Study shows luxury brands warming to e-commerce

After years of turning up their noses at the internet as being suitable for only mass-market brands, marketers of premium products are finally waking up to the opportunities it offers, according to new research.

Marketing agency BLM has found that in 2003, 32% of premium brand buyers looked to the internet for information and to make a purchase: but in 2005 this had increased to 67%. BLM expects this figure to grow to 85% by 2010.

The research was conducted by BLM Red, BLM’s recently acquired luxury and premium brand marketing specialist subsidiary, and BLM Quantum, its online division.

According to BLM, online will have a 25% share of all retail spend by 2015 as more consumers choose to shop on the Web and more companies increase their investment in digital media and e-commerce.

The research estimates that online retail sales for 2006 will reach about &£33bn and surpass &£60bn by 2010. In 2000, only 1% of retail sales were online.

BLM Red says that internet spend for the luxury and premium goods sector will grow at a higher rate, as premium brands rush online.

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