Not content with disrupting the tech, online and grocery industries, in February Amazon announced it would be making its first UK foray into fashion. This could not have come at a more pertinent time, with high street fashion chains going through turbulent times in the face of the ever-increasing prominence of technology and online media. Similarly, the impassioned debate over business rates cites concerns that the recent revaluation now favors online retailers with huge warehouses, to the detriment of bricks-and-mortar fashion shops. The sector is clearly facing a tough time. With Brexit, business rates and declining spend all on the cards, the last thing fashion retail needs is a new heavyweight competitor. Could this spell the end for many of the UK’s budding and established fashion retailers, or could it be the push in the right direction the industry needs?
Not content with disrupting the tech, online and grocery industries, in February Amazon announced it would be making its first UK foray into fashion. This could not have come at a more pertinent time, with high street fashion chains going through turbulent times in the face of the ever-increasing prominence of technology and online media. Similarly, the impassioned debate over business rates cites concerns that the recent revaluation now favors online retailers with huge warehouses, to the detriment of bricks-and-mortar fashion shops. The sector is clearly facing a tough time. With Brexit, business rates and declining spend all on the cards, the last thing fashion retail needs is a new heavyweight competitor. Could this spell the end for many of the UK’s budding and established fashion retailers, or could it be the push in the right direction the industry needs?
“The success of Amazon’s online fashion service demonstrates the enormous market opportunity for digital disruption in retail,” Metail founder and chief executive Tom Adeyoola said. “Customers still want the same things which are the best products, services, and value in the most convenient way, but the battleground for consumer attention and convenience has shifted to the mobile phone. Amazon has capitalized on this shift, providing a service that prioritizes speed and ease of use with an added loyalty scheme delivering constantly increasing value: Prime.”
Despite its infancy in the fashion industry, Amazon is reportedly recruiting from experienced retailers like Primark and M&S. But what is worrying the UK’s independent fashion companies is its phenomenal head start in technology. ECommera’s Annabel Thorburn explained:
“Amazon Fashion comes into its own when you consider this Prime angle. What does online clothes shopping become if you can get 1-hour delivery and free returns to any Amazon locker?”
What is more concerning for some is that Amazon has always been considered a budget fashion retailer, selling other brands clothing often at heavily discounted prices. Establishing itself as a respected own-label fashion brand may not be easy, but will elevate the e-commerce giant to become far more than a thorn in the side of established fashion brands.
Although there are understandable concerns amid the fashion community, this move also represents a significant opportunity, and could yet help draw people and innovation to the industry.
Emma Hutchinson from the Quest fashion team comments: “In our 2017 Retail Salary Survey we asked participants what product they most frequently buy online, and a majority of 43% of respondents answered fashion. Consumers have a ‘see it now, buy it now’ approach when reviewing the latest fashion trends, and Amazon offers this instant accessibility to invest. As consumers, Amazon Fashion has created the perfect opportunity to combine fashion items with our regular online grocery or music purchases, all under one platform.”
This article was written by Elias Jahshan @Retail Gazette
Image Courtesy: Jonathan Weiss / Shutterstock.com
