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    This Is Why Amazon Is Doubling Down On Its Fashion-apparel Business
    Author: Jeffery Tims
    Website: https://www.usbasics.com/
    Added: Sat, 14 Jan 2017 11:30:15 +0000
    Category: CSS
    Printable version | Email | Bookmark

    Amazon CEO Jeff Bezos.AP Photo/Susan WalshIn a recent job posting for a software engineer, Amazon wrote that it wants to become "the number one online shopping destination for Fashion customers."

    That, combined with the fact that Amazon has quietly launched seven new fashion brands recently, only deepened speculation that the world's largest online retailer is serious about expanding its apparel business big time.

    But why would Amazon be so obsessed with the fashion-apparel market, an area of which it owns less than 5% market share?

    Here's the simple reason: Clothing has the highest online penetration rate among all retail categories in the US, and Amazon already leads the online apparel-shopping space.

    According to a note published by Morgan Stanley on Monday, 52% of US shoppers have bought clothing online in the past 12 months, by far the highest rate among all online retail categories:

    Morgan Stanley

    And within the online-apparel market, Amazon holds a distinct lead compared to other retailers that offer online services, far outpacing big-box stores like Walmart, Macy's, and Target. In fact, 45% of US shoppers indicated that they buy their clothing on Amazon, up 15% from the same quarter of the previous year, the highest growth margin among the 10 retailers surveyed:

    Morgan Stanley

    On top of that, online shoppers are expected to spend even more on clothing this year, which will only help Amazon capture a larger share of the combined $1 trillion clothing/grocery market in the US, Morgan Stanley noted.

    Disclosure: Jeff Bezos is an investor in Business Insider through his personal investment company Bezos Expeditions.

    SEE ALSO: Amazon quietly launched 7 fashion brands while ramping up hiring for its own clothing line

    View all Jeffery Tims's articles


    About the Author:
    Hello!
    My name is Jeffery and I'm a 30 years old girl from Poland.

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