“To Site or not to Site…” – not by William Shakespeare

By Bob Berger

To site or not to site, that is the question for very high-end retailers. Should they use Web channels to sell their products? Here are a few bi-polar thoughts on the subject. We welcome your comments.

The brand must be protected

Whether clothing, jewelery or art, the brand must be protected. At the high end, this supports the WNOK (Web Not OK) position. Putting more product out there dilutes the exclusivity features of the brand. Companies such as Gucci, Zegna, and Chanel, for example – all of which have their own brick-and-mortar stores – have their own Web sites, but don’t sell their products on the sites. Dior allows customers to order product, but only by dialing a toll-free number. Hermès appears to allow customers to register online and order directly from the Web in the US only.

Increased sales at higher margins

One could argue that, in these tight times, the additional sales generated by the web will provide additional sales and better than store net margins. This additional revenue can be used to preserve valued employees, pay the rent and increase the value of the enterprise, particularly if it is interested in merger or acquisition. This is an argument for WOK (Web OK).

Selling through other eCommerce channels or "What will people think?”