Amazon's Strategy for Fashion Expansion

The Wall Street Journal
7 Apr 201603:12

Summary

TLDRAmazon has ventured into the fashion industry with a live fashion show, featuring brands like Nicole Miller and Calvin Klein. Unlike its usual low-price strategy, Amazon promises full pricing to attract fashion brands. This move comes as online apparel shopping is on the rise, with only 15% of purchases made online last year. Traditional department stores face challenges as Amazon's US apparel business is projected to reach $52 billion by 2020, potentially surpassing Macy's. While some brands like Nike and Tory Burch remain skeptical, Amazon's Prime membership and data analytics offer significant advantages.

Takeaways

  • 📈 Amazon has launched a live fashion show to attract fashion brands to its platform.
  • 👗 Brands like Nicole Miller, Calvin Klein, and Kate Spade are now selling directly on Amazon.
  • 💰 Amazon is offering full pricing to fashion brands, a shift from its usual low-price strategy.
  • 🛍️ Amazon's move into fashion is part of a broader strategy to capture a larger share of the ecommerce market.
  • 📊 Only 15% of apparel was purchased online last year, indicating a significant growth opportunity.
  • 📉 Traditional department stores are struggling with sales, while Amazon's North American sales rose by 25%.
  • 🏬 Amazon's apparel business is forecast to grow significantly, potentially surpassing Macy's as the largest apparel retailer in the US.
  • 🚫 Some high-end brands like Nike, Tory Burch, and Rag & Bone are hesitant to join Amazon due to its perceived downscale image.
  • 🛒 Amazon Prime membership benefits like free two-day shipping and free returns make online apparel shopping more appealing.
  • 📊 Amazon uses data analytics to help brands understand regional preferences and optimize pricing for different styles and sizes.

Q & A

  • What is Amazon's latest initiative in the fashion industry?

    -Amazon has launched a live fashion show, combining elements of a QVC shop-at-home broadcast with MTV-like celebrity guests to highlight fashion items sold on the site.

  • Which brands are now selling directly to Amazon?

    -Brands like Nicole Miller, Calvin Klein, Kate Spade, Lacoste, and Levi Strauss are among those selling directly to Amazon.

  • What strategy is Amazon employing to attract fashion brands?

    -Amazon is offering full pricing to attract fashion brands, which is a departure from its regular strategy of offering low prices on a wide range of products.

  • How has Amazon been building its fashion business over the last decade?

    -Amazon has been building its fashion business by acquiring companies like shopbop.com and Zappos, launching flash sale sites like myhabit.com, and hiring industry professionals such as Cathy Beaudoin from Gap.

  • Why has fashion been one of the last ecommerce holdouts?

    -Fashion has been a holdout because the fit and feel of clothing are important to shoppers, making the online shopping experience less appealing compared to in-store purchases.

  • What percentage of apparel was purchased online last year according to Forrester Research?

    -Only fifteen percent of apparel was purchased online last year, according to Forrester Research.

  • How is the shift to online clothes shopping impacting traditional department stores?

    -The shift to online clothes shopping is a significant blow to traditional department stores, as they face sluggish sales and are closing stores and cutting staff.

  • What is the forecast for Amazon's US apparel business by 2020?

    -Amazon's US apparel business, including sales by third parties, is forecast to rise to fifty-two billion dollars in 2020, up from sixteen billion the previous year.

  • Which brands are holding out from selling on Amazon?

    -Brands like Nike, Tory Burch, Rag & Bone, and many European luxury goods players are holding out from selling on Amazon.

  • What advantages does Amazon offer that traditional retailers find hard to match?

    -Amazon offers advantages like Prime membership with free two-day shipping and free returns, and uses its technology expertise to mine analytical data, helping brands target shoppers and optimize pricing by region.

  • How does Amazon's live fashion show aim to enhance the online shopping experience?

    -Amazon's live fashion show aims to enhance the online shopping experience by providing a more interactive and engaging way to showcase fashion items, akin to walking through an aisle at a favorite store but in the comfort of one's own home.

Outlines

plate

Cette section est réservée aux utilisateurs payants. Améliorez votre compte pour accéder à cette section.

Améliorer maintenant

Mindmap

plate

Cette section est réservée aux utilisateurs payants. Améliorez votre compte pour accéder à cette section.

Améliorer maintenant

Keywords

plate

Cette section est réservée aux utilisateurs payants. Améliorez votre compte pour accéder à cette section.

Améliorer maintenant

Highlights

plate

Cette section est réservée aux utilisateurs payants. Améliorez votre compte pour accéder à cette section.

Améliorer maintenant

Transcripts

plate

Cette section est réservée aux utilisateurs payants. Améliorez votre compte pour accéder à cette section.

Améliorer maintenant
Rate This

5.0 / 5 (0 votes)

Étiquettes Connexes
Fashion ShowAmazon RetailBrand Direct SalesCelebrity GuestsApparel ShoppingOnline Retail GrowthDepartment Store ImpactE-commerce TrendsAmazon Prime BenefitsFashion Industry
Besoin d'un résumé en anglais ?