An Unlikely Company is Dominating Fashion Industry!
An unlikely company is driving the fashion industry in sales and products! Amazon is now rated one of the biggest seller of clothes online in the United States, gaining over 16.3 million dollars in their merchandise sales.
Other online stores like Nordstrom, Macy’s, Kohl’s, Gap, and Victoria Secret are dramatically behind in sales goals compared to the Amazon Fashion retailer. Amazon is currently now in second place to Walmart fashion merchandise sales numbers for the year.
The company’s rise in leadership has been a quiet and quick overtake in the fashion business. Amazon reportedly made its first major decision to compete with other fashion retailer stores ten years ago by purchasing the clothing website ShopBop. Three years later, Amazon also purchased the online shoe retailer Zappos for over 850 million dollars.
Since then, the company has invested in their online fashion business by launching its own private label clothing brand and also sponsoring their first ever Fashion Week in New York.
Amazon reportedly also hired luxury fashion executives like Julie Gilhart, who was Barney’s New York fashion director, and Caroline Palmer, a vogue editor, as consultants. The company then started to shift their fashion business to include high-end designer names and brands like Zac Posen and Stuart Weitzman.
Morgan Stanley analysts have determined the company’s sales have earned them an extra 1.1 billion dollars this quarter. Amazon’s strategy to gain experienced consultants and buy popular online retail stores seems to be paying off since department stores like Sears, Macy’s, Nordstrom, Dillard’s, and JCPenney have lost over 225 million dollars in apparel sales this quarter.
Popular department store executives have blamed declining sales on their consumer’s changed shopping habits, but according to Morgan Stanley analysts, the apparel market has grown 1 percent over the last fifteen years.
Amazon’s efficiency to grow their online fashion venue has gained them a top spot in the fashion world and will continue to be a valuable site for fashionista’s all over to purchase their favorite merchandise.