The Competitive Advantage of Selling Luxury Goods Online - Essay Example

The Competitive Advantage of Selling Luxury Goods Online There has been a growing concern worldwide concerning the sale of luxury goods either online or offline (Arikan 196). Several factors among them speculation of prices as well as the exorbitant increase in the market value of most of these goods, reduction in the cost of Internet connectivity as well as improved Internet broad bands being the leading cause of these changes. Most traders currently utilize this as a scapegoat to making prices of most of these produce extremely high so as to form a clique of the rich and prosperous that strive to accept most of these over rated load and in so doing, seek control of the money markets the world over. With changing trends, more and more people also need to own these effects especially the younger and energetic members of society who spend significant proportions of their gratis time on the Internet. The web is the best strategy that can be used to promote a product to the world irrespective of their locality, but then this also has limitations. Offline selling could be an improvement when one localized business at a place of position immense importance; thus, one would argue that no Internet sales are required (Arikan 100). Context Luxury goods have for a long time often been the preserve of the rich or wealthy citizenry within society (Kepfer 209). Luxury goods often include flashy possessions such as sports utility cars, stylish designer clothes, perfumes, real estate homes, silverware and real treasures. This research is pegged on the need to determine whether it is advisable to either sell luxury goods online or offline, or have a balance in the market prices so as to stem down the abuse of overpricing these goods to suit the preserve of society. Selling these goods has often been done via the traditional means of exchange involving seller and buyer interactions in physical contact (offline) with eventual purchase of the item. However, with the inception of the digital world, these transactions are now being done online (Kepfer 102). Most of the luxury goods that are not bulky could well be sold online and shipped anywhere in the world at affordable prices, but when bulky and expensive materials such as new models of cars are involved; the dynamics drastically change and require proper analysis of the sales process. Problems, issues and challenges The luxury goods industry is a multibillion-dollar trade industry. It is often a preserve of the wealthy in society who tends to acquire anything that they deem to be treasure, and henceforth seek to have utmost control over its trade or use. It is thus a status symbol! With research indicating that most online users are the young generation, most companies dealing with luxury goods are now targeting this niche. It is quite obvious that by carrying out this research, money might be channeled toward this group and consequently affects the conservative older generation’s ways of shopping. The conservative generation purchases offline products whereas the younger generation is quite liberal and can do any form of purchase. Evidence The advent of personal computers and high-speed Internet connectivity has profoundly changed the way society carries out itself in terms of business transactions, social interactions as well as marketing and entertainment scenes. It is now convenient to sit at home (home office) and access all the relevant information that interests them by using a mobile phone or by use of a computer. This slashes down the tendencies of opting for storefront purchasing escapades. Significance of the problem If this research were undertaken, solutions to several sale and marketing problems or setbacks would be unwound. Luxury goods companies spend millions of amounts in dollars to set up physical offices and employ thousands of employees to run their daily routines, they also use significant proportions of funds in advertising agencies, the local authorities as well the central government. (Kumara & Ranjit 205) On the other hand, some of these companies spend a whopping fortune of money on internet connectivity and installation of state of the art computers and mobile phones so as to offer excellent online services to their clients as well as their would be customers. Research Stakeholders The people that would be targeted for inferences by this research include among others: Luxury goods traders; these will be materially affected since they are directly in the business. Computer manufacturers; these will be affected in terms of meeting the needs of the traders by being aware of which types of computers would be on demand. Internet companies; these people will know what and how to program their Internet services. Web designers; these people would be aware of what market needs would be required and how they play their role to address them. Consultants and policy makers within the opulence goods industry, as well as employees of these companies, would be affected too, as they would be able to determine the availability of their jobs. Most of these shareholders could be affected directly or indirectly depending on the stage of the production or sales structure that they represent. Research objectives a) The Main objective. The main goal of this study is to determine whether marketing trends favor the sale of luxury goods via online means or offline means. Conduction of this study would come up with awareness on the competitiveness of the market in the sale of luxury goods either via online or offline methods. b) Sub objectives. To ascertain the best marketing tool for use by the traders in the business of luxury goods, To provide the relevant information on where to obtain these products, at the convenience of the consumers of luxury goods Research Questions Based on the need to address the topic effectively, specific questions have to be formulated as a guide to addressing them within the research proposal. Important questions may include; How does the Internet affect market niches, is the Internet the best source for goods and services, how do online shoppers behave, what is the best option for online shoppers also what influences trends in the luxury goods industry? Research outcomes At the end of this study, an elaborate strategy on how effective marketing of luxury goods either online or offline would be developed. Policies that would be used by the entire stakeholders in the luxury goods industry to enable them actively collect benefits business would be developed. It would also seek to establish whether the current market pricing of these goods is dependent on the form of marketing and purchase, or is out of the speculations peddled by selfish traders within the industry. Research Methodology Kumara & Ranjit point out that, for one to carry out a research study, the following steps should be followed in chronology (96). First, the research problem would be extensively formulated, and then an elaborate and conclusive review of literature from books and peer-reviewed pieces elaborated. Objectives and purposes of the research would then be developed followed by collection of data extensively from chosen cohorts; computational analysis of the data would then be carried out before moving to report writing and finally presentation and submission of the work. Works Cited Arikan, Akin. Multichannel Marketing. Kendall Edition, Nebraska: Sybex.2008. Print. Creswell, John. Research Design.2nd edition, Nebraska: Sage Publications. 1994. Print Kepfer, Jean. Luxury strategy: Nebraska: Kogan Page. 2009. Print. Kumara, Ranjit. Research Methodology- A Step-by-Step Guide for Beginners, 2nd ed. Singapore: Pearson Education. 2005. Print. Read More