Fashion retail: The power of Prime
Whilst community-focused events are integral to the new retail calendar identified in WGSN Analytics’ new white paper, Fashion Retail: A new agenda, at the opposite end of the spectrum, purely commercially-driven events have also found success with today’s consumer.
Events such as Amazon Prime Day and Alibaba’s Singles Day are retailer-owned events that have generated enough hype for other retailers to find value in piggybacking on to, creating a market-wide event. Prime Day is an example of an occasion that is shifting the boundaries of the retail calendar, as competing major retailers have begun to also offer discounting, effectively capitalising on the hype and frenzy fueled by Amazon, so much so, that the new event has been dubbed ‘Black Friday in July’.
With Amazon making increasing efforts within the fashion market, Prime Day frenzy has started to garner attention from clothing retailers, as they seek to capitalise on bargain-hunters, who are actively shopping and maintain their share of the fashion market from the e-commerce giant. Year-on-year, there has been a noticeable rise in markdowns during the Prime Day period.
In the UK, where Amazon’s fashion presence is less prominent in consumer mindset, Prime Day has been an effective way to generate targeted cut-through to the desired audience. Preference levels for the retailer demonstrated a significant lift during the Prime period amongst 16-39 females, seen in the below graph against competitor eBay.
Whilst in the US, with a more prominent fashion presence, Prime Day’s impact on the fashion market is a lot more significant. Large retailers offer competitive discounting, with a proportionately larger number of markdowns demonstrated YOY across the market.
Prime Day’s impact on the wider fashion market is foretelling of Amazon’s potential in the scope of fashion retail. With an intensified fashion proposition and a recent physical presence in Europe, through pop-up stores, retailers need to ensure they are prepared to maintain their customer attrition.
To find out more about the new agenda in fashion retail, download the new white paper from WGSN Analytics.