The <b>Amazon</b> Luxury Dilemma | RetailTechPodcast

The Amazon Luxury Dilemma

Gucci owner Kering, luggage maker Tumi and Louis Vuitton parent LVMH are among those companies that have declared that their luxury products will not be found on Amazon. More luxury goods would no doubt help Amazon boost loyalty among customers of Amazon Prime, its premium service favored by higher-income shoppers. The challenge for luxury brands is how to effectively leverage the popularity of Amazon while simultaneously protecting and nurturing the perception and integrity of their brands. "The world has become a lot more transactional. People look at Amazon as a place where they can get anything, regardless of price point. They understand that Amazon is a marketplace and is transactional-it's not a boutique. If people want outstanding customer service when they're buying a product, they're going to go to a store." There are specific efforts marketers of luxury brands can take to leverage the benefits of selling on Amazon without risking damage to their reputation. Some higher-end brands have taken even more dramatic steps: Jonathan Adler, for example, sells its Now House line of home furnishings exclusively on Amazon, giving the brand the ability to completely customize how its products are presented and positioned for Amazon shoppers specifically. "But if you're Rolex, you can't skip Amazon just because you're selling $10,000 watches. The fact of the matter is that if someone knows the exact Rolex they want, they know roughly what it costs, there's a chance they're going to go to Amazon and buy it." Read more