The Evolution of Distribution in the Luxury Sector: From Single to Omni-Channel

The Evolution of Distribution in the Luxury Sector: From Single to Omni-Channel

Fabrizio Mosca, Elisa Giacosa, Luca Matteo Zagni
Copyright: © 2021 |Pages: 21
DOI: 10.4018/978-1-7998-5882-9.ch001
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Abstract

In today's competitive environment, it is highlighted how the digital channel has over the years become an important distribution channel for goods with a high symbolic value. During its development, it has taken on characteristics very similar to the physical channel with direct distribution models, created through active management of e-commerce sites by luxury brands, and indirectly with the presence of specialized intermediaries by product or multi-brand, often very innovative. Goods that belong to a segment of the luxury market defined as “not affordable” tend to make use of the digital channel more aimed at strengthening the heritage and elite characteristics of the brand. On the other hand, the brands of the “affordable” luxury goods approach the digital channel with a more economically return-oriented perspective, also using intermediaries that allow a higher percentage of market coverage.
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Background

Over the years, the interest in the luxury goods sector has grown becoming a topic many researchers focus on. An elitist connotation and specific behaviours characterize luxury brand consumers that buy luxury products driven by the primary characteristic of luxury goods: high quality, price, rarity, and creative content (Kim & Ko, 2012; Seo, Buchanan-Oliver, & Cruz, 2015; Kim, Lloyd, & Cervellon, 2016; Seo & Buchanan-Oliver, 2019).

At the beginning of the new Millennium, digital technologies have taken over, bringing new challenges and opportunities for companies in the mass-market and luxury sectors. All companies had to learn to exploit the potential of Web 2.0 to react more effectively to new consumer needs in terms of communication, interactions, and services. The advent of the digital system, which includes distribution, digital communication channels, and User Generated Content has led companies to adopt strategic processes to acquire skills and tools to approach this new digital environment. It is essential to understand that digital innovation does not intend to overcome traditional marketing and its relative strategies but looks to integrate both to evolve the old solution and offer a new and broader approach to the consumer. If a luxury brand would have success in the digital channel, need to give a multisensory experience and a correct and personalized identification (Kapferer and Bastien, 2012).

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