State of Lux

Luxury businesses are feeling the effects of the economic downturn (although to a lesser degree in China) with growing job losses and plummeting consumer confidence. This has translated into cuts in retail spending; so many in the luxury brand category are looking for ways to reach the consumer in a more cost effective way. In a departure from traditional marketing practices, luxury brands are increasingly turning to the web for promoting their wares as well as seeking out new audiences that would rather chat online and read the BBS’s than turn to more tradition marketing forms such as newspapers and magazines. The problem is that although luxury brands all have web presences now, many fail to realize the full potential of this medium.

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