These high-end brands are a little hesitant to sell on Amazon mostly because it is known as a "discount store". They are afraid that it will hurt their brand image. If consumers are looking to buy a sweater online, they would see a $300 Ralph Lauren Polo sweater right next to a $30 no-name sweater. This helps consumers with providing a cost perspective in their search to buy a sweater. Not to mention, consumers can't even feel the fabric to test out the quality or feel of it. It gives them too many alternatives to choose from.
In this day and age, people have alternatives wherever they go. For example, if i'm looking to buy these Ralph Lauren Heels
that cost $695.00 on the RL website, I could easily search on Amazon for the same style for less $$$.
However, online shopping is becoming more and more prevalent in today's society, and I think the high-end brands need to jump on the trend or their competitors will. They need to trust their brand image and engage in the sweep of the clothing market by Amazon.
If Ralph Lauren is able to reserve some sort of control on how their merchandise is displayed on the search page, I think they should definitely start selling on Amazon. Ralph Lauren is a trusted and well-established brand, and it should be able to sustain customers interests no matter which portals shopping will go through. If high-end brands keep this mindset, they can definitely profit from it.
More people seeing their product = more $$$.
For the companies you mentioned - Ralph Lauren, J. Crew - I think there is a certain amount of brand loyalty from the consumer that justifies placing products in direct competition with similar, competing items that are 50% cheaper. If I already know the in-store retail success of my product, then I'm trusting that its online reviews will be similarly favorable.
ReplyDeleteLook at Ray Ban, near the top of the line for designer sunglasses: http://www.amazon.com/Ray-Ban-RB2132-Wayfarer-Sunglasses-Black/dp/B003JFUVFC/ref=sr_1_1?s=apparel&ie=UTF8&qid=1393780525&sr=1-1&keywords=ray+ban+sunglasses. 2,200 customer reviews on a $80 pair of shades, averaging 4.5 stars. Are there cheaper alternatives? Absolutely. But I'm banking on the fact that past customers will return based on their positive experience with my company, and that they will leave reviews that will persuade potential customers to pay a little more for a superior product.
There really is no justification for not putting your product online, even if you are a high-end name. The likes of Gucci and Michael Kors are succeeding, why can't others?
I agree that if Ralph Lauren or other high end brands do not compete in Amazon's market then their closest competitors will. There is no dispute that online shopping for clothes will continue to be a growing business. As delivery methods become more efficient and options grow more people will opt to shop from home. Amazon already offers a one stop shop essentially, so if someone could buy groceries, books, and camping gear, why should not they not eb able to buy Ralph Lauren shoes. This will be an interesting issue to keep up with, and see how Ralph Lauren, and similar companies, enter the Amazon market while also maintaining their brand's high end image.
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