Why Amazon will become America’s biggest apparel retailer?

Why Amazon will become America’s biggest apparel retailer?

According to finance firm, Cowen and Company, Amazon is due to become the largest apparel retailer in the US in about 2017…it recently surpassed Walmart and will (in the next few years) leave Macy’s eating it’s dust. Just check out their crazy growth – in the graph below.
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So what makes Amazon so successful, here’s maybe a couple of things:

1. Depth/breadth of range: they carry everything in every size (because they can). For example, they have 90K listings for Nike products.

2. Fulfilment: I’m going to leave this number 2 as something that’s more for the US market – they fulfil quickly (if you’re in the US). This is a key area for them to improve if they want world domination (ex. US).

3. Acquisitions and sub-brands: It’s been investing heavily in fashion acquiring websites like Shopbop, flash sale sites like My Habit and also launching it’s own online shops. This helps them create serious fashion cred and influence that the Amazon brand definetly doesn’t carry itself.

4. Back-end: it’s set-up a 46,000 square foot photo studio in London, to churn our 500,000 clothing images and it’s warehouse distribution model.

5. Marketing: finally, at New York Fashion Week (male) they were the marquee sponsor.

But it’s real success might come down to who’s buying fashion from Amazon…Men.
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Men wear outspends women’s on Amazon.
I’m not really surprised by this, but as support if you take a gander at the awesome gender shopping study Wharton ran you can spell out why. To quote the authors ‘women react more strongly than men to personal interaction with sales associates. Men are more likely to respond to more utilitarian aspects of the experience’. The name of the study really sums this up ‘Men Buy, Women Shop’.
Amazon appeals to men (or people buying menswear) in a way other ‘offline retailers’ can’t (even though they try – just take Nordstrom’s Trunk Club), it’s geared up for them to buy.

Author Pippa Kulmar

More posts by Pippa Kulmar

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