A new study of nearly 500 luxury brands suggests that the biggest names are not necessarily the biggest sellers.
Instead, the study by consultancy consulting firm Mercer found that the top ten most popular brands on Amazon, Walmart and Target were all upholstered in leather goods from a single company.
“It is clear that the luxury market is a very lucrative one, and the success of the brands on the market has been dependent on the success or failure of their retail business model,” Mercer’s study author, Andrew Dickey, told The Irish Sun.
“In the retail space, brands like Louis Vuitton, Dior, Gucci, Dolce & Gabbana and other well-known brands, have had a big impact on the retail industry and their sales,” he said.
“But it is a different story in the luxury space, where brands like Versace, Givenchy, Hermès and other big name brands have had little impact and are still struggling to make a mark.”
The study also found that there are fewer luxury brands in the top 10 than in the last decade, with only five brands in this year’s top 10.
“There is an oversupply of luxury brands on eBay and other online platforms and there is also a big demand for brands like Gucci and Gucci Gucci,” Mr Dickey said.
However, the authors pointed out that this could change over time.
“I think it is going to get worse and worse, particularly as the brand wars between the brands become more and more intense,” he added.
“With brands like Ralph Lauren and Calvin Klein being knocked off the top of the list, there will be more competition for brands.”
“The brands that are being knocked out will be very much up for grabs and that could be a big opportunity for the brand,” he concluded.
“Luxury brands are not the only ones who are up for a fight.
People who buy high-end products, like luxury goods, will want to look at the luxury brand in the same way.”
Mercer also surveyed retailers and found that luxury brands were upmarket on the auction site and online.
However it is not clear if these brands are actually going to make much money from these online auctions, and it’s possible that the sales from these auctions are not what the brands would make on their own.
“As we see online sales grow, so will the number of luxury retailers that are willing to sell their products at auctions,” said Mercer’s report author.
“The luxury market remains a huge market, and there will always be a need for more sellers to be in the game, and a need to sell at auctions.
But the luxury business model is still going to need to change if we are to have a better future.”