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Suggesting Amazon Fashion A Strategy
1. Amazon Fashion
“In order to be a $200 billion company we’ve got to learn how to
sell clothes and food”
- Jeff Bezos (2007)
2. Problem Statement
Objective
To design a strategic plan to counter the dominance of
Flipkart in the category of fashion and capture the market
share by improving the sales of the same.
To prepare a deck of business strategies for the growth of
Amazon as a dominant fashion giant.
11/6/2019
Amazon’s biggest rival in the Indian market is Walmart-
owned E-Commerce company Flipkart. Amazon has better
customer engagement compared to Flipkart and offers a
better value proposition and customer experience. It gets
almost 70% more customer visits per month than Flipkart ,
Myntra and Jabong put together.
Flipkart is highly concentrated in its portfolio taking a clear
lead in fashion and smart phone categories. Amazon’s sales
are more widespread across different categories. Flipkart
with Myntra and Jabong has become the largest fashion
retailer in India.
3. Our way of Consulting
Identify the
perception.
“The real stories are
told by people who
live them”
Find a way to combat
on ground realities
a.k.a Problem.
“All talk and no show,
kaise chalega?”
Find a way to change
existing perceptions.
“Jo dikhta hai wohi
bikta hai”
10. Amazon
Prime
Wardrobe
•Prime Wardrobe is free for Prime members, and it lets
you try clothes on at home before you buy them.
•Users get 7 days after their last item arrives to try on
items at home, and you send back what you don't want to
keep.
•Prime Wardrobe has free shipping and free returns, and
you can get as few as three items or as many as eight to
try at once.
Prime Wardrobe.
You get a box of clothes, try them on for a week, no upfront
payment, free, already set up for you to ship back.
This takes the biggest pain point of the clothing online, you
can’t try it on, you can’t feel it before buying.
12. Launching Of Prime Wardrobe
And Its Results In US
12
4.5
5.9
7.9
11
16.3
21.5
27.8
35
43
52.1
GROSS MERCHANDISE SALES VALUE
Year on Year GMV of Amazon U.S.
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Source : Statista
Research Department
(2019)
16. Nurturing and
Adding In-House
Brands
PROBLEMS:
• No brand recognition.
• No physical presence.
• Zero marketing.
SOLUTIONS:
• Launching offline stores of in house brands.
• Brand Space for the inhouse brands at future group stores
and shopper stop outlets.
• Search optimization of in-house brands (brand suggestion
to buyers).
• Marketing campaigns.
• Amazon should utilising its knowledge of what people
shop on the platform, what he or she is really looking for.
It wants to slowly steer shoppers toward its in-house
brands and away from competitors.
17. “Amazon Go” Stores
Combating the age old problem of “ waiting in
queues”. Amazon has used computer learning and AI in
such a way that you don’t have to face harassment of
lines, checkouts or registers.
This is made possible by:
• Computer learning
• Deep learning Algorithms
• Sensor fusion.
“Making clothing a Grocery Item”
18. Our way of Consulting
Identify the
perception.
“The real stories are
told by people who
live them”
Find a way to combat
on ground realities
a.k.a Problem.
“All talk and no show,
kaise chalega?”
Find a way to change
existing perceptions.
“Jo dikhta hai wohi
bikta hai”
19. Game Of Perceptions
Amazon needs to be the first thought people have when thinking “Fashion”
Indian Fashion Game is different. Fast Fashion is perhaps the only fashion here there is.
User Interface Liveliness – comparing Flipkart and Amazon.
User Interface friendliness- filters on basis of pattern, colour
etc.
Rebrand itself with celebrities and public figures having
huge fan following like Ranveer Singh.
Fashion is a Browse Category, not Discover category. Using
Social Media Influencers would benefit by supplying with
regional connect.
Advertise itself with celebrities on the product category or
basket on occasions, seasons and festivals.
Increasing Brand Visibility i.e. by Sponsorship of shows with
wide reach and following like Roadies, Awards with
Influencers promoting Amazon’s clothes.
Sponsoring Fashion Weeks
20. Correlation Between Amazon’s
Sponsoring New York Fashion Week And
Increase In GMV
0%
10%
20%
30%
40%
50%
60%
2015 2016 2017 2018 2019 2020 2021 2022
Market share in U.S.
Source : Needham &
Company ; Fortune (2017)
They overtook Macy’s in
2017 to become the
largest player in US soil.
Just after sponsoring New
York Fashion Week.
Can you believe that?
21. Amazon’s Counterfeiting Problem
Amazon has faced this problem for a long time, and it has become quite
rampant in apparel section.
• Track and Trace- 2D Barcode.
• Microtext
Using AI : The company unveiled Project Zero, which it
says will allow brands to take down counterfeit items
on their own without Amazon's help.
The project uses a type of AI called machine learning
that constantly scans Amazon's stores and removes
suspected fakes.
Companies give Amazon their logos, trademarks and
other important information about their brands, and
Amazon scans product listings every day looking for
bogus items before they are purchased.
22. Ancillary Strategies
These need to be implemented along with the 5 core strategies which showed results in US.
Use Of AI In Apparel Section
• Trend spotting: Fashion brands can
bolster their apparel business by tracking
the latest trends.
• Machine-assisted designs: AI tool can
learn the entered images and accordingly
generate an altogether new design by
itself.
• Customer Experience: It can provide
personalized advertisement notifications,
alert them on price drops as well as clear
their doubts and queries by using chatbots.
Expanding Amazon’s Basics Model
• Following amazon basic model in
apparels.
• Trial of new brands and designs.
• Scaling up the presence of the
products under the brand name.
Diversification Regarding Branding
• Amazon has tied up with brands like
NIKE and Calvin Klein in U.S.
• They have tie-up with 19 well known
brands, ranging from shirts to pants,
undergarment's and hoodies.
• While in India, they contain 6 in
house brands, like MYX and
Symbol, which are not that well
known.
• They need to diversify and bring
more well known brands under the
umbrella which is Amazon Fashion,
so that they can increase their market
share.
23. Strategies Summary
Amazon’s Prime Wardrobe
No upfront charge. Allowing customers to order only what they want and only
pay for what they want to keep. Prime wardrobe shipments come in a reusable
box with a prepaid label, which makes the return process less of a hassle.
Nurturing and Adding In-House Brands
Amazon’s In-House Brands of Symbol and Myx are hardly known to an
Indian Consumer. To be a market leader, there is no other way but to
capitalize on them in India, like they did in US.
Increasing Brand Recall
Flipkart et al took care of it by getting endorsed by various faces of youth Eg
Shraddha Kapoor. Amazon needs to do the same. Indian consumer has
his/her own kicks, and Amazon needs to provide that by associating its
fashion line with one of the faces of youth.
Add “Apparel Value Delivery”
Amazon’s logistic is undoubtedly superior, and majority of consumers
perhaps use Amazon more than they do other platforms. However, that
trend reverses when it comes to apparel purchases due to lack of variety.
For the Ghajni in us.
“Amazon Go” Stores
To make shopping so hassle-free that even a kid can do it.
24. Thank You
Team members :
1. Dibakshya Chakraborty
2. Shikhar Kothari
3. Avinash Singh
College : NIBM, Pune
Email : dibakshya@gmail.com
Contact : 8109501391