Amazon India to expand online fashion business with offline tie ups
In order to boost their fashion sales, Amazon India is looking to partner with and invest in several popular offline fashion brands.
After recently investing in Shoppers Stop to acquire around ten percent of the fashion retailer, Amazon India has also engaged in talks with other businesses including Tata Group who head the e-commerce site Tata Cliq and the Westside retail chain. Tata Cliq is a multi-brand e-commerce site that has a number of product categories including clothing and accessories from brands such as Hunkemoller, Triamph, Global Desi, and Vero Moda.
Amazon India has also held talks with the offline fashion retailer Madura Fashion, although nothing has been decided as yet and it is thought that they are seeking to partner with a number of other offline fashion retailers.
Fashion is expected to become the largest online retail category by 2020, even ahead of electronics, and so how well multi-brand e-commerce giants do in this field is becoming increasingly important for their overall success. Fashion is currently the second largest online category but it only accounts for under 20 percent of online sales.
Flipkart currently occupies between 60 to 70 percent of the online fashion retail market in India and they own the two well-known online fashion portals Myntra and Jabong. If Amazon India wants to overtake Flipkart in overall online sales it is therefore important that they become more successful in the fashion sector and acquire more brands that will bring in sales. Flipkart also recently tied up with international brands including Esprit and Mango, giving Amazon India even more reason to find its own niche in the online fashion sector.
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