The increased focus on fashion is critical for Amazon India and other online marketplaces, which are staring at stiff competition from the Flipkart, Myntra and Jabong combine, which commands close to 55% market share in the fashion category, according to market research firm RedSeer Consulting.
This could very well lead to the first incident where the separate organization Amazon set up in India could come up with products and processes that will help Amazon as a whole:
“We have a separate technology team focused on fashion, who are trying to create digital features and enhancements around problems specific to this category, such as sizing. Apart from this, we are working towards faster and smoother returns and have introduced special packaging for better consumer experience,” said Mayank Shivam, category leader at Amazon Fashion.
Amazon is still comparatively weak when it comes to fashion compared to other product categories. (Hence Zalando and other online fashion retailers can succeed even in markets with a strong Amazon presence. Somebody should tell U.S. venture capitalists.)
Amazon.in surpassed Flipkart as the most downloaded mobile app on Google and Apple app stores during the first quarter of this year, according to The Times of India.
Meanwhile, the price war in India continues:
Amazon has decided to cut the commission it gets from some large and preferred sellers by 30-50% on the condition that the saving is passed on to consumers, according to executives from four large online sellers. Non-preferred sellers may have to bear the discount entirely, although the online marketplaces will help liquidate their old stock through promotions and prominent displays.
Flipkart and Snapdeal are coming up with a similar strategy, sellers on the two platforms said. They plan to offer credit to sellers, equivalent to the discount offered, a practice that’s common in offline trade.