Luxury Labels Warm To The Web

Wall Street Journal   |  Elva Ramirez   |   August 13, 2007 10:37 AM


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A January 2007 survey by market research firm Luxury Institute found that 99% of those 21 years and older with a minimum household income of $150,000 had Internet access at home -- and 94% said they used broadband connections, which are amenable for video viewing. Similarly high numbers were reported for the use of the Internet in researching products and shopping. Naturally, as high-end consumers have gone on the Web, more luxury brands and high-end retailers have opened up online flagships (though they generally have lagged behind other industries' online offerings).

Sophisticated imagery can help high-end brands justify the price discrepancy with lower-end products, Mr. Cohen argues. "The site has to do a better job of romancing it, using additional audio as well as visual stimulation to really get you excited," he says. "I've got to feel that I can connect and relate to this site, otherwise why am I spending so much money?"

Many luxe sites also aim to give visitors a sense that they are getting insider information. Those not invited to Fashion Week's members-only tents can watch the runway shows online. Christian Dior's Fall/Winter Haute Couture extravaganza, in honor of the fashion house's 60th anniversary, was available online the morning after the show.

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