Luxury Daily – Ecommerce giant Amazon is hosting its largest annual promotional event, which can serve as an example to luxury retailers as they hope to make inroads with their online shopping strategies. Starting on July 16 and taking place throughout a 36-hour window, Prime Day is expected to generate billions of dollars in sales for the online marketplace. This record-breaking shopping event also serves as an opportunity for legacy brands to capitalize on consumers’ spending during this “Christmas in July” period.
“Luxury retailers can emulate some of the marketing principals of Prime Day and organize virtual events that engage their customers,” said Ken Morris, principal at Boston Retail Partners, Boston. “Rather than deep discounts, luxury retailers can focus on limited availability of exclusive products for a specific time period or only available to premier loyalty members.”
“While some luxury retailers have begun selling some of their merchandise on Amazon, most have limited their product assortment Amazon to avoid cannibalization of the brands’ sales,” Mr. Morris said.
“Keeping a good share of their product assortment exclusive to the retailer’s brand ecommerce site is the best approach to motivate customers to visit their site on a regular basis,” he said. “It is also imperative to have a steady cadence of new items, promotions and events to keep customers engaged with the brand.”
Read Full Article: What can luxury retailers learn from Amazon Prime Day?