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30
nov
2020
Bertrand Leseigneur
Retail Innovation Correspondent USA
3 minutes

Amazon has decided to invest in the luxury sector with its new Amazon Luxury offer on its mobile app. The store is only available by invitation, but some Amazon Prime members in the US can already browse the virtual clothing racks. However, Prime members who are not invited may request an invitation… and being put on a waiting list, a good way to get the adrenaline pumping.

By offering an exclusive experience, Amazon seeks to attract buyers who are both “upscale” consumers and interested in the speed of shipping of Amazon, as well as mobile access to exclusive products.

A new way for Amazon to work on a more emotional customer journey?

The Amazon Luxury concept

Amazon Luxury
Trade giant Amazon recently unveiled its “Amazon Luxury” offering, a new way for brands to showcase their products to demanding customers on Amazon’s mobile app. First brand to launch: Oscar de la Renta in the upscale ready-to-wear sector.

Amazon’s goal is to enable brands to create a “store in store” experience. The online marketing giant will provide brands with a range of digital tools, such as the ability to display their clothing in 360-degree interactive views. Other marketing tools such as inventory control, prices will also be made available to them.

We are no longer far from the services offered by an Alibaba!

 

The benefits of this partnership between luxury and Amazon

For the first partner, Oscar De La Renta, teaming up with Amazon could help him reach out to younger buyers, such as Gen Z consumers who are more willing to buy high-end products online. With 100 million Prime users, Amazon could also help Oscar De La Renta and other luxury retailers connect to a new consumer market.

Amazon, for its part, is looking to strengthen its credibility in the luxury sector. The company sells a lot of clothing (it is the largest clothing seller in the US), but most of its items are considered ‘fast fashion’. The distribution giant has never managed to attract or retain designer and luxury brands, which have criticized the site’s shopping experience and the dominance of generic brands. Nike, for example, stopped all direct sales via Amazon in 2019, claiming to want “more direct personal relationships” with customers than what Amazon could provide.

It is, therefore, a very important step for Amazon to attract new partners to its platform and to assert itself even more as the global trade giant.

Steps to using Amazon Luxury

Invitation

Registration

In order to maintain the exclusive character, Amazon decided to open its service first by invitation. Amazon Prime customers can now request to join the store from the mobile app.

After a few days, the consumer receives an email giving access to the store via the Amazon mobile app.

When you first use it, you arrive directly on the Amazon Luxury page.

Then, just go to the Amazon mobile app and do a search by categories, to find Amazon Luxury.

Video

Design

Amazon Luxury offers videos on its page with a sleek design, but we do not find the exceptional side of some luxury stores. We’re still on an Amazon site.

You can of course have several angles of view of a single product, and the famous suggestions specific to Amazon.

Marques

Brands

For the moment, only women will be satisfied with the platform, because the brands are only for them: Roland Mouret, Oscar de la Renta, La Perla, Cle de Peau, Altuzarra

Each designer is entitled to his little file to learn more about his work.

The Prada group has just announced the launch of its offer on Amazon Luxury, to offer its shoe brand “Car Shoe”.

According to Amazon, other brands will be added gradually. We can still be surprised by the small number of brands on this catalog, when we know the sales potential that the Amazon platform can bring.

Commande

Choose and order

The ordering process is exactly the same as on a regular Amazon order. You fill up your shopping cart and you go to payment when you finish shopping.

Once again, no big changes for the end user, who finds the same rules as for a classic purchase on Amazon.

To conclude

Amazon now has a luxury store, which remains simple, not intimidating and convenient. These are the features that the brand promotes with Luxury brands:

  • An established customer experience (recommendations, customer comments, 360° view, etc.).
  • Access to specific data: buying behaviour, conversion rates of Prime members who did not buy clothing before etc.
  • Marketing decisions are left to the brand: inventory, selection of items, price management, etc. Brands are free to design their «shop» exactly as they wish without having to conform to a specific look. Luxury brands control the goods to be offered. It seems however that for the moment, brands do not take any risks and prefer to keep a very “Amazonian” design so as not to disturb the customer on an Amazon site.

As the debate about a luxury brand’s ability to remain exclusive, while being available everywhere continues, Amazon is bringing its stone to the building block with its luxury shopping solution.

Is the future of Luxury in “abundant scarcity”?

Bertrand Leseigneur
Retail Innovation Correspondent USA
Based in New York, Bertrand is the Innovation Retail correspondent of the Echangeur in the USA, he decodes the latest American concept stores !!
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