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required in a discount environment to ensure the client that there is no
value reduction in terms of the brand promise even if the prices are lower.
5. Luxury brands should understand the collective value that discount
e-retailers provide to each brand by understanding the range of brands dis-
played on the website. The effect on a brand's perception if the products are
retailed on the same website as mass brands with a much lower positioning
will be different from a brand that is retailed on a site with fellow luxury
brands. When a client visits a discount website and finds information on
sale events for Sergio Rossi, Dunhill, Morgan and Fossil on the same page,
their evaluation of the luxury brands in this group could be clouded.
Figure 6.11
Several independent discount websites that resell luxury products
have emerged since VentePrivée.com introduced this concept in 2001. Today,
websites like Gilt.com, MyFab.com, PrivateOutlet.com, Koodos.com and The
Outlet offer luxury products from a wide variety of brands at prices as low as
80 percent off the original prices. Luxury brands have no choice but to
acknowledge these retailers and find a balance in collaborating with them and
sustaining the brands' aura
