fbpx

DIGITAL RETAILING

Luxury goods brands are slow in adopting e-commerce strategies

By our News Team | 2022

Study finds that marketers of luxury goods are worried they may not be able to ensure traditional quality, exclusivity and tradition.

Luxury brands represent an important part of the global economy, albeit one that is accessible only to a small number of people. Research into digital retailing in this realm has always been sparse and there has been little to indicate the way in which its norms have changed in the wake of the pandemic. 

Now a research paper published in the academic International Journal of Electronic Marketing and Retailing offers a qualitative study that provides some insights into the world of luxury brands.

Digital Retailing

The Louis Vuitton store on exclusive Rodeo Drive in Beverly Hills, California. Photo by Stephane Muratet via Wikimedia Commons

Giuseppe Colella and Cesare Amatulli, of the University of Bari in Italy, point out that several earlier studies focused on the role that digital technologies have played in the communication surrounding luxury brands. However, these have not widely investigated the digital retail distribution strategies of those businesses providing luxury brands.

The researchers explain that, despite the rapid advent of the internet and the current accessibility of social media and other such tools, many luxury goods companies have been hesitant in adopting strategic online distribution and sales systems. This is because of management’s concern that, in the digital world, they may not be able to ensure the quality, exclusivity and tradition commonly associated with these exclusive brands. 

Strengthen relationships with digital retail channels

Colella and Amatulli add that luxury brands must strengthen their relationships with digital retail channels in order to provide a new kind of shopping experience for consumers of luxury goods, as well as maintain a dominant position in the market.

The research team used a qualitative and exploratory approach, with semi-structured one-to-one interviews with experts from a leading digital marketing company, in order to develop some initial insights and offer markers for which avenues of future research in this area might follow.

“Given the current global economic scenario, battered as it is by the Covid-19 pandemic, luxury industry leaders must be committed to longer-term strategic planning,” the team writes. 

“In this sense, e-commerce could be a crucial channel for maintaining sales, communicating with consumers and driving new consumer activation.” 

They add that “digital marketing could help boost online sales, on the one hand, while enticing consumers to discover and visit stores once they reopen, on the other”.

To access the full research, click here.

Retail Strategy

Retail Strategy

The focus of the new stores will be on delivering greater ‘everyday value’ to the growing middle-market shopper segment.

Read More »
Social Media

Social Media

But the latest study by Pew finds that YouTube rules the roost, with a massive 95% of American teens using the platform.

Read More »
Brand Value

Brand Value

No surprises as Coke and Pepsi fill top spots in latest survey of non-alcoholic drinks brands. Their values rise by 7% and 12% respectively.

Read More »
Personal Branding

Personal Branding

Want to be CMO? Prudent building of your personal brand on social media – especially Twitter – could get you there, researchers find.

Read More »
Brand Milestones

Brand Milestones

Created in 1932 in a small carpentry workshop in Denmark, Lego has since evolved into a huge global brand valued at over US$9-billion.

Read More »
Marketing Spend

Marketing Spend

The knee-jerk reaction in a recessionary environment is to reduce spending on marketing. But study finds it’s detrimental in the longer term.

Read More »