Thursday, November 19, 2009

The web-the last chance for luxury branding

THE luxury goods industry, struggling through a recession that has threatened some well-known names with extinction, is trying to use technology to its advantage.

The New York Times reports that the move to capitalize on the Web has become a financial imperative for many brands as

executives say that attitudes are softening as brands realize that the Web provides one of the last untapped sources of potential growth.

Some executives also remain reluctant to invest heavily in digital initiatives because of costly failures in the past.

It reports on the example of Net-a-porter

One of the most successful ventures on the Web has been Net-à-Porter, a site based in London that sells high-end fashion and accessories, delivering them to homes or offices in black boxes. Though sales in the United States slowed during the depth of the recession, they have since recovered and have continued to rise at double-digit rates in other markets, the company said. It expects sales this year to top £100 million ($168 million), up from £82 million last year.
“It just made a lot of sense to allow women to shop when they wanted to shop, how they wanted to shop — at work, at home, in bedroom,” said Natalie Massenet, the company’s founder.

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