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A luxury brand needs to decide based on its own positioning whether to retail only on its official website to maintain brand tonality, or to sell some or all of its products on aggregated platforms like Farfetch. We can analyze this from the perspective of "Place" within the 4P framework. In the past, people generally believed that they would not purchase expensive items online, preferring instead to enjoy personalized customer service and tactile shopping experiences in physical stores. However, this perception has shifted in recent years. While e-commerce only accounts for 4% of luxury sales, it represents just one aspect of digital opportunities. This paper depicted that brands need to weigh the pros and cons based on their own positioning, target consumers, and market strategies to choose the most suitable sales channel. Whether retailing only on the official website or selling on aggregated platforms, brands must ensure a quality shopping experience while maintaining their uniqueness and tonality.
Ni et al. (Wed,) studied this question.