Of the 32 Luxury Fashion brands tracked in L2’s Intelligence Report: Amazon, only five officially distribute their products on Amazon. In fact, the majority (59%) of luxury fashion SKUs on Amazon are third party merchant listing.
Furthermore, a large portion of the Amazon-distributed luxury SKUs brands are licensed merchandise. Calvin Klein, for example, has 11,494 products available on the e-tailer and an extensive network of licensing agreements worldwide. Outlet merchandise comprise a large portion of Amazon’s Fashion items as well; Tommy Hilfiger and Calvin Klein both have strong outlet distribution.
In sum, Amazon’s attempts to become a luxury fashion retailer have failed. LVMH has declared a “no-engagement policy” with the platform, and Burberry (who has worked with Amazon to reign in third-party distribution of its brand) has only conceded to distributing certain fragrances through the e-tailer. Zappos Couture did not make much of a buzz either, except for the hiring and resignation of former Vogue editor André Leon Talley.
Yet one Amazon fashion move has worked out well: Shopbop, acquired in 2009, has become a major online shopping destination for a fashion-forward crowd. It carries high-end brands like Thakoon, Marchesa, Derek Lam and Salvatore Ferragamo and is has a branded identity fully detached from Amazon. The Net-a-Porter acquisition – if it’s true and if it materializes – would be a similar step into luxury fashion.
For more on Amazon’s relationship with fashion, download a copy of L2’s Insight Report: Amazon Luxury Fashion: