Racked NY">

Cookie banner

This site uses cookies. Select "Block all non-essential cookies" to only allow cookies necessary to display content and enable core site features. Select "Accept all cookies" to also personalize your experience on the site with ads and partner content tailored to your interests, and to allow us to measure the effectiveness of our service.

To learn more, review our Cookie Policy, Privacy Notice and Terms of Use.

or
clock menu more-arrow no yes

Filed under:

Should Luxury Brands Kick Themselves For Shunning E-Comm?

Image via <a href="http://ny.racked.com/archives/2014/03/12/your_prayers_answered_a_celine_outlet_opened_at_woodbury_common.php">Racked NY</a>
Image via Racked NY

Racked is no longer publishing. Thank you to everyone who read our work over the years. The archives will remain available here; for new stories, head over to Vox.com, where our staff is covering consumer culture for The Goods by Vox. You can also see what we’re up to by signing up here.

Luxury brands have, for the most part, been famously slow on the uptake with launching an e-commerce component, holding on to the old idea that nothing can replicate the in-store experience. Exhibit umpteen is Céline. However, according to WSJ, "showrooming" (browsing in store then making price comparisons and buying online) has hit the luxury sector in full force, causing many brands to reevaluate the way they do e-commerce.

Within the past 15 years, instead of heightening their internet presence, many luxury brands have poured billions into opening new stores. Now new market research has come out in favor of those brands who put effort into both channels. Investment research company Exane BNP Paribas, for example, found that online and in-store luxury shoppers spend twice as much per year than customers who only shop in the brick-and-mortar stores.

Meanwhile, department stores and online-only luxury retailers are reaping in the benefits. According to the article, "They act as wholesalers, at a time when many luxury houses are reducing their exposure to wholesale sales to reap the higher margins in their own distribution channels."

Even with this new data, luxury brands are cautious about expanding their online presence too quickly. Some still hold fast to the argument that the in-store experience will always trump shopping online, while others worry about the price transparency that comes with e-commerce, even speculating that it will eventually kill off the brick-and-mortar buying experience.

· 'Showrooming' Hits Luxury Fashion [WSJ]
· Loehmann's Is Not Dead Yet: Will Live on New E-Comm Site [Racked]
· Céline Banks on IRL Interactions, Not Ecommerce [Racked]