Amazon Partners With Oscar de la Renta To Foray Into The Luxury Fashion Segment For Prime Members
Amazon.com Inc. (NASDAQ:AMZN) is foraying into the luxury fashion segment through a partnership with Oscar de la Renta. The e-Commerce giant will launch several high-end fashion stores in what is seen as a big blow to the struggling departmental stores.
The departmental store dealt a blow as Amazon forays into the fashion industry
The move is a massive step for Amazon, looking to expand into luxury fashion offerings. It comes when brick and mortar stores face hard times as the COVID-19 pandemic has ravaged them with the e-commerce retailer seeing its YoY sales increasing more than 40% during the period. Amazon is planning to announce more partnerships in the future with powerful luxury fashion brand stores that are custom designed in the Amazon Marketplace.
The luxury stores section is on the company’s mobile app, and it will have designer items from Oscar de la Renta’s 2020 pre-fall and fall-winter collections. Currently, Oscar de la Renta store enjoys more than 360-viewing capabilities, and it allows consumers to see all details of their products before they can make a purchase. Shoppers will be able to see all the 2020 collection currently available on the Oscar de la Renta website and boutiques.
Although customers can walk into Oscar de la Renta stores or access their website, the Luxury store section on Amazon mobile app is through invitation only for Prime members. The company said that it would extend the invitations to all customers with time. Interestingly the company has not indicated how long the Prime members who request access to the luxury store can wait in line to be admitted.
Amazon has been aggressively pursuing the luxury fashion sector.
It is not the first time Amazon has sought to leverage the $300 billion luxury fashion market as it has previously made moves in the industry. Since the hiring of Christine Beauchamp as the e-commerce retailer’s head of fashion, the company has created Prime Wardrobe, a feature for Prime where you try before purchase, and the Echo Look, which is a smart camera providing fashion device.
Departmental stores have been struggling and have become out of favor for shoppers pushing them to bankruptcy. This year Lord & Taylor and Neiman Marcus filed for bankruptcy while Barneys New York went under last year. Fashion brands have been depending on departmental stores to distribute their merchandise, but they are now shifting online and having their online marketplaces.