For sustainable growth in an industry on the cusp of disruption, apparel brands must pursue all four online selling avenues: online retailers, marketplaces, social media platforms, and direct to consumer (DTC).
The news is not what Amazon brings to American retail. The news is what Amazon doesn’t have, at least not yet. There lie the risks and opportunities for itself and others, at least in the fashion apparel space. What are the haves and the have nots that drive those perils and opportunities? Read on.
It’s no coincidence that such mergers are increasing at the same time as the economic and structural clout of mega retailers is also spreading throughout the retail industry and supply chain. Consolidation is one of the key strategies that brands are using to respond to and/or push back against the pressures imposed on them by the likes of Amazon and Walmart.
As it enters its 20th year, Amazon has evolved from being the "Earth's Biggest Bookstore" in the 1990s to today's "Earth's Most Customer-Centric Company" and, as a result, has struck at the hearts of noted retailers such as Sears, Macy's, Kohl's and Nordstrom.
Moving forward more and more apparel brands will find that Amazon isn't just another online channel that they can take or leave – it's a primary platform that they must not only consider, but actively manage in order to reap the benefits and avoid the drawbacks.