| I think it is fair to say that the arrival of online shopping | | | | have also been decidedly caught off guard. In the last |
| has revolutionized our shopping experience, as the | | | | 10 years as the bubble in the banking industry created |
| global high street has been brought to our door. With | | | | greater perceived wealth, the increased affluence spilt |
| the use of a computer, an Internet connection and our | | | | over into in to the luxury gifts market significantly |
| flexible friend, we can enjoy a shopping experience | | | | improving sales figures. |
| that only a few years ago would have seemed like | | | | When there was an abundance of wealth sloshing |
| something out of Star Trek. | | | | around in society, the problems associated with |
| In this exciting new world that we inhabit, shops from | | | | discount selling to some degree remained hidden, |
| around the world arrive virtually in our living room, and | | | | because there were more than enough sales to keep |
| finding that 'arcane piece of medieval chain mail' can | | | | everyone happy. However, as the economic downturn |
| be as easy as purchasing a can of beans. | | | | has begun to bite, the problems were revealed in |
| Younger shoppers were the initial driving force behind | | | | dramatic fashion as everyone chased the fewer |
| online purchases and the increasingly computer literate | | | | customers left in the market. |
| older generations are now swiftly following them. The | | | | So, can online stores and high street stores selling |
| whole transaction can be conducted in a safe and | | | | luxury gifts coexist happily together? |
| secure manner thanks to 128-bit encryption and the | | | | I believe they can. |
| availability of a host of protective security software. | | | | The online luxury gift market has grown up. Online |
| Some buying experiences will always be enhanced by | | | | shopping for luxury gifts is changing and becoming a |
| the ability to touch and try before you buy. Finding that | | | | much more professional affair, with quality service at |
| ideal dress or perfect pair of shoes clearly needs the | | | | the heart of the business. No longer will we as |
| tactile sensation and is often coupled with a social | | | | customers tolerate a part-time store, where the owner |
| experience, such as meeting with good friends for a | | | | goes off to their day job and then responds to |
| coffee and a chat. | | | | messages when they return home. A new more |
| The luxury gifts market is one area that clearly does | | | | mature generation of online companies are arriving to |
| work for online shopping because it features high | | | | replace the cost-cutting companies that have |
| quality brands that we can trust. It is important that we | | | | discounted themselves into oblivion. These are |
| select an online retailer that conveys the same high | | | | companies that understand the need to protect and |
| quality feel that we see in the products being offered. | | | | support brand integrity of the cherished brands they |
| Once we have found a suitable online retailer we can | | | | support. They have strong values and a belief in the |
| begin selecting those all important gifts that are | | | | service they provide, beyond just a quick sale. |
| frequently design classics and instantly recognizable. | | | | Opening an online luxury store is in many ways like |
| Once selected and paid for these gifts can arrive at | | | | opening a high street shop; it requires the same |
| our door within a day or two, or can even be delivered | | | | specialized knowledge of the product range and |
| directly to a loved one complete with wrapping and a | | | | experience in providing quality customer service. |
| special message. In these hectic modern times we can | | | | However, instead of the customers spotting the store |
| use the time and effort saved here on more enjoyable | | | | when moving along the high street, the online store |
| quality time with the family or even a little special time | | | | may as well be in the middle of the desert. If online |
| for ourselves. | | | | stores don't spend time and money bringing people to |
| This market has not been without its troubles though | | | | the store then no one will know they are there and if |
| and there has been some simmering resentment | | | | they want customers to return, then the service must |
| towards online stores from the traditional high street | | | | be as good as the designs being sold. The competition |
| retailers, as the market has experienced some | | | | in this new arena has continued to grow and it is |
| growing pains with this new shopping medium. | | | | becoming more and more expensive to achieve the |
| The luxury gifts market has been decidedly slow in | | | | required exposure. Many of the high street stores |
| embracing this new purchasing medium and it was left | | | | have also begun to see the light and created their own |
| to quick thinking entrepreneurs to initially fulfill the needs | | | | web sites, realizing the potential opportunities in this |
| of the online community. Bright young companies | | | | sector. |
| began to spring up from nowhere, offering the 21st | | | | The days of extravagant profit margins for online |
| century consumer a selection of desirable design led | | | | stores have come to an end. Online stores need to |
| products. | | | | spend similar margins to the high street stores on |
| The problems began to occur when some of the | | | | advertising, good quality packaging, shipping and |
| online stores started to offer huge discounts that the | | | | providing the type of high quality service that we would |
| high street stores simply couldn't match because of | | | | expect for such high quality designs. |
| their higher overheads. Many a canny consumer | | | | Now that profit margin equilibrium has arrived, online |
| started to peruse the alluring designs on display in the | | | | stores and high street stores should be able to work in |
| high street stores and then discretely wander off to | | | | a wonderfully complementary manner, because they |
| the Internet and buy at a much lower price online. | | | | offer different experiences. The high street store |
| High street stores were frequently putting in all the | | | | allows the customer to touch, feel and try the designs |
| hard work and the online shops were taking the sales. | | | | on offer and then enables the chosen design to be |
| This situation had a devastating effect on the high | | | | taken home immediately. The online store usually |
| street sales and many owners became | | | | offers a much greater range of stock for the |
| understandably frustrated, annoyed and left out in the | | | | customer to choose from and provides the |
| cold. | | | | convenience of making a purchase from your own |
| The problems continued to spiral further out of control | | | | home. The designs can then be sent to whoever and |
| when the online stores began a subtle price war with | | | | wherever needed. |
| each other, in order to maintain their sales volume and | | | | There are signs that this harmonious relationship is |
| see off the competition. At this point the profit margins | | | | beginning to occur in the marketplace, as new online |
| became almost completely eradicated and much more | | | | stores can be seen supporting high street stores and |
| seriously, the carefully cultured integrity of several | | | | the integrity of much loved brands with sound pricing |
| quality brands began to be eroded. | | | | and providing a quality service. It is heartening to see |
| As the price cutting bonanza continued, online stores | | | | brands such as Alessi, Menu, Eva Solo, Design E, Louis |
| began to force each other into extinction leaving | | | | Poulsen, Absolute Appetite, Jacob Jensen and the like |
| carnage in their wake. Many product prices in the | | | | being treated with the respect that they deserve. |
| market were slashed beyond feasible margins and | | | | These are exciting times for the evolution of online |
| much loved brands took a battering from their lower | | | | shopping and I for one look forward to seeing what |
| perceived value. | | | | the future brings. |
| Manufacturers and distributors in the luxury gift market | | | | |