5/14/21

The First Pillar of Online Brand Control? Channel Management

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Attorneys & Professionals

Daren Garcia, a partner of the Vorys eControl group, authored an article for The Fashion Law titled “The First Pillar of Online Brand Control? Channel Management.”

The article states:

"A key element to optimizing growth and preserving brand equity on online marketplaces like Amazon is limited distribution. That is, brands want as few sellers as possible – ideally one on online marketplaces like Amazon (whether that is Amazon, the brand itself, or an exclusive seller). This reality poses an initial challenge for brands, as many – save for the likes of Louis Vuitton, Chanel, and co. – have relentlessly pursued widespread distribution for years, wanting their products out in the market as far and wide as possible. Accordingly, many products across numerous business-to-business and business-to-consumer verticals are easily sourced and sold online by unauthorized sellers, leading to massive intra-brand competition in the online marketplace channel. 

This, in turn, leads to diminished sales, diminished return on marketing investments, potentially poor quality products, negative reviews, and significant erosion of brand value – both in the online marketplace channel and across the brand’s other channels of trade."

To read the entire article, visit The Fashion Law website.