The world of luxury shopping is a complicated one. Luxury brands often operate differently in comparison to more common brands, and decisions regarding sales are unique to their part of the industry. 

In particular, selling products online is a very new trend among luxury brands. In the past, most brands refused outright to sell online, claiming that it compromised the integrity of their brand and the experience that they offer. However, things are changing, and while it is still difficult to replicate the in-person shopping experience, many luxury brands are finally considering the benefits of e-commerce.

Preserving the Luxury Experience

The luxury brand experience is built around the desire for exclusivity, and the narrative that a brand creates around its own history. These cornerstone elements determine much of a luxury brand’s business strategy which, unlike more common brands, often prioritize things other than sales and size of consumer base. Rather, the goal of a luxury brand is to preserve its image, its exclusivity, and the experience that shopping with them provides. 

Primarily, this has been done through in-person sales. Every customer experience is finely curated to the individual, with brands often using a tiered system to allow sales associates to control who gets access to certain products. While all clients are treated very well, pre-existing and VIP clients are often purposefully given priority to ensure their loyalty. 

Additionally, luxury clients often value things that are more easily offered in-person. This includes attentive salespeople who work to create long-term, personal relationships with clientele, exclusive treatment, a calm and private or semi-private shopping atmosphere and, of course, a guarantee in a high level of confidence around making large purchases. 

Pre-COVID-19 Business Model

Pre-COVID-19, it was incredibly uncommon for luxury brands to sell online, and if they did, they only offered a small portion of their product lines. The most common products to be sold online were cosmetics and fragrances through distributors like Sephora, with some brands offering a very limited selection of accessories online as well. Fashion, on the other hand, was very rare to find online. For the brands who did sell online, they only did so if it made sense for their business model.

The way most business models worked, ready-to-wear and casual fashion were used as a way to market a brand’s other goods, while couture was only ever available in-store. This way, consumers could get a taste of the most affordable options a luxury brand offered, while also making it very clear that more luxurious goods were for a more esteemed clientele than those who shopped online. 

In the second edition of “The Luxury Strategy: Break the Rules of Marketing to Build Luxury Brands” by Jean-Noël Kapferer and Vincent Bastien, released in 2012, it contains a section on e-commerce. Essentially, the book emphasizes the exclusivity that luxury brands offer, pushing brands to gatekeep their services for their preferred clientele, and to make obtaining luxury goods difficult. This can help weed out those considered unsavory, as making products hard to buy isn’t difficult for VIPs, considering high profile clients often have things sent to them without needing to request it anyway. The book also tells readers to “sell marginally on the internet”. At the time, e-commerce was seen as a way to cheapen a brand, both in terms of brand image, and the actual value of products. 

Post-COVID-19 Business Model 

COVID-19 however, changed everything. Suddenly, stores were closed, and many businesses were forced to move online. Some luxury brands fought hard against this shift, citing their desire to retain the in-person experiences they’d been known to offer, while others finally began to embrace the idea of e-commerce. Certain brands partnered with companies like Net-a-Porter, Harrods, and Farfetch to bring their ready-to-wear lines and accessories to a wider audience, as well as to meet their existing clients where they were. 

From a broader perspective, this shift may be sticking around for the long term. The face of the luxury shopper is getting younger, and most millennial and Gen Z clients prefer to shop online. Moreover, many young people base their loyalty to a brand on their online experience, which means that luxury brands are being forced to improve their online presence and website usability.

With all of that being said, the in-person shopping experience isn’t going away any time soon. Most brands still reserve their more exclusive and expensive products for in-store only, with certain products only being available by invitation. Also, luxury brands pride themselves on their ability to work with clientele to create the best experience possible, and the high level of curation into client visits that luxury brands are known for can really only be achieved in person.

Lily Francis | Contributing Writer