It’s a common discovery for shoppers online: the same luxury Bottega Veneta slides or Chanel eyewear available at a significantly lower price on platforms like Cettire compared to brand’s official websites or authorized retailers. For example, fashion e-commerce expert Tommy Mathew observed Bottega Veneta slides on Cettire at 24 percent less than the recommended retail price. Similar price discrepancies were noted for items like the Bottega Veneta “Chain” pouch bag and luxury goods from brands like Chanel, Prada, and Saint Laurent. This raises a critical question for consumers: Why Is Cettire Cheaper?
The secret to Cettire’s pricing advantage lies in its business model, which strategically utilizes international trade regulations. According to Mr. Mathew, Cettire expertly “exploits legal loopholes in trade regulations,” particularly concerning import duties. A key factor is that shipments valued under $800 are often exempt from import duties when entering major markets like the United States, where a significant portion of Cettire’s customer base resides, and China, which has similar exemptions. This allows Cettire to bypass significant costs associated with importing luxury goods, costs that traditional retailers must factor into their pricing.
Furthermore, traditional authorized retailers operate under different constraints. As Mr. Mathew points out, they avoid exploiting these loopholes because “they would likely lose access to products by openly undercutting the brands.” Brands expect authorized retailers to maintain pricing integrity and protect brand value. Cettire, on the other hand, operates outside this traditional framework. It obscures its supply chain, making it difficult to trace the origin of its goods and ensuring continued access to luxury products while offering “plausible deniability to suppliers who engage in this type of practice.” This business model allows Cettire to offer lower prices without jeopardizing direct relationships between luxury brands and their primary retail partners.
Interestingly, Cettire’s approach also includes market access strategies that raise eyebrows. The platform has notably blocked web traffic from France, Italy, and Switzerland – countries home to many of the world’s largest luxury groups. While Cettire claims this is due to prioritizing global expansion, this action further insulates them from direct brand scrutiny of their pricing and operations in key luxury markets. It’s worth noting that some brands have reacted to Cettire’s model. Celine, Vetements, and Acne are no longer sold on the platform, suggesting a potential sensitivity from certain brands regarding Cettire’s pricing or distribution methods. Other luxury giants like Chanel, Prada, and Yves Saint Laurent have declined to comment, indicating a complex and perhaps still evolving relationship between luxury brands and platforms like Cettire.
In conclusion, Cettire’s cheaper prices are not a result of illegal activities, but rather a strategic business model that leverages import duty exemptions and circumvents traditional retail pressures. By exploiting these loopholes, Cettire can offer luxury goods at discounted prices, appealing to price-conscious consumers while navigating the intricate landscape of luxury brand relationships and international trade.
