Parfums Christian Dior

: the relationship between luxury brands and e-commerce

Abstract

Parfums Christian Dior (PCD) is already selling products online through its own website in three countries but not in Portugal. Considering that e-commerce is gaining more notoriety, it could be a good expansion strategy for the brand to start selling online in Portugal. The aim of this case study is to analyse the e-commerce market for luxury brands, the advantages and disadvantages of selling online and the Portuguese market and its consumers in terms of the selective perfumes and cosmetics industry. After analysing the industry and the Portuguese market, it is possible to conclude that now is not the right moment for PCD to invest in an online channel in Portugal. This is mainly because the Portuguese consumers are still attached to traditional retail channels, prefer to test the products before acquiring them and are still far from being frequent users of online channels and platforms. Besides this, the way the market is developed in Portugal makes it risky for PCD to invest in its own online store and be able to maintain a good relationship with retailers, who are the ones that sell the products to the final consumer. Despite the fact that the market is still not ready for an online store in the selective perfumes and cosmetics industry, the brand should consider investing in it in the future as the population is becoming more receptive to digital platforms and will value efficiency and convenience over the need to go to a physical store.

Date of Award	25 Jul 2016
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	João Paulo Simão Pires (Supervisor)