#amazon india has made another move to strengthen its position in fashion and apparel retailing with launch of the “The Denim Hangout” for men. This pitches Amazon against Flipkart & others in India who have been aggressively investing in fashion retailing, as it is a higher margin business and is a very large category for e-commerce.
This comes after the launch of Amazon’s “Ethnic Store” for Indian women, which was released in April 2014.
The company has a 30 day, no questions asked return policy, for damaged/defective goods or for goods that you no longer need! (fickle much?)
It is interesting that they launched the women’s and men’s store separately though; indicating a move towards creating well defined verticals in the consumer psyche.
This follows the general trend in online retail, where the major players are trying to shed the image of being a horizontal godown of all products under the sun.
Flipkart+ Myntra Vs Amazon
Earlier this year, Flipkart announced its acquisition of Myntra.com, which was the country’s largest Fashion and Apparel online retailer. Flipkart, thanks to the acquisition, now controls a 50% share in the Fashion and Apparel segment. The company wants to corner nearly 60% of the market by 2020, when they expect the fashion and apparel category to be nearly $70 bn in size.
Online Fashion and Apparel segment is expected to grow like a weed as Indian consumers with disposable incomes, too many of them, get more comfortable with the try-out-at-home and friendly return and payment policies.
With Amazon’s entry into this space, it makes us wonder if Flipkart and Myntra.com picked a whiff from far away and decided to consolidate in anticipation.
The Third Competitor: Ebay+ Snapdeal
Indian e-commerce is quickly becoming a three way battle. E-bay, the third and one of the oldest player in India, has been flexing its muscles with investments into Snapdeal. This could turn into a acquisition in the future. But for now, both Ebay and Snapdeal probably need to get a lot more fashionable.
Oh and where does that leave Jabong? Well, they raised $27mn few months ago.