Insights

J.Crew Partners with Amazon

JCrew

J.Crew, a multi-brand apparel retailer, has decided to adopt the “if you can’t beat ‘em, join ‘em” mentality about Amazon. The retail giant has given J.Crew their own dedicated storefront, specifically to promote and sell J.Crew’s lower-end Mercantile products. This is in line with Amazon’s recent efforts to become a leader in apparel and fashion, including launching Prime Wardrobe, a try-before-you-buy program.

This partnership is very similar to Levi’s launch of their Amazon-exclusive Gold Signature line. 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 during 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. J.Crew is likely looking to follow a similar strategy.

Morgan Stanley predicts that Amazon will rise to the top of the U.S. apparel industry by the end of 2018, citing the company’s 2017 impressive 1.5% market share growth.