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Eluxury

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The correct title of this article is eLUXURY. The initial letter is shown capitalized due to technical restrictions.

eLUXURY is a San Francisco-based upmarket online retailer (owned by LVMH) which specializes in luxury goods, consisting mainly of clothing and accessories. While it was originally created as legitimate source for LVMH goods (Fendi, Dior, etc.), it was later expanded to include non-LVMH brands such as Versace. The site is particularly notable for being the only authorized online retailer of Louis Vuitton products, which are notoriously counterfeited, and sold both on independent websites and auction websites such as eBay.[1] Along with Sephora.com, eLUXURY represents LVMH's commercial presence on the internet.

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[edit] Design

The site uses a clean, uncluttered design intended to appeal to upmarket consumers. Certain brands, such as Louis Vuitton and Fendi are sold from "boutiques" within the site. This idea of "mini boutiques" was also seen at LuxLook.com, a now-defunct shopping site founded on US$35.8 million capital just months after eLUXURY.[2] The site also employs three-dimensional computer technology to display certain products[3] in an attempt to heighten the feeling of shopping in an actual boutique. Some consumers have said the site is similar to window shopping at an actual mall.[4]

A case study of the site claimed that, in order for it be successful as an online luxury shopping experience, "it was essential that the Web site run with as much elegance and grace as the products themselves."[5]

[edit] Advertising

When the site launched in June of 2000, it was heavily advertised by LVMH in fashion magazines and related style publications, such as ELLE Decor.[6] The ads tended to depict models (such as Dante Spencer), in avante-garde scenes accompanied by a multiple choice question about the scene. The last choice of each question indicated to the reader that products featured in the ad were from eLUXURY.

Many of the initial advertisements touted perishables, including Moët et Chandon, Veuve Clicquot, and even a brand of caviar owned by LVMH. The site no longer sells any of these edibles, however.[7]

The site currently uses more internet advertising than print advertising, including pop-up ads, banner ads, and e-mails sent to subscribing shoppers.[8] In 2004, professor Benjamin Edelman of Harvard University analysed the network behaviour of 180 Solutions' (now Zango) applications and and claimed that the company redirected commissions to themselves that were properly due to affiliates,[9] and additionally caused merchants to pay commissions when affected users clicked on merchant sites directly, including eLUXURY.[10]

[edit] Competition

Founded just months later, in August of 2000, LuxLook.com had a similar concept: allow online shoppers to browse "mini boutiques" of major designers on one site. LuxLook.com's designers included Loro Piana, Missoni, Moschino, Valentino, Vivienne Westwood, Versace, Paul Smith, and Etro. (The last three brands are currently sold on eLUXURY.[11]) LuxLook.com was also financed primarily by a European holding company specializing in fashion: Holding di Partecipazioni Industriali S.p.A.[12] The Bvlgari group also had a 2% stake in the company, which represented its first foray into online retail.[13] With Bvlgari's input, and that of other Italian companies, the site's total capital came to US$35.8 million.

Sluggish sales led to the close of LuxLook.com by in May of 2001, said CEO Francesco Marini Clarelli. "While we consider that the Internet may eventually prove to be a significant and viable market for luxury fashion projects, the slower than expected growth in the company's sales and the very difficult capital market environment make it imprudent for the company to continue operations," he said.[14]

eLUXURY, unlike LuxLook.com, has survived and is credited with helping LVMH continue to exceed expected growth through the third quarter of 2006.[15]

[edit] Brands

As of December of 2006, eLUXURY currently sells:

[edit] External links

Retrieved from "http://en.wikivisual.com/index.php/Eluxury"
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