Nicki Hayes

Many of our single-brand Apparel clients struggle with the notion of any Amazon presence, citing cannibalization as one of their many concerns in the same way their Direct-to-Consumer (DTC) business struggles with their relationship with department stores. According to a recent article in Woman’s Wear Daily, market share of department stores declines can be linked to Amazon gaining market share in Apparel.

In the article, Morgan Stanley analyst Brian Norwak said Internet retailers, led by Amazon, have added $27.8 billion in apparel revenues since 2005 while department stores have lost $29.6 billion, according to Euromonitor and U.S. government data. Nowak and the Morgan Stanley retail team estimates that Amazon’s e-commerce platform would account for 19 percent of the U.S. apparel industry by 2020.

At first, we were taken a little aback by the estimate. But it’s not a shocking statistic when you consider nearly half of U.S. households (approximately 54 million) have Amazon Prime memberships. That makes it hard to compete with the DTC marketing budgets many of our single-brand clients. So how does a brand compete with Amazon? IMHO, you don’t compete, you collaborate by including Amazon in your digital strategy.

From merchandising to marketing, there is a place for every brand on Amazon. What is your strategy? For many brands, it’s sticking their head in the sand. For others, it’s taking on Goliath and coming out the other side victorious – in whatever way success is defined for your business whether it be brand awareness, new customer acquisition, etc.

For more information on strategies for your brand on Amazon, view our recorded Webinar.