Amazon's foray into fashion
Rana Mumtaz stashed this in Amazon
"Until now, fashion has been one of the few categories that Amazon has tried to dominate without success. In addition to its own site, Amazon bought the shoe site Zappos.com for more than $1 billion in 2009, started the shoe site Endless.com and MyHabit, and bought the boutique Shopbop in 2006."
"Amazon can also offer brands more attractive terms than many other stores. For instance, Amazon does not ask for “markdown money” when items do not sell, or return unsold product to a brand, said Ron Friedman, an accountant at Marcum L.L.P. who advises brands like James Perse and American Rag.
"And to woo brands, Amazon is willing to make big buys. Jason Cauchi, the creative director of Dallin Chase, had been selling some merchandise to Amazon’s Shopbop. Recently Amazon said it would buy items from the entire collection, which Mr. Cauchi said was a rare offer and difficult to refuse."
Scott Galloway's Thoughts on Amazon's foray....
I like this point:
Whether Amazon will redefine the way we buy fashion is yet to be seen but very much a possibility. “This could be another example of Amazon being the giant poisonous mushroom that kills everything in its path,” says Galloway. “There’s no reason to think the same thing that happened to Borders couldn’t happen to Barneys, Saks and Neiman Marcus.”
That's the beauty of owning a set of websites.
Zappos is part of Amazon, yet independent. Going from one to the other is like going from one store to another.