From Business Insider:
Amazon is determined to take over the apparel industry.
The brand is scooping up talented people in the fashion world for roles on its merchandising teams. And now there is widespread speculation the brand will start its own clothing label.
“When we see gaps, when certain brands have decided for their own reasons not to sell with us, our customer still wants a product like that,” Jeff Yurcisin, Amazon Fashion’s vice president of clothing, said at a conference in October.
But Amazon’s foray into apparel retail won’t come easy.
For starters, the entire clothing industry is in crisis.
Macy’s is closing 40 stores in the beginning of this year. Nordstrom just reported disappointing earnings. And once beloved mall stores like Abercrombie & Fitch and Aeropostale are struggling to stay relevant.
Analysts at RBC Capital Markets believe that these struggles are part of a larger trend in retail, as more customers shop online instead of in stores. Shoppers are also increasingly unwilling to shell out for expensive apparel, deciding instead to spend their money on electronics and restaurants.
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“There has been lot of speculation on us entering the luxury market and that is just not something that we’re focused on right now,” Perry said. “What we are focused on is developing an experience for our large customer base. That customer seems to have a great appetite for many things.”
Instead, the company has secured partnership brands mid-tier brands such as Lacoste and Theory, according to Business of Fashion. The fashion site also noted Amazon is focusing on enhancing the user experience, as Amazon’s front-end is not tailored to suit selling high-fashion products.
Link to the rest at Business Insider