The feasibility of online as a distribution channel for personal luxury goods in South Africa

Abstract

The evolution of technology and the rise of e-commerce is disrupting traditional retail models including those of luxury retailers. Luxury has been slow to adapt to this change and luxury brands are reluctant to sell online. It is thought that e-commerce is not compatible with luxury as it contradicts the luxury attributes of exclusivity, inaccessibility and unavailability. This study explores whether selling luxury online is feasible by understanding if the online sale of luxury goods in South Africa, which is considered to be an emerging luxury market, does change South African personal luxury good consumers perception of and motivation to purchase the luxury brand. Data was collected through semi-structured interviews with 13 regular personal luxury good consumers in South Africa. The study found that the South African personal luxury good consumers perception of and motivation to purchase luxury is unchanged due to e-commerce. However, consumers are found to have a low willingness to purchase luxury online. The reasons for this are not found to be specific to luxury e-commerce but e-commerce in general. The study adds to the literature on luxury consumer behaviour in South African and provides insight for luxury brand managers on the approach to luxury e-commerce