11 October 2006

Virtual Reality Retailing

I've been reading a lot about brand luxury on the net (as opposed to multibrand retail sites such as net-a-porter ). As different companies cultivate images that don't necessarily comply to the "democratic" notion of the net, I see the difficulty in adopting strategies. The luxury industry expects things to be done on a grand scale, hence the reticence of brands to retail via the web. PPR respects each brand identity with separate sites. Although each brand is accessible from the PPR or Gucci Group portal, no sales can be made through any of these. PPR's mainstream distribution brands are readily available on fairly attractive sites (Fnac, Redcats brands). Luxury goods are not available on the LVMH luxury brand sites either (apart from Dior France for Fragrances and leather goods). LVMH has decided to create a seperate e-luxury site. Hermès assumes the fact that the net is more popular, and that the www. client will only purchase entry price point pieces. Prada has had domain names reserved for years, but has not decided what to do with them....

Although purchasing luxury items through the Internet seems to be quite acceptable in the states, this is not yet the case in Mainland Europe perhaps this is one of the factors leading to mediocre webdesign. It also seems that many factors are involved in the choice of web strategy - extensiveness and effectiveness of physical retail networks, supply chain efficiency, artistic control or IT platforms. Also, brand policy may decide whether the website should merely be a "vitrine" - showcasing the brand identity (eg:Viktor and Rolf), accompany points of sales (eg:Chanel), or be a cyber mega-store (eg:e-luxury). With tech trends moving even faster than fashion trends, how can the universe of a particular brand not be diminished by outdated IT without falling into the other extreme - gadgetising.

I visit retail and web stores regularly. It is difficult to translate physical store ambiance to a flat screen, but even with fancy flash integrated players, I feel that brand websites lack the energy found in a point of sale. These are some suggestions for a pretty perfect site:

Group Portal with access to different brands and/or collections (cross referenced by lifestyle). This general access could also redirect clients to wholesale/retail/ intracompany sites. Brand sites in perfect harmony with brand image- this image should change as regularly as visual merchandisers change the stores' looks. Some brands have pre-programmed international window displays. These could be used to unify the brand image. The site could also imitate a virtual concept store with 3D visits and mannequins.

Access to different brand sites would be subject to a short inscription (name, age, interests etc) with domain reconnaissance. This inscription should convey the concept of accessing a "club-like" environment. The identification and ensuing client accounts could be used by the brand for the following:

*Marketing and CRM-analysis and consolidation or augmentation of client base, analysis of viewed pages)

*Web<-> client interaction: Punctual or periodical information- (newsletter, company blog access, social, cultural or commercial events via courier, email or phone (courier and phone being more in keeping with the traditional luxury experience). Instant messenger sales staff onhand. Gift certificates. Chat sessions, video pod-casts of fashion shows and/or events, press releases mobile device information, downloads, (this to tag the younger or tech-happy clients and to establish credibility with hesitant web-clients) Interactive polls (eg: podium most wanted pieces).

*Retail network information - pages visited or purchases by clients consultable by sales force. Client fidelity to brands within the group. (perhaps upon creation of the site sales staff could be consulted about their needs - this could create a common project)

As the essence of the luxury industry is the product:

*The entire offer viewable on website (some brands limit their offer per geographic zone-collections should be viewable by customer's country location). Information about products should be as complete as possible, including the how's and why's of the creative process. Only selected items purchasable. These selected items should be renwed very regularly, this could even be based on best or slow sellers (with special offers on flat rotation stock). Special high tech items only available via website -limited series, or laboratory design. The pieces which are not available on the net should be able to be pinpointed by store location. Reservations can be made by web clients with a physical confirmation of sales force. Product suggestion or complementarity (this blouse goes with these pants) should be available. A perfect balance of website and store traffic should be established, complementarity being the key. According to the extent of the physical retail network, a certain reciprocity in traffic should exist. In store stock levels could be optimised.

Client to brand relationship:

*VIP access given to selected clients. This would uphold a certain exclusivity to very faithful retail clients - these clients could potentially become webclients as well. This access may confer certain privileges such as concierge like services, pre-orders, special orders, previews, billing, VIP invitations, priority on products, personal contact with key staff, appointments with sales assistants and suggestion boxes. One could also differentiate VIP retail and VIP web, giving VIP web clients access to instant messenger services to store managers.

Continuing the "one on one" relationship with retail clients through the web brings this experience into their personal space. Generating and chanelling store traffic through the webclients substantiates the virtual shopping spree.


Here is the list of the Y design awards (digital)

1 comment:

Anonymous said...

J'ai découver votre blog via Viadeo - Très bonne analyse sur les strategies web des marques de luxe !

-Cyrille
http://www.matieresareflexion.com