Luxury Online by Uche Okonkwo

LUXURY ONLINE BY UCHE OKONKWO
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(23 April 2012)
Book Description
The book ‘Luxury Online` by Uche Okonkwo provides an analysis of online strategies for luxury industry starting with the development of the internet as means of communicating and distribution products. It provides invaluable insights on the development of luxury online strategies. The book contains a comprehensive evaluation as well as critical assessment of necessary tactics that are needed to ensure proper management of luxury brands on the internet. The author took an objective approach in presenting the reasons that has made the luxury sector to be much reluctant in embracing the internet.
Moreover, Uche tries to clarify some of the misconceptions facing luxury sector whenever it tries to go online, as an effect, the author provides concrete recommendations on how luxury brands can be successful in diving into e-business, apart from highlighting pitfalls that ought to be avoided. As an effect, the book can be considered as being the ground breaking instrument in outlining e-business in luxury fashions from a strategic perspective. It is a guide to those intending to understand how modern luxury industry works, as it is very essential in explaining the business of selling luxury fashions. As an effect, the book has given the luxury industry what it has been lacking for many years. This is because; there have been no competing strategies in luxury fashion industry, so, Uche`s insights on brand management, provides a competitive aspect of brand management in the luxury market both locally and internationally. As an effect, this book contains the most comprehensive analysis of the luxury business for any business person who wants to understand a real luxury business. In reviewing this book, I will follow the outline set by the author by looking at the current state of luxury online fast, then deal with the implementation strategies.
The Current State of Luxury Online
The author has clearly stated the changes that are occurring in business as a result of digital revolution. Such changes are being felt by both technology driven and non-technology driven business sectors. First of all, there have been dramatic changes as a result of technology that are not only taking unexpected forms, but also interconnected forms. This has made the luxury e-business to struggle for its lateness in e-retail adoption.
Moreover, there have been challenges posed by digital, mobile advancement and social order advancements. This is because; current businesses are undergoing drastic transformation as a result of consumer mindset in the determination of their state in luxury. As an effect, luxury clients are demanding the concrete definition of luxury brands that are transcending services, products as well as brand names. However, according to Koiso-Kanttila (2005), the current evolution scenarios shows that the internet is an indispensible media that is encouraging growth prospects as a result of its ability to help in understanding client psychology, behaviours as well as reaching international clients in a cost friendly manner.
Currently, massive opportunities presented by the internet as a way of doing business as well as a tool of encouraging creativity has not yet been utilized by luxury brands. This is because, for many years, luxury industry has been decried as being a late comer in the adoption of internet along with other interactive digital technologies that can be used in marketing. However, Koiso-Kanttila (2005) puts the blame on the lack of commitment in the integration of advanced business strategies into practice in luxury industry. Though luxury industry is renowned for creativity and innovation, luxury brands and digital technologies have not being advancing together as compared to other industries as stated by Uche (2010).
The building foundation of luxury brands has been posing a great threat to the luxury industry, as well. this is because it is built on principles that can`t be ignored or compromised. As an effect, it requires that a culture should accommodate it. This is because, the function of luxury is deeply rooted in the client`s satisfaction based on social stratification. As an effect, the role of luxury brands which has been in place for many years is differentiating new stratification codes. Now, putting this context in the internet, where consumers have total control, there are chances that the move will face lots of resistance for top players, but confusion and anxiety in the bottom players. Though this has been used by Uche (2010) to explain the reason as to why luxury brands are reluctant in the adoption of internet, but Koiso-Kanttila (2005) states that, in the current times, resistance and confusion among clients is a thing of the past as economic recessions that are happening are leading to mandatory online investments as well as marketing strategies based on social webs.
Though luxury industry might adapt some changes occurring in the business arena as a result of technological development, but this should not happen blindly. Meaning, the industry has to reorganize in a manner that the change considers the fact that evolution of luxury industry is based on creativity and business, hence the change will not occur if a sound strategy is absent. However, Dejan, (2007) concurs with Uche that modern business applications are of great help in making luxury industry thrive well in the current internet and digital world. This is because they have ensured easier adaptability as well as application of e-business strategies. This has made luxury industry to show some commitments in adapting internet and digital strategies, for instance, they are using it in educating and reinforcing its client base particularly in China. However, there is a lot to be done especially on matters concerning customer experience along with customer reinforcement through engagement of clients who can access the internet (Xiao, 2008).
In some countries, like South Korea, internet penetration is so high to an extent that internet accessibility is very high. This has ended up improving business internet services like e-banking, as an effect, consumer accessibility is just a click. So, apart from controlling the marketing communication, and massaging, they also have the power to affect the interpretation of other consumers. This has been one thing that luxury brands have not yet accepted.
Challenges Facing Luxury Brands to Go Online
* Most luxury brands are build in a manner that they resistant to change , but internet and digital technologies have created the need to change from rigidity to flexibility.
* Luxury companies belief that internet is just a communication medium that can be compared to magazines and news papers, other than a multi-channel of communication, branding, among other things.
* Most luxury companies face the problem of understanding ways of representing the core essence of luxury brands online from their websites.
* Most luxury brands lack the experience of putting cyber space into a larger context other than the company`s websites.
* To go online, most luxury brands are being forced by their clients, but it is not their own will.
The Social Connections
Adopting social web is based on diverse solutions offered by the website. Scott (2008) concludes that some companies fear to adopt social web due to its application tools which are difficult to master, but Uche (2010) simplifies this by stating that, the more active one is on the social web, the higher the chances of mastering collaborative tools. As an effect, luxury companies should also start mastering social web tricks.
The social web like facebook can be used in tracking consumer tests along with their minds as a result of transparency, openness and independence provided by the social web. This is because, "the conversations and exchanges that take place on the social web are naked and conclusive interpretations may be drawn from their topics, content, tone, passion, involvement and even structure" (Weber 2007). As an effect, there are lots of benefits presented by social web to luxury brands. This is because; they provide an avenue to monitor clients` psychology, communications avenue and client management.
However, Uche (2010) does not only present the positive side of social web on luxury brands, but also the dark side. Some of these dark sides are as a result of social web structure as well as behavioural patterns of consumers. For instance, it is very difficult to control negative comments. Other problems include verification of author`s credibility, assurance of privacy to personal information, demand for time consumption, legal rights of different hosts and consumer rights among other issues.
On the issue of blogs, luxury brands like Louis Vuitton have not been comfortable with the creation of suitable corporate blogs. However, ignoring blogs will even take luxury brand back to dark ages. As an effect, it is good for them to start observing blog conversations apart from being present in the blogosphere. This does not mean that luxury companies have to create blogs, but use other tactical strategies like following the paths of other brands. This will place luxury brands in a better position of understanding unique firsthand experience in the brand`s universe. This bloggers will be giving their comments based on their experience (Scott 2008).
Generally, social networks have indicated that clients are not only interested in getting the brand`s attention, but also being involved through bottom-up as well as lateral collaborations. Due to the fact that clients have been given lots of information through advertisements, they are now demanding to air their tests and preferences to brands. However, the main challenge is to ensure that consumer groups have accepted the company advertisements before propagating its message. This is because, clients are no longer loyal to a particular product or brand.
Due to lack of preceding marketing model for luxury brands on social web, luxury brands should start developing real social media that has the ability to translate long-term strategy with clear objectives for the presence of the brand online. To implement this, it is better to understand the dynamics of social web as well as consumer mind-set development to craft social web strategy. Moreover, it has to start treating internet as a multi-channel that can support the reach to new and maintain clients, apart from reinforcing brand image (Bellman, et al 2006).
Since wealthy individuals are demanding their involvement not only in marketing and communication, but also on online shopping, to ensure maximum web interactions. This collective experience helps in knowing what such communities need from luxury brands. When designing an online model, Luxury Company should concentrate more on influencing the community, other than controlling.
Website Creation
The concern for luxury brands should not only deal with building a website, or even having the richest content. They should think of coming up with exceptional websites for every one visiting as well as revisiting the site. Luxury should not only be known for being fanatical on matters concerning product perfection, but also on service provision. According to Koiso-Kanttila (2005), most luxury brand websites like RoseBeauty.com have no content, or concentrates more on retail brand forms. This has been adopted by most luxury brands. as it is believed that luxury clients can not be affected by online experiences, and that most of them visit the internet with the aim of saving time. As an effect, most of them have created websites with the aim of telling their clients that they are online, apart from disseminating information about e-retail. As a result, most of them have been failing because they have not considered what clients want. According to Scott (2008), most online customers want to see what the brand can offer on the website, as well as its ability to keep on monitoring its online presence, apart from influencing their perceptions towards everything offered by the brand.
As a result of many websites on the internet, the web users have become scanners in selecting valuable websites apart from filtering out those sites having little or nothing to offer. Basically, when doing this, they are looking for not experience, but exceptional experience. To ensure this exceptional kind of experience, Uche (2010) emphasizes that, the brand has to create a website with virtual kind of environment. This is because; the atmosphere of the website will be very influential in mood generation, which can be achieved through the use of specific tactics that are related to webmospherics.
According to webmospherics, the main features to consider when developing a website are sight, hear, smell, touch and taste. However, according to Luxemosphere, those elements mentioned in webmospherics should be in a position to influence senses, stimulate moods, apart from enhancing emotions through sensory technologies like animations, audio elements, like music among others.
Though the process of integrating luxemosphere in luxury brands used to be thought of being a very difficult venture, but due to various techniques the process has been implemented. Some of the important elements include, visual, which deals with attraction as well as steering clients towards any brand. This can be achieved by the use of colours, shapes, displays among other visual things. Brand`s essential visual elements include images, texts, home page, colours, and graphics. This is because; the influence of these cannot be under estimated. Other elements include Sound, scent, movement, and flavour.
These elements are very important in online luxury brand marketing. To start with, such elements reinforces brand image through high-impact web experiences. To achieve these, such elements ensures that the brand perceptions remain in the consumer`s minds. This emanates the brand`s strength, as people will be feeling it, other than only seeing the brand, though what they see can also validate what they are feeling, and the reverse is true. As an effect, the luxury`s brand websites should be in a position to reinforce the brand`s image through feeling generation. Nevertheless, such feelings should be exceptional (Weber 2007).
Moreover, luxemosphere sensory communication has the ability to speak to client`s subconscious through online experiences. Generally, a good website should be in a position to consider sight, aural, along with tactile senses, to ensure exceptional website experience particularly in making online shopping an entertaining venture. This is very influential as it leads to brand affiliation and elevation of relationships. Just like what happens in normal cases where in case one makes his/her clients feel good, they will keep on coming for more purchases.
Thirdly, luxemosphere elements ensure highest level of stickiness as well as high purchase probability in case of e-retail. Luxury brand websites should as a result include harmonized elements, navigation as well as contents that enhances ambience. This is because; such features will be immersed in the consumer experiences and subconscious. As an effect, the web should be in a position to make its visitors spent some considerable time on it, as they try to discover and re-discover the brand`s universe. For the website like RoseBeauty.com to attain this goal, it must use lux...