Amazon, the e-commerce giant known for its vast array of products, is making a concerted effort to penetrate the high-end fashion market. Yet the company faces a major headwind in the form of its evolving reputation as a traditional big box retailer. Amazon certainly is having a direct impact on altering customer expectations. To boost its profile in the fashion industry, the company has been looking at possible acquisitions and partnerships.
High fashion isn’t Amazon’s forte, but when it comes to clothes and accessories the retail giant has experienced explosive growth. It now approaches $64 billion annually. The arcade is now home to several high fashion boutiques, and the firm continues to use the design to lure elite clothiers and woo refined clients. Recently, Amazon worked with luxury department store Saks Fifth Avenue to take on some of that challenge. They argue that such a connection will enhance their prestige in the world of high-fashion.
Shifting Perceptions Through Strategic Partnerships
Amazon has been trying to rebrand itself through a series of acquisitions over the past few decades. It bought Zappos in 2009, another online retailer famous for its customer service and shoe and apparel retailing, then Endless in 2012. Together, these moves have shown Amazon’s desire and ability to diversify its offerings and improve the shopping experience specifically in the highly competitive fashion market. Even after all this hard work, shoppers still mostly think of Amazon as a traditional retailer.
Amazon just recently launched a new experience page featuring luxury fashion from Saks Fifth Avenue. This latest move is a continuation of efforts to raise its profile in the luxury space. This collaboration puts customers within reach of the finer things in life. Simultaneously, it boosts Amazon’s prestige in providing a more high-end shopping experience.
As Kang’s research shows, even after spending more than a billion dollars, Amazon still hasn’t solved the problem of getting in-demand, up-scale fashion brands. “A lot of consumers and my students do not want to buy fashionable items from Amazon because of the authenticity,” Kang noted. This sentiment showcases the larger issue at play for Amazon’s credibility as a fashion retailer.
Analyzing Customer Feedback
In an effort to better understand customer perceptions and preferences, Amazon has conducted extensive analysis on customer reviews of identical products sold on both Amazon and Macy’s. The study focused on 21 total items. This featured six pairs of men’s jeans and 15 women’s bras from each retailer.
With more than 100,000 customer reviews analyzed, Amazon wants to determine what sets its products apart from those sold by Macy’s. Kang’s results confirm a common perception among consumers that Macy’s has become a more fashion-forward and fashion-oriented department store. This perception represents an obstacle for Amazon as it seeks to establish itself in the higher-end market segment.
“I think before the pandemic none of us thought Amazon could be successful as a fashion retailer,” – Kang
Strategic Recommendations for Future Success
Kang’s study has been published in the Australasian Marketing Journal. It offers actionable, high-level strategic guidance for how Amazon should move through the increasingly competitive landscape. The most important recommendation here is for the company to double down on healing and deepening its newly-acquired relationships with legacy fashion houses. In the process, Amazon would be improving its reputational capital and gaining favor with more quality-conscious consumers.
Kang recommends that Amazon focus on positioning quality and exclusivity in its marketing efforts to change consumer perceptions. Showcasing distinct product assortments signals Amazon’s attempt to position itself as a legitimate competitor in the high fashion space. Flaunting joint efforts with world-class designers will only amplify this perception.