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Fashion E-Commerce Giant Amazon Forays Into Luxury Fashion in 2020

E-Commerce Giant Amazon Forays Into Luxury Fashion in 2020

BRAZIL - 2019/12/30: In this photo illustration the Amazon Shopping logo is seen displayed on a smartphone. (Photo Illustration by Rafael Henrique/SOPA Images/LightRocket via Getty Images)
Photo: Getty Images
By Pearl Yan
January 09, 2020
The global online retail platform breaks into high-end fashion with a digital space dedicated to designer brands

E-commerce giant Amazon has announced its plan to launch its own digital platform for luxury fashion in 2020—and 12 designer brands are said to have expressed interest. 

Following a concession model, which means each of the respective brands will operate autonomously, the new platform—which is to roll out first in the US, followed by an international launch—will allow labels to have full control over the design of their own online space, the products that appear on the site, and any discounts or promotions they offer. At the same time, the designers will benefit from Amazon’s vast delivery network, customer service, and data gathering technology. 

While many of the high-end brands may have their own e-commerce site running already, Amazon offers attractive benefits that gives these brand an exclusive access to their target customers. This includes access to  its Prime membership programme which boasts more than 100 million upscale subscribers with high disposable incomes, who tend to spend more on Amazon than non-Prime customers. 

Amazon is not the first online giant who wants to get a slice of the luxury sector. Its Chinese counterparts such as launched its luxury e-commerce platform Toplife in 2017, and Alibaba’s Tmall successfully introduced Luxury Pavilion the same year which gives global designer labels access to one of the fastest growing markets of luxury consumers

Will Amazon make a successful entry to the designer fashion retail at a time where its potential competitors such as Net-a-Porter and Farfetch have begun to adopt major markdowns as part of its strategy to attract more sales? Only time will tell.

See also: Luxury Consignment Shopping Platform ChadiLuxury Launches In Hong Kong


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