Amazon clothing could soon be on sale in the UK
PUBLISHED: 15:57 15 February 2017 | UPDATED: 15:57 15 February 2017
Online giant Amazon is reportedly close to launching its own UK fashion label to grab a slice of Britain’s £48bn clothing market.
According to fashion trade bible Drapers, the company is working on own-label clothing and could launch ranges as soon as this spring.
Former womenswear director at Marks & Spencer Frances Russell was the first senior buying director to be poached for Amazon’s clothing division, of which she is now vice-president.
She has since been joined by Karen Peacock, former head of design for womenswear and accessories at M&S, with Primark’s menswear buying director Glen George also understood to be moving to the online retailer.
Experts said Amazon could struggle to gain market share in an intensely competitive market, but the move still posed a threat to existing players.
Richard Lim, chief executive of Retail Economics, said Amazon has the power to “stir things up”.
He said: “Amazon is a very cash rich business and if they want to launch into a sector, they won’t do things by half.
“They offer convenience, good value and speedy and well-priced delivery, so it’s a good customer experience.”
Retail Economics said the UK clothing market was worth a mammoth £48bn in 2016. It is very fragmented though, with the high street players being squeezed while online fast-fashion firms such as ASOS are enjoying impressive growth.
Mr Lim said: “Amazon has seen how successful these pure online retailers have been over the last few years and are thinking they could compete in that area.”
But other experts believe Amazon will have a tough job building market share.
Tom Gadsby, retail analyst at Liberum, said Amazon is not a “go-to fashion label”.
“It takes a really long time to build a brand, even when you’re Amazon,” he added.
Amazon already sells women’s underwear in the UK under its Iris & Lilly brand, while in the US it has a raft of own brands, including James & Erin and Franklin Tailored.
The move into own-label fashion comes soon after its foray into the UK grocery market, which has put established groups such as online retailer Ocado under pressure.
Adam Tomlinson at Liberum warned: “When Amazon decide they want to do something in any space, it’s always a threat.
“They’re very ambitious and innovative.”