Workers make preparations for a launch occasion at Amazon.com Inc.’s new trend images studio within the Shoreditch district of London, U.Okay.
Simon Dawson | Bloomberg | Getty Pictures
UBS estimates that Amazon’s U.S. gross sales of attire and footwear grew by roughly 15% in 2020 to greater than $41 billion, which is 20% to 25% above rival Walmart.
“This represents extremely spectacular 11%-12% share of all attire offered within the U.S. and 34%-35% share of all attire offered on-line,” UBS stated. “We now estimate Amazon will surpass $45 billion in attire/footwear gross sales in 2021.”
For years, Wall Road analysts have predicted Amazon will leapfrog Walmart to say the highest spot within the U.S. attire market. Amazon discovered early success by offering a wide range of basics, nevertheless it has since expanded its trend enterprise. It now encompasses a rising slate of title manufacturers and, final fall, it launched online luxury fashion shops.
The pandemic has solely cemented Amazon’s dominance within the attire sector. Amazon was one of the biggest beneficiaries of the pandemic, with stuck-at-home customers turning to the web retailer for much-needed necessities like bathroom paper and hand sanitizer, in addition to non-essentials like workplace furnishings and exercise gear. Customers turned to Amazon for items and providers they won’t have in any other case bought from the corporate earlier than the pandemic, like grocery supply.
Amazon now claims a 30 to 35% share of the web attire and footwear market, UBS stated. “To place this in perspective, Amazon offered nearly 7x as a lot attire/footwear because the second largest participant on-line (Macy’s),” UBS added.
Though Amazon has reworked right into a high attire participant, UBS stated the corporate might nonetheless make some enhancements to the procuring expertise, like carrying extra of the manufacturers that customers need. Amazon has turned off some manufacturers up to now and that could possibly be hurting its capacity to develop choice on the positioning, UBS stated.
“Till Amazon turns into a platform that works with firms to raise manufacturers, somewhat than viewing the connection as transactional, firms who’re fiercely protecting of their manufacturers (e.g. Nike), is not going to promote to Amazon,” UBS analysts wrote within the observe.
In 2019, Nike grabbed headlines when it announced it will not promote its garments and footwear on to Amazon anymore. Different manufacturers, together with Birkenstock and PopSockets, have additionally pulled out of Amazon lately, citing varied points from counterfeits to aggressive pricing ways.