LVMH Says ‘No’ to Selling on Amazon
The luxury retail group LVMH said there’s “no way” it will do business with Amazon. Amazon has said that it wants to sell more high-end product on its marketplace, but LVMH doesn’t think it’s an appropriate place for its luxury goods. Currently, Amazon sells “accessible luxury” brands such as Kate Spade and Michael Kors.
Total Retail’s Take: Luxury brands such as LVMH are concerned that Amazon’s product presentation and discounts could damage their brand reputations. In 2010, luxury retailers such as Chanel and Richemont fought for the right to refuse partnering with certain websites over pricing and counterfeit product concerns. Sales have been stronger than expected at LVMH’s flagship brand Louis Vuitton, so this seems like a smart move … for now.