| In the genteel world of luxury, companies long | | | | their products directly, but most didn't bother. |
| believed that the Web was no place for | | | | |
| merchandising. And there was a gentleman's | | | | "Luxury brands were a little hesitant or reticent, |
| agreement with department stores not to siphon | | | | because they were struggling with how to convey |
| sales by reaching out directly to wealthy customers. | | | | and create an experience that was rich," said Mark |
| | | | | Brashear, chairman and chief executive for the |
| Then came the recession, and out went the niceties. | | | | Americas at Hugo Boss, which introduced its |
| Department stores slashed prices on $1,200 | | | | e-commerce site in April. |
| handbags, while luxury lines fretted about losing their | | | | |
| exclusivity. Now, come September, is going retail, 10 | | | | But by the time the luxury market slid last year, |
| years after most brands opened Web showrooms. | | | | attitudes were changing. |
| | | | | |
| "I was so annoyed last year that I wished no one | | | | "An elegant, sophisticated online store with a high |
| had our merchandise," said Robert Duffy, the | | | | level of data security can be had for a few hundred |
| president and vice chairman of Marc Jacobs. "All the | | | | thousand dollars now - that's probably less than the |
| department stores were panicked, and they were | | | | legal fees to review a lease for a store on Fifth |
| marking things down." | | | | Avenue," Mr. Max said. |
| | | | | |
| Other luxury brands - Jimmy Choo, Hugo Boss, | | | | And in 2009, as the worldwide luxurygoods industry |
| Lancme, St. John, Kiehl's, Lilly Pulitzer, Donna Karan | | | | fell 8 percent, to under $230 billion, luxury sales online |
| and La Perla - have started or soon will start selling | | | | were forecast to grow 20 percent, according to Bain |
| their products through their Web sites. If it infuriates | | | | & Company, a global management consulting |
| department stores or brings in customers who might | | | | firm. Suddenly, the brands that had sniffed at |
| have earned a glare from haughty clerks, who cares, | | | | e-commerce looked rather foolish. |
| as long as people are buying at full price? | | | | |
| | | | | For the final holdouts, battles with department stores |
| "The recession forced these manufacturers to realize | | | | pushed them over the edge. Department stores |
| they needed to look for revenue wherever they | | | | ordered too much inventory for 2009 and were left |
| could," said Jeffrey Max, chief executive of Venda, | | | | with piles of unsold clothes when consumer spending |
| which handles technology for e-commerce sites. | | | | declined. The stores slashed prices - meaning less |
| | | | | revenue for the clothing makers, along with a |
| Adding to the Web's appeal, profits are much higher | | | | potential image problem when a $500 shirt sold for |
| on clothes sold directly to consumers, since no | | | | $200. |
| middleman takes a cut. And the brands can control | | | | |
| pricing and styling. | | | | And at the end of July there was more bad news |
| | | | | from luxury retailers, as new data for June showed |
| When companies started to sell items online in the | | | | that luxury department stores fared worse than |
| 1990s, most luxury brands paid little attention. By the | | | | department stores in general compared with a year |
| mid-2000s, a few high-end companies were selling | | | | earlier. |