Perhaps Warner has a case, as Wall Street’s current affinity with dotcom associated profit warnings looks set to continue for the rest of this year and the number of new businesses attempting to float have all but drawn to a standstill. But despite this current climate of gloom, many analysts still believe that the web as a marketplace remains a more than viable proposition and that companies choosing to rebuff the concept of E-tail are doing so at their peril.

The success of some websites such as Ashford.com (who concentrate on the selling of luxury brands) would more than support this view, so perhaps it’s the challenge of digital branding that is scaring some companies off. Strangely enough this was a rather veiled caveat to E-tail highlighted by Asprey & Garrard’s Warner who said, “We are over 200-years old and one can seriously damage ones reputation by doing the wrong thing – particularly on the Internet where there is such a wide audience.” He has another valid point, just look at some of the general shockers we’ve seen and reviewed as part of Webwatch.

But while the jury may still be out in some organizations in terms of whether or not to sell goods online, there can be little argument that the clock is most definitely ticking for those luxury brands still turning their nose up at the concept of Internet trade. As technology advances, so will the standard of web offering available to the electronic consumer and the argument against the net being capable of conveying the emotional characteristics that accompany luxury brands will slowly deteriorate – a paradoxical situation for those still sitting on their hands.

For some companies it may already be too late, as while they continue to dither on the periphery of Internet trade and search for a complex answer to what is essentially a straightforward problem, their competitors are awaiting the introduction of broadband with anticipation and alacrity. Why should it be so difficult? After all the web is only an extension of a brand’s marketing capability and must surely carry more opportunities than threats for manufacturers of luxury goods. Indeed, one would have thought that it’s the distributors who have more to worry about, as the great global public continue their quest to drive down the prices of luxury goods wherever and whenever they can.

As a postscript, just prior to writing this article, I was in the market for a new widescreen TV and found the model I wanted, a Sony, in a well-known UK high street store. Unfortunately, the asking price from the bricks and mortar retailer of almost £1,900 was bettered by an e-tailer by almost £500 – so guess who got my cash. Perhaps then I am as guilty as the next guy for squeezing the margins of long-established distributors and making life tough for their guys at the top. Then again, perhaps all I am after is value for money and if the brand’s quality extends to the product than surely I must have reached my goal in attaining a superior product without setting foot in a store.    

[30-Apr-2001]