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Amazon_ Ebay And Google Battle For Growth In The Global Apparel

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Amazon, Ebay And Google Battle For Growth In The Global Apparel
Market
Published on December 2010

                                                                                                              Report Summary


"Amazon and eBay emerged from the dot-com bubble of the late 1990s. As such they could bedescribed as veterans in the world of
online shopping. Today they are both huge concerns and,increasingly, they are focusing on the huge but relatively untapped online
apparel market.The market is being driven partly by technology—as electronics and software continue to develop ata
breathtaking pace—and partly by the growth in online shopping as an increasing number ofconsumers are choosing to buy
goods at leisure from the comfort of their own homes in preferenceto battling with traffic congestion and struggling with crowds in
shopping malls.Both companies have been investing heavily on online shopping. They are developing new tools aimedat capturing
market share while also investing in people—by recruiting fashion teams and designersworldwide, and forming partnerships
with leading brand owners and retailers.


Recent initiatives by Amazon include the launch of its Outdoor Recreation Store and Denim Store, itsacquisitions of Zappos.com and
BuyVIP.com, a refocus on high-end fashion retailing, and the launchof exclusive collections such as Heidi Klum for New Balance.
Recent initiatives by eBay include online“storefronts” in the USA in which retailers such as Brooks Brothers and
Timberland sell excess anddiscounted stock directly to buyers. In addition, eBay has launched a fashion outlet site in the UK,and the
company’s eBay Fashion LookBook has been billed as the first ever “shoppable, shareabledigital style gallery”.
In October 2010 eBay announced that the designer Derek Lam would introducean original collection to be sold exclusively on the site.


For many firms, selling apparel online is a comparatively high risk business. But Amazon and eBayalready have strong market
shares, brand positions and reputations in online retailing worldwide. Itseems likely, therefore, that their respective ventures in the
apparel sector will prove highly successful.Neither company, however, banked on the sudden attention of another potential rival,
Google. To date,Google has generated 97% of its turnover through advertising revenues. Consequently, Google’sdecision to
enter the online apparel market by forming Boutiques.com—which enables consumers torun their own “personalised
boutiques” with the help of celebrity endorsements—represents asignificant new direction for the company and for the
online apparel market in general."




                                                                                                               Table of Content

SUMMARYINTRODUCTIONAMAZONAmazon: recent initiativesLaunch of Denim ShopAcquisition of Zappos.comLaunch of Outdoor
Recreation StoreRelaunch of apparel and footwear business: focus on high-end styleLaunch of Checkout by Amazon
(CBA)Acquisition of BuyVIP.comHeidi Klum for New BalanceSports & Outdoors StoreEBAYeBay fashion: recent initiativesImproved
functionality and ease of navigationiPhone applicationA new head of designeBay Fashion LookBookOriginal collection by designer
Derek LamGOOGLEEmploymentSource of revenuesBoutiques.comOUTLOOKList of tablesTable 1: Amazon: financial performance
2005-09Table 2: eBay: financial performance 2005-09Table 3: Google: financial performance 2005-09




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