When Luxury Goes Digital

The growth of e-commerce over the past decade has been undeniable.

Sites like Amazon.com AMZN and eBay Inc. EBAY changed the way an average person shops for things by making the experience cheaper, faster and easier.

However, luxury brands have been slow to jump onto the online bandwagon as many stake their reputations on the customer's in-store experience.

Not only is the quality and feel of the material a big part of top brands' appeal, but their limited availability also contributes to the value of a luxury designer's name.

Online Luxury

However, some brands are hoping to capitalize on the growing trend toward online shopping by making their products available to customers online.

Companies like Chanel and Louis Vuitton are piloting new e-commerce platforms and experts say that up to 18 percent of luxury goods' sales will be done online within the next ten years.

The Benefits

By adding an online option, designers are giving customers more opportunities to purchase their offerings. E-commerce also opens up new demographics as it allows those who may not have had the ability to travel to a store to buy the products.

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Translating The Luxury Experience

Luxury brands may find it difficult to communicate the decadence of their brand through a website. Without an in-store experience, many believe that luxury products will become lost, although others say a luxury feel is achievable with a well-designed website.

Exclusivity Concerns

Although selling more products is typically a good thing for any business, becoming too accessible can be a fine line for luxury brands. Michael Kors Holdings Ltd KORS has seen major growth in its online store and the company has put a lot into marketing its products via social media. However, critics say that the company has lost some of its luster by making itself so available to consumers.