June 10, 2025
Key Factors Behind Prada and Chanel’s Decision to Embrace Online Retail
Traditional, luxurious brands, including Chanel, Dior, and even Gucci, were once hesitant to embrace the online world. It’s clear why they did this as well. After all, fashion is about touch and feel, both of which are hard to communicate online. Brands also fear that going online would lower their exclusivity, but this has not been the case. Quite the opposite has happened.
Maintaining Brand Integrity
When you break down the data, it’s clear that the fashion brands have followed in the same footsteps as other luxury brands. Apple, for example, is known for having high-end, tech-focused stores where people can feel and use devices and connect with the materials used. When they moved online, they ensured that their online brand mirrored the luxury present at their physical locations.
With augmented reality, high-end visuals, and close-ups of materials, they have been able to retain their position as a luxury tech brand. Paddy Power are another example. When you play roulette online at Paddy Power, you’ll notice games like American Roulette at the MGM Grand. By moving online, they have been able to embrace high-end visuals and luxurious casino settings. This elevated the experience for players and provided new experiences that would have otherwise been unavailable. This was all possible without changing the core message of the brand and what they stood for.
Other examples include the Royal Opera House in London. Known for world-class opera and ballet, they launched the ROH streaming service, which offered on-demand productions. This helped to support the luxurious aesthetic of the opera house while maintaining their presence as an elite, cultural venue.
Iconic Brands Are Moving Away from Physical Boutiques
For years, fashion houses like Prada and Chanel have been reluctant to move online. As they put such a big focus on the in-store experience, they didn’t want to disrupt their brand by going digital. With that said, brands have proven time and time again that it’s possible to get the best of both worlds, a likely motivator behind the move online. Take the Ralph Lauren Virtual Experience, for example. This allows you to step into the iconic stores in Beverly Hills and Madison Avenue, but without leaving your home. Advanced technology has made it easier to align retail with luxury branding, with AR fitting rooms becoming the norm, and AI-driven recommendations helping to create bespoke experiences.
Although tech advances are a key driver behind fashion houses going online, competition is also a big factor. Brands are being pushed to leap as people demand more convenient and accessible experiences. Even though Chanel and Prada were reluctant to do online retail for a very long time, it’s clear that they are now embracing it in full swing.
In India, Chanel launched an e-commerce store last year, and Prada has also made moves to team up with Mytheresa as their global e-commerce partner. This shows that they have taken a major step forward for worldwide sales and are fully embracing the online world, years after being reluctant to do so.