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.
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.
I still remember the grand entrance Jeff Bezos made to deliver his keynote address at Retail Systems, way back in 2003. The founder and CEO of Amazon made quite a splash as he glided up the aisle on a Segway to the front of the McCormick Place hall in Chicago.
Improved offerings, robust digital and omnichannel capabilities and optimized real estate footprints are yielding positive results for some retail chains despite doom-and-gloom headlines about the "retail apocalypse."
"Cyber Monday once again ranked as the heaviest online spending day of all-time and became the first day to ever exceed $3 billion in sales from desktop computers," said comScore senior vice president of marketing and insights Andrew Lipsman.
Amazon is a well-known disruptor, and with the introduction of its private-label apparel brands, the company has positioned itself to shake things up in fashion and apparel. For the apparel industry at large, understanding how consumers feel about Amazon private-label is crucial.