According to many analysts and industry observers, in 2018 Amazon became the largest retailer of apparel in the United States and the second largest in the world, behind Alibaba. Much of Amazon’s apparel was made by third-party retailers on its platform, but Amazon had been working to build its own fashion retail skills for more than 15 years and had made a number of acquisitions to this end. Having failed to convince leading brands to sell on Amazon, the company had also launched several private-label lines to boost its presence in fashion apparel. However, in 2017, it had finally convinced leading brand Nike to sell direct on its platform. Christine M. Beauchamp (Harvard Business School MBA, 1997), the President of Amazon Fashion since June 2017, was contemplating next steps.
Meanwhile, leading online and fast-fashion specialists such as ASOS in the UK and Inditex in Spain did not appear to have much to be concerned about. However, many traditional fashion retailers, struggling to build effective multi-channel strategies, were facing slow growth and pressure on margins. Would 2018 mark the beginning of the demise of traditional fashion retailing? What role would the bricks-and-mortar channel in fashion retailing play in the future? What might the future look like for the fashion industry? And what role might Amazon play in it?
Meanwhile, leading online and fast-fashion specialists such as ASOS in the UK and Inditex in Spain did not appear to have much to be concerned about. However, many traditional fashion retailers, struggling to build effective multi-channel strategies, were facing slow growth and pressure on margins. Would 2018 mark the beginning of the demise of traditional fashion retailing? What role would the bricks-and-mortar channel in fashion retailing play in the future? What might the future look like for the fashion industry? And what role might Amazon play in it?
Keywords: Amazon; Amazon.com; fashion; fashion accessories; retail; Retailing Industry; retailing; ASOS; Inditex; Multi-channel retailers; online retail; online retailing; positioning; private label; delivery; Spending; Online Technology; Competitive Strategy; Fashion Industry; Retail Industry; Apparel and Accessories Industry;
Citation:
Wells, John R., Benjamin Weinstock, and Gabriel Ellsworth. "Amazon in Fashion." Harvard Business School Case 719-481, February 2019. (Revised September 2019.) View Details