Original Discussion: Amazon Plans Haute Couture Takeover - Retail News. http://bit.ly/cV0ON8 cX: Luxury's Savior?
Why haven’t Bergdorf Goodman, Harrod’s or Barney’s done this? The buyers of these and other globally respected stores have deep and abiding relationships with the best fashion houses. Why hasn’t one of them emerged as the leader in luxury online?
The reason they have not taken advantage of the Web's reach and ability to deliver robust (even yet-to-be imagined) shopping experiences is two-fold: the luxury market thinks of online retailing as the place for remainder merchandise and secondary and tertiary labels (mass appeal=sales volume). The second reason is their best customers have not been there. At least that's what they thought.
As sales shrink and "traditional" retailers reconsider their sku volume, luxury brands are suddenly seeing the Web in a new light.
Amazon's opportunity here is exactly what it was with books; consolidate a fragmented business by creating value for brands and consumers alike. After all, this is what Bergdorf's, Harrod's and Barney's does.
Amazon's challenge will be to learn about personality and creating emotional connections (ala Zappos) with their customers. The best luxury buyers and sales people know the value of a customer over time.
Selling on the Web is still about procurement. While sites like Yoox and Net-a-Porter carry big names (the Gilt models is still about consumer manipulation), they are still showing lifeless stills of dis-embodied apparel and accessories, most of it off-season.
Take Balenciaga for example. On Yoox, most of the product is marked down and on Net-a-Porter there are only a few accessory items. Stella McCartney on the Harrod's site is only about intimates and the highest price point is only 230 Pounds. If I were at Harrod's store in person, odds are I would have much greater choice of Ms. McCartney's products and they wouldn't have to ship it for free.
Amazon gets the numbers. (I won't even start on SEO) Now they have to get the consumer. At the end of the day, it's about moving the merchandise. Will they figure it out? Mr. Bezos didn't spend all that time with Target for naught.
From RetailWire
Original Discussion: Amazon Plans Haute Couture Takeover - Retail News. http://bit.ly/cV0ON8 cX: Luxury's Savior?
Amazon.com is looking to go upscale with its clothing and shoe business, staging a relaunch that has its sites set on "rivals such as Yoox and Net-A-Porter," according to a Financial Times report.
The e-tailer is recruiting software engineering talent to help it develop "great new features to change the way people shop for clothing." As it has done in other categories, Amazon is looking to set the standard by which consumers judge all others in the space.
The push by Amazon comes on the heels of the eBay Fashion (fashion.ebay.com) launch in early April. That site is looking to build on the traditional eBay approach by adding an online mall of top retailers, such as Brooks Brothers and Lord & Taylor, as well as offering flash sales.
Fashion sales at eBay in 2009 have been estimated at somewhere between $5.5 billion and $7.1 billion. Scot Wingo, chief executive of ChannelAdvisor, said Amazon's clothing, accessory and shoe sales are in the $6 billion to $8 billion range.
Amazon has apparently taken some of the tricks of its Zappos business and made them its own. The company is now offering free returns on all U.S. clothing orders over $25.
It is also looking to provide a more sophisticated visual experience with expanded viewing options and color variations that it began using in its denim store during last year's Christmas selling season.
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