Amazon.com, Inc. (NASDAQ:AMZN) is discontinuing its efforts to rope in luxury brands. The chief marketing officer of Amazon’s fashion division, Jennie Perry stated that entering the luxury market is not the current priority for the company. Instead, Amazon is striving to deliver a superior experience for its vast customer base that apparently has a large appetite for much more stuff.
Amazon has been turned down by the high fashion world on more than one occasion. Louis Vuitton’s chief executive Yves Carcelle stated that Amazon would never be a seller for Louis Vuitton as the latter prefer to be a direct seller of its products. The fashion company pioneered a model of direct control which most luxury brands are likely to emulate.
Amazon has struck partnerships with mid-tier brands such as Theory and Lacoste. The brand has put in efforts for years to obtain a good reputation in the fashion industry. In 2012, the e-commerce giant put up a warehouse for photography in Brooklyn with the aim of attracting luxury fashion brands and their clientele.
This month Amazon is promoting New York first ever men’s fashion week. The firm has already sponsored the Met Gala, and its sponsorship looks like being an attempt to woo brands. The long-term viability of Amazon depends on major fashion brands sell to it. Amazon has to persuade brands that it has more to offer than simply superior distribution.
Amazon’s expenses are around the same irrespective of what it ships. For instance, the cumulative profit per unit is much higher on high-margin fashion goods than books. However, it is not the place that first comes into mind for buyers seeking high-end fashion brands.
Amazon has a background of offering low prices and placing utility before customer experience and merchandising. As per expert sources, Amazon’s algorithms and data could assist in succeeding in fashion provided its site is optimized for merchandising the same.
Sources: racked.com, bustle.com, ecommercebytes