Image courtesy of Amazon Fashion
While Amazon continues to grow, its penetration into the most affluent households has decreased over the past year, according to new research from the Shullman Research Center.
Luxury brands continue to ostracize the retailer, worried that its counterfeit goods and tendency to discount would hurt the brand too much to justify the revenue increases. Nevertheless, affluent classes? growing affinity for the marketplace provides a provocative counterpoint arguing for its eventual integration into the luxury industry.
?[The relative threat of counterfeit goods versus selling merchandise on Amazon] really depends upon the clout of the luxury brand and the deal it can negotiate with Amazon,? said Bob Shullman, founder and CEO of the Shullman Research Center. ?My current take is that Amazon really wants to sell merchandise with high dollar margins (luxury type items) and then take their percentage cut of the sales price. ?But for the brands to sign up with Amazon, there can be no unilateral discounting by Amazon,? he said. ?It?s got to be a relationship with the brand having ultimate control.
?Plus there needs to be an agreement on what other merchandise gets shown next to the luxury brand?s merchandise. Last but not least, Amazon has to address the counterfeiting issue.?
?Is Amazon Coming Into Its Prime"? data was gathered through a survey of 1,690 consumers and 1,078 interviews of consumers across four different income levels in roughly equ...