Amazon is planning to launch a luxury fashion platform in the first half of this year, according to reports.
This isn’t Amazon’s first attempt at breaking into the luxury fashion market – the retail giant originally started trying in 2012, but was not successful.
Part of the problem the eCommerce brand’s image. Amazon struggles to sell high-end items next to rote objects like discount flashlights and bookshelves. This sort of placement has kept many luxury fashion brands away, even though Amazon has promised to not discount their items.
The new platform will work similarly to the concession model in department and specialty stores, where a brand will run a mini-shop inside a store.
Amazon’s new platform will give brands complete control over how the online space looks and feels, and what products they decide to sell. Participating brands will also have access to Amazon’s thorough and storied logistics network, which aids in speedy delivery and provides customer service.
There are around 12 brands reportedly working with Amazon, each of which will be introduced individually. The site will be introduced in America before it goes international.
Amazon is creating a $100 million marketing campaign and is also constructing a large warehouse in Arizona.
The company’s new approach to luxury fashion is similar to Alibaba’s Tmall, which is a brand-to-consumer site with luxury brands. Tmall debuted the Luxury Pavilion, a place where brands can exist away from the main site, in 2017. It has a completely different feel and aesthetic than the main site, and is meant to help the brands maintain their own identities.
Luxury eCommerce is a huge source of growth for brands, and Amazon offers attractive incentives. The company has a built-in audience of 100 million subscribers, many of which skew to higher end-demographics in terms of financials.