In this Reuters video, Lily Jamali interviews L2 Researcher Mabel McLean about brand relationships with Amazon. When leading L2’s Intelligence Report: Amazon, McLean found that Prestige brands can have a variety of relationships with the e-tailer. Some such as Tumi, Kate Spade, and Cole Haan officially distribute on the platform whereas others have taken a standoffish approach. Tiffany & Co. and Hermès have stroked agreements with the retailer restricting third-party sellers from listing their products.
One of the surprises was Chanel, who went against its image as a traditional brand to work with Amazon and reduce its Beauty SKUs on the platform from 400+ to less than 20. Another was Dior, who had thousands of SKUs available on Amazon despite LVMH’s no-engagement policy with the e-tailer.
While distributing through Amazon does not necessarily equate to gray market cleanup on the platform, some brands (L’Occitane, Burberry) have managed to strike agreements exchanging distribution for third-party listing restrictions. Often, these brands are in categories in which Amazon wants to grow, and must offer an incentive for brands to participate. See full video here.
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