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October 11, 2012

FT: Should luxury brands throw their lot in with Amazon?

By Spear's

Big fashion brands are fretting over whether to offer their wares on Amazon as its move into clothing forces them to decide if the website is a lucrative new sales channel or a threat to their prestige

Big fashion brands are fretting over whether to offer their wares on Amazon as its move into clothing forces them to decide if the website is a lucrative new sales channel or a threat to their prestige.

The online retailer wants to conquer fashion, but while its low costs and high technology have helped it sell everything from microwaves to nappies, they may not work in an area where brands are cherished and expense signals cachet.

“This is a hot, hot issue,” said Hana Ben-Shabat, an AT Kearney consultant who advises fashion brands on ecommerce. “It’s a dilemma because Amazon is the largest online store. You’ve got an opportunity to be part of that. But you ask yourself: ‘Do I want to be in the place where people go to find deals on shampoo, books and groceries? Do I want to be part of a basket?’”

To read the full story visit ft.com

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