Despite a worldwide growth in internet sales in almost each industrial sector, many providers of high-price merchandise don’t use the internet as a sales channel. Most of them operate a website but rather use it to provide product information than to sell goods (only 32% do have a web shop!).

In cooperation with Walpole, the research institute Forrester held a survey of British providers in the industrial sector of luxury goods. 178 retailers and producers of premium and luxury goods and 20 managers of luxury brand names were interviewed.

36 % of the participating companies concede not to sell on-line. Their website is rather designed to provide their customers with company specific and brand information. A searched product will exclusively be bought in physical stores. 32% of the participants believe that online sales is not in accordance with their brand and sales strategies. Only 2% of them ever tried to introduce a web shop, but failed.

Forrester concludes that these providers miss a big chance because also their target group uses the internet on a regular base and purchases luxury goods on-line.

Those providers who identified the ecommerce world as a profitable one sell their high-priced products at an average online turnover of about 12% a year, rapidly growing. For the following five years a percentage of 111 is expected.

Source: http://www.marketingonline.nl, June, 3 2008