JUNE 25, 2016 Amazon Apparel: Is the E-Commerce Giant About to Take the Apparel Industry by Storm? • The global apparel market iS growing at a 4.5% annual rate, yet global e-commerce SaleS of apparel are growing at a 12.8% rate, demonStrating conSumerS’ increaSing willingneSS to buy clotheS online. • Amazon haS been Selling apparel Since 2002, but the company intenSified itS activity in 2006 and again thiS February, when it Stealthily launched Seven private- label brandS. • At $78 billion, apparel and footwear repreSentS the second-largeSt global e-commerce market—and one that iS too large to ignore. We think Amazon iS now turning its focuS to apparel due to the company’S enormouS Size and itS SuccesS in dominating the e- commerce marketS for print and digital media. • We eStimate that Amazon will hold 7% of the US apparel market thiS year, and we think that through promotion and private-label offeringS, the company can grow itS apparel groSS merchandiSe value (GMV) at a 16% CAGR, to more than $50 billion in 2020 DEBORAH WEINSWIG Managing Director, Fung Global Retail & Technology
[email protected] US: 646.839.7017 HK: 852.6119.1779 CHN: 86.186.1420.3016 DEBORAH WEINSWIG, MANAGING DIRECTOR, FUNG GLOBAL RETAIL & TECHNOLOGY 1
[email protected] US: 917.655.6790 HK: 852.6119.1779 CN: 86.186.1420.3016 Copyright © 2016 The Fung Group. All rights reserved. JUNE 25, 2016 EXECUTIVE SUMMARY While the apparel induStry haS hit some speed bumps since the launch of e- commerce and omni-channel platforms, the sector haS largely been conducting busineSS as usual, unfazed by growth Steadily being Siphoned Amazon has been active in the away by e-commerce.