European eTailer Lastminute.com has launched an ‘adult fun’ store.
European online retailer Lastminute.com has launched a new ‘adult fun’ section on its website, which includes sex games, pornography subscriptions and other adult paraphernalia. The addition comes as part of a major relaunch of the site.
There is undeniable revenue potential in erotic content – Datamonitor estimated the market at $1 billion in 1998, and it accounts for 70% of online revenues to date. Lastminute’s core travel business operates in a highly competitive market, with increasing competition from European airlines’ Opodo portal; hence attempts to leverage its brand name and diversify into other markets makes business sense.
However, many eCommerce firms have faced difficulties when attempting to spice up their product range. Yahoo! was forced to close its ‘Adult and Erotica’ store in April after complaints from family and religious groups; the company feared the possibility of losing customers and advertising revenues.
Lastminute’s venture should be more successful. One factor is that unlike Yahoo! and AOL, the company is targeting a specific customer niche: young professionals with few commitments. Even if only a small proportion of these customers buy these products, its remaining customers will be less likely to be put off by the company offering adult items.
In addition, Lastminute is not attempting to offer a full online pornography service, which is perceived by many as unpleasant. It’s marketing its adult products, rather, as joke presents or as fun items for couples. As co-founder Martha Lane Fox said, I think sending someone a pair of furry handcuffs would raise a smile.
The adult sector is an opportunity that Internet companies could explore, especially if it fits within the company’s existing business niche or customer profile. Many major online retailers are already active in the sector, with Amazon.com offering items such as The Strap-On Book. As long as online retailers stay on the ‘fun’ side of this service offering, the opportunity remains for them to capitalize on this potential commercial bonanza.
