LVMH CEO claims Amazon doesn’t do enough to prevent counterfeits
With the news that Amazon is preparing to launch a luxury fashion platform, LVMH CEO Bernard Arnault has implied that the company will never be involved, as the platform doesn’t do enough to prevent counterfeits.
In a fourth-quarter earnings report on Tuesday, Arnault said: "They use their database to connect customers to sellers and they take a percentage, which leads them — and we’re going to try to fight this on their site and on others — to sell counterfeit products".
The earnings report also revealed that revenue at LVMH’s fashion and leather goods division grew 20% in 2019 to €22.2bn.
Amazon’s new platform will reportedly give brands complete control the aesthetics of their online space, and what products they decide to sell. Approximately 12 brands are said to be working with Amazon to develop their own space, though no names have been announced.
Arnault's comments will be unwelcome as Amazon tries to convince more luxury brands to participate in its venture, however the popularity of Amazon as a fashion destination is growing among consumers.
According to TheIndustry.fashion’s monthly brand and retail tracker, The Index, Amazon Fashion is by far and away the most shopped pureplay online fashion platform in the UK ahead of fashion specialists such as ASOS, Boohoo and Very.
Our December 2019 report shows that 74% of all shoppers who had shopped for fashion with a pureplay online fashion retailer in the prior three months had bought something from the online giant.
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