TORONTO, Canada — Amazon recently posted its eighth straight quarter of growth. In fact, in the first quarter of 2017 its revenue grew by a jaw-dropping 23 percent, hitting net income of $724 million. Amazon Prime subscribership jumped to over 80 million members, representing a gravity-defying increase of 36 percent. And, while slowing marginally, Amazon Web Services, the company’s cloud computing cash cow, continued to post growth in the mid-40 percent range, giving Amazon plenty of cash to burn on furious innovation.
Read the article on Business of Fashion
Great article from Doug Stephens (founder of Retail Prophet) where he analyses the “real” value proposition of Amazon (More science than fun). He also mentions a few recommendations on how fashion retailers can survive to the Digital era, such are experiences and stories.
According to Cowen & Co, Amazon’s clothing and accessory sales are expected to grow nearly 30% next year, to $28 billion while Macy’s sales are expected to drop 4%, to $22 billion, in 2017. (read more on Business Insider)
Why people purchase apparel thru amazon? Is Amazon less boring than Walmart or Macy’s? Because of amazon prime, a wide assortment and fast and cheap delivery.
Maybe, Sun Tzu would recommend to use the same weapon: science and efficiency… Walmart is investing on big data, Social CRM… and also acquiring pure players (e.g. Jet.com). Other departments stores are struggling and closing points of sale, in USA and Europe. We don’t know yet what are the results, but the chess board is already set up. The battle just began.