Louis Vuitton owner won’t do business with Amazon
Louis Vuitton will not be doing business with Amazon anytime soon.
French luxury goods conglomerate Moet Hennessy Louis Vuitton (LVMH) controls around 60 subsidiaries, including Louis Vuitton, Christian Dior, Marc Jacobs and Fendi.
But while other competing brands such as Michael Kors and Calvin Klein are selling their wares through Amazon, LVMH isn’t so keen at this stage.
LVMH chief financial officer Jean-Jacques Guiony says that the company does not believe the Internet retailer is an appropriate platform to sell its high-end offerings.
“We believe the business of Amazon does not fit with LVMH full stop and it does not fit with our brands,” Guiony told investors, according to Reuters. “There is no way we can do business with them for the time being.”
Based in Washington, Amazon is the largest Internet-based retailer in the world by total sales and market capitalisation, and sells books, video games, furniture, food, apparel and toys. Of late, Amazon has also attempted to diversify into fashion and jewellery retail, even launching its first Amazon Fashion TV advertising campaign in Europe last month (Sep16), as part of its ongoing bid to break into the market. The advert, which features the tagline 'Delivering Fashion', sees models dressed in clothes available on the retail giant’s website delivering Amazon-branded parcels to homes.
But big name labels remain apprehensive about the concept, voicing concern about how the means of presentation and discounting may harm their brand.
Though the decision not to engage with Amazon doesn’t seem to be impacting LVMH’s business, with the company’s shares jumping by as much as 5.7 per cent on Tuesday (11Oct16), after the group reported higher than expected third-quarter sales - which were driven by strong trade at Louis Vuitton and demand from Chinese customers.