There are a number of different business models being employed by new gTLDs, but there are very few aimed at the elite.
The .luxury gTLD is one aimed at the elite and looking at things a bit differently. They’re charging a hefty premium with their target market being the luxury goods and services sector, along with individuals that consider themselves a bit luxurious… or posh!
So far the response has been extremely good Monica Kirchner, CEO of .LUXURY, told Domain Pulse with the gTLD getting “really good traction”.
“We’re very happy with the traction we’re seeing,” Kirchner added. “It’s not just registrations, it’s use as well.”
During the Sunrise and Landrush phases, over 600 luxury brands including Hermes, Chanel, Versace, Gucci, Cartier, Valentino, Van Cleef and Armani secured their .luxury domain and now there are over 900 domains registered. But the numbers don’t tell the full story as .luxury domains are priced at a premium with the wholesale price, the price charged to registrars, being $400 per domain.
The price is expensive compared to say, a .com domain, but then so is a luxury property, even more so if it has a prime location such as with a waterfront.
Awareness of gTLDs is high among the target audience. The registry operator undertook some market research among high net worth individuals (income of $250,000 and over) in the US and found that over 50 percent of respondents were aware of new gTLDs. The research also found that when asked who they’d expect to find using a .luxury domain, respondents said they expected luxury brands.
Of the registrations to date, the majority are from larger brands, and Kirchner admits some are “probably partly defensive”.
But in the short term brands should work out ways to differentiate their .luxury websites from other sites. And over time Kirchner envisages big real estate brands, hotel chains and some small boutique companies will all take an interest in .luxury domains.
For luxury brands Kirchner believes that it will also help make luxury products more easily found online. But as of yet there is no historical data on how, for example, search engines will treat websites using a .luxury domain.
There should also be limited issues with cybersquatting and domaining, in part, due to the price. But the gTLD is also keen to ensure cybersquatters don’t have a place in the gTLD. It’s not something that is good for the image of the gTLD and Kirchner said they want to “make it a really safe place for brands to be”.
To register your .luxury domain, check out your favourite registrar!