The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
NEW YORK, United States — Amazon is seeing a wave of upgrades just days before it reports quarterly earnings.
One of the firms boosting its outlook for the company is Cowen, which on Monday morning made bold call for the online retailer.
The team of analysts, led by John Blackledge, sent out a note this morning predicting that Amazon will become the number one U.S. apparel retailer by 2017, "comfortably passing" Macy's within two years. Here are the big numbers behind that call:
We estimate AMZN’s US retail Apparel GMV [gross merchandise value] grows from $16BN in ’15 to $52BN in ’20, with US market share rising from 5% to 14% and comfortably passing Macy’s in ‘17.
Keep in mind that, according to Cowen, Amazon's apparel and accessories segment is driving the sales of electronics and general merchandise (EGM), which makes up roughly 70 percent of total revenue. Note that Amazon may have been founded in 1994, but it didn't enter the apparel market until 2002.
The company's Apparel & Accessories footprint has come a long way since it first began selling Apparel in '02 and numerous comments suggest Fashion is now the fastest growing vertical within Amazon's largest revenue source, the EGM segment. Additionally, Amazon Fashion President Cathy Beaudoin disclosed Amazon Fashion has over 40MM customers (as of Feb. '15).
Blackledge and his team also included findings from a recent survey conducted by the research firm.
It showed that Amazon apparel purchasers growth is beating the likes of Wal-Mart and Target; over the past six quarters, this growth has averaged a positive 29 percent year-over-year, compared with a three percent and two percent decline at Wal- Mart and Target, respectively.
The concern for Wal-Mart and Target doesn't end there. The note says that in the first half of 2015, some 11 percent of apparel customers at Target and Walmart bought clothing from Amazon as well, compared to 8 percent in the first half of 2014.
By Julie Verhage; editor: Tracy Alloway.
By investing in an elevated product and shopping experience, Spanish retailers Inditex and Mango are seeing tremendous growth despite fierce competition from the likes of Temu and a cash-strapped consumer.
The ByteDance-owned app’s e-commerce play has been met with mixed response from users. Still, sales seem to keep ticking up.
The fashion resale company finally became profitable last year, but it was at the cost of losing consignors who complain that reselling is no longer as lucrative as it once was on the platform.
The Swedish luxury menswear brand is embracing the post-pandemic growth in the formal wear category, while optimising the consumer reach of their core line. BoF sits down with CEO David Thörewik to learn how Eton Shirts are innovating their strategy to drive global expansion.