The Sky Is Rising For Luxury Goods Online

from the opportunities-abound dept

Earlier today, we at Floor64 released the latest "Sky is Rising" study that we've done, in association with CCIA, this time about the nature of the luxury goods market online: The Sky is Rising: Luxury Goods Edition. This is a bit of a departure from the three previous editions of the "Sky is Rising" reports -- which all focused on entertainment content. However, as we've been seeing over the last few years, while the effect has not been as dramatic, some traditional luxury brands have been attacking the internet, or suggesting that the internet is somehow damaging for their business. Usually, this is because they feel that they have lost some level of control over the channel -- and many traditional legacy goods companies have used stringent controls over the channel as part of their business model. Our research, however, demonstrates that their fear of the internet is misplaced. Companies embracing the internet have found that it's a better way to connect with consumers. Offering them new ways to research and buy such goods is one obvious aspect, but it has also created new communities that have enabled people to become more connected and supportive of certain brands. It's also helped to open up new geographical markets and opportunities, allowing smaller brands to go global where historically that would have been too expensive or difficult.

Overall, we see that the internet has been a major driving force in growing the market for these goods, and we've seen that, contrary to the fears of some companies, things like secondary markets (for used goods) enabled by the internet have really only served to help. It has expanded brands name recognition and desire much further, and created plenty of new opportunities for brands. And, of course, it's not just the "legacy" big brands that we're talking about. The rise of the internet has enabled new luxury brands to take the world by storm, using new tools like crowdfunding and flash sales to build up a supportive customer base.

In short, as we've seen with our studies on the internet as it relates to entertainment content, while the internet has created certain new challenges for traditional players, those who have embraced the internet, rather than fought it, have found tremendous benefits in doing so. Please check out the report below, or see CCIA's announcement as well.

Filed Under: innovation, internet, luxury goods, retail, sky is rising, trademark