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Amazon looks at larger play in fashion segment; apparel sales better than pre-Covid levels

Abhishek Law Kolkata | Updated on October 30, 2020 Published on October 30, 2020

Arun Sirdeshmukh, Head, Amazon Fashion India

Growth has come with healthy new customer acquisitions, and have come from Tier-2, Tier-3 and Tier-4 towns

E-commerce giant, Amazon India, is looking at a larger play in the fashion segment. Sales across apparels are better than pre-Covid levels, with some categories like watches and travel luggage “still not” being as “robust” as earlier.

Nearly one out of every three people visiting the Amazon India site views the fashion segment – that include categories like apparels, accessories, watches and footwear. Amazon Fashion has launched more than 6,200 new brands this year, as compared to the last festival season. Over 170 of these are top-tier brands.

 

According to Arun Sirdeshmukh, Head, Amazon Fashion India, the e-tailer is witnessing “a solid year-on-year growth”. Formal wear and “essentials” are leading recoveries.

Growth has come “with healthy new customer acquisitions” and from existing ones. Nearly 80 per cent of new customer acquisitions have come from Tier-2, Tier-3 and Tier-4 towns.

“In certain segments, festive demand is clearly playing out. There is also a rising demand for formal wear. However, the net effect is we are experiencing higher demand and year-on-year growth (in sales). Apparel sales are better than pre-Covid levels too,” he told BusinessLine.

Rising apparel sales

Ethnic wear demand is fuelled by the festive season; while infant wear sales have seen a strong rebound since May.

In the initial days, post Unlocking, consumer preferences were restricted to “essential segments”, like innerwear, lounge and sleepwear and activewear (sports and athleisure). Priorities shifted towards formal wear, August onwards, as offices opened-up. In the case of footwear, offerings like clogs and mules saw increased traction.

For watches and travel luggage like suitcases and backpacks, a slow recovery is being witnessed now. The segments are likely to be back on a growth trajectory by the end of Q4 of this year (October – December period).

Ramping Up deliveries

According to Sirdeshmukh, there has been nearly 50 per cent increase in selections (listing by sellers) over the last one year. This apart, Amazon Fashion, in association with DBS Lifestyle, has launched River, an affordable multi-designer brand. It has partnerships with designers like JJ Valaya, Ashish Soni, Manish Arora & Suneet Varma.

 

Local artisans and weavers have also been supported through tie-ups with MSMEs, self-help groups and state government organizations. The company also has invested in a fashion studio in Gurgaon called Blink.

“We have also ramped up deliveries. In 80 per cent of the orders made across 200-top cities, deliveries are done within two days,” he said.

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Published on October 30, 2020
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