Amazon Plans Haute Couture Takeover

By George Anderson

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.

Discussion Questions: Is Amazon ready to do for clothes what it did for books
and numerous other categories online? Are American consumers ready to give up
stores and take their clothes and shoe shopping online?

BrainTrust

Discussion Questions

Poll

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Bill Emerson
Bill Emerson
13 years ago

There is no doubt, in my mind at least, that Amazon will enjoy growing success in apparel. At $6-8 billion annual sales, they are already a major player. The acquisition of Zappos was brilliant.

Whether they will have the same success in apparel as they have enjoyed in more “data-rich” categories like books, movies, and electronics seems unlikely. There are still the elements of “touch,” fit, and impulse that are just very hard to replicate in a digital environment, although I’m sure they’re working on it.

Max Goldberg
Max Goldberg
13 years ago

Amazon stays on top of the online retail mountain through innovation and a passion for customer service. There’s no reason to doubt that their push into haute couture will be successful. Will it drastically alter how Americans shop for clothes and shoes? No.

As we have seen in many categories, consumers like the options presented by online and brick and mortar stores. They enjoy researching online then trying on clothes in stores. Amazon moving aggressively into clothing and shoes won’t change this. There is plenty of room in the marketplace for all modes of shopping.

Gene Hoffman
Gene Hoffman
13 years ago

Can Amazon mature
Into haute couture?
Maybe so, maybe not
But Amazon is hot.

So I’m saying out loud,
Of a company that’s proud,
Count on them becoming pros
As it moves into clothes.

Gene Detroyer
Gene Detroyer
13 years ago

It is questionable if Haute Couture can be successful at Amazon, if just because of the product positioning.

With regard to the question “Are American consumers ready to give up stores and take their clothes and shoe shopping on line?” Let me repeat my comments from last week….

My baby boomer wife, who ten years ago would not go near a computer, tried the new apparel service offered by Zappos. The next day when she received the wide selection of items she had ordered, she laid them out on the bed and showed me with much glee…”Don’t worry, I am not keeping them all, only two. But, look at this!!! They even have real labels. Why would I ever go to a store again?”

It is already happening. American consumers are giving up stores and taking their clothes and shoe shopping online. This is not a fad. This is not a trend driven by the economy. It is a real phenomenon that is growing at a very rapid rate. Or, as my wife said, “Why would I ever go to a store again?”

Mark Burr
Mark Burr
13 years ago

I can’t rhyme, but I agree with Gene’s! I’m sure there’s a rhyme in there somewhere, but I’m short of snappy rhymes today.

Zappos and others have converted even Scanner. Amazon has done well for me after blunders in the past. I think they are on their way towards expansion into many areas, clothing being only one.

Ed Rosenbaum
Ed Rosenbaum
13 years ago

Imagine this: two of the companies best at providing Outstanding Customer Service becoming one. WOW! What a thought. And now we have it with the merger of Amazon and Zappos. So now we have these two brilliant providers of Customer Service deciding how to make the best of their two cultures and models. Amazon/Zappos going into the clothing business…. Watch out friends. This is close to a sure thing. And we will be seeing it as it develops. I believe we have a winner. Other retailers better watch this model develop and try to at least stay close in the race for the consumer spending dollar. Both Amazon and Zappos have saved me money and delivered quality merchandise. I expect it to only get better.

Liz Crawford
Liz Crawford
13 years ago

I think that Amazon is currently geared toward the middle market for clothes…going upscale will be the trick. But they do have something in their favor–the recession. As recovery slowly warms buyers up, they may have become accustomed to Amazon for couture.

Anne Bieler
Anne Bieler
13 years ago

There is a very good chance for success here as Amazon brings us online Haute Couture. Imagine the convenience for getting clothes you might want, in a very innovative and time saving way. America is changing the way it shops, and for specialty items, Amazon delivers many best practices for its shoppers.

The purchase decision is easier when delivered to your home; allows for a much better experience–choose what works and return if necessary. Will be interesting to see what unfolds!

Roger Selbert, Ph.D.
Roger Selbert, Ph.D.
13 years ago

Stores can compete successfully with online, but they must have a high-quality online presence to do so. They must match everything that Amazon provides and more. First and foremost is a seamless online/in-store environment and experience.

Phil Rubin
Phil Rubin
13 years ago

Amazon is the best retailer in the world, as I’ve suggested here before. They have consistently focused on the customer and that starts with their leadership. Bezos is more obsessed with thinking about customers than just about any other retail CEO, perhaps save someone named Nordstrom.

Given their ability to test, learn and leverage customer data, they can sell just about anything. Combining the insights from Zappos with other offerings like Amazon Prime will lead to significant competition for both traditional (brick-and-mortar) soft goods/fashion merchants as well as the newer ones focused online.

The onus is going to be on the companies with real customer relationships to protect those against Amazon. Many years ago, Macy’s CEO espoused being able to “feel the merchandise” and that is still very true. However many haute couture customers have more money than time, and Amazon is going to take advantage of that opportunity better and bigger than anyone.

Charlie Moro
Charlie Moro
13 years ago

In this time-pressed society with the need for instant gratification, why believe that the originator of internet shopping and a Zappos platform would not be a great success? Books from Amazon (never mind adding in the whole Kindle model), clothes from retailers like JC Penney to Victoria’s Secret, to toys from Toys “R” Us, the entire shopping model is transitioning to more “not in the store” purchasing.

Doug Fleener
Doug Fleener
13 years ago

I do believe that Amazon can significantly grow this business, and even “set the standard by which consumers judge all others in the space.”

But at the same time, I don’t believe it will have that much of an impact on traditional retailers. I think that the fit and feel is not only an important part of the purchase decision, but so is the entire shopping experience. This is especially true for the upscale luxury clothing marketing. It’s not just about the clothes, and you can’t capture that online.

Cathy Hotka
Cathy Hotka
13 years ago

Zappos has thrived because of superior technology and a relentless pursuit of excellent service, including free two-way shipping. There’s no question that most apparel retailers have fallen down in both of those areas. Traditional retailers: it’s not too late to enhance your systems and business processes!

Dave Wendland
Dave Wendland
13 years ago

Amazon is Amazin’!

I do believe they can be successful with this new venture. Overnight success? No. It will take serious ‘measuring’ and ‘tailoring’ to replicate what has been accomplished with their current goods and services…but they are a smart bunch with strong technology, solid shopper loyalty and terrific databases. I think high-end clothing could be a great fit for continued expansion.

Dan Desmarais
Dan Desmarais
13 years ago

Jeff Bezos built the behemoth by following Walt Disney’s principal, when 90% of the people tell you not to do something you do it.

Almost every post on this topic has supported the idea, so maybe Amazon should re-think this venture.

Bob Phibbs
Bob Phibbs
13 years ago

So Amazon will be skimming the bottom off where Nordstrom and Saks have drawn the line–at returns. Especially after having been worn for a night on the town.

Good luck but I think high sales numbers–if even possible–will be hampered with these high and costly returns. That is, unless they mark the items up enough to account for that which seems dubious.

Anne Howe
Anne Howe
13 years ago

I have no doubt that Amazon (and Zappos) have the business acumen and the customer relationship rigor to do a good job in whatever category they choose to play. However, a recent experiment to expand beyond shoes and order a few higher-end apparel items on Zappos.com recently left me with a distinct impression that they don’t really understand the feeling a shopper needs when the package arrives and the apparel goes on the body.

All the fit advice aside, the items I received were so wrinkled and squashed up in plastic bags that my first impression negated all the convenience factors I’ve come to love. I could barely bring myself to try on the items.

Having spent some time in the apparel and accessories business, I understand that when women try on higher-end apparel, we seek a mental and emotional picture of ourselves in “another place,” where we feel special and empowered to move forward with confidence and pride.

Pulling wrinkled and squashed up high-end apparel out of a brown box, then a plastic bag doesn’t quite fit the bill. I think they have to explore, understand and appreciate the power of merchandising beyond just the images on the screen in front of us when we’re browsing.

Carol Spieckerman
Carol Spieckerman
13 years ago

When Richemont snatched Net-a-Porter up in April, that said a lot about the investors’ faith in haute’s online future. On the other side of the value spectrum, as Walmart and others retrench with basics and as J.C. Penney, Kohl’s and Macy’s pile on undifferentiated proprietary brands, a gap has opened up for an online venue that features recognizable brands in an easy-to-shop environment. This isn’t a risky move, it’s an entry into a proven market of shoppers that have mastered online.

My only concern is that Amazon’s exploding brand and product portfolio across multiple categories already makes searching the site an exercise in overkill–the rarely-mentioned chink in Zappos’ armor as well (and they focused on one category). I would encourage Amazon to run this as a separate operation unless they are comfortable with “Burberry” bringing up recipe books, fruit baskets and gardening tools!

Brian Anderson
Brian Anderson
13 years ago

Jeff Bezos and his team are creating a tremendous channel to shop from. Adding Zappos to the online puzzle gives them more Gen X and Y consumers. The future shopping patterns for clothing have been and will continue to be tested. This is a great move.

Jonathan Marek
Jonathan Marek
13 years ago

There are certain products that are naturals to sell online. Ultimately, I don’t think high-end apparel is one of them.

Granted, Amazon will get some of the business, but the more interesting drama will be the response of brick-and-mortar and multichannel players. Already, we at APT have designed and executed real-world tests that prove a huge “online-to-store” effect when apparel is marketed well online. However, very few store-based retailers are taking advantage of this effect. They are too siloed into dot-com groups versus traditional channels. The dot-com groups don’t get credit for driving the store business. The traditional channels are (understandably) too wedded to traditional media to see the sales-driving power of online media. It will take senior executive leadership to get beyond these roadblocks.

Hopefully, Amazon’s push in this area will be a wake-up call to store-based apparel retailers. Customers don’t see marketing or sales channels in silos, the way you do. If you can successfully figure out how to use online tactics as levers to drive in-store sales, you have an advantage that Amazon doesn’t. If not, watch out.

David Livingston
David Livingston
13 years ago

Amazon won me over on books, Zappos won me over on shoes. eBay has been a blessing many times over. So yes, let’s get this going on fashion. Sure it’s not for everyone, but when you can sell with Zappos’ style of service, it will probably be a winner.

George Whalin
George Whalin
13 years ago

There is little doubt that Amazon has become a formidable player in the apparel and shoe categories. Haute Couture really is a very different business. Yes, we hear that everyone’s segment is different than others but this truly is a different business. The consumer has a different mindset and expectations. In many cases, they are also far more demanding than other consumers buying apparel. Image is everything. Amazon has become an excellent mass merchant with price and convenience as their hallmark. That is simply not enough with this consumer.

While Amazon’s technology has been an important part of building their incredible business, hiring technology expertise will not attract and keep this mostly discerning consumer. It also won’t allow amazon to understand and build the all-important relationships needed with the designers and suppliers of these consumer products.

Will Amazon succeed in building a viable Haute Couture business? Since for them it is just another category, I suspect they will by sheer size and force alone. But I doubt whether they can somehow take over and be a major force in the business.

Lee Peterson
Lee Peterson
13 years ago

I believe Amazon’s going to do just fine in this category, both for mainstream goods and perhaps even more so for higher-end, very hard to find products. Why not? I can’t think of a thing that would stop them, especially since they’ve adopted the Zappos return policy- which, if you haven’t tried it, is the BEST, easiest thing to do in the online world.

I could envision the proliferation of what I witness in my house at least monthly (I live with 4 females): ‘trying on’ parties. Where clothing, accessories and shoes of all sizes, shapes and colors are ordered, tried on, discussed, kept, sent back, traded and eventually worn with gusto. All the past discussions around trying on being the ingredient that holds back online apparel and shoe sales is nonsense, especially if someone as broad based as Amazon leads the way in dispelling them. All the best to them, can’t wait!

Steve Montgomery
Steve Montgomery
13 years ago

I support Anne’s comments but would not so quickly discard the fit issue. Men’s clothes are relatively easy–a 17/6 shirt is likely to fit close to the same regardless of where you buy it. I have learned from shopping with my wife that is not so true with women’s cloths. Sizes can vary a great deal from manufacturer to manufacturer and even by line from that manufacturer.

The other issue I foresee is the lack of social process involved. While as noted above, I have shopped with my wife, she is far more likely to go shopping with one of her friends. Their process is interactive–What to think of this? How does this look, etc? True, that can be done post purchase in the comfort of your own home with an internet purchase, but if the answer is not positive (and you agree with it) then there is the hassle of retuning it (free or not).

Jeff Hall
Jeff Hall
13 years ago

There is no brand as obsessed with customer-centricity as the combined Amazon/Zappos juggernaut. I question if Haute Couture is the next big thing for Amazon, simply because it is so strongly positioned as the mid-market/commodity item/mass merchandise purveyor. This is where consumers comfortably perceive Amazon. Asking us to now consider Amazon as the online source for luxury items is an uneasy stretch.

Susan Rider
Susan Rider
13 years ago

Amazon has proven their execution ability in all traditional silo areas within the organization. They have the brand and therefore the ability to secure a prominent position in the apparel arena.

With the millennials demanding a more individualistic look and style, this fits right into the overall marketing of Amazon. Their supply chain is in place and was designed for agility which gives them a step ahead of the competition.

Marge Laney
Marge Laney
13 years ago

With the fabulous customer service and easy return policies of Zappos, and the fit assistance apps like Fits.me offer to online retailers why would anyone put themselves through the drudgery of shopping in the local mall? Retailers spend enormous amounts of money getting people into their stores and another bundle on store design, but when it comes to the fitting room where the buying decision is made they abandon the customer! As an evangelist of fitting room customer service and technology, it’s maddening to watch the brick and mortar retailer continue to cut front-line payroll, training, and technology in the name of frugality. Bottom line, online retailers will continue to gain on the brick and mortar merchants that offer no reason for their customers make the trip.

Joan Treistman
Joan Treistman
13 years ago

While consumers hold some retail reins through word of mouth and social media, Amazon shows us that retailers can train consumers to shop differently and control their behavior. I suspect that experiences of the past…the look, touch, feel, try and buy approach will be adapted. We’ll look, imagine the touch (based on past experiences), feel and try when the apparel arrives and buy when if want to, but influenced by the fact that we have the clothing in our possession.

Amazon has changed buying behavior and the purchase decision process before. I have no doubt they can make it happen in the future.

Anna Murray
Anna Murray
13 years ago

It’s hard to imagine anything Amazon can’t do in when it sets its mind to it.

The Kindle is a great example, with the device and wireless connection essentially acting as a loss leader to break open the adoption of eReader devices and eBooks.

I believe Amazon’s data-rich approach has the potential to transform clothing shopping. There is a site called MyShape (where you send in your measurements and clothing/fit preferences) but the site is not well known. Amazon has a chance to do a similar thing on a much broader data set of merchandise and consumers.

Bill Hanifin
Bill Hanifin
13 years ago

There are two questions to be answered here:

1. Can Amazon create a retail clothing business that contributes in a significant way to overall corporate results?

The answer: Yes, they have the expertise, creativity, and technical capacity to deliver a shopping experience that will satisfy a broad category of consumers.

2. Should retailers shake in their boots as the online retailing outlet launched by Amazon signifies the end of retailing as we know it?

The answer: No, shopping is still a social experience for many people and I believe there is a limit to the range and level of activity that consumers will dedicate to the digital channel. We as people don’t have a “need for instant gratification,” we just fall prey to marketer’s attempts to tell us it is so. And, even if it were true, how can waiting even for overnight shipping be more “instant” than walking out of the store with your purchase in hand?

If anyone can successfully execute the retail shopping experience online, it will be Amazon, but there will always be a place for brick and mortar stores.

Devangshu Dutta
Devangshu Dutta
13 years ago

Amazon made choosing and buying specific books incredibly easy; yet book lovers continue to throng to bookstores.

Fashion merchandise needs to be seen physically, felt, and tried. Can we honestly, hand on heart, claim that mouse clicks will always give the consumer the same experience as spending an afternoon browsing (and agonizing) through a well laid out physical store along with a friend? If so, then we’ve reduced shopping to the final exchange of cash or plastic for the product in the bag. In that case, all factories might just as well open online storefronts and cut out all the middlemen including Amazon.

Commodity or predictable basics may be easily transferred online, fashion is slightly more difficult. There is merchandise, there are occasions, and there are consumers for whom online shopping is the way to go. For all others, you have brick and mortar. (Apologies to Mastercard!)

Dan Raftery
Dan Raftery
13 years ago

All of us who write here recognize the growing importance of online retail and the multi-dimensional influence of companies like Amazon, eBay and others. People will always be enticed by exciting new environments for spending their money. Go look at a summer carnival for a classic example. I look forward to seeing what the creative folks at Amazon do to capture more of the upscale clothing business that is floating through the Internet now and to how they entice shoppers to spend more with them over time.

The return model is a real issue, however. They are most likely going to need to tweak it quite a bit.

Chuck Palmer
Chuck Palmer
13 years ago

Why hasn’t Bergdorf Goodman, Harrod’s or Barneys done this? The buyers of these and other globally respected stores have deep and abiding relationships with the best fashion houses.

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 Barneys 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.

Joel Warady
Joel Warady
13 years ago

There is a big difference between selling books and selling fashion. A book is a book, and while the book lover has to make a decision as to what they want to read, once that decision has been made, the reader knows that when the book arrives, it is readable, it is printed on paper, and it is bound. Fashion is completely different.

With fashion, the first question people want to know is “how do I look in this?” This is a hard question to answer via the Internet. While Zappos has figured ways around it in shoes, Zappos does not have to answer the 2nd question which is “Do I look fat in this?” These are real questions asked by every person, man and woman, who are purchasing fashion items. Thought questions to answer online.

Additionally, one has to think about brand promise. What is Amazon’s brand promise? It has great inventory levels, you always find what you need, they have great fulfillment, and fast shipping. So does Dell, but I’m not purchasing my fashion from Dell. Nor will people flock to Amazon for their fashion needs.

All that being said, Gilt Group has sure figured out how to make fashion work online, but they do it through surprising and delighting the customer with limited opportunities to take advantage of great savings. Proof that fashion CAN work online if there is an additional hook.

Camille P. Schuster, Ph.D.
Camille P. Schuster, Ph.D.
13 years ago

If Amazon can create one of the online tools which can be used to create persona who can try on clothes, consumers would have the opportunity to “see” what it would like on them–a definite plus. If there is a way to better describe the fabric that would be great. If there is a way to get consistent sizing that would definitely help. There will still need to be good value. Free returns over $25 will be a great asset. If Amazon has done their homework, this could be very successful.

Rochelle Newman-Carrasco
Rochelle Newman-Carrasco
13 years ago

If you have ever shopped or browsed on Gilt.com, you know that there is a haute market of online shoppers ready to be had. No reason Amazon can’t make a move into this space. It’s all going to depend upon their merchandise and ease of use. Fashionistas are always looking for new trends and shopping opportunities. While the Amazon name may read more mass than it does upscale and distinctive, a little positioning work and the right product and shoppers will come.

John Boccuzzi, Jr.
John Boccuzzi, Jr.
13 years ago

Amazon has a good chance at making this work, but they will need to focus on an area they are less familiar with and that is exceptional customer service. Zappos success was built on the ease of ordering, but more importantly on the exceptional customer service. Clothing including shoes have challenges Amazon did not face with books including size, fit and fashion. I am not worried about Amazon building an exceptional shopping site that consumers can browse; I just warn them to be prepared for the customer service surge they are going to experience including returns. If they handle that in stride, other online clothing and shoe retailers better watch out.

Doug Stephens
Doug Stephens
13 years ago

If we’re learning anything, it’s that many of the old “rules” of retail no longer apply. Conventional lines and channels are blurring. Things that only a few short years ago that seemed unimaginable are now being taken for granted. So, can Amazon succeed with high fashion? Absolutely!

Ralph Jacobson
Ralph Jacobson
13 years ago

Amazon will do well with this offering. I am reminded of an intriguing concept that Target Stores brought to market a in 2004, “Target to a ‘T’.” It offered mass customization with a limited selection of apparel that could be ordered in a custom-tailored manner. You could click through to men’s dress shirts, and select sleeve length, neck, body shape, monogramming, etc, from Target! I loved it. Not certain exactly why it is no longer in market, however, can you imagine if Amazon would evolve their offering into something like that?!

Roy White
Roy White
13 years ago

These e-tailing initiatives could certainly be a success. Online shopping rose a quite stunning 14% to $39 billion in the first quarter according to the U.S. Census Bureau (same rate of growth in 2009 1st Q and 2009 4th Q), and that could mean an annualized $150 billion+ for all of 2010. Another trend which would support successful online marketing of apparel and fashion is that consumer recovery is being spearheaded by the wealthier economic groups, those most like to engage in online shopping and respond to apparel/fashion offerings.

According to L.E.K. Consulting Consumer Sentiment Survey, households earning more than $150,000/year are “bullish” on economic recovery and 39% of these responds felt that their spending had not been impacted by the recession or had by now returned to former high levels. This contrasts with the general population, only 12% feel “that their personal finances will improve” by the fall and 65% who do not see any rebound for one to two years.

With online shopping growing, and retail growth supported by higher income groups, Haute Couture could be a winner given that Amazon is an extremely expert and professional e-tailer.

David Biernbaum
David Biernbaum
13 years ago

Amazon’s expansion into serious clothing retailing will succeed to the extent it can accomplish the following missions:

1. Establish a clear consumer perception of what types of clothes can be purchased, and at which fashion level, and which brands.

2. Returns and changes must be made user-friendly and easy.

3. There needs to be a wide variance of sizes and styles available including “big and tall” and “short and petite.” In doing so the site will be a “destination” for the huge growing specialty sizes markets.

4. Pricing needs to be about the same or better than traditional retailers, with occasional promotions and discounts offered, as well.

5. On line images needs to be as clear and precise as if the consumer were shopping in an actual retail store. And yes this is entirely possible to do!

6. There must be a clear advantage to the consumer such as the ability to shop his or her styles and sizes for multiple needs all in one place.

7. Don’t overlook men! Cater to men in every possible way. Offer user friendly style advice, recommendations, and point of purchase assistance!

Christopher P. Ramey
Christopher P. Ramey
13 years ago

There are a myriad of issues to address. The first is that Amazon’s use of the term “Haute Couture” is inappropriate, humorous or delusional.

The distribution channel, along with price and quality, are primary means to judging a luxury brand. At some point, you cease to be luxury; woe be to the luxury brand that doesn’t understand that.

The best Amazon can expect is to make inroads in the near-luxury segments. Well known luxury brands aren’t going to permit Amazon to demean their brand and price points, or cannibalize their first quality stores. At best, shopping on Amazon for fashion will be analogous to an outlet store or the Home Shopping Network.

M. Jericho Banks PhD
M. Jericho Banks PhD
13 years ago

I buy tons of stuff through Amazon.com, loving their extremely simplified checkout using my existing account. Zappos loves me, too. Great email follow-up from both bidnesses. Many of the items I buy are sold and shipped to me by various retailers, and Amazon holds them to a high performance standard. I know this because I also sell through Amazon.com, and they hold me to a high standard. Can’t say enough good things about them.

Both Amazon and Zappos have already gone upscale in many, many categories, so why shouldn’t they be equally successful with clothing? I’m partial to those $1,055.00 Bruno Magli Retano boots at Zappos. Ever buy a $380.44 Le Creuset Dutch oven from Amazon? Many people do. A cursory glance at Amazon’s Jewelry department showed a $1,269,555.00, 7.91 carat loose diamond. Yamaha sells a $4,999.99 CP1 Stage Piano on Amazon.com. What do you think of that $96,755.99 Brequet Classique Complications Tourbillon Messidor Mens Rose Gold Watch? And personally, I’m very interested in the $49,999.00 RadarPlus SM1680 “Octopus” Octal AIS Receiver Array. Gotta’ have it! How much more upscale do you want to go?

Ted Hurlbut
Ted Hurlbut
13 years ago

I think Amazon is well positioned to take a significant share of eCommerce fashion apparel business, but I highly doubt that that will translate into a share of market that they’ve been able to capture in core categories like books, for all the obvious reasons. Fashion remains very much a “touch and feel” business, a highly subjective, emotional and “how it strikes me in the moment” purchase.

John Crossman
John Crossman
13 years ago

Buying books online is easy. Buying clothes is more of an experience. It is more personal. I don’t see Amazon replacing the experience of shopping.

James Tenser
James Tenser
13 years ago

Online selling once seemed to be best-suited for wardrobe basics – like khakis and polos – that had traditionally sustained the catalog business. Own-label products prevailed, and consistent fit, size and quality were the attributes that mattered.

Zappos helped break that paradigm with its cult-ish purveyance of brand-name footwear. Varying sizes and lasts made a liberal return policy a necessity, and the simple, pleasant way it engineered those interactions made followers of many fashion shoppers.

Now we see Amazon and eBay deciphering the code for higher-fashion apparel. While it’s really not my type of purchase, there are folks who are prepared to skip “feeling” the fabric if the right designer name is there to provide assurance. And there’s a pretty interesting market for vintage and one-of-a-kind garments that eBay is perfect for.

Since high fashion commands out-sized media attention, it’s not too surprising to see breathless coverage of Amazon’s expansion in this segment. If it succeeds in building a business in designer garments, I smell an opportunity for a resurgence in the private tailoring trade. Maybe Mr. Bezos should recruit a network of “Amazon-certified” local tailor shops who can cuff, taper and hem.

Ben Ball
Ben Ball
13 years ago

Amazon nailed it with the “Free Returns over $25” offer. If the cost factor on that doesn’t break the bank (I estimate that my online clothes buying spouse returns approximately 60-70% of what she orders–and that’s WITH paying the shipping) they will do well.

Shilpa Rao
Shilpa Rao
13 years ago

I think to revolutionize haute couture online, like books, Amazon needs to emulate the whole shopping experience in a brick and mortar store in their online shop. Apart from the service and convenience of two-way shipping, they need to bring in technology excellence to emulate what happens in the store. Virtual try-ons have been there online for years now but what remains missing is how does a particular piece of apparel fit on you? Does it bulge out at some places, is it too long or short for your tastes, does it make you look fat, is it tight in some places, is it too figure-hugging or not enough to bring out your curves and more? Same goes for shoes.

The website could also double up as a trusted adviser, pushing comments both positive and negative like ‘too tight’ or ‘you look gorgeous in this’. If they could figure out how to do this online in a simple way, with privacy issues taken care of, apparel shopping will never be the same.

Also since shopping is such a social experience for us, integration with social networking sites and others is a must. This is nothing new for Amazon, but here the user interface matters a lot. While shopping, she wouldn’t like all her friends to know what she has bought, but only a few trusted ones with whom she goes out shopping with. A user interface that would enable her to do so in a quick and easy manner, without many sign-ins, and get opinions from her friends on ‘how does it look’ would be a great hit. Also if all of this could be light enough to fit on the phone…. Nothing like it!

Jal Jobe
Jal Jobe
13 years ago

Yes, Amazon will succeed. Demographic, psychological and technological trends are all rapidly shifting in their favor. They are capable of becoming the #1 seller of fashion in America.