What are luxury fashion products? Firstly, it should be expensive. Then, they are not necessary goods and the demands of goods are based on purchasers’ wealth. Finally, these products must keep up with fashion. In recent years, online shopping has become a fashion trend. Most people choose to purchase products on the Internet. However, what effect will be happened when luxury fashion products combines with e-commerce. There are advantages and disadvantages of purchasing luxury goods by e-retailing as follow.
For the e- retailer
As we known, renting a shop or store is very expensive in current years, especially in the city centre. New Bond Street is now the most ...view middle of the document...
Most of them are fond of going shopping on the Internet. If the luxury fashion brand set up e-commerce, the demands could be increased dramatically. As a result, the brand may own competitive advantage services.
For the consumer
Firstly, consumer may save time. The reason is that, mostly, people spend at least half of the day going shopping and need to carry a lot of bags alone which is very waste time and physical power. They process few steps and only take few minutes if consumers use e-retail. For instance, according to Burberry e-retailing, people only click the finger to complete trade which involved in select products, addresses, shipping and gift options, payment and order confirmation. So, consumer may improve the efficiency and use the time to do more sufficient works. Also, we mention in early paragraph, consumer may face huge variety of products. In addition, the products often sold out when consumers want to buy in the branch of stores. That is why the store may not transfer the product in time when the product sold out. E-retailing may not face the problem because the website may show how many products available clearly. Last but not the least, consumer may receive up-to-date information promptly. If you have registered account in the fashion brands website, they may often send you email of their new products. Consumers do not need to read magazines or newspaper to know the new edition.
For the e-retailer
First of all, there is very high capital investment and ongoing costs when the company decides to create the new services. The reason is that setting up a website may require an information techniques expert whose salaries should be high. The expenses of company may be increased. Additionally, there are a lot of hidden costs of running an e-commerce site. Firstly, initial site development which includes graphic design, shopping cart software, getting your products loaded. Secondly, you need to maintain security system. How do you keep the bad guys out? These all need to consider methods to solve and spend the large amount of cost and time. Also, the company needs to establish a new department and have a lot of complex logistics, for example, global deliveries, returns, exchanges and refunds. These services have to recruit some staff to do specific jobs. Moreover, if consumers go shopping in the shopping mall, they often have impulse purchase. This is why salesclerk may promote the product and motivate consumers’ desire of purchase. However, online shopping may be consider longer time and select again and again. Therefore, this part of sales may decrease.
For the consumer,
Firstly, some people may steal the card information when you shop online, this may cause consumers’ money are stolen by the internet. In another case, people may not receive products while they pay the money. These both are very dangerous things and may create serious financial difficulties. Secondly, the delivery products sometimes...