Many retailers, both e-commerce and brick-and-mortar, have taken advantage of the internet and its growing popularity as a crucial sales channel. But it wasn't until recently that high-end retailers and luxury designers decided to go virtual. Names like Emporio Armani, Neiman Marcus, Saks Fifth Avenue and Zagliani are expanding their collections to the internet.

Now that more and more consumers have computers and high-speed internet, the luxury brands are no longer worried that a web retail channel will devalue their status. And the move to web sales also opens the brand to consumers who don't have, say, a Rodeo Drive or Fifth Avenue. According to consulting firm Forrester Research, e-commerce is expected to grow by 21 percent compared with last year, and growth in luxury apparel sales is expected to exceed that, making it a $1 billion market.--Lindsay Holloway