Luxury retail heads for the Internet

NEW YORK, Nov. 10 (UPI) -- High-end British clothes maker Burberry, famous for trench coats, is establishing a presence on the Internet, a move increasingly popular among luxury brands.

Burberry has launched social networking site called artofthetrench.com, The New York Times reported Tuesday.

Luxury brands have largely avoided the Internet, which is perceived more of a discounters' paradise than way to solidify brand identity, the Times said.

With luxury sales dropping 8 percent this year, some high-end companies are turning to the Internet.

They fear brand dilution, but also fear being left out of a growth opportunity.

Salvatore Ferragamo said it would establish and online store within a year. Prada, Bulgari and Faberge have already done so.

"It's our differentiator. It's not so different from what competitors do. Maybe one was born from shoes and another from luggage; we come from a coat. It's our job to keep that category hot and cool and relevant for all ages," said Burberry Chief Executive Officer Angela Ahrendts.