As Amazon continues its quest for world domination, there’s one sector it hasn’t captured: luxury fashion. Though Amazon has tried to convert luxury brands to sellers on the site, many remain holdouts. However, the retail giant has developed strategies to establish itself in the fashion market, even without names like Gucci or Louis Vuitton.
On Prime Day earlier this year, Amazon sold five million apparel items, mainly by pushing private labels or using discounts on fan-favorite brands like Under Armour and Levi’s. This supports predictions that the company will be the largest apparel retailer by 2019, mainly thanks to the success of these private labels. Though most of these private label brands are more conservatively priced, they explain the transition of more mid-market brands to the site.
As of this week, Amazon now offers a bigger selection of apparel from Calvin Klein and Tommy Hilfiger than JCPenney or Macy’s, as the brands depart from selling solely through department stores to ride the wave of Amazon’s incredible apparel sales. Both owned by PVH Corp., the two brands were ranked 17th and eighth respectively in Gartner L2’s Digital IQ Index: Fashion Global. These strategies on Amazon help explain the effective digital strategies of both brands and ability to adapt within the ever-changing market to maintain their spots in the top 20.
As other mid-market brands like Coach and Kate Spade continue to distribute on the site, it seems that the trend will only continue. Though some higher-priced luxury fashion brands may steer clear of the retailer, it’s easy to imagine users ordering mid-market and contemporary level products delivered in just two days via Amazon Prime rather than directly through brand-owned sites.