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Shoppers surveyed in an October 2016 report by Cowen & Co. said Amazon Prime was the main draw to purchasing apparel on the site, followed by high marks for convenience, customer service, and reviews. The Cowen study reported Amazon held 6.6 percent of the apparel market when it was published, projecting 8.2 percent in 2017, and 16.2 percent by 2021, with an estimated $62 billion in annual apparel sales, followed by TJ Maxx and Macy’s. “Amazon is more than capable of becoming the biggest retailer of apparel made by other brands,” Cassar says. “In fact it will probably accomplish that in 2017.” Still, he is doubtful about Amazon’s ability to bring the success it’s seen with apparel into fashion. “I do not believe that Amazon is capable of establishing a strong enough emotional connection with consumers to be a leading fashion brand itself.” “People’s impressions of Amazon are going to change.” Aryapadi has identified three major points Amazon needs to hit in order to become a true fashion powerhouse. “First, Amazon will need to hire top design/creative talent, and give them artistic freedom to experiment and bring uniqueness to the assortment, not ‘more of the same,’” he says, adding that consumers (especially millennials) want distinct and unique merchandise. Second, he stressed that Amazon needs to offer merchandise at different price points. “Amazon’s cachet has always been value-driven price points,” he notes, but “having a luxury/premium label creates a halo and an aspirational effect.” Lastly, Aryapadi argues that the online retailer needs to go deeper with offline engagement. Yep: real stores.
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