Amazon (AMZN - Free Report) recently introduced a new shopping experience called Luxury Stores in a bid to bolster the fashion retail business.
The company strives to offer various luxury fashion and beauty brands via Luxury stores in an effort to deliver enhanced experience to customers fond of such brands.
Notably, the new shopping experience is available on the company’s e-commerce app. Oscar de la Renta, the renowned American fashion house, has launched the first Luxury Store by offering its Pre-Fall and Fall/Winter 2020 collections. More brands are expected to turn up in the upcoming weeks.
With an aim to offer better visualization of the products on screen, Amazon has integrated 360-degree view with the shopping experience. Further, the company is providing brand merchants with merchandising tools to help them deliver personalized shopping experience.
Currently, Luxury Stores feature is available to eligible U.S. Prime members by invitation only. More shoppers will be invited over time.
The latest move bodes well for Amazon’s aggressive efforts to strengthen its online retail segment further.
Amazon Fashion Gaining Traction
Amazon continues to gain strong traction in the fashion retail on the back of its growing fashion shopping experiences.
Moreover, its solid Prime Momentum remains a major positive. The company’s strong focus toward enhancing Prime service with the help of exciting discounts, expanding ultrafast delivery services, and robust video and audio content portfolio are primary factors driving its growth in the fashion retail space.
Apart from the latest launch, Amazon has rolled out another shopping experience called The Drop, which provides access to limited-edition street-style collections designed by fashion influencers.
Further, the company offers Prime Wardrobe — “try before you buy” facility, which enables customers to place the order online from separate section of Prime Wardrobe on its site. Moreover, shoppers of Prime Wardrobe get access to huge collection of clothes, shoes and accessories of numerous brands.
The company also offers a service namely Personal Shopper by Prime Wardrobe, which provides style inspiration and recommendations to deliver better shopping experience.
We believe the abovementioned growing endeavors will help Amazon to strengthen presence in the booming fashion retail market.
Per recent data from Statista, the fashion e-commerce market in the United States is expected to generate revenues of $126.5 billion in 2020. Further, it is anticipated to witness a CAGR of 8.5% between 2020 and 2024 and to reach $175.6 billion by 2024. The apparel segment remains a key growth driver.
Amazon’s vast and efficient e-commerce platform remains its key growth driver in the retail industry. Its online retail segment has been intensifying the competition for the brick & mortar stores and traditional retailers.
Strengthening fashion business of Amazon is likely to put strong competitive pressure on several fashion retailers including Nordstrom (JWN - Free Report) , Stitch Fix (SFIX - Free Report) and Buckle .
Moreover, robust distribution strength, growing relationship with merchants, fast delivery services and aggressive retail strategies are expected to continue providing Amazon competitive advantage over other retailers.
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