29 Jun 2010, Posted by admin in Fashion, 1 Comments

prada gets around to launching e-commerce for US market july 1

It’s almost hard to believe that in mid-2010 Prada (one of the most powerful luxury brands in the world) is just getting around to launching e-commerce for the US market. It almost feels like a farce to be writing about this. But alas, it is true (and I suppose better late than never) but to say this brand has missed the boat on this one would be the understatement of the year. I hate to be critical of Prada (I am a huge fan of practically everything the label touches) but I can’t help but think back to my high school days, when I was desperate to be in fashion, when I would visit Prada.com or MiuMiu.com hoping that the company would enhance these sites (I have no doubt I was not alone). It never happened, and for years these two sites simply had a JPEG image of the latest ad campaign. So, what took this luxury powerhouse so long to join the internet revolution? Here are some conjectures:

1. It’s A Scary World Wide Web– In the early days of the internet many luxury brands were slow to join the web, saying that they were waiting to see how the internet would develop. Gucci launched e-commerce in 2006 (and the Gucci Group’s other brands like YSL and Balenciaga have all since set up e-tail businesses). Net-a-Porter, which launched in 2000 has been consistent in proving that people do buy luxury on the web, everything from Balmain jeans to Roland Mouret dresses. So while fashion brands certainly weren’t the first to join the web, practically everyone has gotten into the game at this point, making Prada’s late arrival all the more embarrassing for the company.

2. Let’s Wait Till the Internet Catches Up To Us– I have heard from a lot of executives at luxury brands that they have long understood the importance of the internet, but they were waiting for technology to catch up so they could set up a site that would stay on brand message, be fun for consumers, and most importantly scream luxury. This was undoubtedly on the minds of Prada executives and clearly factored into their decision to launch e-commerce now.

3. It Might Diminish Our Brand– Another thing I have heard from executives that is far less compelling is that their reasoning behind avoiding the internet is that it lacks exclusivity and would thereby diminish their brand. To that I would say, perhaps you should better understand today’s luxury consumer–they exhaustively research purchases and have a heightened awareness of luxury goods. Not having a rich website is more likely to conjure up the response of ‘What is this company hiding?’ than the desired ‘Wow, so exclusive!’

4. Tried and True Wins the Day–Let’s face it, fashion companies are slow to evolve and change. They often rely on the tried and true. I can’t believe the number of times I have read an article mentioning that Diane von Furstenberg doesn’t even know how to use e-mail. Could Indra Nooyi, Pepsico’s Chairperson and CEO get away with that? Absolutely not. But in fashion, for some reason, it is behavior that flies.

5. Distribution Poses A Problem– Possibly one of the most legitimate reasons that companies have for avoiding e-commerce is that it involves setting up a new and complex distribution model. However Yoox.com, which got its name selling discount designer merchandise has quietly been handling the e-commerce and distribution for brands like Giorgio Armani and Marni (to name a few) for years. Really when it comes down to it, when there is a will there is a way.

Why do you think it took Prada so long? Weigh in, in the comments section. Would love to hear your thoughts.

–Leah Bourne