LVMH Moët Hennessy Louis Vuitton has made it clear that there was “no way” it will do business with Amazon anytime soon. Amazon, which currently boasts a roster of “accessible luxury” brands, such as mainstream collections from Michael Kors, Calvin Klein and Kate Spade, has been on the hunt for more high-end brands, and if LVMH’s statement is any indication, this will be a tough one for the Seattle-based e-commerce giant.
As LVMH Chief Financial Officer Jean-Jacques Guiony told investors in a conference call on Tuesday, the conglomerate, which is parent to Louis Vuitton, Givenchy, Celine, Loewe, Dior, and Marc Jacobs, the two just are not a good fit. In particular, Amazon is not the appropriate platform for its luxury brands. “We believe the business of Amazon does not fit with LVMH full stop and it does not fit with our brands,” Guiony said on Tuesday. “There is no way we can do business with them for the time being.”
While Amazon boasts an incredible reach thanks to its 310 million active customer accounts, such promise is heavily weighed down by the widespread amount of counterfeit goods constantly being peddled on its site, which – to date – have largely gone unaccounted for. When it comes to brands, such as Louis Vuitton, for instance, which holds the title of the world’s most valuable luxury brand, such platforms pose far more risk than reward. And until Amazon can change this, it will have an extremely hard time convincing any luxury brands to sign up.