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Amazon to double its fashion business in a year

US-based retailer Amazon has grown into the single-largest fashion retailer in the country, a claim which is contested by rival Flipkart that says it along with subsidiaries Myntra and Jabong controls 70 per cent of India’s online fashion market. It has covered more than 15,000 brands available on its platform. The companys stellar growth was possible because of a 50 per cent increase in selection of products. It says the category is also the largest in terms of bringing new users, especially from Tier-II and III cities.

While the contribution of fashion to Amazon India’s revenues isn’t close to overtaking the contribution from smartphones and electronics, the fashion segment is gradually taking the lead in terms of orders being placed. Even among premium customers on Amazon’s platform, one of three Prime deliveries being made are fashion products.

The company says the simple explanation for this is that fashion is encouraging customers to make repeat purchases, something that goes hand in hand with its Prime strategy. Nearly 60 per cent customers who shop for fashion on its platform end up returning within a year to buy something else from it.

Going forward, Amazon says its partnership with Shoppers Stop will help it grow in the fashion category, making available to offline customers more than 150 brands available exclusively online. Amazon says the opportunity for growing online fashion retail is so large that it makes no sense to go after offline sales right now. In the markets, where online retail makes up around 15 per cent of the overall retail sector, and is still growing at 15-20 per cent year-on-year.

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