Amazon made news in the fashion world recently when the company officially launched Prime Wardrobe after months of beta testing.
The service offers users a chance to try on clothing before officially purchasing anything.
It is no surprise, then, that analysts at the Union Bank of Switzerland have predicted that the online retailer’s future might bring further progress when it comes to fashion.
The bank stated:
“Amazon is increasingly well positioned to capture a portion of the fast-growing [North America] online fashion market.”
The bank has estimated that Amazon itself could potentially generate up to $40 billion of its gross merchandising value through clothing sales by 2022. As a point of comparison, Amazon garnered $17 billion in clothing sales in 2017. The bank stated that with new developments such as Prime Wardrobe, as well as the fact that the Seattle-based retailer is now offering more high profile brands, it only makes sense that Amazon’s fashion division will continue to grow.
UBS predicts that there is “significant runway ahead for Amazon,” especially as the retailer has been showing other seeds in the fashion market. The company bought ShopBop back in 2006 and recently made a foray into sports clothing with official soccer shirt sales, as well. Amazon has also launched the Fix, a division which is centered on shoes and handbags.
However, UBS thinks that consumers will ultimately be attracted to Amazon as a clothing retailer due to its convenience. Based on a survey of 9,000 participants, UBS has found that 49% of consumers spend a significant portion of their clothing budget online. 44% of these correspondents sight the rationale behind this figure as having to do with convenience.
With such numbers in mind, it is easy to agree with UBS’s predictions. In fact, as online retailers begin to grow, Amazon remains one of the leaders in the race. This, coupled with people’s growing wish for convenience, may guarantee the online retailer’s future growth as a fixture of the fashion world.
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