Savour International

How does luxury work in the era of the internet? During a two-day Luxury Conference sponsored by the International Herald Tribune, key figures such as Frida Giannini (Gucci creative director), Christopher Bailey (chief creative officer at Burberry), Tomas Maier (Bottega Veneta creative director), London-based designer Ross Lovegrove, fashion critic Suzy Menkes (who hosted the event), other experts and 350 paying guests gathered to discuss the subject of techno luxury at the Ritz Carlton in Berlin.

How does luxury work in the era of the internet? The industry gathered to discuss this issue in Berlin. Savour presents the key answers:

After the event, which was held at the Ritz Carlton, one guest dryly remarked that it was a pleasure to see Berliners well dressed for a change. But a lot more than this was noteworthy at this edition of the annual International Herald Tribune-sponsored conference on luxury, which was held for the first time this year in Berlin (the three previous times the event was held in Moscow, Istanbul and Mumbai). In her remarks, Ms. Menkes noted that what’s going on with the luxury industry and modern technology today is analogous to the state of play with silent movies just before the advent of the talkies. And even the nature of the various presentations was emblematic of this situation, in that some presenters praised new portals such as YouTube and Twitter, whereas others such as Uché Okonkwo, CEO of Paris-based Luxe Corp, feel that such portals are already old hat.

So the question arises: How should the fashion industry deal with the possibilities opened up by the internet? Inga Griese, Lorraine Haist, Joachim Bessing, and Silke Wichert discuss the key issues of the coming era.

How should luxury items be presented online?

All and sundry agree that luxury products should be sold over the internet, particularly in view of the fact that the world now counts some 1.7 billion internet users and that people aged between 12 and 24 now spend nearly half their time online.

That said, Tim Jackson from the London College of Fashion noted that most vendors are allowing huge opportunities to slip through their fingers. Jackson said that virtual flagship stores should not be just another online store but should instead substantially beef up their content via elements such as company histories and behind-the-scenes information, which are as compelling in a digital age as they were in the pre-digital era.

According to Jackson, luxury is all about emotion and can also be made palpable through digital media; but unfortunately, he noted, videos of store openings and fashion shows are mainly notable for their absence on vendor websites, and are instead posted on YouTube by users themselves.

Jackson observed that customers are often far ahead of vendors when it comes to new technologies; and thus trying to dictate new trends to them becomes a difficult proposition.

Gucci creative director Frida Giannini is convinced that additional personalised web content would make products more real to internet users. For example, she said, Gucci’s iPhone application enables users to project their own image onto a pair of sunglasses, adding that no less a personage than Ashton Kutcher tried out this application.

"Authenticity matters on the internet too,” notes Bottega Veneta creative director Tomas Maier, who said that an Italian leather vendor need not twitter hourly, but can nonetheless offer additional services online, as well as information concerning the company’s products. And, he added, just because luxury products are also available online doesn’t mean they’re of lesser quality.

Everyone’s on Facebook; but does that mean stores have to be empty?

Bricks-and-mortar shops aren’t necessarily becoming irrelevant, since online shopping can never replace the experience of touching and feeling luxury products.

And, of course, there’s nothing stopping conventional stores from using new technologies. For example, all of Burberry’s stores are networked with each other, thus allowing customers to order an out-of-stock item from other stores online.

Online stores also have two major advantages: they generate new customers, since people can order from anywhere in the world – an evolution that has made “the democratisation of luxury” a buzzword, despite its being an anachronism; and they eliminate inhibitions, which also generates new customers. For example, Louis Vuitton, Gucci and Hermes have found that customers seek out a wealth of information and make their initial purchases at these companies’ online stores in order to gain the self-confidence of being a “customer” needed to visit a real store.

The feared phenomenon of cannibalisation has yet to materialise.

For the past seven years, e-commerce has been Gucci’s fastest growing marketing channel. But in 2003, Remo Ruffini began positioning his company’s Moncler winter sports products, which had heretofore been mainly available in the rarefied atmosphere of mountain resorts, as garments you wear to fancy evening events; and in so doing he increased sales from 35 to 150 million euros using classic marketing channels, and without e-commerce.

What’s the future of online shopping?

When Natalie Massenet founded Net-a-porter.com a decade ago, no one thought that luxury products could do well online. But Ms. Massenet has earned millions and no longer has any difficulty convincing vendors to place their products on her portal. And customer doubts about shopping for luxury goods online have dissipated as well. Why not spring for a chic 3,000-euro Balamain jacket at midnight – wherever you happen to be? Ms. Massenet, who is convinced that all customers will shop online sooner or later, recently launched theoutnet.com, which is an online outlet for luxury products.

Faster internet connections and improved software will also allow for higher-quality customer service in the coming years, thanks to detailed views, styling tips, more product videos, and more interaction with customers. Many collections will be available online exclusively and immediately since customers take a look to see what’s new thrice daily online, rather than once a week in a bricks-and-mortar shop.

What about magazines?

Printed magazines will not go out of existence, but will instead become a niche product, while online magazines will be the venue for everyday activities, predicts Jefferson Hack, publisher of the fashion magazines Dazed and Confused, Another, and AnotherMan. Hack’s website www.dazeddigital.com garners 1.9 million visitors monthly. In Hack’s view, the successful online fashion magazines of the future will provide users with shopping and styling advice as well as exclusive content, quality, strong opinions, and transparency; and will offer users the opportunity to interact online with everyone about every subject under the sun.

Savour’s cross-media strategy

Savour employs a cross-media strategy – which means that apart from being a magazine, we also provide exclusive services. All Savour International members have special privileges and can enhance their lifestyle via advantages such as the following: VIP reservations in exclusive clubs; staying in the world’s top hotels and lodges; purchasing exclusive products from our boutique; exclusive travel offers; private-jet chartering; concierge services; and much more. Savour offers an unprecedented portfolio of exclusive products and services, worldwide.

Innovative and long-term measures are essential when it comes to fostering customer loyalty. To this end, Savour International, in conjunction with Savour.Magazine and Savour.Life, is launching a new customer loyalty concept aimed at customers with the highest disposable income.