All posts filed under: Essays

One of the most intriguing business dilemmas I’ve encountered recently is the conundrum of how luxury brands should think about their relationship with Amazon (and its subsidiaries Zappos and Shopbop). The “core” global luxury market – personal goods and services – is a $250 billion global business with an increasingly anemic growth rate. Amazon, on the other hand, continues to grow at strong double-digit rates. Surely this is a marriage made in heaven?

Dandelion Chandelier recently conducted an analysis of 120 luxury brands, 40 each in the fashion, beauty and watch & jewelry categories. We wanted to understand how these brands are showing up online, and which ones are truly market leaders in this space. Here’s what we found.

It’s not headline news that the most venerable luxury brands across nearly every segment have been, to put it politely, fashionably late to the e-commerce party. The $1 trillion-plus global luxury sector has been slow to embrace online sales, and not without some good reasons.

The brick-and-mortar world of luxury is a truly delightful place – gorgeous stores and showrooms, discreet and informed sales people, and highly attentive service. Retail locations and their front windows are the best possible advertisements for these brands. Fashion and lifestyle magazines are also brilliant showcases for luxury brands. Their ads are part of the editorial for publications like Vogue, Elle and Town & Country, and readers actually look forward to seeing them because they’re so compelling.