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Luxe brands can no longer afford to ignore grey market
Big discounts on such sites may bring in big money for high fashion, but at a high cost
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Most luxury brands are acutely aware of the gradual thinning of the veneer of exclusivity that they have worked hard to establish.
PHOTO: REUTERS
(NYTIMES) - Imagine you are hunting online for a pair of square-toed slides from Bottega Veneta, one of the most-hyped luxury brands now. A new season pair can cost over US$550 (S$737) from the brand's website, an old-guard department store like Neiman Marcus or an e-commerce player like Net-a-Porter.
But what if you chose to buy from Cettire, a website offering discounts of up to 30 per cent on the latest fashion styles? You would be a player in the multibillion-dollar luxury "grey" market, a fast-growing sales sector that has historically operated out of sight of most Western consumers.
