After news about the likely launch of a new food e-retail business, Amazon has decided to extend its fashion vertical for kids. The foreign etailer was not kidding about its desire to invest more in Indian ecommerce to strengthen its foothold here. The online marketplace has already spent money to pressurise competition and develop its logistics and supply chain. Now, it is spending to expand its retail activities.
Big money in the kid’s section
Amazon India is betting big on the kids and toddler section to grow significantly. This section is part of its online fashion category and the move to expand it was inspired by the success it has witnessed so far. This category of fashion has grown 2.5x in the last year. During the Great Indian Festival period as well, the kid’s category was one of the best performing categories with a run-rate that was 6 times higher than on regular days.
The head of Amazon Fashion India, Arun Sirdeshmukh said, “While young population is important, our share of buyers in the mid-30 years bracket is high, who are also likely to be parents. The percentage of these people shopping with us on other verticals is high and this is a natural extension.”
Another reason for the decision to grow this category was the success omnichannel vertical businesses like FirstCry and Hopscotch are experiencing.
The expansion plan
To increase existing shopper interest in its kid’s category, Amazon has partnered with a couple of brands and is launching exclusive products for kids. The subcategories it mainly focuses on are footwear and apparel for children under the age of 0 to 14years. In 2016, over 30 brands were introduced to the Amazon platform under its kid’s apparel and footwear categories. Tommy Hilfiger, Puma kids, Biba, The Children’s Place and French Connection are some of the brands on board. Amazon also maintains a curated character store associated with brands like Disney, Spiderman and Barbie.
A footwear store for toddlers in the age group from 0 to 2 years has also been started. Sirdeshmukh mentioned, “Brands such as British Knight have an exclusive line with us while Bubblegummers from Bata are available only with Amazon India marketplace apart from offline.”
The international ecommerce company has launched private labels in the man’s and women’s fashion category. The small appliances, home décor and kitchen categories also have private labels from Amazon. However, the etailer is not thinking of launching any in the kid’s section. At least not yet.
“We might eventually do that, but we are focused on strengthening the brands in the space. Kids essentials such as diapers are an extension of the private brand play and we do not have plans of entering the space in the immediate future,” Sirdeshmukh stated.
Rival Flipkart is leading in the online fashion business with the acquisition of Myntra and Jabong. But with little tweaks like the above that play according to the consumer’s demand, Amazon could soon catch up with Indian etailer.
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