Information Technology Reference
In-Depth Information
management on either channel should complement rather than compete with
the other.
e-People are real people and they are even exhibiting more
“
realness
”
in
the current global economic slowdown where the Internet is playing multi-
ple roles from offering an avenue for discreet shopping of high-ticket items;
to acting as the vehicle for a voyage in the search for discounts, steals and
deals; to being the window through which the world of luxury is discovered
and desired. These multi-roles have led to significant rises in the number of
wealthy shopping for luxury online from 9.5 million in 2008 to the expected
+27 percent annual growth between now and 2011. Of the approximately
6.6 billion Internet users, this figure represents a mere 0.6 percent but, in
terms of revenue generation, is easily a substantial proportion of total online
expenditure of discretionary goods in which luxury forms a significant pro-
portion. It is also interesting to note the wide age range of luxury online
shoppers with no age group dominating, although the youth segment (15-34
years) account for slightly over half (55 percent) of online luxury shoppers
while those from 35 years upwards make 45 percent of all luxury purchases
online. With the constant progress being made in technology applications
and the support of governments and such bodies as the European Union -
which has been at the forefront of initiating reforms to encourage the growth
of online shopping - the Internet is poised to remain a major playground for
the wealthy.
Understanding the wealthy online goes beyond evaluating their income
levels and expenditure. As much as it is important to view their statistics and
progression, it is also crucial to understand their attitudes, interests, expecta-
tions, behavior and evolution - in short, what drives them to the Internet and
what moves them when they arrive online.
A look at the current luxury client
Anyone who believes that today's luxury client is the same as the one of the
last decade is in for a surprise. The luxury client has changed and their per-
ceptions and outlook to luxury have also evolved. This is not only due to the
Internet, although the arrival of digital technology and interactive media, cou-
pled with the instant communications and transparency that it enables, has defi-
nitely played a key role.
What has happened to the luxury client in the last ten years is remarkable
and significant in many ways, as it has been a decade of profound change
on multiple levels and in many facets. First, the global economic boom of
the nineties continued almost uninterrupted well into the early noughties
albeit slightly affected by several set-backs - the Gulf War, the Asian crisis,
September 11, SARS - in different degrees around the world. This coupled
with the explosion of Internet and digital technologies and their vast business
