Luxury manufacturers can block retailers from selling on Amazon

Luxury manufacturers can block retailers from selling on Amazon
Shutterstock

Luxury product manufactures can block retailers from selling their merchandise on online marketplaces like Amazon. The European Court of Justice has ruled on the matter after cosmetics manufacturer Coty filed a complaint.

Protect image

Coty wanted to block German perfume chain Akzente from selling its products on Amazon’s German website and that is when the matter went to court. A judge has now ruled that when a brand collaborate with a small group of retailers, it can say where its products can and cannot be sold, in order to protect the brand’s image, according to the FD.

 

It is no secret that some luxury brands are not too keen on online sales. Only recently have some companies buckled and accepted online sales, but these companies usually still only sell on their own online platform. This is a way for them to avoid their products’ image being tarnished.

 

The ruling is not only bad news for retailers intent on using online marketplaces, but also for the marketplaces themselves. Amazon would love to have luxury brands on its platform as a means to attract an even broader audience. This decision prohibits that, unless the online giant can reach an agreement with the brand itself.

 

Asics

German judges had previously ruled, in a court case revolving around sports brands Asics and Adidas, that retailers could choose where the products are sold. The European Commission then claimed that manufacturers should be able to decide, in order to protect their brand’s image.

 

Asics had told retailers that they could not sell its products on online marketplaces, but had to reverse that decision in Germany following the court ruling. It remains to be seen how that will now change considering the fact that the European Court of Justice’s ruling only applies to luxury brands. 

Questions or comments? Please feel free to contact the editors


Gerelateerde items

This is how fast Amazon is growing in food

22/01/2018

E-commerce is still underrepresented in food sales, but Amazon’s American and European 2017 growth numbers are impressive. Are we close to a tipping point?

Amazon opens first cash register-free store

22/01/2018

Amazon will open its first cash register-free store in Seattle today, near its main office. The trial with its own employees will now be extended to the general public.

Rocket Internet wants to go public with Home24

19/01/2018

Rocket Internet wants to go public with its furniture web shop Home24 in the summer. During the next few months, it will work tirelessly to improve the web shop’s results.

Carrefour buys stake in Showroomprivé

12/01/2018

Carrefour has obtained a 17 % minority stake in flash sale seller Showroomprivé with the intent of increasing its digital and non-food reach. Former shareholder Conforama did suffer a loss.

Luxury group Richemont grows 7 percent

11/01/2018

French luxury group Richemont achieved a 7 % third quarter revenue increase. Unfortunately, exchange rate fluctuations eliminated nearly everything.

Amazon builds new warehouse near Belgian and Dutch border

10/01/2018

American online retailer Amazon has unfolded plans for a new distribution center in the German city of Mönchengladbach. It will be located near the Dutch and Belgian border and most likely be used to service these markets.

Back to top