We are in the age of Amazon. The e-commerce and cloud computing giant has managed to establish itself as the largest information technology company by revenue. But, it didn’t stop there. After successfully capturing the online shopping industry, Amazon has set its sights on conquering the apparel industry in the same manner.
In a recent report, Business Insider found that Amazon’s fashion line is expected to gain around 14% of the total U.S clothing market by 2020. Although, Morgan Stanley predicts that Amazon can only manage to achieve around half that projected figure (8%) by 2022. The latter looks to be true as Jeff Bezo’s & Co. continues to do everything in its power to become the number one apparel retailer in the United States in 2018. In fact, a CNBCreport claims that Amazon’s fashion division gained 1.5% of market share in 2017 alone.
AMAZON- LATEST FASHION DARLING
The company’s relentless pursuit to overtake the apparel industry is further driven by Millennials and Generation Z who prefer to shop online rather than in-store. Other factors that are expected to help fuel Amazon’s growth in the fashion industry include brand partnerships, the organization’s live shopping program, as well as its private-label lines. Amazon’s appeal is also believed to be rooted in its low-priced goods and the value that it offers.
If its rivals are unperturbed by Amazon’s knack for dominating every market it touches, they’ll be soon. That’s because there’s a secret weapon the retailer has at its disposal. Founder, Chairman, and CEO of Amazon, Jeff Bezos, earlier announced that the company now has a staggering 100 million Prime members worldwide, per Retail Dive. This number is large enough to enable the company to disrupt the apparel industry further.
A LITTLE HEALTHY COMPETITION?
With fashion now a huge focus for Amazon, its competitors need to either make adjustments or fizzle out. It’s a good thing that it appears they’d prefer the former. Amazon’s giant strides have forced firms like Target and Walmart to make calculated moves of their own, which further narrows down the rivalry from general merchandising to an apparel one. Both companies have been victims of Amazon’s ascension.
The two companies have watched their shoppers make the switch over to Amazon in recent times. Now, it looks as if Amazon’s rise will spark their renaissance. Target and Walmart have both launched new private clothing lines for men, women, and children, in an attempt to keep hold of their clients. At the same time, they are not alone in this matter.
A Coresight report reveals that Macy’s and J.C Penney have also suffered losses, Retail Dive mentions. Things won’t stay the same forever. But, for now Amazon seems to be racing clear ahead. Amazon Prime members are expected to continue to drive its growth in the apparel sector. A report claims that around 48% of members declared that they plan to purchase clothing from the company in the next one year.