Amazon pushes further into apparel with ‘Look’
Global Ecommerce kingpin Amazon is pushing further into clothes and accessories with a new gadget powered by its Alexa virtual personal assistant. The Amazon Look is a $200 hands free camera and style assistant: now Alexa can see what you’re wearing, and ‘she’ has an opinion on it. Well, perhaps not an opinion of her own – but Look’s ability to map your entire body and produce photos and videos detailing it will no doubt help you form your own opinion – and, of course, it takes the perfect selfie. Amazon’s latest gadget moves it further into the apparel market – this is somewhere the company is already making waves.
Amazon is up almost 27% so far this year
SOURCE: Yahoo Finance
Amazon’s Look is an important shift in how people might shop for clothes online. There are problems that come with not buying your clothes and accessories in person: will it fit right? Will it compliment my existing wardrobe? The Look is a first step towards addressing those concerns – because, while it doesn’t directly do so – it introduces technology that brings Amazon’s apparel shopping more in-line with a tailored, in person, experience.
Amazon is already beginning to clear up in apparel sales. According to research firm L2, there is a ‘tipping point’ for Ecommerce: when sales reach around 20% online, the sector transforms itself, and “shopping behavior swings decisively in one direction”. According to the same researchers, 21% of all apparel purchases were made online last year.
Amazon is going to struggle to dominate this sector in the same way it has, for example, with books. Apparel sales are too fragmented, and there are serious competitors in the space. However, Amazon’s sheer size (it accounts for a massive 43% of all online sales in the U.S., a number that none of its competitors are even close to matching) makes it an important player in the market. And, with innovations like Amazon Look on the way, the company could become nearly as fashionable as it is well read.
Dominion holds Amazon in its Global Trends Ecommerce Fund.
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