Living in Paris, we are surrounded by high-end retailers all the
time. There are plenty of luxury department stores, boutiques and branded
stores trying to catch our attention. In general we take it as given that we
can find brands everywhere. If we want to buy a specific brand, there will
always be a store selling it close to us.
Should the same strategy be used for the distribution of
high-end jewelry?
In this post I will analyze the route to market for luxury jewelry and
how priorities have changed during the past years.
Traditionally, high-end brands such as Chopard and Bulgari have very much relied on their relationship with luxury retail partners in the distribution channels to get their jewelry to consumers. It involved some financial advantages for the companies as retailers provided cost for the marketing, real estate and costs associated with store fronts or the retailer’s e-commerce platform.[1]
Recently though a new challenge has emerged that might cause conflict within the traditional distribution channels. While exclusivity helps to maintain a luxury brand image and high price points, the market is changing and new ways to generate sales have to be explored: In order to expand the customer base retailer activities are leveraged and companies' own online presences are developed.[2]
Having said this, I want to highlight two challenges that high-end jewelry brands face nowadays: how to avoid
channel conflicts and how to create a balanced distribution network?
SG
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