxury-goods players. Brands have largely
focused instead on developing their roadside store networks, where they
say they can better control their image.
But the absence of real luxury players online created a void that
counterfeiters have filled. Experts say that by opening a certified store
online, fashion houses can help combat that troubling phenomenon. For
instance, Herm��s's site warns consumers that other sites might be
passing off fake or damaged goods.
There are other advantages to shopping these sites. Three Bottega Veneta
items, including a gold woven-leather wallet for $460 and a $160 candle
in a woven-leather holder, are initially for sale only on its Web site
for the holidays. Coach, which is known for its "accessible luxury"
handbags, is advertising a flat shipping rate of $8.50.
Because some sites are actually run by third parties, they have a wider
reach. Marni tapped yoox.com to run its online boutique earlier this
year, immediately gaining access to the Web retailer's expertise, such as
shipping to 25 countries.
Keeping consistent prices around the world is a priority for luxury-goods
brands, which use their directly-controlled global store networks to
ensure uniformity despite currency fluctuations.
But the Internet offers transparency if price differences emerge. A
Michael Kors black leather double-breasted jacket sells for $2,495 on the
brand's recently-inaugurated Web site, for example. The same jacket can
be had for $1,247.50 through Net-A-Porter, thanks to a fall promotion. A
Gucci white satchel bag on Gucci.com sells for $1,355, or for $1,295 on
Bergdorfgoodman.com.
Consumers shouldn't expect any special Christmas coddling, either.
High-end fashion houses tend to see the year-end shopping craze as a
mass-market affair followed by half-off sales on Dec. 26. Moreover,
people tend to buy $1,000 handbags for themselves, rather than as gifts.
The pioneers in luxury e-shopping say they see the arrival of these sites
as an opportunity. Net-A-Porter, one of the earliest luxury sites, often
carries a bigger selection of the brands it distributes such as Bottega
Veneta and trendy British label Mulberry, since many of the new
independent sites don't carry shoes or apparel.
Several fashion brands, including Louis Vuitton, haven't yet rolled out
US sites, opting to start their e-commerce experience in Europe. This
means a shopper buying a Vuitton handbag on the brand's French site needs
to pay with a French credit card and have the bag shipped only to a
French address.
US shoppers are redirected to another site owned by LVMH Moet Hennessy
Louis Vuitton, eluxury.com, which offers a more limited selection of
Vuitton products.
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