The influence of e-commerce on the financial performance of luxury companies: the case of Christian Dior Couture

Extraits de la thèse

[...] Second, luxury products are often synonymous with excellence. Quality is never an option, it must be observed in manufacturing characteristics such as raw materials, standards and know-how (Fraser, 2014). Luxury items are usually handmade. This is explained by the fact that luxury is a social phenomenon in a society led by human beings. The relationship between craftsmanship and luxury has always existed. Highly skilled personnel, time and very expensive materials are the necessary conditions to produce craft items that only the wealthiest can afford. [...]

[...] It is this evolution of consumer perception that guides the evolution of luxury e-commerce. According to Schwamm, if brands do not adapt quickly to this new paradigm, they would be threatened with extinction. This is all the challenge of the evolution of websites and the strategies of digitalization of luxury brands. This trend was apparent in Polo Ralph Lauren, during the first half of 2017 the American chain saw its sales in the department stores fall by 26% and this decrease was also observed in their own stores. [...]

[...] Indeed, how communicate the history of the brand and what makes its DNA and all its uniqueness? How create this personal connection and the emotional experience that results from it? Some people think that videos and new technologies (such as virtual reality helmets, for example) can help to take this step but nothing has been verified yet. Also, a particular challenge lies in the precise description of the product on the site: in terms of exact colors, fit, touch, feel. [...]

[...] On one hand, luxury adopts a strategy that can be considered too conservative by only engaging moderately compared to other areas. On the other hand, the Internet does not respect the very specificity of luxury by pushing it to comply with its codes and procedures. Thus, we will study what makes this duality and the strategic aspects that come from it. Luxury brands face considerable challenges when it comes to selling online. The first and probably the most delicate is their brand image. These brands are by nature opposed to e-commerce. [...]

[...] The two managers agree on the potential of e-commerce at Christian Dior Couture. Indeed, they both indicate a positive balance but with improvements necessary to continue to evolve in the right direction. Notably François indicates a need to recruit specialists in the field in order to grow when Marie sees in the competition of the delivery service an interesting opportunity. Finally, when we talk more precisely about the financial performance of commerce, François is categorical and talks about performance improvement and how the commerce is becoming a lever of financial performances when Marie puts more restraint in his statement by indicating that the financial performances of e-commerce is in strong development but maybe not enough to make it a major level of financial performances. [...]