- With the growing acceptance and usage of the internet and online shopping, people are now more likely to turn to the internet for whatever they may need. This includes luxury brand and products. There are various online stores that are selling luxury brands but now luxury brands are taking the matter to court.
- According to luxury brands, their entire business is based on the fact that people covet their products which are not widely available hence with their products being easily sold online; the entire image of their brand as being hard to attain is ruined.
- To combat this business online which makes their worth fall, luxury businesses have taken the matter to court. A case by Cory, the German subsidiary of a US brand was heard in the Court of Justice of the European Union in Luxemburg.
- The brand claimed that their brand was being adversely affected since online retail companies were constantly selling products online which were by the brand. This affected the desirability and accessibility factor of their brand which was meant to be kept as very hard to come by brand and products.
- Online retailing giant e-Bay also gave a statement about luxury brands wanting to ban business online from selling their products, saying that this ban would encourage an atmosphere of lesser competitiveness and choice for the customer. This was anti-competitive and should not be allowed since it was a free market.
- But luxury brands are not backing down and want online companies selling products online which are by their brand to stop since it was ruining the brand’s image.
- While some luxury brands are accepting the age of the internet and offering their products online, a lot of brands still resist and keep their product lines limited to their stores. This is because they think with an online store for the luxury brand, their business online will ruin the image of exclusivity around their products and brand that they have cultivated. The fact that anyone can purchase a product by the luxury brand on their website irks them since luxury brands are solely successful on their hard to attain characteristic.
- Some brands however, have started to enter into exclusive deals with websites that sell luxury brands under one umbrella company. This makes their brand available to a wider number of people while still maintaining their image since only a single site is allowed to sell their products.
Other articles than can be interesting for you: