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Posted: Sun 12:19, 06 Oct 2013 Post subject: Online Retail Fast Fashion-spun2 |
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Online Retail Fast Fashion
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The online retailer is shooting 3,000 fashion images a day in a photo studio using patent-pending technology.
And it is happily losing hundreds of millions of dollars annually on free shipping - and even free returns on apparel - to maintain its shoppers returning.
Having decimated the publishing industry, slashed pricing in electronics and made the toy industry quiver, Amazon takes on the high-end clothing business in its typical way: go big and spare no expense.
"It's Day One in the category," Jeff Bezos, Amazon's chief executive, said in a recent interview. Though characteristically tight-lipped on bottom-line details, Mr. Bezos said the organization was creating a "significant" purchase of fashion because it attempted to convince designer brands it desired to use them,[url=http://discountnikesoccershoes.webmium.com/][b]Nike Soccer Shoes[/b][/url], not against them.
The standard retail world - and many famous labels that want no part of Amazon - are preparing to battle for their lives.
"It has got the latitude to set prices and charge whatever it wants," Sucharita Mulpuru,[url=http://peutereyoutletitaliaonline.olimx.com/][b]Giubbotto Peuterey Uomo Jacket[/b][/url], an analyst for Forrester Research, said of Amazon. "That is a huge threat for brands."
Amazon who has sold clothing for years. But in recent times, it says, it has signed on countless contemporary and high-end brands, including Michael Kors, Vivienne Westwood, Catherine Malandrino, Jack Spade and Tracy Reese, also it is constantly on the prowl for more. On Monday, some of Amazon's muscle will be on display as the company sponsors, and live-streams, the Costume Institute Benefit in the Metropolitan Museum of Art and the accompanying exhibit. Mr. Bezos, the event's honorary chairman,[url=http://duveticaukoutlet.halod.com/][b]Duvetica Down Jackets[/b][/url], asserted, about the advice of Anna Wintour, Vogue's editor, he'll wear a pink pocket square with whether Tom Ford or Prada tuxedo (neither which is available on Amazon).
Amazon's decision to go after designer is all about plain economics. Because Amazon's costs are about the same whether it is shipping a $10 book or a $1,000 skirt, "gross profit dollars per unit is going to be much higher on a fashion item," Mr. Bezos said, and it already makes cash on fashion. While its MyHabit site, started last year,[url=http://duveticaitaliaoutlet.webmium.com/][b]http://duveticaitaliaoutlet.webmium.com/[/b][/url], utilizes a flash-sale model to contend with Gilt Groupe, Mr. Bezos says the business's new effort isn't about selling clothes at deep discounts but at prices that ensure "the designer brands are happy."
Amazon hasn't just size on its side but money. The organization has about $5.7 billion in cash and marketable securities, and Mr. Bezos has long taken a stance that investment, rather than profits,[url=http://duveticadoudoune.halod.com/][b]Femmes Doudoune Duvetica[/b][/url], is the best place to place it. The organization are able to afford to complete stuff that some competitors cannot. Have to hire a group of stylists for that Web site models (which Amazon does)? Not a problem. Wish to replace the plain brown shipping box with a fancier package for apparel (wh. This is certainly proving true of retailers as well as their attitude to the net. After a panic at the turn of the millennium about the effect on their industry of online shopping, bricks-and-mortar stores settled into making only modest alterations for their business model or,[url=http://woolrichoutletde.albirank.net/][b]Woolrich Arctic Parka Woolrich Online Shop Woolrich Damen Parka Woolrich Deutschland Outlet[/b][/url], ostrich-like, attempting to ignore it. Few have so far made the radical changes required to meet the threats from, and tap the enormous potential of, e-commerce (see article).
Such inaction threatens retailers' survival. Online sales are actually approaching $200 billion annually in America. Their share of total retail sales is creeping up relentlessly, from 5% five years ago to 9% now. People in their 20s and 30s do about a quarter of their online shopping. True, few women who lunch will buy their Christian Dior dresses online; and bargain-hunters will still enjoy rummaging in discount stores like Dollar General. But to attract everyone between, retailers will have to develop a strong online offering while making their shops nicer,[url=http://rogerviviershoesforsale.webstarts.com/][b]http://rogerviviershoesforsale.webstarts.com/[/b][/url], more conveniently located and, in the case of many big-box retailers,[url=http://rogervivieronlinesale.olimx.com/][b]cheap 2013 roger vivier online sale[/b][/url], smaller. Otherwise they're prone to go below,[url=http://giuseppezanottichainsandals.olimx.com/][b]http://giuseppezanottichainsandals.olimx.com/[/b][/url], as United Retail Group, an American clothing chain, did this month.
To construct a profitable online business retailers must integrate it seamlessly with their bricks-and-mortar operations. Many have them separate, increasing the risk they neglect to communicate or interact properly. Walmart's online operations have been in Silicon Valley, not even close to its Arkansas headquarters. Target, another supermarket giant, until recently outsourced its e-commerce to Amazon, the biggest online retailer, and it is only now building its e-business. Both Walmart and Target still have a puny online presence relative to their size.
Have you been being served?
Retailers also need to be ruthless in chucking out items that do not gain from being sold in a physical store: not just things like CDs and DVDs, which can be replaced by digital goods, but bulky things like nappies (Amazon has turned into a big seller of Pampers). Their shops must focus on those activities, such as expensive clothes and gadgets, that customers will want to try before they're buying, and for which they will pay extra, such as advice from competent sales assistants.
Stores need to become more fun to go to, so shoppers feel it's worth the trip to the mall or traditional. Apple's shops thrive not just because they contain cool products; they're beautifully-designed, with helpful staff. Disney stores might be an ordeal. (more)Loading.
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