Amazon (AMZN - Free Report) has expanded the Personal Shopper service by Prime Wardrobe to cover men’s fashion as well. This move is in sync with the company’s strategy of bolstering presence in the retail market.
This service, which provides style inspiration and recommendations to deliver improved shopping experience, was earlier focused on women only.
But from now onward, the service will offer a variety of men's apparel from brands such as Lacoste, Levi Strauss & Co. and Amazon’s own Essential brand, among others.
An Amazon stylist will select fashion items that match a customer’s style and fit preferences. Following this, the wardrobe box will be delivered to the buyer’s home for trial on a monthly basis. The buyer can then try the items before buying and even return those that don’t suit his tastes using the resealable package and prepaid shipping label provided.
At a subscription of $4.99 per month, the service is only available for Prime members in the United States.
It intends to enrich customer experience through this move. The company will be able to attract more customers to the e-commerce platform with the introduction of such shopper-friendly features. Consequently, this will drive the top line.
The latest move bodes well for Amazon’s aggressive efforts to strengthen the online retail segment further.
Fashion Retail Holds Promise
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 reach $175.6 billion by 2024. The apparel segment remains a key growth driver.
A vast portfolio of apparels and other fashion items, Prime Wardrobe, along with other benefits of Prime will continue to aid the company’s growth in the fashion market.
Amazon continues to gain strong traction in the fashion retail on the back of its growing fashion shopping experiences.
Moreover, solid Prime Momentum remains a major positive. The company’s strong focus on enhancing the Prime service with the help of exciting discounts, expanding ultrafast delivery services, and robust video as well as audio content portfolio are the primary factors driving its growth in the fashion retail space.
In addition to 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.
Also, the company recently introduced a new shopping experience called Luxury Stores in a bid to bolster the fashion retail business. Notably, the new shopping experience is available in its 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.
We believe the abovementioned growing endeavors will help Amazon to strengthen presence in the booming fashion retail market.
Zacks Rank & Stocks to Consider
Currently, Amazon has a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader technology sector include Dropbox (DBX - Free Report) , Etsy, Inc. (ETSY - Free Report) and Intuit Inc. (INTU - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Long-term earnings growth rate of Dropbox, Etsy and Intuit is pegged at 34.4%, 26.5% and 12.3%, respectively.
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