Haute technology and the rise of the e-retailer

In our bustling world of morning to night obligations-whether business or pleasure-die-hard shopping aficionados must change their method to meet their deadlines. The chic often compete for couture as it is for the most part limited edition. The common thought is, "there must be a better way." So have consumers changed the way in which they shop? In the past decade, luxury brands have entered the frenzied climes of online shopping, competing with a well-established world of discount and mid-range brands for market share. Because luxury brand retail is absolutely identified with service and quality, their websites have to be as service oriented and as user-friendly as their retail venues; the brands speak for themselves. Rising above the average e-tailer is the 2008 Luxury Brand Status Index number one online luxury retailer Net-a-Porter.com. The enthusiasm for this site may be attributed to its accessible usability and "truly unique merchandise." Other consumer comments about this site, according to The Luxury Institute, include, "fashion forward items pulled together in new and current ways." Ranking second in this category is Vivre.com and third is Yoox.com, both proffering cutting-edge brands and generous discounts on items by such au courant designers as Stella McCartney, Kohzo and Michael Kors. Unlike the myriad websites that support the retail stores, this newest iteration of websites provides branded, signature styles in terms of the designers and types of items being sold. In addition to fashion, Vivre.com sells furniture and home accessories, making it a virtual department store, albeit more in the mode of a Henry Bendel's than Macy's. The Hitwise Retail 100 Index reveals that online shopping is up by more than 10% over this time last year, and by more than 16% over 2006. Moreover, this retail activity largely falls within the polar ends of the shopping spectrum. On one end consumers are gravitating toward sites that help them compare prices across multiple shopping sites, such as Shopzilla, Shopping.com and Pricegrabber. These "comparison shopping engines" as a category have increased nearly 60% over 2007. Term usage in the online retail sector's search engines is also telling. The volume of searches that contain terms like "new" or "brand new" is sharply declining. Queries containing the word "used," are up by nearly 22% over the beginning of this year, while popular online classifieds site Craigslist.org is up nearly 94% comparing the week ending May 31, 2008 to the same time period in 2007. But while the Internet's allure has proven irresistible to the thrifty consumer, its charms appear no less captivating to the luxury shopper. The boom mentality in online marketing has finally reached the luxury markets. The results are exciting sites with more opportunities than ever for top luxury brands, as well as up-and-coming designers. Moreover, supporting the e-tailers and retail websites are a host of luxury lifestyle e-publications. They are attracting a whole new category of advertiser, in addition to traditional retailers, luxury brands and services. So as the economic cycle shifts once again, some retailers will survive, some will not, and the smart ones will find new and creative ways to enhance their brands and make them even stronger. Luxury brands in NYC are being supported locally and by a steady influx of foreign consumers taking advantage of the favorable exchange rates. But the biggest shift in luxury retail is the popularity of e-tailers marketing premium brands and designers. Fortunately for New Yorkers, luxury goods buyers demand exceptional service and personalized care, which can only be attained in-store, albeit supported online. There may be a bumpy ride in retail for the moment, but Madison Ave., Fifth Ave. and SoHo should continue their rides on smooth trails. Regardless of whether the shopping takes place on Madison Ave. or at an outlet mall, its universal appeal has largely to do with its social, interactive nature. Enter "social shopping," which combines social networking with e-commerce. Social shopping sites create an online experience that replicates shopping with a group of friends, aiming to give e-shoppers a similarly interactive, personal and communal experience. The self-proclaimed first and largest of these sites, Kaboodle, which was founded in 2005, attracts eight million monthly visitors, as well as a half million registered users who have created links to four million products. In a bold move, Cartier has led the luxe pack by teaming with MySpace.com to develop a new, younger audience by combining networking, entertainment, and marketing. Chanel is the first major fashion brand to have its own iPhone application featuring the most recent fashion show video as well as glam photos and up to the minute news. Style.com will be launching an iPhone application just in time for New York fashion week. Whether shopping at home in the middle of the night, watching a fashion show at the airport or wanting the goods from a full trip up Madison Ave. with the click of a mouse...the time is now. Happy Shopping! Faith Hope Consolo is the chairman of Prudential Douglas Elliman's Retail Leasing and Sales Division, New York, N.Y.