Amazon India partners fashion brands to push up sales

Amazon India is aggressively pursuing partnerships with offline fashion brands that have high recall among urban consumers. It is even looking to invest in some of these brands and offline retailers. It has already picked up a small stake in Shoppers Stop.

Amazon’s array of private labels is yet to take off in a big way in India. The retailer wants a wide assortment of big brands which can give it an exclusive edge. Accelerating growth in the category is important for Amazon. This year was an aggressive year for Amazon in terms of growing its overall selection as well as strengthening the branded portfolio. It launched over 50 top fashion brands like Under Armour, New Balance, Gap and many more iconic brands like Mothercare, Marks & Spencer, Forever 21, Forever New, Michael Kors and brands like Steve Madden jewelry and Juicy Couture watches.

Fashion is expected to be the largest product category in online retail by 2020 and also offers much higher margins than smart phones and other electronics. Fashion is now the second largest category in e-commerce. It is not a price-sensitive category like smart phones or accessories. Increasingly, offline and online are getting together in a big way, since large offline brands also need online channels to drive sales.