Amazons struggle fashion and toilet paper

Fashion brands retain brand integrity by ignoring Amazon’s culture of quick deals


As Amazon increases its fashion efforts, leading luxury brands continue to ignore the marketplace as a worthwhile venture.


The marketplace has made its fashion ambitions clear since 2012: sponsoring Met Galas, fashion weeks and Vogue fashion funds, building a Brooklyn photography studio, hiring a former Vogue editor to head-up fashion editorials. However, despite Amazon’s aggressive efforts it has failed to attract the fashion brands it covets.


Designers like LVMH shy away from associating their brand with a marketplace that pushes the fast delivery of toilet paper.


“Top luxury brands — like ones of the LVMH group — have the benefit of an audience that doesn’t necessarily want to buy a luxury handbag in the same transaction as their laundry detergent,” said Tamar Koifman, head of sales and marketing at LVMH.


Current LVMH CEO Jean-Jacques Guiony informed investors that the digital strategy for its brands, including Louis Vuitton, Givenchy, Céline and Dior, would not include the Amazon platform given its current state.


Even those luxury brands that join Amazon, do so tentatively. Michael Kors, Kate Spade and Calvin Klein only allow certain items to appear on Amazon. But a quick Amazon search of these products will show one of the issues with Amazon for luxury brands i.e. price control.


“The problem is price discipline and neighbors,” said Luca Solca, managing director of global luxury goods at Exane BNP Paribas. “Luxury retail is all about maintaining prices and selling side by side to peers. Amazon, by contrast, is keen to beat competitors on price and does not have a ‘high end’ dedicated space.”

eShopWorld Insight:

Luxury brands are increasingly turning away from Amazon, as the marketplace grows it struggles to make a name in fashion. Brands want to retain brand integrity, control prices, and create a customer experience in line with brand standards. These are things which Amazon cannot reliably deliver. Luxury brands, wanting to create a brand-worthy UX experience from website to returns, need to work with an eCommerce solution which can be customized to their specific needs and markets.


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