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Discount retail giants such as Walmart and Amazon are currently gaining access to brands such as Zappos, Moosejaw, and ShopBop. However, there’s still a broad range of luxury brands out there that remain as far away from the retail world as possible. Many brands and retailers have concerns about the ongoing rise in popularity of Amazon and Walmart. Meanwhile, those that are tucked away inside the luxury space believe that they are completely 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,” – Charlie Cole, Vice President at Tumi

Consider the retail giant’s no-barriers-to-entry model. It may work well for them. However, it is completely the opposite of what luxury brands want.

Values Would Clash With the Retail Giants

Luxury brands use their competitive marketing strategies to work in different 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. Some of these knock-off brands are even manufactured and distributed by Amazon’s own private label.

Amazon now 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 put a stop to individual sellers listing a brand’s original product for reselling on the website. This can be 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.

Amazon has set a few brand protections in place to stop the sale of counterfeit items. However, it is still a very 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 may be 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 the demands of their customers. And luxury items are typically not sold at a discount. It would be difficult to gain the interest of a usual Walmart or Amazon customer accustomed to buying jewelry at a much lower price and entice them to purchase a brand-new Tiffany necklace or Rolex watch with no discounts applied.

There may be a few Amazon or Walmart shoppers interested in buying luxury items. But 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 and it simply would be a waste of time for everyone involved.

The Marketing Professionals at V12 Strategies Understand The Current Changes in the Marketing World

V12 Strategies offers marketing assistance for your brand to help it grow and prosper. These experts know all about today’s marketing trends and are here to help make changes to your current strategy. Consult with their marketing strategists today for advice and assistance on how to improve your brand’s presence in the marketing world.