Benchmark Group held a forum on Tuesday, the 14th of December that addressed the issues of luxury brands on the internet. Till few years ago the only luxury goods on the web were counterfeits. Putting aside a long reluctance, most of the brands are now investing in a presence on the web as most of them have a website now. But as far as online advertising is concerned they all believe the Internet does not replace traditional media advertising but is complementary to other media. It allows for example to target the young, who watch less television and has a much wider reach.
The investment in the web by brands is limited primarily because the results are less clear cut than the traditional media. By comparison, the impact of television is quick and the results immediate. However many felt that any web initiative should have SEO as the priority as it is the gateway to many Web surfers.
Web2.0 appears inevitable but you must choose where to build your presence. For Antoine Lacroix of Van Cleef & Arples , the answer is simple: Facebook . Whereas the perfumer Thierry Mugler, opened Womanity.com, a community site earlier this year to have their own web 2.0. As part of this forum Benchmark Group presented the result of a survey conducted in October 2010 among 558 consumers of luxury goods and visitors to sites of luxury brands. The findings are that 8% of consumers follow a luxury brand on the internet (social media), 9% follow several, 89% think brand sites properly represent brands and their values and 83% think magazines present brands well.