Insights

How Apparel Brands Can Succeed on Amazon

How-Apparel-Brands-Can-Succeed-on-Amazon

Amazon is focused on establishing themselves as a market leader in fashion, but has been facing some challenges. Amazon Fashion is successful in selling basics and replenishable items (like socks, underwear, and jeans), but according to a recent study by L2 Inc, premium brands like Levi’s are struggling to gain market share over value-centric brands like Hanes.

So what does Levi’s do? Introduces a low-cost Gold Label line to their Signature brand, which is only available on Amazon. Gold Label Signature jeans quickly rose in popularity among jeans on Amazon, capturing 5% of share in men’s jeans and 4% in women’s jeans in Q4 of 2017. Leveraging Levi’s reputation for quality, Gold Label Signature jeans are striking a balance by appealing to Amazon’s value-driven consumer.

Apparel brands can take a page from Levi’s playbook. Introducing a low-cost product line on Amazon while emphasizing replenishables can help boost sales, visibility, and brand equity. Until consumers gain confidence ordering higher-end apparel on e-commerce platforms such as Amazon (which Prime Wardrobe intends to accomplish), offering low-risk, value-centric basics is likely the best strategy for the majority of fashion brands.