Wednesday 29 July 2009

LVMH And Chanel Join Forces to Force E.U. To Restrict Internet Sales – 29/7/09

It looks like last-minute lobbying against a draft European Union regulation has paid off for luxury competitors LVMH and Chanel, with the final version giving brands more control over web-based sales.


This is an important victory for the luxury industry. In a Bloomberg article, Andrea Ciccoli, a fashion industry analyst for Bain & Co., explains why, “Selective distribution, whether real or virtual, has always been fundamental for luxury brands. Not just anyone can sell products by Chanel and Prada in stores and there’s no reason why they should be able to on the web. It would be like giving people a license to print money.”


This example is another reminder of the importance of keeping the product available, but not too accessible. Also, the power of collaborative efforts cannot be underestimated. Together LVMH and Chanel gave web retailers, like eBay, a run for their money…

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Melinda O’Rourke is the founder and Director of MO Luxury, a dynamic, Sydney-based management firm specialising in luxury brands and services. Melinda and her associates at MO work with local and international brands across prestige retail, fashion, fine jewellery, timepieces and specialised services. Melinda is well-connected, well-read, and well-versed in the demands of the luxury market and its client base. Her advice is firmly based in objectivity and ultimately, accountability. Melinda offers constructive counsel and both strategic and creative thinking and is able to draw upon a strong network of specialised talent to compliment the MO Luxury team as needed. Melinda enjoys excellent industry relationships and is regularly quoted in the business and fashion media. Read more about MO Luxury, www.moluxury.com.au