Alexander McQueen Spring 2010

Luxury brands like Chanel, Louis Vuitton, Marc Jacobs and Givenchy have not embraced the idea of selling their apparel online.  Marc Jacobs is an American designer, and he is also the creative director of Louis Vuitton.  There appears to be a  divide betweeen U.S. high-end retailers and European retailers; the U.S. companies are far more open to e-commerce.   

European retailers are hesitant to take advantage of the online retail market amid concerns about brand exclusivity and brand dilution.  They are concerned about a deterioration in customer service online as well.  Some retail consultants argue that the ease and convenience of ordering online is really what quality service is all about. 

Many of these brands have certain exceptions like, U.K. based Alexander McQueen.  His website sells everything to his U.S. customers only.  Yves Saint Laurent will only allow accessories to be sold online to its U.S. customers.  Chanel sells its beauty products, and Louis Vuitton sells  leather goods and accessories, but neither will go beyond those specified items.

Luxury brands are not as averse to the Internet as before, many have ventured into the online social networking arena.  It’s a great way to connect with customers in an attempt to better address their needs.  Twitter, Facebook and other sites provide real-time feedback that, if used correctly, can be invaluable to these companies.

“More than 50% of the population has grown up with shopping on the Internet. It continues to be the biggest growth opportunity for fashion, and luxury in particular. They’re not going to see the same level of growth in traditional outlets,” says chief retail analyst Marshal Cohen.  Maybe the question to ask is, can luxury retail continue to shun e-commerce without serious financial implications?

Online Luxury Retail Remains Elusive [BusinessWeek]