Amazon into Apparels

continued from: Pros and Cons

Future Outlook

Selling apparels online may have advantages such as better inventory management, low set-up cost and so on, but there are many challenges. The challenge lies in building faith in technology where the customer feels at home or rather at store. The challenge is to create a brand that customers can relate to and are confident of without the fear of ordering silk and getting linen instead.

The strength of Amazon's brand will undoubtedly draw consumers to its new apparel section, but the long-term success of its apparel store will depend upon Amazon's ability to add value as an aggregator. If Amazon simply lists products and retailers, without building any value-added functionality (fit tools, as for example) it will not drive the incremental online sales that keep its partners and customers engaged after the initial enthusiasm. "A lot will depend on the execution; it will depend on having great-brands, offering discount incentives and product graphics" says Kate Delhagen, an analyst at Forrester in her article about the future of Amazon into apparels.

References

1. www.amazon.com
2. www.amazon/apparel.com
3. www.USATODAY.com-Amazon looking for a perfect fit with online clothing stores(November 08, 2002)
4. www.internetweek.com-Amazon taps more E-tailing partners, launches Apparel stores (November 07, 2002)
5. www.CNET.com Amazon.com launches apparel and accessories store-source-business wire (July 11, 2002)
6. Dataquest (June 15, 2000)
7. Annual reports of amazon.com for the year 2000-01.
8. Amazon.com: Marching Towards Profitability - case number: EC-25, July-2001 of Graduate School of Business, Stanford University.

Reference # 3-03-08-05

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