|
United Kingdom
Baby-boomers turn to luxury auction websites
Mis en ligne le 13/02/2006
Baby boomers lust for luxury goods is short-lived. When they tire of their classy, high quality goods, they won't to clear them out of their wardrobe. Portero, a luxury version of E-bay, allows them to do this and make a profit. As a secondary market for sumptuous goods develops, fashion companies consider the trend with mixed feelings. Albeit fearful of competition and fakes, there is little they can do to stop their customers selling on the Net.
Initial reactions to Portero, the e-bay equivalent of Hermes or Gucci, were negative. According to Portero chairman Michael Sheldon, sophisticated brands felt they shouldn't be sold off cheaply on the Internet. But the truth is there is a demand for second-hand luxury goods. Portero was created in 2004, trades through E-bay and meets this new demand. Wealthy baby-boomers are, according to Milton Pedraza, president of the Institute of Luxury, less attached to property: they enjoy experiences. Once a product loses its appeal or novelty, buyers want to sell it off. Furthermore, fashions today are changing even more rapidly than before. Clients are eager to get rid of unfashionable clothes and accessories. Yet classy brands had many misgivings about the emergence of a secondary luxury market. They feared Portero would reflect badly on their image. Lew Frankfort of Coach asserted that'they preferred their products to be sold in image-enhancing environments only'. Other brands were afraid the secondary market would affect sales on the primary market. Brand managers were also fearful that luxury Internet auction sites would become platforms for fake goods. Portero made authenticity a cornerstone of its marketing approach. Every item on the website is'certified and guaranteed'. This comes as no surprise given that Tiffany's sued Ebay for trading counterfeit goods or their website the year Portero was created. Tourneau, the watch retailer, will cooperate with Portero to authenticate watches sold on their site. Howrd Levitt, Protero¡s president asserted that their brand wanted to extend into the secondary market. Some brands are welcoming the advent of Portero and second-hand luxury markets. Certain consumers may be encouraged to by expensive items if they know they can sell them on a secure website once they tire of them. For Cyrus Jilla, a manager at Bain, Portero won't affect their sales because their customers want'today's hot item'and nothing else. Ultimately, most brand names accept the emergence of a secondary luxury market but hope it will be well-controlled. (Financial times, 8th February 2006, "Luxury goods create new online market")
|