Amazon Will Become The Largest Apparel Retailer In The United States?

According to Cowen statistics, Amazon clothing sales in 2015 amounted to $16 billion, and in 2020, it could grow to $52 billion, which would have 14% of the US apparel market. In 2014, Messi's Department accounted for 7% of the US apparel market.

Amazon is likely to surpass Messi's to become the largest apparel retailer in the United States.

The latest news,

It has launched 7 brands of its own fashion apparel and is likely to expand it further.

It is understood that the 7 clothing brands have been sold through Amazon website, namely, Franklin, Freeman & Franklin, Tailored, James & Erin, Lark & Ro, North Eleven, Scout + North, and DG.

Since the beginning of 2015, Amazon has been building its own clothing series, which has been continuously reported.

Amazon's own clothing brands have a total of 1800 products on sale, ranging from men's shoes to women's scarves and children's clothing; the price is in the middle (men's suits are less than $300); the style of the products is casual, which looks a bit like UNIQLO and H&M products.

Clothing is still highly dispersed, and its entry threshold is low. Obviously, the size and competitiveness of Amazon will make clothing an attractive category.

Amazon is determined to conquer the clothing industry and has recently hired a large number of its fashion teams. Amazon announced last week the news of recruiting the purchasing manager, and claimed that the company needed someone with entrepreneurial spirit, analytical ability and strong motivation to do this job, so that the clothing series can achieve high quality to attract global customers.

Geoff, vice president of fashion at the Amazon fashion department, said at a meeting in October 2015. "When we see this blank area, when some fashion brands do not want to sell on our website for their own reasons, our customers still want to buy various kinds of clothing on our website.

When you think of buying new clothes, shoes, watches and jewelry, do you think of Amazon? Haven't you? Well, we need to change this situation. "

In the US, the clothing market is about $250 billion a year, but a large proportion of it is still occupied by physical retailers. Amazon is trying to open up the market.

The reporter combed Amason's action in the fashion industry: in 2008, Amason began to invest in the fashion industry. In that year, Cathy Beaudoin, President of GAP group's brand Piperlime, joined Amason as president of the fashion department, and vigorously promoted the construction of the studio and other infrastructure.

Under the Cathy Beaudoin tie, Amazon has launched a series of moves such as Fashion TV advertising, fashion brand, men's beauty brand, luxury beauty brand, first designer brand store.

In fact, Amazon also owns many fashion business platforms including MyHabit (founded in 2011) and Shopbop (acquired by Amazon in 2006) and East Dane (2013 online).

In addition to its own business, Amazon is also a third party sales platform for CK, Disney, Columbia, Anne Klein, Diesel, Tommy Hilfiger and Levi s, all of which are billions of dollars in giant clothing retail brands, and Amazon is also a sponsor of New York fashion week men's wear.

According to the reporter's understanding, Amazon's e-commerce clothing inventory exceeds 30 million single products.

Fashion is a relatively high profit business, and it may help Amazon's profitability.

R.W.Baird reported earlier that Amazon's clothing category rose 91% to 30 million in the past year, compared with 281% in 2015, and 110% in household and horticultural categories, with a growth rate of third in all categories.

Amazon investment bank expects Amazon to focus on clothing at least 0.25 dollars per share as early as next year.

All this could lead Amazon to surpass Messi to become the largest apparel retailer in the United States.

According to Cowen, Amazon apparel business is estimated to account for 70% of sales in 2015.

Up to $16 billion, it will increase to $52 billion in 2020, and will have 14% of the American Apparel market.

Data show that in 2014, Messi's department stores accounted for 7% of the American Apparel, accessories and footwear market, while Amazon took up 5% share. Messi's sales in 2014 amounted to $28 billion 100 million, of which apparel accessories accounted for 84%.

Of course, Amazon is also not easy to enter the apparel industry.

First of all, the whole garment industry is now in crisis.

Messi's department store has closed 40 stores in early 2016, and Nordstrom has just released its latest financial results, and the results are disappointing.

Analysts at the RBC Capital Markets believe that consumers are increasingly reluctant to spend money on expensive clothes. On the contrary, electronic equipment and online travel and hotel accommodation have partitioned many market share in the apparel industry.

In addition to the big environmental difficulties facing the industry, Amazon's positioning in the apparel industry is also a challenge.

There were hints in the information mentioned earlier. Amason had hoped to be a luxury retailer, so it became the third party seller of CK, Chanel and other products. However, according to the newly released private brand, its imitation of UNIQLO and other product styles obviously gradually moved to the mass market.

Although Amazon is aggressive, it needs to be

The new force still needs time.