Information Technology Reference
In-Depth Information
in the history of the Internet. In the case of Boo.com, an estimated capital
investment of $130 million was lost. For several luxury brands like Hermès,
Chanel, Ferrari and Prada who were already skeptical about the Internet, this
was confirmation that the Internet was a no-go area.
During this period, Internet businesses were trying to do everything to gain
the trust of the public, hence the low-price context, while online users were
trying to understand the viability of shopping online. Internet providers on the
other hand were striving to improve connectivity through broadband and wi-fi
versus telephone dial-up. And all of these had to match in terms of progression.
The second phase which focused on
content
(Figure 2.3 on p. 40) took place
between 2001 and 2005 and was the period of the Internet revival from suspi-
cion to establishing trust. It was during this period that luxury e-retail showed
signs of taking off, pioneered by the likes of Net-A-Porter as well as the bold
moves of brands like Louis Vuitton and Gucci, which were the first luxury
brands in fashion and accessories to take the path of online retail. The former
was already retailing its products on e-Luxury.com and was therefore in a posi-
tion to transfer synergies and e-retail mechanisms. The second phase of the
Internet luxury evolution was also the period that interactivity on luxury web-
sites began to appear through flash animations, videos, slide-shows, sound and
movement features which became popularly adopted. With the introduction of
e-retail on several websites, elements like zoom, spin, flip, drop and drag were
used more on luxury websites. At this time, luxury brands were focused on
providing interactivity through downloads and trying to outdo one another in
the integration of the most interactive web elements using these tools. The
key driver among luxury companies during this phase was the instinct to
follow, which explains the rampant copying of website design that reigned
supreme. This was the period where questions like “Is our website now bet-
ter than brand X?” was a daily mantra. At the same time the consumers were
driven by curiosity and affiliation for the Internet and were seeking exten-
sive information on websites through rich content as well as interaction with
luxury brands - beyond downloading images - and enhanced experiences
that would compensate for the lack of human presence online. This was also
the period that the client's affinity for websites over luxury brands emerged.
Clients began to decide and choose the websites that “delivered” over those
that lacked essence. Consumers began to link website impressions to brand
perceptions, and the enablement of a higher level of interactivity through
commerce or otherwise formed key aspects of defining online relations with
clients. As a consequence the “website loyalist” emerged among luxury con-
sumers contrary to the expected “brand loyalist”.
The third phase of the Internet evolution is what we are currently experienc-
ing in full-force and it is the age of
participation
(Figure 2.3), driven mainly
by the need of consumers to congregate, share and collaborate. This phase
that is completely controlled by clients has introduced a new chapter in online
relations between companies and clients, irrespective of sector. It is the phase
