Will Amazon, which controls all markets, also capture the fashion market?
Amazon started with on-line sales of books, spreading the range of goods to be delivered from everything from daily goods to everything such as foods, further entering the cloud business with AWS, manufacturing electronic equipment with Kindle, We have continued to expand the industry, letting it open. In the industry where Amazon gets into, the harsh "survival competition" will be unfolded, but Amazon seeking unsatisfactory growth aims at "fashion" as the next growth industry and is steadily preparing.
Amazon dominates every market it touches - now it's coming for fashion - The Verge
"Amazon is one of the largest apparel distributors in Slice Intelligence," Amazon has a major impact on the apparel market of 300 billion dollars (about 33 trillion yen) in the US, "said Ken Kasser, principal analyst at Slice Intelligence, I am admitting the growth of Amaozon's apparel business. Since the profit margin of apparel supplies is high among items handled by Amazon, it is estimated that Amazon shares will raise profits of 25 cents per share due to the increase in earnings on apparel sales.
While Amazon is the main business of on-line mail order sales with low margin, Jeff Bezos is well known for not fearing becoming a "long-term battle" when entering a new market. After carefully inspecting and challenging the battle, I am willing to adopt a tenacious strategy of depriving the scorpion and the industry leader without losing to failure and suffering, depriving the market at the end of the wearing game.
Following Amazon's traditional move toward fashion, "The Verge is appreciating Amazons are fascinated by the fashion industry since 2006, at least when they acquired the women's wear e-tailer Shopbop." We will hold the Costume Institute exhibition of the fashion exhibition in 2012, start up New York Fashion Week: Men's in 2015, support Amazon India Fashion Week in India, support Amazon Fashion Week Tokyo in Tokyo, and so on for the fashion industry We can see steady efforts.
However, Amazon's standing position at the moment is successful in the "apparel" industry, but it is still weak in the "fashion" industry. It is totally different from apparel that sells daily clothing such as shirts and socks and fashion handling relatively high-class items such as dresses, shoes, bags, etc. In the world of fashion, Amazon is said to be a newcomer with no achievement in Amazon That's it. Retail analysts and heavyweights in the fashion industry are skeptical as to whether Amazon can be the "best place to sell fashion items". The reason is that Amazon has no fashionable elements. The big difference between Amazon apparel with good grades and fashion that Amazon is not good at is Amazon's "emotions" and "sensibility", unlike apparel for practical purpose, in subjective self in fashion There is a purpose of expression.
It is relatively high profitable apparel for Amazon, but the high margin of fashion related products is not the ratio of apparel. So, if Amazon is successful in selling fashion products, it is obvious that it will bring enormous benefits, and it is no wonder that Amazon is moving cautiously to the fashion industry strategy that Amazon aimed at.
"In order to be successful in the fashion industry, it is essential to establish an" emotional connection "with customers," Kasser said. This emotional connection is not established overnight, so Amazon seems to have continued ongoing activities such as supporting fashion exhibitions.
In May 2017 Amazon announced collaboration with NBA's Chicago Bulls Dwyane Wade. Wade player who is also popular as a fashion leader has many products that own its own brand, but in Amazon Fashion "Wade ShopIt was decided to have. As you can see from here, Amazon is striving to make "emotional connections" with customers on a steady basis.
Amazon has launched 7 private label apparel brands at the beginning of 2017 and sells men's accessories and women's dresses and handbags. In addition, we have added our own lingerie line in April 2017. And Echo with camera which Alexa can do fashion shoppingEcho Look"We are steadily promoting initiatives for fashion, such as launching fashion.
"Amazon Echo Look" with camera capable of 3D scanning in 360 ° all directions has appeared, which clothing suits you in machine learning Alexa advises - GIGAZINE
AT Kearney Retail Division consultant Mr. Manik Ariyapadi cites three points necessary for Amazon to become a mighty presence in the fashion field, two of which are "talented with design and creativity Aligning talented people, letting freely experimental efforts "" having a real store ". A real store seems to be useful for creative talent as a "brand's playground".
Many experts think that "Amazon is very difficult to succeed in the fashion industry", including Mr. Kasser, but Amazon, which has been successful in a new genre as if it bounces doubts and criticism so far, Whether it can succeed in the fashion field where big profit can be expected, it seems to be worth noting.