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Amazon fashion business doubles in a year

Amazon has grown into the single-largest fashion retailer in the country

Alnoor Peermohamed  |  Bengaluru 

Amazon

claims that its online sales have grown between 80 and 100 per cent over the past one year, as one in three visitors on its platform is now looking to buy apparel and accessories. According to the US-based retailer, has grown into the single-largest retailer in the country, a claim which is contested by rival Flipkart that says it along with subsidiaries and Jabong controls 70 per cent of India’s market. With over 15,000 brands available on its platform, says its stellar growth was possible because of a 50 per cent increase in selection of products. It says the category is also the largest in terms of bringing new users, especially from tier-II and tier-III cities. “Everything we are doing in terms of selection, price and value is beginning to get across to the customers. We still think it’s Day One of the online journey in and penetration is still very low,” said Arun Sirdeshmukh, head of Fashion, “From this point forward, what is important is who is going to own the greatest share of market in He said the online sales contribute just 4 per cent of the total retail in the country and the figure is expected to rise to 15 per cent in a few years. Everything is doing today is to get ready for that shift, and become the most preferred destination for customers to shop for online. While the contribution of to India’s revenues isn’t close to overtaking the contribution from smartphones and electronics, the segment is gradually taking the lead in terms of orders being placed.

Even among premium customers on Amazon’s platform, one of three Prime deliveries being made are products. Amazon fashion business doubles in a year The company says the simple explanation for this is that is encouraging customers to make repeat purchases, something that goes hand in hand with its Prime strategy. In figurative terms, says 60 per cent of customers who shops for on its platform end up returning within a year to buy something else from it. “A Prime customer as a subset is among our best customers in terms of repeats and volume of business. We are seeing one in every three orders being made through Prime being a item. These are the customers who will form our long-term strategy and will remain loyal to us,” said Sirdeshmukh. Going forward, says its partnership with will help it grow in the category, making available to offline customers more than 150 brands available exclusively online. As for the part of the deal, which will allow to gain an offline presence within stores, Sirdeshmukh said the company was still working on a plan. As for experimenting with offline retail, which its rival has already begun, says the opportunity for growing online retail is so large that it makes no sense to go after offline sales right now. In the markets, where makes up around 15 per cent of the overall retail sector, the company says it is still growing at 15-20 per cent year-on-year.

First Published: Wed, December 20 2017. 01:11 IST
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