A recent article in the Financial Times shows that luxury retailers are failing to harness the potential of the virtual world. Many luxury brands still prove poor at offering personalised custom service online—a keystone of what makes their brand high-end instores. Are these brands underestimating how new technology and social networking tools can help build personal relationships and loyalty between visitors and the brand across global markets? A missed opportunity for global connectivity or protection of the luxury brand?

Therein lies the tension inherent in an online outlet: how do you expand your brand to mass consumers while retaining high-value buyers? For high-end luxury brands known for exclusivity, does an online presence make a brand too accessible to everyday Joe? The fear of devaluing one’s brand through a strong web presence has slowed many exclusive names from entering the virtual marketplace.

Perhaps, an understanding of the classic differences between Thetas and Lambdas could help marketers understand how new communication outlets like the web can tap into luxury consumer mindsets without losing hte personal attention expected in luxury marketing. By raising awareness of the brand online, marketers can draw in Thetas by creating a virtual community for various peer groups. On the other hand, by maintaining a high-end value of personal service and localised responsiveness, Lambdas can retain a sense of exclusive individuality through the luxury brand. In turn, the web can be embraced, rather than feared, by luxury retailers.