There is ‘No Way’ LVMH Will Do Business with Amazon

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Luxury goods group LVMH has declared that it will not do business with Amazon despite the Internet retailer’s interest in taking on more high-end brands.

Amazon presently sells brands including Michael Kors, Calvin Klein and Kate Spade, which are considered a more ‘accessible luxury’. According to LVMH, Amazon isn’t quite an appropriate platform for its luxury labels.

"We believe the business of Amazon does not fit with LVMH full stop and it does not fit with our brands," said LVMH chief financial officer Jean-Jacques Guiony to investors. "There is no way we can do business with them for the time being."

On Tuesday, the luxury group announced vigorous quarterly sales, which reportedly came unexpectedly.

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Despite Amazon’s efforts in expanding its fashion, jewelry and watch retailing in the past few years, bigger luxury brands have still been cautious in collaborating with the US retailer, fearing their image would be ruined from Amazon’s product presentation and penchant for discounts.

The world’s largest maker of luxury-goods recently acquired an 80 percent stake from Dieter Morszeck, taking over suitcase maker Rimowa for US$716 million, adding some US$450 million to its annual revenue.

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