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This is an archive article published on November 22, 2010

Luxury brands tailoring approach to the Web

Since Roula Ghalayini,an advertising and television industry executive in Dubai,started a second career as a handbag designer three years ago,her creations have found their way into stores across the Arab world.

Since Roula Ghalayini,an advertising and television industry executive in Dubai,started a second career as a handbag designer three years ago,her creations have found their way into stores across the Arab world.

Until a few weeks ago,however,Ghalayini had not managed to develop a presence for her brand,Poupée Couture,outside the region. That changed when she started selling her bags online through a new website called Boticca.com that was introduced this autumn. Now she has customers in countries like France and Britain,and the Internet accounts for about a quarter of her sales,which total about 60 bags a month.

“It’s not just the volume. It’s who you’re reaching out to,” Ghalayini said. “In the Arab world,word of mouth is strong,and everyone talks to everyone. In the Western world,you really need to get your foot in the door.”

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Boticca,which is based in London,says its goal is to wedge the door open for independent designers of jewelry and accessories from around the world,and match them with an equally international clientele. Like a growing number of other sites,it is aiming at what,until recently,was a neglected niche of the e-commerce business.

Luxury goods companies,which once saw the Internet mainly as a repository for downmarket items and fakes,are rushing to open online shops as new features assuage their concerns.

The use of online video and other techniques have made sites more attractive. Boticca builds a sense of exclusivity by letting users chat with the designers.

“The tools are there now to create the same luxurious atmosphere that you have in a shop,” said Avid Larizadeh,the chief operating officer of Boticca and former eBay and Skype executive. “You can come up with beautiful sites that are not just beautiful but also functional.”

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The shift was underscored last week when Google,often on the receiving end of legal complaints from brand owners that accuse the search engine of promoting counterfeiting,introduced a fashion website — Boutiques.com — with the full cooperation of a number of brands. Available in the US for now,it helps shoppers discover new looks,and directs them to places where they can buy the items.

Online sales of luxury goods are expected to rise 20 percent worldwide this year,double the rate of increase in the overall market,according to the consulting firm Bain.

While jewelry sales are expected to outperform the overall luxury market,with growth of 13 percent this year,according to Bain,online competition is growing,too. Net-a-Porter.com,the fast-growing luxury-goods website offers jewelry from big brands like Lanvin and Oscar de la Renta. Several individual brands,like Cartier and Boucheron,have recently opened their own online shops. Other Internet retailers,including Blue Nile,have carved out a niche selling engagement rings.

“There is lot of competition,and a niche market is always going to have to compete with the big luxury brands,” said Fflur Roberts of Euromonitor,a research firm.

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