Luxury Brands Can't Avoid the Internet Any Longer

Lucie Greene says she would have dropped $3,000 on a Céline Palmelato handbag if the French label sold merchandise online. The 33-year-old, who heads worldwide trend forecasting at marketing shop JWT in New York, saw the purse in the brand’s London store. But when she looked online, she saw Céline sold it only in stores. Since then, she’s checked out pricey bags by Saint Laurent and Victoria Beckham that can be bought with a couple of clicks. Says Greene: “The inconvenience is making me consider other options.”

About 40 percent of high-end brands don’t sell via the Web, estimates consultant Bain. Chanel, for one, says it doesn’t sell such merchandise on the Internet because it detracts from the physical store experience, which includes fashion advice and alterations. It does sell cosmetics online.