Amazon is gearing up to make a significant foray into India’s rapidly expanding fashion and lifestyle e-commerce sector. This move sets the stage for a showdown with competitors such as Flipkart, owned by Walmart, Reliance’s Ajio, and SoftBank-backed Meesho.
Key Takeaway
Amazon is set to launch ‘Bazaar,’ a dedicated store for affordable fashion and lifestyle products in India, intensifying the competition in the fast-fashion e-commerce space.
Amazon’s Bazaar: A Game-Changer in the Indian Fashion Market
The e-commerce behemoth is set to introduce a “special store” named Bazaar, which will not impose any “extra charges” on sellers offering unbranded and “trendy” fashion and lifestyle products. The company has communicated to its partners that the products featured in Bazaar will be priced under 600 Indian rupees, approximately $7.2. This move aims to make these products easily accessible to customers through a dedicated store on Amazon.
Bazaar will provide sellers with access to a vast customer base, seamless delivery, and will not levy any referral fee. The company’s focus on fast fashion is evident from its recent job recruitment posts, signaling its commitment to this segment.
Competition and Market Dynamics
The fast-fashion e-commerce space in India has witnessed a surge, with local startups drawing inspiration from global fast-fashion leaders such as Zara, H&M, and Uniqlo. While Flipkart currently leads the category, it faces growing competition from Ambani’s Ajio, which has captured around 30% market share, as per research firm Bernstein.
Ajio’s introduction of Ajio Street, offering a wide array of clothing and accessories starting from as low as 199 Indian rupees ($2.4), has further intensified the competition. Additionally, the partnership between Shein and Reliance, following Shein’s earlier ban in India, is poised to make a comeback, adding another dimension to the market dynamics.
Analysts’ Insights and Amazon’s Strategic Moves
Analysts at Bernstein have noted the evolving landscape, highlighting Ajio’s user acquisition and market share. They also shed light on Myntra’s performance and the overall fragmented nature of the fashion market, both offline and online.
Amazon’s Bazaar initiative is a pivotal step for the company, especially after it ceased several of its operations in India in late 2022. The company’s substantial investment in India, coupled with its strategic focus on e-commerce and cloud services, underscores its long-term commitment to the Indian market.
