Why are luxury brands not marketing on Amazon? There’s a few good reasons why. Retail giants such as Walmart and Amazon have gained access to brands such as Zappos, Moosejaw, and ShopBop. However, there’s still a broad range of luxury brands that remain far away from the retail world as possible. Many brands and retailers worry about the rise in popularity of Amazon and Walmart. Those in the luxury space believe they are safe and unaffected by the threats of the e-commerce giants.
“There is nothing about the way they conduct their business or how their business process is set up that appeals to luxury brands,” says Charlie Cole, the vice president at Tumi. When you consider the retail giant’s no-barriers-to-entry model for their marketplace, it is the opposite of what luxury brands want to need for their products.
Values Would Clash With the Retail Giants
Luxury brands use their competitive marketing strategies to work on areas such as price control and regulating counterfeit items. This is an area where Amazon lacks in greatly. The website can sell jewelry items that are nearly identical to top luxury brands at a much lower price. Even Amazon’s own private label manufacture and distribute knock-offs.
Amazon allows brands to register as the sole brand owner of their products. This has helped more luxury brands to take notice and jump on board. It hasn’t stopped individual sellers listing a brand’s original product for reselling on the website. This is another great issue for these prestigious brands.
Luxury Brands and the Independent Seller
Luxury brand owners who consider selling through Amazon would also like if the website would eliminate all unauthorized marketing sales from the platform. But unfortunately, that isn’t going to happen.
While Amazon has set a few brand protections in place to stop the sale of counterfeit items, it is still low priority for the website. That’s because they want to cater to their customers’ interests in low prices and fast shipping more than meeting the demands of luxury brand owners.
While the two brands are the current leaders in the e-commerce world, Amazon and Walmart are retail experts, not luxury retail experts. They don’t have the years or knowledge and expertise in how to market high-quality products to the masses. These two companies deal with products sold for the lowest possible price to meet demands of their customers. And luxury items are not sold at a discount. It’s difficult to gain the interest of a Walmart or Amazon customer who purchases jewelry at a much lower price and entice them to purchase a brand-new Tiffany necklace or Rolex watch with no discounts applied.
While there may be a few Amazon or Walmart shoppers interested in buying luxury items, it wouldn’t’ be enough for these brands to make the switch to these online retailers. Their products wouldn’t appeal to the main target audience for the e-commerce giants. It’s a waste of time for everyone involved.
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