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Saks Fifth Avenue, the upscale brick-and-mortar retailer, is experimenting with short online “private event” sales as means to compete with increasingly popular high-end discount websites.

Saks' new offering, called "Fashion Fix," comes as the luxury department-store chain struggles to find new sources of revenue in the current economy.

Though luxury retailers have traditionally been slow to adapt to web-based sales and maketing tactics, a recent Bain & Co. report projects 20% growth in overall online sales of luxury goods in 2009. This compares with an 11% drop of overall global sales of high-end clothing – and indicates a need for Saks to adapt to changing consumer market demand.

Saks chief executive Steve Sadove said last month (via Reuters) that reduced inventory levels in the luxury market would result in significantly less discounted merchandise this holiday season. Last year, the chain was forced to cut prices on certain items by as much as 70% in early November, and risked losing cachet as a result.

Specially Designed for Online

However, the items Saks is now featuring in its online sales are off-season or specifically designed for the special events, meaning they should not diminish demand for higher-priced, in-season store and online items.

Last week, Saks launched its 36-hour sale exclusively for customers who received an e-mail invitation from the company. Saks said it is planning another "member-only" sale later this month.

Member-Only Discount Sites

Member-only discount retail sites such as Gilt.com and RueLala.com have become increasingly popular in the US in recent years, and have fueled consumer interest in name-brand designer overstock.

The sites, which are effectively online versions of sample sales, offer a sense of exclusivity by limiting their e-mail and text message notifications of sales to members only.

In addition to being extremely popular - RueLala.com has 1.5 million users - the sites are highly valuable. The parent company of RueLala.com, Retail Convergence Inc., last week sold itself to GSI Commerce Inc. for up to $350 million.

Gilt.com, which has 1.6 million users, raised $40 million in funding in July, putting the company’s value at $400 million.

Luxury Brands Turn to Web

In a departure from previous practices, luxury brands are increasingly turning to the web for advertising, according to a marketing study conducted by NYU Stern School of Business.  The report found that 66% of luxury brands now advertise online, compared with just 33% of those same brands a year ago.

Last week, the high-end French brand Lacoste announced that it would transition all of its US ad spending to digital, Forbes.com reports.

Lacoste, which targets the 18-34-year-old demographic, said that it will now spend its estimated $12 million annual US ad budget on display ads on sites such as Facebook, Hulu, Pandora, and Condé Nast’s websites.

Social and Mobile Opportunities

Luxury brands are also taking advantage of social media and mobile opportunities.

High-end jewelry maker Tiffany & Co. now has a MySpace page, while Estée Lauder just launched a virtual makeup widget that users can download to their social media page or desktop.

Ralph Lauren was the first high-end retailer to introduce a mobile commerce site last year. The apparel maker began placing special codes in print ads, mailings, and store windows. After downloading special software to camera-enabled photos, users can scan the codes and be directed to the retailer's mobile website where they can shop and access other content.

The company also launched an iPhone app late last year that features the retailer's latest fall and spring lines, backstage video montages from runway shows, a search tool for store locations, and a personal shopper contact option.